8-K

                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                                    FORM 8-K

                                 CURRENT REPORT


     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

        Date of Report (Date of earliest event reported) - May 15, 1998

                                 HSB GROUP, INC.
             (Exact name of registrant as specified in its charter)

              Connecticut             001-13135        06-1475343
        (State   or  other           (Commission     (IRS Employer 
  jurisdiction  of  incorporation)   File Number)   Identification No.)

               One State Street, Hartford, Connecticut 06102-5024
               (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code - (860-722-1866)







Item 5.  Other Events

On May 15, 1998, HSB Group Inc. (the Company) issued a press release  announcing
the signing of a letter of intent for The Hartford  Steam Boiler  Inspection and
Insurance  Company,  the  Company's  subsidiary,  to  acquire  Kemper  Insurance
Companies'  monoline  boiler and machinery  business and to reinsure  boiler and
machinery  coverage  written as part of Kemper's  commercial  package  policies.
Included  herewith as Exhibit 99 is the Company's  press release related to this
announcement and such information is incorporated herein by reference.

Item 7.  Exhibits.

99. The Company's press release dated May 15, 1998.



























                                         -2-





     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
     Registrant  has duly  caused  this report to be signed on its behalf by the
     undersigned, thereunto duly authorized.


                                                HSB GROUP, INC.



     Dated:  May 18, 1998                      /s/ R. Kevin Price
                                               R. Kevin Price
                                               Senior Vice President and 
                                               Corporate Secretary



























                                          -3-

EX-99

 
                                                                      Exhibit 99

                                                                 MEDIA CONTACTS:
                                         For HSB: Dennis Milewski (860) 722-5567
                                     For Kemper: Patrick J. Gould (847) 320-3422

FOR IMMEDIATE RELEASE


KEMPER  INSURANCE  AND  HARTFORD  STEAM  BOILER AGREE IN PRINCIPLE TO BOILER AND
MACHINERY ARRANGEMENT

HARTFORD, Conn., and LONG GROVE, Ill., May 15, 1998 -- The Hartford Steam Boiler
Inspection and Insurance Company (HSB) and Kemper Insurance  Companies announced
today  that they have  signed a letter of  intent  for HSB to  acquire  Kemper's
monoline  boiler and  machinery  business and to reinsure  boiler and  machinery
coverage  written as part of  Kemper's  commercial  package  policies.  In 1997,
Kemper reported equipment breakdown premiums of $79.4 million. It is anticipated
the  arrangement  will be effective on or about July 1, 1998. The purchase price
was not disclosed.

Under the anticipated arrangements, HSB will assume responsibility for providing
jurisdictional  inspections,  loss  prevention  and claim  services  to Kemper's
boiler and machinery insureds.

In addition, HSB will purchase Kemper's ASME inspection service business.  This
fee-based  engineering  service  certifies that boilers and pressure vessels are
manufactured in compliance  with codes and standards of the American  Society of
Mechanical  Engineers.  Kemper  reported  receiving  $7.5 million in engineering
service fees for such inspections in 1997.
  
HSB  anticipates  offering  employment to the Kemper  employees  who  underwrite
equipment  breakdown  business or provide related loss prevention and inspection
service.

"We  selected  Hartford  Steam  Boiler as a partner to assure  that our  agents,
brokers  and  customers  continue to receive  superb  coverage  and  engineering
service,"  said David Mathis,  chairman and chief  executive  officer at Kemper.
"This partnership will provide Kemper an attractive way to continue offering our
valued producers and customers equipment breakdown coverage in existing, as well
as, newly designed commercial package policies."

"Kemper  is a  first-class  organization  with  a  reputation  for  quality  and
creativity,  their skills and resources  complement  our own," said Gordon Kreh,
president  and chief  executive  officer of HSB. "We are committed to continuing
the tradition of excellence  which has  characterized  Kemper's  client  service
capabilities."

HSB and Kemper  expect to execute a  definitive  agreement by the end of May and
consummate  the  transaction  one month later.  The agreement will be subject to
customary closing conditions including regulatory approval.

HSB Group,  Inc.  (NYSE:HSB)  is a global  provider of  insurance  products  and
engineering  management consulting services.  HSB Group is the parent company of
The Hartford Steam Boiler Inspection and Insurance  Company,  founded in 1866 to
provide loss  prevention  service and insurance to  businesses,  industries  and
institutions.

Kemper Insurance  Companies,  with 1997 revenues of $4.4 billion, has operations
in property-casualty insurance,  reinsurance, and risk management services. With
9,500 employees,  it operates  countrywide and in many foreign markets. For more
information about Kemper, visit its website at www.kemperinsurance.com.