The Hartford Financial Services Group has entered into an agreement with Equitas, the Lloyd's run-off vehicle, and all Lloyd's syndicates reinsured by Equitas that "resolves, with minor exception, all of the company's ceded and assumed domestic reinsurance exposures with Equitas, including the company's reinsurance recoveries from Equitas under the company's Blanket Casualty Treaty," the company said in a statement.

The precise terms of the settlement agreement were not disclosed.

"This agreement is a significant step in our efforts to remove volatility from our ceded and assumed reinsurance portfolio," commented Neal S. Wolin, The Hartford's executive VP and general counsel. "The settlement eliminates uncertainty from our domestic assumed reinsurance book with Equitas. It also resolves our single largest reinsurance recoverable, bringing years of litigation with Equitas to a close."

The Hartford explained that the "Blanket Casualty Treaty, which was the focus of the litigation, is a multilayered reinsurance program that provided for excessof- loss coverage for The Hartford in various amounts from the 1930s through the 1980s. The upper layers of the treaty were first put in place in 1950, primarily with London Market reinsurers, including Lloyd's syndicates. The Blanket Casualty Treaty litigation continues with the other upper-layer reinsurers under the treaty."

Commenting on the settlement Standard & Poor's Ratings Services said that it " is taking no rating action on Hartford Financial Services Group Inc." S&P currently rates the Company as "A" with a stable outlook and "A-1" for its debt ratings.