Hartford Fire Outlook Neg.

Standard & Poor’s said the outlook for Hartford Fire Insurance Co. and related property/casualty entities remains negative despite the trend toward improved earnings throughout the remainder of 2002. The negative outlook was established after the World Trade Center disaster. It reflects concern about the capital adequacy of the p/c operations, which is currently below expectations.

S&P’s believes the company’s near-term ability to improve the capital adequacy of the p/c operations will be limited by new business strain and the downturn in the equity markets. It was noted that the company has the capacity to improve the capital adequacy of Hartford Fire to a level commensurate with the rating. Accordingly, management has committed to improving capital adequacy to 160 percent, as measured by S&P’s capital adequacy model. The p/c operations remain susceptible to unexpected risks that include but are not limited to asbestos litigation, further deterioration in the global credit markets, and potential catastrophe losses.

Hartford Fire has a financial strength rating of “AA” and is a wholly-owned subsidiary of Hartford Financial Services Group Inc.