8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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): June 15, 2006

The Hartford Financial Services Group, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)

Delaware	001-13958	13-3317783
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
Hartford Plaza, Hartford, Connecticut		06115-1900
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 860-547-5000

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

On June 15, 2006, The Hartford Financial Services Group, Inc. (the "Company") issued a press release announcing that it had entered into an agreement with Equitas and all Lloyd’s syndicates reinsured by Equitas that resolves, with minor exception, all of the Company’s ceded and assumed domestic reinsurance exposures with Equitas, including the Company’s reinsurance recoveries from Equitas under the Company’s Blanket Casualty Treaty (the "Equitas Settlement"). A copy of the press release is attached hereto as Exhibit 99.l and is incorporated herein by reference.

The Company is filing this Current Report on Form 8-K to provide supplemental information relating to the Equitas Settlement and the Company’s second quarter reserve studies described in the press release.

In conducting the evaluation of its reinsurance recoverables and its allowance for uncollectible reinsurance, the Company used its most recent detailed evaluations of ceded liabilities reported in th e Other Operations segment, including its estimate of future claims, the reinsurance arrangements in place and the years of potential reinsurance available. The Company also analyzed the overall credit quality of the Company’s reinsurers, recent trends in arbitration and litigation outcomes in disputes between cedants and reinsurers, and recent developments in commutation activity between reinsurers and cedants. The Company also considered the effect of the Equitas Settlement on the collectibility of amounts due from other upper-layer reinsurers under the Blanket Casualty Treaty. The estimated allowance for uncollectible reinsurance reflects management’s current estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay, and contemplates recoveries under ceded reinsurance contracts and settlements of disputes that could be different from the ceded liabilities.

The Company currently expects to perform its regular comprehensive review of Other Operations reinsurance recoverables at least annually. Uncertainties regarding the factors that affect the allowance for uncollectible reinsurance could cause the Company to change its estimates, and the effect of these changes could be material to the Company’s consolidated results of operations or cash flows.

During the second quarter of 2006, the Company also completed an asbestos reserve evaluation. As part of this evaluation, the Company reviewed all of its open direct domestic insurance accounts exposed to asbestos liability as well as assumed reinsurance accounts and certain closed accounts. The Company also examined its London Market exposures for both direct insurance and assumed reinsurance. The evaluation did not indicate any additions to the overall required asbestos reserves. The Company currently expects to continue to perform an evaluation of its asbestos liabilities annually.

After giving effect to the Equitas Settlement, the Company&# x2019;s recorded gross reinsurance recoveries of asbestos and pollution losses under the Blanket Casualty Treaty as of June 30, 2006 will be approximately $188 million. The Company’s second quarter evaluation of its reinsurance recoverables associated with older, long-term casualty liabilities reported in the Other Operations took into account the effect of the Equitas Settlement on the collectibility of amounts due from other upper-layer reinsurers under the Blanket Casualty Treaty. The Company estimates that the allowance for all uncollectible reinsurance recoverables in the Other Operations segment as of June 30, 2006 will be between $320 million and $340 million.

Item 9.01 Financial Statements and Exhibits.

Exhibit No.

99.1 Press Release of The Hartford Financial Services Group, Inc., dated June 15, 2006

As provided in General Instruction B.2 of Form 8-K, the information contained in this Form 8-K shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

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 hereunto duly authorized.

	The Hartford Financial Services Group, Inc.
June 15, 2006	By:	/s/ Neal S. Wolin
		Name: Neal S. Wolin
		Title: Executive Vice President and General Counsel

Exhibit Index

Exhibit No.	Description
99	Press Release

EX-99

FINAL

Date: For Release: Contact(s):	June 15, 2006 Upon receipt Media Relations	Investor Relations
	Joshua King 860-547-2293 joshua.king@thehartford.com	Kim Johnson 860-547-6781 kimberly.johnson@thehartford.com
	Shannon Lapierre 860-547-5624 shannon.lapierre@thehartford.com	Greg Schroeter 860-547-9140 gregory.schroeter@thehartford.com

The Hartford Announces Agreement with Equitas

Company also reports results from asbestos and other reserve studies

HARTFORD, Conn. – The Hartford Financial Services Group, Inc. (NYSE: HIG) today announced it has entered into an agreement with Equitas and all Lloyd’s syndicates reinsured by Equitas that resolves, with minor exception, all of the company’s ceded and assumed domestic reinsurance exposures with Equitas, including the company’s reinsurance recoveries from Equitas under the company’s Blanket Casualty Treaty. The terms of the settlement were not disclosed.

“This agreement is a significant step in our efforts to remove volatility from our ceded and assumed reinsurance portfolio,” said Neal S. Wolin, executive vice president and general counsel of The Hartford. “The settlement eliminates uncertainty from our domestic assumed reinsurance book with Equitas. It also resolves our single largest reinsurance recoverable, bringing years of litigation with Equitas to a close.”

The Blanket Casualty Treaty, which was the focus of the litigation, is a multi-layered reinsurance program that provided for excess-of-loss coverage for The Hartford in various amounts from the 1930s through the 1980s. The upper layers of the treaty were first put in place in 1950, primarily with London Market reinsurers, including Lloyd’s syndicates. The Blanket Casualty Treaty litigation continues with the other upper-layer reinsurers under the treaty.

During the second quarter, The Hartford also completed three comprehensive reserve reviews on business reported in the Property and Casualty Other Operations segment. First, the company reviewed all reinsurance recoverables and the allowance for uncollectible reinsurance. Based on this study and the agreement with Equitas, the company will record a charge of $243 million pre-tax, or $158 million after-tax, in the second quarter.

Second, the annual, ground-up asbestos review resulted in no addition to the company’s asbestos reserves. Finally, the company also completed its review of reserves related to HartRe’s assumed reinsurance business, which is in runoff. This study resulted in no material impact to the company’s earnings.

Including these matters, The Hartford currently expects a second quarter 2006 pre-tax underwriting loss in its Other Operations segment of $268 million. The company’s most recent guidance for 2006 core earnings per diluted share, as provided on April 27, 2006, assumed a second quarter pre-tax underwriting loss of $58 million in Other Operations.

The Hartford, a Fortune 100 company, is one of the nation’s largest financial services and insurance companies, with 2005 revenues of $27.1 billion. The Hartford is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property and casualty insurance. International operations are located in Japan, Brazil and the United Kingdom. The Hartford’s Internet address is www.thehartford.com.

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Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about our future results of operations. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2005 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.