The Hartford Completes Fortis Transaction

Company Becomes Third-Largest Writer of Variable Life in U.S.



Apr 02, 2001, 01:00 ET from The Hartford

    HARTFORD, Conn., April 2 /PRNewswire/ -- The Hartford Financial Services
 Group, Inc. (NYSE:   HIG) today announced that it has completed the purchase of
 the individual life insurance, annuity and mutual fund businesses of Fortis,
 Inc. (operating as Fortis Financial Group) for $1.12 billion in cash.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990824/HIGLOGO)
     The acquisition propels The Hartford to the third-largest writer of
 variable life insurance in the U.S., increases the company's mutual fund
 assets under management by more than 30 percent, adds a significant number of
 independent producers to its diversified distribution network and enhances its
 leadership position in variable annuities.
     As of December 31, 2000, Fortis Financial Group had approximately $11
 billion of assets under management, including nearly $4 billion of mutual fund
 assets.
     According to Ramani Ayer, The Hartford's chairman and CEO, The Hartford's
 decision to purchase the Fortis businesses reflects the company's strategy of
 growing its life and asset accumulation businesses to take advantage of
 demographic trends in the U.S.
     The transaction was financed by a combination of debt and equity and is
 expected to be accretive to earnings in 2002.
     The Hartford is one of the nation's largest insurance and financial
 services companies, with 2000 revenues of $14.7 billion.  As of December 31,
 2000, The Hartford had assets of $171.5 billion and shareholders' equity of
 $7.5 billion.  The company is a leading provider of investment products,
 individual life insurance and group benefits; automobile and homeowners
 products; commercial property and casualty insurance; and reinsurance.
     The Hartford's Internet address is www.thehartford.com.
     Certain statements made in this release should be considered forward
 looking information as defined in the Private Securities Litigation Reform Act
 of 1995.  The Hartford cautions investors that any such forward-looking
 statements are not guarantees of future performance, and actual results may
 differ materially.  Investors are directed to consider the risks and
 uncertainties in our business that may affect future performance and that are
 discussed in readily available documents, including the company's annual
 report and other documents filed by The Hartford with the Securities and
 Exchange Commission.  These uncertainties include the possibility of general
 economic and business conditions that are less favorable than anticipated,
 changes in interest rates or the stock markets, stronger than anticipated
 competitive activity, and more frequent or severe natural catastrophes than
 anticipated.
 
 

SOURCE The Hartford
    HARTFORD, Conn., April 2 /PRNewswire/ -- The Hartford Financial Services
 Group, Inc. (NYSE:   HIG) today announced that it has completed the purchase of
 the individual life insurance, annuity and mutual fund businesses of Fortis,
 Inc. (operating as Fortis Financial Group) for $1.12 billion in cash.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990824/HIGLOGO)
     The acquisition propels The Hartford to the third-largest writer of
 variable life insurance in the U.S., increases the company's mutual fund
 assets under management by more than 30 percent, adds a significant number of
 independent producers to its diversified distribution network and enhances its
 leadership position in variable annuities.
     As of December 31, 2000, Fortis Financial Group had approximately $11
 billion of assets under management, including nearly $4 billion of mutual fund
 assets.
     According to Ramani Ayer, The Hartford's chairman and CEO, The Hartford's
 decision to purchase the Fortis businesses reflects the company's strategy of
 growing its life and asset accumulation businesses to take advantage of
 demographic trends in the U.S.
     The transaction was financed by a combination of debt and equity and is
 expected to be accretive to earnings in 2002.
     The Hartford is one of the nation's largest insurance and financial
 services companies, with 2000 revenues of $14.7 billion.  As of December 31,
 2000, The Hartford had assets of $171.5 billion and shareholders' equity of
 $7.5 billion.  The company is a leading provider of investment products,
 individual life insurance and group benefits; automobile and homeowners
 products; commercial property and casualty insurance; and reinsurance.
     The Hartford's Internet address is www.thehartford.com.
     Certain statements made in this release should be considered forward
 looking information as defined in the Private Securities Litigation Reform Act
 of 1995.  The Hartford cautions investors that any such forward-looking
 statements are not guarantees of future performance, and actual results may
 differ materially.  Investors are directed to consider the risks and
 uncertainties in our business that may affect future performance and that are
 discussed in readily available documents, including the company's annual
 report and other documents filed by The Hartford with the Securities and
 Exchange Commission.  These uncertainties include the possibility of general
 economic and business conditions that are less favorable than anticipated,
 changes in interest rates or the stock markets, stronger than anticipated
 competitive activity, and more frequent or severe natural catastrophes than
 anticipated.
 
 SOURCE  The Hartford