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A&A RESTRUCTURING INSURANCE BROKING OPERATION AND SELLING NON-CORE BUSINESSES; BOARD APPROVES REGULAR QUARTERLY DIVIDEND

A&A RESTRUCTURING INSURANCE BROKING OPERATION AND SELLING NON-CORE
 BUSINESSES; BOARD APPROVES REGULAR QUARTERLY DIVIDEND
 NEW YORK, Jan. 13 /PRNewswire/ -- The board of directors of Alexander & Alexander Services Inc. (A&A) (NYSE: AAL) today approved a $75 million fourth quarter 1991 charge that includes expenses associated with the restructuring of its insurance broking operations and other non-recurring expenses.
 These other non-recurring expenses include an increase in reserves established for previously reported contingencies and the write-down of certain intangible assets. No additional cash outlays are involved in this charge.
 The company also announced:
 -- A regular quarterly common stock dividend of 25 cents per share,
 payable on March 31 to shareholders of record as of March 2,
 1992.
 -- Plans for the first quarter 1992 sale of certain non-core
 operations for $57 million, with net after-tax proceeds of
 $40 million, if the sales are completed as anticipated.
 T.H. Irvin, chairman and chief executive officer, reported, "Our restructuring plan reflects a global business segmentation strategy that will enable A&A to enhance client service while realizing operating efficiencies.
 "Through these initiatives, we are creating a healthier, more client-focused company to improve financial results for 1992 and beyond," he added. "Expense reductions and loss eliminations resulting from restructuring and related charges are expected to be approximately $18 million in 1992 and increase thereafter."
 In applying the segmentation strategy, a number of A&A's 210 broking offices are being reorganized to more effectively focus their resources on serving the insurance and risk management needs of its clients.
 For example, the new U.S. management team has designated offices in 16 major metropolitan areas that will provide a broad range of sophisticated and highly technical services for global as well as national and local accounts.
 Other U.S. offices have full access to A&A's global resources and will continue to serve clients of various sizes, concentrating principally on regional and local accounts.
 The $75 million charge -- $48 million, or $1.18 per share, after taxes -- will cover anticipated costs associated with closing or consolidating certain broking offices as well as the restructuring of others. Severance payments, leasehold write-offs and employee relocation costs are included.
 The company has also decided to sell, or wind down, a property tax consulting business. The expenses associated with this action are included in the charge.
 The charge will result in a net loss for the fourth quarter and year ending Dec. 31, 1991.
 "Excluding the charge, the 1991 fourth quarter was profitable and in line with the company's expectations," Irvin said. Results for the quarter and full year will be reported in a mid-February announcement.
 In announcing A&A's regular quarterly dividend, Irvin noted, "The board's approval of the dividend recognizes A&A's future earnings potential and cash-flow benefits of these actions."
 With respect to anticipated sales of certain non-core assets in the first quarter of 1992, definitive agreements have been reached for the sale of non-broking operations in the Netherlands, subject to Dutch regulatory proceedings. In addition, an agreement in principle also has been reached for the sale of a Florida-based unit that primarily administers workers compensation self-insurer funds.
 These operations had a combined net income of approximately $5.5 million.
 Irvin concluded, "The restructuring further enables us to provide the best possible client service while improving A&A's competitive position and addressing the needs of our shareholders."
 A&A Services Inc. is a global insurance brokerage, risk management and human resource management consulting company serving clients from offices in more than 80 countries.
 -0- 1/13/92
 /CONTACT: Gary Sullivan of Alexander & Alexander Services, 212-840-8500/
 (AAL) CO: Alexander & Alexander Services Inc. ST: New York IN: INS SU: DIV FC -- NY079 -- 9231 01/13/92 16:42 EST
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Date:Jan 13, 1992
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