-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Qn3YPNeeyqe3TNXy0Sxvl7W6InJeRjuwsTh9qUZUN5wJsVNHhIC9fFHoQVMlXtxr mv6Kp3kz4q8ks4PzEonjzQ== 0000310823-96-000019.txt : 19960816 0000310823-96-000019.hdr.sgml : 19960816 ACCESSION NUMBER: 0000310823-96-000019 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960814 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD STEAM BOILER INSPECTION & INSURANCE CO CENTRAL INDEX KEY: 0000310823 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 060384680 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-10527 FILM NUMBER: 96612276 BUSINESS ADDRESS: STREET 1: ONE STATE ST CITY: HARTFORD STATE: CT ZIP: 06102 BUSINESS PHONE: 2037221866 MAIL ADDRESS: STREET 1: ONE STATE STREET STREET 2: P.O. BOX 5024 CITY: HARTFORD STATE: CT ZIP: 06102-5024 10-Q 1 10-Q DOCUMENT SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q /x/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-13300 THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY (Exact name of registrant as specified in its charter) CONNECTICUT 06-0384680 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) P.O. BOX 5024, ONE STATE STREET, HARTFORD, CONNECTICUT 06102-5024 (Address of principal executive offices) (Zip Code) (860) 722-1866 (Registrant's telephone number, including area code) Not Applicable (Former name, former address and former fiscal year, if changed since the last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No The number of shares outstanding of the registrant's common stock without par value, as of June 30, 1996: 20,118,489. THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY INDEX PART I FINANCIAL INFORMATION PAGE Consolidated Statements of Operations for the Quarters and Six Months Ended June 30, 1996 and 1995 (unaudited).............................................. Consolidated Statements of Financial Position as of June 30, 1996 (unaudited) and December 31, 1995.............................................................. Consolidated Statements of Cash Flows for the Six Months Ended June 30, 1996 and 1995 (unaudited)....................................................... Notes to Consolidated Financial Statements........................ Management's Discussion and Analysis of Consolidated Financial Condition and Results of Operations..................................................... PART II OTHER INFORMATION Item 4 - Submission of Matters to a Vote of Security Holders...... Item 6 - Exhibits and Reports on Form 8-K......................... SIGNATURES.......................................................... THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY Consolidated Statements of Operations Unaudited (In millions, except per share data) Quarter Six Months Ended June 30 Ended June 30 1996 1995 1996 1995 Revenues: Insurance premiums $ 112.9 $ 98.1 $ 221.3 $ 191.7 Net engineering services 14.1 63.4 26.8 124.4 Net investment income 7.9 7.2 15.9 14.0 Realized investment gains 5.1 1.2 6.0 1.5 ---------- ---------- --------- --------- Total revenues 140.0 169.9 270.0 331.6 ---------- ---------- --------- --------- Expenses: Claims and adjustment 56.0 39.4 100.9 76.8 Policy acquisition 21.9 19.4 42.5 38.2 Underwriting and inspection 34.4 31.1 68.1 60.8 Net engineering services 12.3 57.4 23.6 112.7 Interest 0.2 0.2 0.9 0.8 ---------- ---------- --------- --------- Total expenses 124.8 147.5 236.0 289.3 ---------- ---------- --------- --------- Equity in Radian International LLC 2.5 - 7.4 - ---------- ---------- --------- --------- Income before taxes 17.7 22.4 41.4 42.3 Income taxes: Current 6.1 7.9 13.2 13.1 Deferred (1.8) (1.2) (2.2) (0.5) ---------- ---------- --------- --------- Total income taxes 4.3 6.7 11.0 12.6 Net income $ 13.4 $ 15.7 $ 30.4 $ 29.7 ========== ========== ========= ========= Net income per share: $ 0.66 $ 0.77 $ 1.49 $ 1.45 ========== ========== ========= ========= Dividends declared per share $ 0.57 $ 0.55 $ 1.14 $ 1.10 Based on average shares 20.3 20.4 20.3 20.4
See Notes to Consolidated Financial Statements. THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY Consolidated Statements of Financial Position (In millions, except per share data) June 30, December 31, 1996 1995 (Unaudited) --------- ----------- Assets: Cash $ 15.8 $ 9.3 Short-term investments, at cost 73.2 73.8 Fixed maturities, at fair value (cost - $228.6; $247.6) 227.9 255.3 Equity securities, at fair value (cost - $170.2; $155.0) 236.2 215.4 ---------- ----------- Total cash and invested assets 553.1 553.8 Insurance premiums receivable 116.7 87.2 Engineering services receivable 10.6 68.8 Fixed assets 38.1 62.3 Prepaid acquisition costs 40.3 34.1 Capital lease 16.4 16.8 Equity in Radian International LLC 73.4 - Reinsurance recoverable 80.6 47.9 Other assets 96.4 100.6 ---------- ----------- Total assets $ 1,025.6 $ 971.5 ========== =========== Liabilities: Unearned insurance premiums $ 260.3 $ 216.2 Claims and adjustment expenses 236.7 190.9 Short-term borrowings 3.1 13.4 Long-term borrowings 25.6 25.6 Capital lease 27.8 27.8 Deferred income taxes 19.1 18.9 Dividends payable 11.5 11.6 Minority Interest 20.0 20.0 Other liabilities 77.8 106.0 ---------- ----------- Total liabilities 681.9 630.4 ---------- ----------- Shareholders' equity: Common Stock (stated value; shares authorized 50.0; shares issued 21.3; shares outstanding 20.2; 20.3) 10.0 10.0 Additional paid-in capital 34.1 33.9 Unrealized investment gains, net of tax 41.9 43.9 Retained earnings 312.4 305.1 Treasury stock, at cost; (shares 1.1; 1.0) (50.2) (47.7) Benefit plans (4.5) (4.1) ---------- ----------- Total shareholders' equity 343.7 341.1 ---------- ----------- Total liabilities and shareholders' equity $ 1,025.6 $ 971.5 ========== =========== Shareholders' equity per share $16.98 $16.81
See Notes to Consolidated Financial Statements. THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY Consolidated Statements of Cash Flows Unaudited (In Millions) Six Months Ended June 30, 1996 1995 ---------- ---------- Operating Activities: Net income $ 30.4 $ 29.7 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 7.0 10.2 Deferred income taxes (2.2) (0.5) Realized investment gains (6.0) (1.5) Change in: Insurance premiums receivable (29.5) (6.6) Engineering services receivable (1.5) (0.6) Prepaid acquisition costs (6.2) 2.7 Reinsurance recoverable (32.7) 6.0 Unearned insurance premiums 44.1 5.6 Claims and adjustment expenses 45.8 (14.6) Equity in Radian International LLC (5.3) - Other (7.8) 1.9 ---------- ---------- Cash provided by operating activities 36.1 32.3 ---------- ---------- Investing Activities: Fixed asset additions (3.9) (6.2) Investments: Sale (purchase) of short-term investments, net 0.5 (14.3) Purchase of fixed maturities (54.3) (98.9) Proceeds from sale of fixed maturities 71.6 72.9 Redemption of fixed maturities 3.3 5.7 Purchase of equity securities (66.7) (56.2) Proceeds from sale of equity securities 57.3 78.8 Cash transferred to equity in Radian Int'l LLC (0.8) - ---------- ---------- Cash provided by (used in) investment activities 7.0 (18.2) ---------- ---------- Financing Activities: Increase (decrease) in short-term borrowings (10.3) (14.7) Increase in long-term debt - 25.0 Dividends paid to shareholders (23.1) (22.6) Repayment of employee stock ownership plan debt - (1.0) Purchase of treasury stock (2.5) (2.0) ---------- ---------- Cash used in financing activities (35.9) (15.3) ---------- ---------- Net increase (decrease) in cash 7.2 (1.2) Cash at beginning of period 8.6 12.1 ---------- ---------- Cash at end of period $ 15.8 $ 10.9 ========== ========== Interest paid $ 1.1 $ 2.6 ---------- ---------- Federal income tax paid $ 8.8 $ 6.4 ---------- ----------
See Notes to Consolidated Financial Statements. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. General The interim financial statements in this report include adjustments based on management's best estimates and judgments, including estimates of future loss payments, which are necessary to present a fair statement of the results for the interim periods reported. These adjustments are of a normal, recurring nature. The financial statements are prepared on the basis of generally accepted accounting principles and should be read in conjunction with the financial statements and related notes in the 1995 Annual Report. 2. Radian International LLC Effective January 16, 1996, HSB and The Dow Chemical Company (Dow) formed a new company, Radian International LLC (Limited Liability Company), which provides environmental, information technology, and strategic chemical management services to industries and government worldwide. The new company, consisting of assets contributed by Dow's subsidiary, Dow Environmental Inc. (DEI) and HSB's subsidiary, Radian Corporation, is headquartered in Austin, TX. According to the terms of the agreement, the ownership of Radian International LLC is initially 60 percent Dow and 40 percent HSB, via the wholly owned subsidiaries of each company. Income to HSB will be subject to a preference return in the first two years. As is customary in joint ventures, the agreements between HSB and Dow provide various alternatives for either party to dissolve the business, distribute assets and liabilities, or sell their interests subject to certain rights of first refusal. In 1996, HSB's interest in Radian International LLC is accounted for in the consolidated financial statements under the equity method of accounting. In 1995, the results of Radian Corporation were fully consolidated. 3. Industrial Risk Insurers Effective December 1, 1995 the Company increased its participation in Industrial Risk Insurers (IRI) from approximately 0.5 percent to 14 percent. IRI is a voluntary joint underwriting association providing property insurance for the class of business known as Highly Protected Risks - larger manufacturing, processing, and industrial businesses which have invested in protection against loss through the use of sprinklers and other means. IRI has a fiscal year ending November 30 and provides quarterly reports to member companies of the organization. As a result HSB's increased participation is reflected in the 1996 results. The additional participation increased revenue and expenses for 1996 as well as several balance sheet accounts. MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS JUNE 30, 1996 RESULTS OF OPERATIONS (dollar amounts in millions) Consolidated Overview Quarter Ended Six Months Ended June 30 June 30 1996 1995 1996 1995 ------ ------ ------ ------ Insurance premium $ 112.9 $ 98.1 $ 221.3 $ 191.7 Net engineering services revenues 14.1 63.4 26.8 124.4 Net investment income 7.9 7.2 15.9 14.0 Realized investment gains 5.1 1.2 6.0 1.5 ------ ------ ------ ------ Total revenues $ 140.0 $169.9 $ 270.0 $ 331.6 ====== ====== ====== ====== Equity in Radian International LLC $ 2.5 $ - $ 7.4 $ - ====== ====== ====== ====== Net income $ 13.4 $ 15.7 $ 30.4 $ 29.7 ====== ====== ====== ====== Net income per share $ 0.66 $ 0.77 $ 1.49 $ 1.45 ====== ====== ====== ======
Net income for the second quarter of 1996 decreased 15 percent from the second quarter of 1995 and increased 2 percent for the first six months of 1996 compared to 1995. Second quarter results were negatively impacted by adverse loss experience from unusually severe winter weather and lower earnings from HSB's Radian International LLC joint venture. Insurance premiums grew 15 percent for both the second quarter and the first six months of 1996, with the increased participation in IRI the largest contributing factor. The second quarter combined ratio increased from 91.2 percent in 1995 to 99.0 percent in 1996; while the first six months combined ratio increased from 91.2 percent in 1995 to 95.1 percent. Engineering services profit, including the equity in Radian International LLC, decreased 28 percent for the second quarter and 9 percent for the first six months. Exclusive of the Radian impact, engineering services revenue increased 6 percent from the second quarter last year and 8 percent over the first six months last year. Consolidated revenues in the second quarter of 1995 include $50.1 million of revenue from Radian Corporation; Radian International LLC is reported using the equity method of accounting. Under this method, the detailed revenues and expenses and assets and liabilities of Radian International LLC are not presented in the 1996 financial statements. The first six months of 1995 include $99.7 million of revenue from Radian Corporation. Exclusive of Radian Corporation, consolidated revenues increased 17 percent and 16 percent for the second quarter and first six months of 1996, respectively, from comparable periods in 1995. The effective tax rate for the second quarter and first six months was 24 percent and 27 percent, respectively, compared to 30 percent for the comparable prior year periods. Tax rate fluctuations occur as underwriting results change the mix of pretax income between fully taxable earnings and tax preferred investment income. The Company continues to manage its use of tax advantageous investments to maximize after tax earnings. The additional participation in IRI increased revenue for the quarter by $10.0 million and year to date $19.7 million. The additional participation also impacted the balance sheet at June 30,1996. The major balance sheet increases from December 31, 1995 related to IRI included insurance premiums receivable ($14.8 million), unearned insurance premiums ($35.1 million), claims and adjustment expenses ($30.1 million) and reinsurance recoverable ($19.6 million). With Radian International LLC being accounted for on the equity basis of accounting in 1996, certain balance sheet accounts at June 30, 1996 have been reduced. The major changes from December 31,1995 included reductions to engineering services receivable ($59.7 million), fixed assets ($22.6 million), other assets ($23.0 million) and other liabilities ($22.0 million). Recent Accounting Developments In October 1995, the Financial Accounting Standards Board (the Board) issued Statement of Financial Accounting Standards No. 123 (SFAS 123) "Accounting for Stock-Based Compensation" effective for fiscal years beginning after December 15, 1995. SFAS 123 allows entities to adopt the fair value based method of accounting for stock compensation or continue under the current accounting practice. Entities electing to remain with the current accounting practice must make pro forma disclosures of net income and earnings per share as if the fair value based method of accounting in this Statement had been applied. The Company expects to make pro forma disclosure of awards granted in 1995 and future years and has not yet settled on a method of valuation. Insurance Operations Insurance operations include the insurance results of The Hartford Steam Boiler Inspection and Insurance Company and EIG, Co., and its wholly owned subsidiaries, HSB Engineering Insurance Limited, and The Boiler Inspection and Insurance Company of Canada (BI&I). Quarter Ended Six Months Ended June 30 June 30 1996 1995 1996 1995 ------ ------ ------ ------ Gross earned premium $ 137.7 $ 114.3 $ 271.4 $ 223.9 Ceded premium 24.8 16.2 50.1 32.2 ------ ------ ------ ------ Insurance premium 112.9 98.1 221.3 191.7 Claims and adjustment expenses 56.0 39.4 100.9 76.8 Underwriting, acquisition and other expenses 56.3 50.5 110.6 99.0 ------ ------ ------ ------ Underwriting gain $ 0.6 $ 8.2 $ 9.8 $ 15.9 ====== ====== ====== ======
Gross earned premiums in the second quarter and year to date 1996 increased 21 percent from comparable periods in 1995. This increase was primarily attributable to the increased participation in IRI ($18.8 million for the second quarter and $37.9 million year to date) and to growth in the global markets. Gross earned premiums representing coverage outside the U.S. increased 4 percent in the second quarter and 8 percent year to date 1996 compared to prior year periods. Increases in reinsurance ceded costs of 53 percent in the current quarter and 56 percent year to date were primarily due to the additional participation in IRI. The loss ratio increased from 40.2 percent in the second quarter of 1995 to 49.5 percent in the current quarter, and from 40.1 percent for the first six months of 1995 to 45.6 percent for 1996 year to date primarily due to higher frequency of claims and unusually severe winter weather. Claims and adjustment expenses increased 42 percent in the current quarter and 31 percent year to date compared to the same periods in 1995 with the increased share in IRI accounting for the majority of the additional expense. Gross claims and adjustment expenses for the second quarter 1996 and 1995 were $76.4 million and $40.6 million, respectively. This compares to 1996 and 1995 six month gross claims and adjustment expenses of $135.3 million and $85.9 million, respectively. IRI accounted for gross claims and adjustment expenses of $14.4 million for the second quarter of 1996 and $31.7 million year to date 1996. Underwriting, acquisition and other expenses increased approximately 11 percent in the current quarter and 12 percent year to date compared to the same 1995 periods. The increase was primarily due to increased participation in IRI and additional expenses related to growth in the global sector. The components of the combined ratio, were as follows: Quarter Ended Six Months Ended June 30 June 30 1996 1995 1996 1995 ----- ----- ----- ----- Loss ratio 49.5% 40.2% 45.6% 40.1% Expense ratio 49.5% 51.0% 49.5% 51.1% ----- ----- ----- ----- Combined ratio 99.0% 91.2% 95.1% 91.2% ===== ===== ===== =====
Engineering Services Operations Quarter Ended Six Months Ended June 30 June 30 1996 1995 1996 1995 ----- ----- ----- ----- Net engineering services revenue $ 14.1 $ 63.4 $ 26.8 $ 124.4 Net engineering services expenses 12.3 57.4 23.6 112.7 ----- ----- ----- ----- Operating gain $ 1.8 $ 6.0 $ 3.2 $ 11.7 ===== ===== ===== ===== Net margin 12.6% 9.5% 12.0% 9.4%
Engineering services operations include the results of HSB's and BI&I's engineering services, HSB Reliability Technologies (HSBRT) and the Company's other engineering services subsidiaries. The 1995 results include Radian on a fully consolidated basis. The 1996 engineering services results do not include Radian as HSB's share of the newly formed joint venture results were recorded as Equity in Radian International LLC rather than in net engineering services revenue and other income statement accounts. Net engineering services revenues decreased $49.3 million in the second quarter and $97.6 million year to date compared to the same periods in 1995 due to the change in presentation of Radian International LLC in 1996. Exclusive of Radian, engineering services revenue increased approximately 6 percent in the current quarter over the second quarter 1995 and 8 percent for the first six months of 1996 over the same period for 1995. The growth in revenues was primarily due to increases generated by HSBRT as their revenues were 22 percent higher in the second quarter of 1996 and 27 percent year to date over the same periods in 1995. The consolidated engineering services operating gain decreased $4.2 million in the current quarter from the second quarter of 1995 and $8.5 million for the first six months of 1996 from the same period in 1995. Again, this was caused by the Radian International LLC transaction which resulted in a separate presentation of Radian's results in 1996. Radian International LLC results for the second quarter of 1996 decreased $1.3 million from the second quarter of 1995 and for the first six months of 1996 decreased $0.9 million from the same period in 1995. Radian's results suffered in the second quarter during the pendency of the sale of its EPA business. That sale was completed in June. Investment Operations Quarter Ended Six Months Ended June 30 June 30 1996 1995 1996 1995 ----- ----- ----- ----- Net investment income $ 7.9 $ 7.2 $ 15.9 $ 14.0 Realized investment gains 5.1 1.2 6.0 1.5 ----- ----- ----- ----- Pretax income from investment operations $ 13.0 $ 8.4 $ 21.9 $ 15.5 ===== ===== ===== =====
Net investment income increased 10 percent for the second quarter and 14 percent year to date compared to the same periods in 1995. The increase was primarily due to an increased level of investable assets. Invested assets growth was due to significant cash flow from operations during 1995 and earnings on the receivable generated from the portfolio transfer of IRI. Investment income in the global market also increased in the current quarter over the second quarter of 1995 as these operations have shown significant growth over the past year. The Company's investment strategy continues to be to maximize total return on the investment portfolio through investment income and capital appreciation. The investment portfolio includes a wide variety of high quality equity securities and both domestic and foreign fixed maturities. The Company continues to manage its use of tax advantageous investments to maximize after tax investment earnings. Realized investment gains changed significantly over the prior year as the Company managed its portfolio to respond to changing market conditions and tax planning opportunities. Liquidity and Capital Resources Balances at June 30 December 31 1996 1995 ------- ------- Total assets $1025.6 $ 971.5 Short-term investments 73.2 73.8 Cash 15.8 9.3 Short-term borrowings 3.1 13.4 Shareholder's equity 343.7 341.1 Liquidity refers to the Company's ability to generate sufficient funds to meet the cash requirements of its business operations. The Company receives a regular inflow of cash from maturing investments and engineering services and insurance operations. The mix of the investment portfolio is managed to respond to expected claim pay-out patterns. The Company also maintains a highly liquid short-term portfolio to provide for immediate cash needs. Cash provided from operations was $36.1 million in the first six months of 1996 compared to $32.3 million in the first six months of 1995. The increase from 1995 was due to increased cash flow from insurance operations offset by higher taxes paid. Insurance operations cash flow increased as premiums collected were up 6 percent year to date compared to the same period in 1995 and claims paid increased 12 percent. The additional participation in IRI impacted components of the Consolidated statement of cash flows for 1996, including a year to date impact of $14.4 million to cash provided from operations. The Radian International LLC transaction had minimal impact on cash flow from operations in the first half of 1996. Capital resources consist of shareholders' equity and debt outstanding and represent those funds deployed or available to be deployed to support business operations. Shareholders' equity of $343.7 million at June 30, 1996 increased by $2.6 million since December 31, 1995. The increase reflects net income of $30.4 million for the first six months, offset by a decrease in unrealized gains, net of tax, of $2.0 million, dividends of $23.1 million and treasury stock purchase of $2.5 million. At June 30, 1996, the Company had significant short-term and long-term borrowing capacity. The Company is currently authorized to issue up to $75 million of commercial paper. Commercial paper outstanding at June 30, 1996 and December 31, 1995 was $3 million. The Company is involved in certain arbitration or litigation proceedings regarding significant loss events that occurred in the late 1980's and early 1990's. Although the Company has denied coverage and believes it has no liability under the policy terms, ultimate responsibility for these losses will be determined through the arbitration or legal system. While the timing of the resolution of these cases is unclear, management is of the opinion that the outcome will not have a material effect on the results of operations or the financial position of the Company due to reinsurance contracts in place for those years. PART II - OTHER INFORMATION Item 4 - Submission of Matters to a Vote of Security Holders. (a) The Registrant's 1996 Annual Meeting of Stockholders was held on April 16, 1996. (b) Proxies were solicited by Registrant's management pursuant to Regulation 14A under the Securities Exchange Act of 1934; there was no solicitation in opposition to management's nominees as listed in the proxy statement; and all of such nominees were elected for a three-year term. (c) The following matters were voted upon at the Annual Meeting with the voting results indicated. 1. Election of Directors. Nominee Votes For Withheld ------------------------------------------------------- Joel B. Alvord 17,606,656 392,762 Richard G. Dooley 17,847,327 152,091 Gordon W. Kreh 17,870,253 129,165 Lois Dickson Rice 17,834,129 165,289 2. Appointment of Coopers & Lybrand as Independent Public Accountants Votes for Against Abstain ------------------------------------------ 17,825,830 95,950 77,638 3. Stockholder Proposal to Eliminate Classified Board Votes for Against Abstain No Vote -------------------------------------------------------------- 6,128,413 9,325,973 388,987 2,156,045 The total number of shares of the Registrant's Common Stock outstanding on February 6, 1996, the record date, was 20,288,661. Item 6 - Exhibits and Reports on Form 8-K (a) Exhibits - Exhibit 27, Financial Data Schedule. (b) Reports on Form 8-K--Form 8-K filed on May 6, 1996 to announce the resignation of Donald M. Carlton as executive vice president and a director of the Registrant; Form 8-K filed on July 22, 1996 to announce the election of Richard H. Booth as a director of the Registrant. SIGNATURES 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. THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE COMPANY Date: August 13, 1996 By: /s/ Saul L. Basch Saul L. Basch Senior Vice President, Treasurer and Chief Financial Officer Date: August 13, 1996 By: /s/ Robert C. Walker Robert C. Walker Senior Vice President and General Counsel
EX-27 2
7 This schedule contains summary financial information extracted from the financial statements filed herewith and is qualified in its entirety by reference to such financial statements. 1000000 6-MOS DEC-31-1996 JUN-30-1996 217 0 0 236 11 0 537 16 81 40 1026 237 260 0 0 29 0 0 10 334 1026 113 8 5 14 56 22 47 18 4 14 0 0 0 14 .66 0 0 0 0 0 0 0 0
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