Exhibit 99

                                                     CONTACT:
                                                     James C. Rowan, Jr.
                                                     Office: (860) 722-5180
FOR IMMEDIATE RELEASE

              HSB GROUP, INC. ANNOUNCES ANTICIPATED 1999 NET INCOME

HARTFORD,  Conn., January 18, 2000 -- HSB Group, Inc. (NYSE-HSB) announced today
that it expects net income per share for the year to be approximately  $2.50, of
which $.75 is attributable  to realized  capital gains.  The company's  combined
ratio is  expected  to be 94  percent  for the year.  Net  income for the fourth
quarter is expected to be about $11 million, of which $6 million is attributable
to realized capital gains.

In the fourth  quarter,  the company's  earnings from its  participation  in HSB
Industrial Risk Insurers (IRI) were negatively impacted by a reduction in volume
of earned  premiums  at IRI.  Insurance  earnings  were also  reduced by certain
additional  expenditures associated with testing of critical information systems
to ensure Year 2000 compliance and the relocation of certain  foreign  insurance
operations.

Engineering  services  revenues  for  the  fourth  quarter  are  expected  to be
approximately  $33 million,  a 30 percent  increase  over fourth  quarter  1998;
however,  the company  anticipates an operating loss of approximately $2 million
from this business for the quarter.  Engineering  services earnings were reduced
by continued  investment of operating funds in support of accelerated  growth of
the company's engineering services business as well as nonrecurring expenditures
associated with consolidation of certain domestic engineering operations.

The company  expects to announce its actual results for the quarter and the full
year 1999 on January 24, 2000.

President and Chief Executive Officer Richard Booth said, "While results for the
third and  fourth  quarters  were  disappointing,  HSB  remains  one of the most
consistently  profitable companies in the property-casualty  insurance industry.
The  company  has sound  reserves,  is well  capitalized  and has the  financial
strength  to  maintain  its  dividend  policy as well as take  advantage  of new
business  opportunities as they arise. We expect an improving trend in operating
earnings over the course of 2000."

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
and insurance to businesses,  industries and institutions.  For more information
about HSB, visit its web site at www.hsb.com.

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.