Exhibit 99(iii)


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

FOR IMMEDIATE RELEASE

                      HSB GROUP, INC. HOLDS ANNUAL MEETING

HARTFORD,  Conn., April 20, 1999 -- HSB Group, Inc. (NYSE: HSB) announced strong
results  for 1998 and a positive  outlook  for  continued  growth in 1999 at its
annual meeting held today at the company's headquarters.

Chairman,  President and Chief  Executive  Officer  Gordon W. Kreh called 1998 a
good year for HSB. "During the year, we realized continued  profitable growth in
our insurance  businesses,  excellent expansion and increased operating gains in
our engineering segment,  and significant  investment return and appreciation of
our portfolios.  Net income per share was $4.21,  compared to $2.20 in 1997 -- a
91 percent increase.  Income from continuing  operations,  excluding the sale of
Industrial  Risk  Insurers,  was $2.67,  compared to $2.20 in 1997, a 21 percent
increase. These results confirm that our growth strategy is working."

Gross  earned  premium  grew to $770.5  million,  an increase of 26 percent over
1997. This was  attributable in large measure to growth in the company's  global
reinsurance  business  and  formation  of new  alliances  with  other  insurance
companies.

Kreh stated that the company's  combined ratio -- the sum of losses and expenses
expressed as a percentage  of insurance  revenue -- was 89 percent,  compared to
the industry average of 105 percent.





 Income  from  investment  operations  grew to $64  million,  an  increase of 74
percent over 1997.  The increase  reflected  good  performance in the portfolio,
additional  invested funds  resulting  from the IRI and Radian sales,  and HSB's
issuance of $300 million of capital securities on December 31, 1997.

During the meeting,  shareholders  elected four directors for three-year  terms,
approved the amended 1995 Stock Option Plan,  and appointed  independent  public
accountants.

Elected to  three-year  terms on the board of  directors  were:  Joel B. Alvord,
president  and  managing  director  of Shawmut  Capital  Management;  Richard G.
Dooley,  consultant to Massachusetts  Mutual Life Insurance  Company;  Gordon W.
Kreh,  chairman,  president and chief executive officer of HSB Group,  Inc.; and
Lois D. Rice,  guest  scholar,  Program  in  Economic  Studies at the  Brookings
Institution.

At the meeting, Kreh reviewed significant  highlights of 1998: Conclusion of the
sale of its interest in Radian  International  LLC to the Dow Chemical  Company,
and the sale of its 24-percent interest in Industrial Risk Insurers to Employers
Reinsurance  Corporation,  a subsidiary of G.E.  Capital  Services.  In May, HSB
acquired Solomon Associates, the world's leader in defining industry performance
standards and best practices for the petroleum refining  industry.  Also in May,
HSB  stock  split  three-for-two  and the July  and  October  regular  quarterly
dividend  was  adjusted to 40 cents a share from 60 cents a share to reflect the
split. In July, HSB acquired Kemper Insurance Companies' monoline book of boiler
and machinery  business and their American Society  Mechanical  Engineers (ASME)
code inspection business.





HSB's greatest  opportunity for growth is through HSB's relationships with other
property-casualty   insurers  HSB  calls  `client  companies.'  Through  special
reinsurance agreements,  HSB integrates equipment breakdown coverage into client
companies' policies. "Growing reliance on equipment and technology is increasing
the need for HSB's specialty  insurance.  This environment presents a tremendous
opportunity, and we are aggressively pursuing it globally." Kreh said.

Kreh projected continued domestic and international growth for HSB's Engineering
Services,  particularly  for its  engineering  management  consulting  services.
Increased  demand for  engineering  management  consulting  is  reflected in the
continued  growth of HSB  Reliability  Technologies,  a subsidiary that provides
companies with increased profitability through reliability programs.

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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