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ALEXANDER & ALEXANDER SERVICES INC. ANNOUNCES THIRD QUARTER EARNINGS

 ALEXANDER & ALEXANDER SERVICES INC.
 ANNOUNCES THIRD QUARTER EARNINGS
 NEW YORK, Oct. 27 /PRNewswire/ -- Alexander & Alexander Services Inc. (A&A) (NYSE: AAL) today reported net income of $8.8 million, or $0.22 per share, for the three months ended Sept. 30, 1992. This is a 22 percent increase over the 1991 corresponding quarter's $7.2 million, or $0.18 per share.
 Consolidated operating revenues were $339.0 million for the quarter compared to $332.7 million for the 1991 period. Excluding the positive effects of higher foreign exchange rates and the 1991 revenues of non- core businesses which were sold in 1992, total operating revenues increased by 3.2 percent.
 Operating expenses were $319.8 million, a 1.1 percent increase over the corresponding three months of 1991 after adjusting for the negative effects of foreign exchange rate variances and the 1991 expenses of sold operations.
 The modest growth in revenues combined with strong expense controls produced operating income growth of $4.1 million, or 27 percent.
 T.H. Irvin, chairman and chief executive officer, reported, "Significant revenue and operating income growth was achieved by our global wholesale, reinsurance and consulting operations over the corresponding 1991 quarter."
 "Retail pricing remains weak in North America. However, our restructuring efforts and cost reductions have limited expense growth while enhancing productivity."
 Results for the third quarter of 1992 include a non-operating pretax charge of $4.0 million for certain indemnities provided to the owners of former A&A businesses.
 Net income for the nine months ended Sept. 30, 1992, was $46.5 million, or $1.14 per share, compared to $22.6 million, or $0.55 per share, for the corresponding 1991 period. Included in the 1992 results is a $0.41 per share gain on the sales of two non-core businesses.
 Total operating revenues were $1,007.3 million for the first nine months of 1992 compared to $1,009.1 million in 1991. Excluding the effects of foreign exchange variances and the revenues of the sold operations, revenues increased by 3.0 percent. Operating expenses increased by 1.3 percent after adjusting for foreign exchange, expenses of the sold operations and a 1991 first quarter pension settlement gain.
 Revenue growth in the company's wholesale, reinsurance and consulting operations account for the increase in operating earnings over 1991.
 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.
 ALEXANDER & ALEXANDER SERVICES INC.
 Operating Results
 (Unaudited -- millions except per share amounts)
 Quarter Ended Nine Months Ended
 September 30, September 30,
 1992 1991 1992 1991
 Operating Revenues $339.0 $332.7 $1,007.3 $1,009.1
 Operating Expenses 319.8 317.6 941.4 951.8
 Operating Income 19.2 15.1 65.9 57.3
 Other - Net (6.0) (2.6) 17.3 (8.9)
 Income Before
 Income Taxes and
 Minority Interest 13.2 12.5 83.2 48.4
 Income Taxes 5.5 5.6 35.8 21.6
 Income Before
 Minority Interest 7.7 6.9 47.4 26.8
 Minority Interest 1.1 0.3 (0.9) (2.0)
 Income Before Cumulative
 Effect 8.8 7.2 46.5 24.8
 Cumulative Effect of
 Accounting Change (A) -- -- -- (2.2)
 Net Income $ 8.8 $ 7.2 $ 46.5 $ 22.6
 Per Share of Common Stock:
 Income Before Cumulative
 Effect $ .22 $ .18 $ 1.14 $ .61
 Cumulative Effect of
 Accounting Change -- -- -- (.06)
 Earnings Per Share $ .22 $ .18 $ 1.14 $ .55
 Weighted Average
 Shares 40.9 40.8 40.9 40.8
 (A) The company recognized the cumulative effect of a change in accounting principle relating to deferred compensation expense in accordance with the provision of SFAS No. 106 "Employers Accounting for Postretirement Benefits Other than Pensions."
 -0- 10/27/92
 /CONTACT: Cathy Aiello of Alexander & Alexander, 212-840-8500/
 (AAL) CO: Alexander & Alexander Services Inc. ST: New York IN: INS SU: ERN


PS -- NY045 -- 5281 10/27/92 10:15 EST
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Publication:PR Newswire
Date:Oct 27, 1992
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