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SEDGWICK GROUP REPORTS UNAUDITED RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 1993

 LONDON, May 18 /PRNewswire/ -- Sedgwick Group plc today announced the following:
 The unaudited pre-tax profit for the first three months of 1993 was 40.7 million pounds sterling compared with 41.5 million pounds for the corresponding period of 1992. Earnings per share for the period were 5.7p compared with 6.4p.
 Brokerage and fees increased by 3 percent but excluding acquisitions this increase would have been 2 percent. Strong growth in continental Europe and Asia Pacific broking operations, in Sedgwick Payne in the U.S. and in consulting worldwide was partly offset by lower brokerage in Sedgwick Payne U.K. caused, in the main, by a significant lack of reinsurance capacity, both treaty and facultative, in London.
 Expenses increased by 4 percent compared with the same period in 1992. This was anticipated and more than half relates to acquisitions made in 1992 and to the realignment of the company's business in accordance with group strategy.
 Lower interest rates in the U.S. and the U.K. caused interest and investment income to fall by 27 percent, but pre-tax profit benefited by 5.1 million pounds as a result of our currency management activities and from the weaker level of sterling compared with the first quarter of 1992.
 NOTE: All percentage movements relate to constant exchange rate comparisons.
 Commenting on the first three months of 1993, the chief executive, Sax Riley, said:
 "When we announced our full-year results in February, we said that we did not expect to see a significant improvement in the insurance market in 1993 and, as anticipated, the difficult market conditions we faced in 1992 continue. There are, however, indications that rates are hardening in some areas of business in the U.S., but there is a long way to go before we see the upturn which everyone is anticipating. In London, we are seeing a substantial rates increase in areas such as aviation, oil and gas and marine hull business but at the same time there is a marked contraction in the size and capacity of the market.
 "In April Lloyds published its first-ever business plan. We believe the plan creates a platform for Lloyd's future success and that the opportunity exists for additional capital, individual and corporate, to be attracted to the market. Earlier this month, in response to the initiatives contained in the business plan, we announced that we had formed a company which will pioneer the concept of offering individuals corporate membership of Lloyd's with limited liability, either directory or through other investment vehicles.
 "We continued to invest in consulting operations in Europe. In April we acquired Medisure, a major U.K.-based supplier of private healthcare insurance and related services. Early indications are that this company will be a significant contributor to our European consulting operations."
 Sax Riley concluded: "We are encourage by the results so far this year in several areas our business and particularly by the number of notable clients we have gained in the first three months of 1993."
 The Sedgwick Group is one of the world's leading providers of risk consultancy, insurance broking services, employee benefit and financial services to clients worldwide through more than 230 offices in 58 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 three months report which will be available from the company's registered office.
 SEDGWICK GROUP PLC
 Unaudited Consolidated Results
 (In millions, except per share)
 Three months ended March 31 1993 1992 1993
 (in pounds sterling) (in US$)
 Brokerage and fees 204.9 177.7 309.4
 Interest and investment income 10.9 13.3 16.5
 Total 215.8 191.0 325.9
 Expenses 171.3 146.7 258.7
 Operating profit 44.5 44.3 67.2
 Share of (losses)/profits
 of associates (0.4) 0.6 (0.6)
 Insurance underwriting result 0.4 0.2 0.6
 Interest payable (3.8) (3.6) (5.7)
 Profit before taxation 40.7 41.5 61.5
 Taxation 15.1 13.7 22.8
 Profit after taxation 25.6 27.8 38.7
 Minority interests 0.3 0.2 0.5
 Earnings 25.3 25.6 38.2
 Earnings per share 5.7p 6.4p 8.6 cents
 Average number of shares in issue 442.2 428.3
 (A) -- The results have been prepared under the historical cost convention using the accounting policies adopted in respect of the year ended Dec. 31, 1992.
 (B) -- The figures stated in U.S. dollars for the three months ended March 31, 1993 have been translated at the period end rate of US$1.51 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- 5/18/93
 /CONTACT: Sax Riley, chief executive, Stuart Tarrant, group finance director, or Julia Fish, director of corporate communications of Sedgwick Group plc, 071-377-3456/


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

PS-TS -- NY051 -- 9761 05/18/93 12:16 EDT
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Date:May 18, 1993
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