The Hartford said it is trying to negotiate a settlement of bid-rigging allegations, but "it is likely" that the New York Attorney General or another agency will sue the company.

In its 10-Q filing with the Securities and Exchange Commission, the company noted the price-fixing lawsuit filed Oct. 14, 2004 by then New York Attorney General Eliot Spitzer against Marsh & McLennan and its Marsh Inc. brokerage subsidiary.

That suit alleged that big name insurers including the Hartford, Conn.-based Hartford made arrangements with the brokerage to submit inflated bids for commercial insurance and paid contingent commissions to ensure Marsh would send business their way.

In a settlement, Marsh agreed to stop accepting contingent commissions on such business and repay clients $850 million. Criminal charges were brought against eight Marsh executives, two of whom are currently undergoing trial.

The Hartford's filing said that while no regulatory action had been initiated against the company in connection with the Marsh lawsuit "it is likely that the New York Attorney General's Office or one or more other regulatory agencies will pursue action against the company or one or more of its employees in the future."

Currently, the company said it is "engaged in discussions regarding the potential resolution of the inquiry by the New York Attorney General's Office and other regulatory agencies into broker compensation. The potential timing of any such resolution or the initiation of any formal action is difficult to predict."

Special Reports /

Hartford: We May Be Sued In Bid Rig Scandal

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