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HARTFORD FIRE INTERCOMPANY POOL CLAIMS PAYING ABILITY RATED 'AA+' BY DUFF & PHELPS

 CHICAGO, May 21 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a `AA+' (Double-A-Plus) claims paying ability rating to the Hartford Fire Intercompany Pool (Hartford Fire).
 This very high claims paying ability reflects the group's conservative level of operating leverage, favorable position in several key markets, and a moderate level of financial leverage at the parent holding company (ITT Hartford Group, Inc.). Partially offsetting these positives is a moderate level of upward development in loss reserves, and operating results that have been impacted over the recent historical past from price competition in the commercial markets. In addition to assigning the claims paying ability to the Hartford Fire Intercompany Pool, Duff & Phelps has assigned a `AA-' (Double-A-Minus) rating to the senior debt and a Duff 1+ (Duff-One-Plus) rating to the commercial paper of the ITT Hartford Group, Inc. Also, the preferred stock of the Hartford Fire Insurance Company has been rated `AA' (Double-A).
 Hartford Fire is one of the ten largest property and casualty groups in the United States with net written premium of $4.5 billion during 1992. The lead company in the Hartford Fire Intercompany Pool, Hartford Fire Insurance Company, is wholly owned by the ITT Hartford Group, Inc., which in turn is wholly owned by the ITT Corporation, a publicly owned company. The Hartford Fire Insurance Company is the direct or indirect parent of all the other subsidiaries of the ITT Hartford Group. Included in these subsidiaries are Hartford Life Insurance Company, Hartford Life and Accident Ins. Co., and ITT Life Insurance all with claims paying ability rated `AAA' (Triple-A) by Duff & Phelps Credit Rating Company. At year-end 1992, the ITT Hartford Group had approximately 21,000 employees.
 The ITT Corporation is a diversified multinational enterprise engaged, either directly or through subsidiaries, in manufacturing and selling automotive, components, fluid technology, defense, and forest products, and in providing and selling insurance, financial, communications and information, and hotel services. In addition, the ITT Corporation owns almost 7 percent of the outstanding shares of Alcatel Alsthom, a French company which owns, among other things, Alcatel N.V., the largest telecommunications equipment manufacturer in the world. Insurance is ITT Corporation's largest business segment, with the ITT Hartford Group producing 45.5 percent of the total corporation's revenue during 1992.
 Hartford Fire is one the oldest insurance groups in the United States with a history dating back to 1810. Currently, Hartford Fire is represented by approximately 6,200 independent agents throughout the United States, and has a network of 38 regional offices. The group is licensed in all 50 states and underwrites most lines of business, although commercial lines account for the majority of premium volume.
 During 1992, Hartford Fire had net income of $321.3 million on earned premium of $4.7 billion, compared to net income of $213.3 million on $5.0 billion of earned premium in the previous year. The group's combined ratio increased to 116.1 percent in 1992 up from 111.5 percent in the previous year. Operating leverage, as measured by the ratio of net written premium to policyholders' surplus, was 1.5 to 1 at year-end 1992, down from 1.6 to 1 at the end of the previous year.
 At the end of 1992, the consolidated ITT Hartford Group's capitalization mix was 22.0 percent debt, 6.1 percent redeemable preferred stock, and 71.9 percent common equity. Consolidated GAAP earnings while negative in 1992, ranged between 4.1 and 7.2 times fixed charges before preferred dividends and between 3.1 and 4.9 times fixed charges including preferred dividends over the last five years. Excluding unusual events (the impact of the Cameron and Colby restructuring as well as Hurricanes Andrew and Iniki) consolidated GAAP earnings were 5.2 times fixed charges before preferred dividends and 4.5 times fixed charges including preferred dividends in 1992.
 Members of the Hartford Fire Intercompany Pool and their share of the pool are as follows: Hartford Fire Insurance Company (41.50 percent), Hartford Accident & Indemnity (32.69 percent), Hartford Insurance Company of Illinois (10.10 percent), Hartford Casualty Indemnity Company (6.00 percent), Hartford Underwriters Insurance Company (4.00 percent), Pacific Insurance Company Limited (1.70 percent), Twin City Fire Insurance Company (1.50 percent), Nutmeg Insurance Company (0.70 percent), Trumbull Insurance Company (0.50 percent), Hartford Insurance Company of the Midwest (0.50 percent), Hartford Insurance Company of the Southeast (0.50 percent), Sentinel Insurance Company Limited (0.30 percent), and Hartford Lloyds Insurance Company (0.01 percent).
 -0- 5/21/93
 /CONTACT: Timothy A. Bienek of Duff & Phelps Credit Rating Co., 312-368-3192/
 (ITT)


CO: Hartford Fire Intercompany Pool ST: Connecticut IN: INS SU: RTG

PS -- NY056 -- 1312 05/21/93 16:26 EDT
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Date:May 21, 1993
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