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A&A EXPECTS 1ST QUARTER NET LOSS OF APPROXIMATELY $0.15 PER SHARE BUT ANTICIPATES FULL YEAR 1994 TO BE PROFITABLE

 NEW YORK, April 18 /PRNewswire/ -- Alexander & Alexander Services Inc. (NYSE: AAL) today announced that it expects to report a net loss per share of approximately $0.15 for the first quarter ended March 31, 1994. The company anticipates a net profit from continuing operations for the full year.
 A&A said the first quarter results were caused primarily by lower- than-expected revenues in its North American risk management and insurance services operations.
 Robert E. Boni, chairman of the Board of Directors, noted, "This underperformance largely reflects the effect of management changes in the U.S. and management's acceleration of the pace of business segmentation. These changes have had a short-term impact on revenues."
 He added, "I believe business segmentation and our other initiatives will provide substantial long-term benefits for our clients and shareholders as well as A&A."
 A&A's human resource management subsidiary, the Alexander Consulting Group, also anticipates a loss for the quarter, in part because of highly competitive market conditions.
 The expected net loss for the quarter also includes an after-tax charge of approximately $2.7 million, or $0.06 per share, for the adoption of SFAS No. 112 regarding accounting for post-employment benefits.
 Dr. Boni said, "A&A's results for the full quarter are not acceptable. However, I believe both ACG and our North American risk management and insurance services operations will have improved performance in the months ahead. I am particularly pleased with recent successes in winning major new corporate accounts."
 Complete financial results for the quarter will be announced later this month.
 A&A Services Inc. is a global organization of professional advisers providing risk management, insurance brokerage and human resource management consulting services from offices in more than 80 countries.
 -0- 4/18/94
 /CONTACT: Gary Sullivan of Alexander & Alexander, 212-444-4572/
 (AAL)


CO: Alexander & Alexander Services Inc. ST: New York IN: INS SU: ERP

GK -- NY028 -- 7556 04/18/94 09:15 EDT
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Publication:PR Newswire
Date:Apr 18, 1994
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