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SEDGWICK GROUP PLC REPORTS UNAUDITED RESULTS FOR THE NINE MONTHS ENDED SEPT. 30, 1992

 LONDON, Nov. 17 ~PRNewswire~ -- Sedgwick Group plc today report ed the following:
 The unaudited pre-tax profit for the first nine months of 1992 was 55.8 million pounds sterling compared with 74.0 million pounds for the corresponding period of 1991. Earnings per share for the period were 7.9 pence, compared with 11.4 pence.
 Brokerage and fees, against a background of continuing world recession and difficult market conditions, were 465.3 million pounds compared with 472.1 million pounds for the same period in 1991. Underlying brokerage and fees were slightly ahead of last year and expenses were 2 percent higher than the similar period last year.
 In the United States, Sedgwick James recovered much of the ground lost in the first six months but management maintains its cautious outlook for the full year.
 (NOTE: All percentage movements relate to constant exchange rate comparisons.)
 In the United Kingdom, the pre-tax profit of the group's retail operations increased. This was largely due to the achievements of the aviation company.
 Sedgwick Broking Services benefited from new business gains in the energy company. Sedgwick Consulting Group in Europe increased its brokerage and fees by 9 percent, although increased staff numbers resulted in higher expenses.
 E.W. Payne continues to be adversely affected by the contraction of reinsurance capacity and the virtual elimination of marine London market excess of loss retrocessional business. The decline in revenue, however, was partially offset by an increased share of the U.K. company market and increased business from the Asia Pacific region.
 The results of River Thames Insurance, in which Sedgwick has a 49 percent shareholding, continue to deteriorate. This is the result of the need to increase underwriting reserves.
 The chairman, David Rowland, said:
 "While expansion of revenue remains our objective it will be carried out against a background of our continued policy of tight control of expenses. A large part of the 2 percent increase in expenses over 1991 is due to the planned expansion of Sedgwick Consulting Group in Europe, reflecting our commitment to the development of those areas which are a priority for the successful growth of our business.
 "Interest rate hedging activities mitigated the reduction in interest and investment income. This has been particularly effective in combating the substantial falls in U.S. interest rates.
 "Adverse currency exchange rates had a negative effect on pre-tax profit of 1.6 million pounds in the nine months, but the strengthening U.S. dollar will reverse this trend in the fourth quarter and will help our prospects for 1993.
 "Results for the remainder of this year will continue to reflect the difficult conditions which exist in many insurance markets. Rates have increased in some areas but capacity has reduced and this will inevitably affect our full-year results."
 The Sedgwick Group is one of the world's leading providers of risk consultancy, insurance broking services, employee benefit and consultancy services to clients worldwide through more than 230 offices in 57 countries.
 Copies of this release are available from the company's registered office, Sedgwick House, the Sedgwick Centre, London E1 8DX. Shareholders will be sent a copy of the group's nine months' report which will be available from the company's registered office.
 Details of the results for the nine months follow.
 SEDGWICK GROUP PLC
 Unaudited Consolidated Results
 Nine months ended Sept. 30 1992 1991 1992
 (Pounds in millions) ($ mil.)
 Revenue:
 Brokerage and fees 465.3 472.1 $828.2
 Interest and investment income 37.8 44.0 67.3
 Total 503.1 516.1 895.5
 Expenses 435.7 435.5 775.5
 Operating profit 67.4 80.6 120.0
 Share of profits of associates (0.7) 1.3 (1.3)
 Insurance underwriting result 0.6 0.6 1.1
 Interest payable (11.5) (8.5) (20.5)
 Profit before taxation 55.8 74.0 99.3
 Taxation 21.2 24.7 37.7
 Profit after taxation 34.6 49.3 61.6
 Minority interests 0.6 0.6 1.1
 Earnings 34.0 48.7 60.5

 Earnings per share 7.9p 11.4p 14.1 cents
 Average no. of shares in issue (mil.) 428.3 428.1
 NOTES:
 -- The results have been prepared under the historical cost convention using the accounting policies adopted in respect of the year ended Dec. 31, 1991.
 -- The figures stated in U.S. dollars for the nine months ended Sept. 30, 1992, have been translated at the period end rate of US$1.78 to the pound sterling. No adjustments have been made to restate the results to comply with generally accepted accounting principles in the United States of America.
 -0- 11~17~92
 ~CONTACT: David Rowland, chairman; Stuart Tarrant, group finance director; Sax Riley, chief executive; or Julia Fish, director - corporate communications of Sedgwick Group plc, in London, 071-377-3456~


CO: Sedgwick Group plc ST: IN: SU: ERN

GK-OS -- NY031 -- 1797 11~17~92 11:30 EST
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