Global settlement for Hartford

Hartford Financial Services Group (HFSG) is to pay $1.15bn in the first quarter of 2004, in a global settlement for its exposure to asbestos claims of Mac Arthur Company and its subsidiary, Western MacArthur Company. The agreement will remove Hartford’s single largest asbestos exposure and eliminate any risk of ultimate claims costs from Mac Arthur growing significantly higher than the planned payment, according to ratings agency Fitch. “This settlement aligns with HFSG’s reserving estimates for this risk. Thus, HFSG will not incur any reduction in capital as a result of this settlement,” said Fitch.