The Hartford Estimates Losses from Terrorist Attack Could Approach $450M

September 20, 2001

The Hartford Financial Services Group Inc. announced that expected losses from the Sept. 11 terrorist attack could approach $450 million after taxes and net of reinsurance, reflecting the company’s best current estimate of its total expected exposure for this event. Approximately $30 million (after tax and net of reinsurance) of the expected exposure arises from the operations of Hartford Life. Also related to this event, the company expects the impact of the lower equity markets to negatively impact its life operations by five cents to 10 cents per share in the fourth quarter.

Ramani Ayer, The Hartford’s chairman and CEO, said that the company will comfortably meet its obligations to its customers and reiterated that the “act of war” exclusion would not apply in these circumstances. “The Hartford has the financial strength and capacity to handle all its claims,” Ayer stated.

“The human cost of this tragedy is immeasurable,” Ayer added. “While we don’t yet know precisely how many lives and how much property were affected, nothing will fully compensate for the pain suffered by all of those touched by this horrific event.

“This is a time of healing. All of our employees are committed to helping our customers get back on their feet so that the country can move beyond the events of the last seven days.”

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