Exhibit 99.3

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

                      HSB GROUP, INC. HOLDS ANNUAL MEETING

HARTFORD,  Conn.,  April 21, 1998 -- HSB Group, Inc. (NYSE:  HSB), at its annual
meeting held today at the company's  headquarters,  announced strong results for
1997 and a positive outlook for continued growth in 1998.

President and Chief Executive Officer Gordon W. Kreh called 1997 a good year for
HSB. "All of the company's  businesses  experienced growth. Net income per share
was $3.29,  compared to $2.65 in 1996 -- a 24.1 percent increase.  These results
confirm that our growth strategy is working."

Gross  earned  premium grew to $609.3  million,  an increase of 9.5 percent over
1996.  This  reflects  growth in the company's  North  American  client  company
business;  increased participation in Industrial Risk Insurers (IRI), a pool for
highly  protected  risks;  and  international  growth  through  HSB  Engineering
Insurance Limited, the company's  London-based  subsidiary that serves customers
outside the United States and Canada.

Kreh stated that the company's  combined ratio -- the sum of losses and expenses
expressed as a percentage of insurance revenue -- was 91.7 percent,  compared to
the industry average of 102.2 percent.

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Income from investment operations was $50.9 million, an increase of 14.6 percent
over 1996.

During the meeting,  shareholders  elected three directors for three-year terms,
approved a proposal to amend and restate the short-term and long-term  incentive
plans, and appointed independent public accountants.

Elected to three-year  terms on the board of directors  were:  Richard H. Booth,
executive  vice  president of strategic  development at Phoenix Home Life Mutual
Insurance  Company;  Colin G. Campbell,  president of the  Rockefeller  Brothers
Fund; and Simon W. Leathes, chief executive officer of Hambros PLC.

President Kreh  recognized  Wilson Wilde,  former  chairman and CEO, who retired
after serving on the board since 1967. Kreh also announced the board's  decision
to name Wilde Chairman Emeritus. In addition, Kreh acknowledged John M. Washburn
Jr. who retired from the board after 25 years of service as a director. Washburn
served as president of The Merrow Machine Company,  a manufacturer of industrial
sewing machines, until his retirement in 1995.

At the meeting,  Kreh  reviewed  significant  highlights  of 1997: A new holding
company  -- HSB Group,  Inc.  -- was formed to  provide  greater  operating  and
financial  flexibility.  HSB  announced  its  intentions to sell its interest in
Radian International LLC to the Dow Chemical Company. That sale was completed in
January  1998. In addition,  the company  increased its capital base through the
sale of $110 million of 30-year,  floating rate capital  securities  and through
the issuance of $300 million in convertible  subordinated  capital securities to
Employers  Reinsurance  Corporation  (ERC), an affiliate of GE Capital Services.
The  company  also  arranged  for the sale in January  1998 of its  interest  in
Industrial Risk Insurers to ERC.

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Looking ahead,  President Kreh said, "HSB has a strong foundation for profitable
growth and increased  shareholder  value.  We are  confident  that our growth in
revenue will continue through this year and beyond. We are well positioned as an
engineering management consulting firm."

HSB's greatest opportunity for domestic growth is through its relationships with
other  property-casualty  insurers it calls `client  companies.' Through special
reinsurance agreements,  HSB integrates equipment breakdown coverage into client
companies' policies. "Organizations are increasingly relying on costly equipment
and  sensitive new  technologies.  The types of machinery and equipment we cover
are  vital  to  their  operations.   This  environment   presents  a  tremendous
opportunity. And, we are aggressively pursuing it," Kreh said.

The  outlook  for  continued  international  growth  for HSB is  excellent.  HSB
Engineering   Insurance  Limited  will  capitalize  on  opportunities  in  power
generation and other heavy industries and other businesses.

Kreh projected Engineering Services' growth would continue,  particularly in the
reliability consulting services provided through HSB Reliability Technologies.

HSB Group,  Inc. is a global  provider of  insurance  products  and  engineering
management consulting services.  HSB is the parent company of The Hartford Steam
Boiler  Inspection  and  Insurance  Company,  founded  in 1866  and the  largest
provider of equipment breakdown insurance in the world.

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