Exhibit 99



                                          CONTACTS
                                          Financial Community: James C. Rowan
                                          (860) 722-5180

                                          News Media: Dennis Milewski
                                          (860) 722-5567



                   HSB REDEEMS CONVERTIBLE CAPITAL SECURITIES
                           WITH EMPLOYERS REINSURANCE

HARTFORD,  Conn.,  September 7, 2000 -- HSB Group,  Inc.  (NYSE:  HSB) announced
today that it has signed an agreement with Employers Reinsurance  Corporation (a
subsidiary  of  General  Electric  Capital  Services,  Inc.) to redeem  its $300
million  convertible  capital  securities on or before September 16, 2000, for a
price of $315 million plus accrued interest. This transaction will result in HSB
recording a charge of $15 million to pretax earnings in the third quarter.

HSB and American  International  Group, Inc. (NYSE: AIG) previously announced on
August 18, 2000, that they had signed a definitive  agreement for AIG to acquire
100 percent of the outstanding stock of HSB.

In  connection  with this  acquisition,  AIG will lend $315  million to HSB, the
proceeds of which will be used to redeem the convertible capital securities. The
loan will be a five-year term loan.

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



This news release contains forward-looking  statements within the meaning of the
Private  Securities  Litigation  Reform  Act  of  1995,  that  are  management's
estimates,  assumptions  and  projections  and  are  not  guarantees  of  future
performance.  Forward-looking  statements  involve  known and unknown  risks and
uncertainties.  These and other important factors,  including those mentioned in
various  Securities and Exchange  Commission  filings made  periodically  by the
company,  may cause the  company's  actual  results  and  performance  to differ
materially. Investors and prospective investors should read this news release in
conjunction  with the  company's  most  recent  Form  10-K,  Form 10-Q and other
documents filed with the Securities and Exchange Commission.