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A.M. BEST COMPANY AFFIRMS "A+" (SUPERIOR) RATING OF ITT HARTFORD INSURANCE GROUP (PROPERTY/CASUALTY)

 A.M. BEST COMPANY AFFIRMS "A+" (SUPERIOR) RATING OF
 ITT HARTFORD INSURANCE GROUP (PROPERTY/CASUALTY)
 OLDWICK, N.J., Nov. 4 /PRNewswire/ -- Effective immediately, A.M. Best Company has affirmed the "A+" (Superior) pooled rating of ITT Hartford Insurance Group (property/casualty), removing the group from Best's under review status. The rating affirmation follows Best's evaluation of several issues associated with the group's reorganization plan, announced Sept. 30, 1992. The rating action applies to the group's 16 property/casualty inter-company pool members, led by the Hartford Fire Insurance Company.
 "A.M. Best views ITT Hartford's reorganization plan as having long-term positive implications, as it should enhance the group's profitability, reduce the volatility of its underlying loss reserves, as well as enable the group to operate at more conservative leverage and liquidity levels relative to its peers," said John H. Snyder, senior vice president of Best's property/casualty division.
 A.M. Best is now sufficiently satisfied that the ITT Hartford reorganization will be completed as planned and will fully comply with the Connecticut Insurance Department's conditions for approval.
 Furthermore, ITT Corporation has committed $680 million of new capital to the group by year-end 1992, comprised of $300 million in cash and $380 million in carrying value of Alcatel Alsthom common stock. The valuation of the Alcatel stock represents an approximate 30 percent discount from its current market value. The NAIC Securities Valuation Office has approved the use of a 30 percent discount factor to be applied to the market value of Alcatel stock for purposes of determining its carrying value on ITT Hartford's financial statements.
 A.M. Best had placed the group's rating under review on October 1 pending further evaluation of several key issues associated with the group's announced reorganization. As part of the reorganization, ownership of the Cameron and Colby Group was transferred from ITT Hartford to ITT Corporation (the parent of ITT Hartford). Cameron and Colby's business will be placed in run-off at the end of this year. Although Hartford Fire Insurance Company is funding additional reserves for the Cameron and Colby business, the company expects to maintain ITT Hartford Group's 1992 surplus at the 1991 level of approximately $3.1 billion through ITT Corporation's $680 million contribution.
 -0- 11/4/92
 /CONTACT: Christina Stein of A.M. Best Company, 908-439-2200, ext. 5642/
 (ITT) CO: ITT Hartford Insurance Group ST: New York IN: INS SU: RTG


TS -- NY060 -- 2581 11/04/92 14:30 EST
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Publication:PR Newswire
Date:Nov 4, 1992
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