Exhibit 99(ii) 

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

                        HSB GROUP, INC. DECLARES DIVIDEND

HARTFORD,  Conn.,  July 20, 1998 -- The Board of  Directors  of HSB Group,  Inc.
(NYSE-HSB) today voted to increase the regular quarterly  dividend from 40 cents
to 42 cents per share.  The  increased  dividend  will be payable on October 29,
1998,  to  shareholders  of record at the close of  business on October 9, 1998.
This marks the 33rd  consecutive year that  shareholders  have received a higher
dividend  payment and the 128th  consecutive year in which Hartford Steam Boiler
has paid a dividend, one of the longest records of the New York Stock Exchange.

"The increase in the dividend reflects our Board's continuing  confidence in our
strategy to grow profitably," said Gordon W. Kreh, president and chief executive
officer.

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