UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
_____________________
Date of Report: July 16, 1996
Alexander & Alexander Services Inc.
(Exact name of registrant as specified in its charter)
Maryland 1-8282 52-0969822
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
organization)
1185 Avenue of the Americas 10036
New York, New York (Zip Code)
(Address of principal executive offices)
(212) 444-4500
(Registrant's telephone number,
including area code:)
Not Applicable
(Former name or former address,
if changed since last report.)
Item 5. Other Events.
Information Concerning Forward-Looking
Statements.
Alexander & Alexander Services Inc. (the
"Company") has made and may from time to
time make forward-looking statements
concerning future financial results or events or
conditions that may affect its future financial
results. Forward-looking statements are made
based upon management's expectations,
assumptions, judgments and beliefs
concerning future developments and global
economic, industry and financial market
conditions, and their potential effect upon the
Company. There can be no assurance that
these future conditions and developments will
be in accordance with management's
expectations or that the effect of future
conditions and developments on the Company
will be those anticipated by management.
The Company wishes to caution readers that
the assumptions that form the basis for
forward-looking statements concerning future
financial results, or events or conditions that
may affect such results, are based on many
factors that are beyond the Company's ability
to control or estimate precisely, including
future market conditions and the behavior of
competitors and other market participants.
Among the factors, in addition to other
possible factors not listed, that could affect
actual results and cause such results to differ
materially from those anticipated in such
forward-looking statements are the following:
Economic Conditions
The insurance brokerage industry is
affected by changes in national,
international and local economic
conditions as well as in client
preferences and spending patterns.
Factors such as inflation and changes
in worldwide interest rates and
monetary fluctuations may affect
the Company's clients and the
markets in which the Company operates
and its ability to finance needed
capital expenditures.
Government Regulation and Licensing
The global insurance brokerage industry
is affected by the adoption of new, and
by changes in, trade, monetary,
accounting and fiscal policies, laws and
regulations such as trade restrictions
and prohibitions, as well as other
activities of federal and local
governments, agencies and similar
organizations. The Company's ability
to conduct business may be precluded,
temporarily suspended or otherwise
adversely affected as a result of any
such changes or activities.
In addition, the activities of the
Company related to insurance broking
and human resource management
consulting services are subject to
licensing requirements and extensive
regulation under the laws of the United
States and its states, territories and
possessions, as well as the laws of
other countries in which the Company's
subsidiaries conduct business. These
laws and regulations vary from
jurisdiction to jurisdiction. The
appropriate regulatory authorities
generally have wide discretionary
authority in adopting, amending and
implementing such regulations. In
addition, certain of the Company's
activities are governed by the rules of
the Lloyd's of London insurance market
and other similar organizations.
Compliance with such licensing and
regulatory requirements and the
restructuring and reorganization of
Lloyd's of London may increase the
Company's cost of doing business or
change the manner in which the
Company is permitted to operate.
Competition
The insurance brokerage industry is
intensely competitive with respect to
broking commissions, fee growth,
personnel and the quality of service
provided. There is keen competition
within the industry on a local, national
and international level, not only to gain
new clients but also to retain existing
clients. In addition, the Company is
subject to loss of business due to the
growing alternative markets and to loss
of personnel to its competitors.
Market Conditions
The insurance brokerage industry is
affected by periods of soft pricing and
excess market capacity which, in
recent years has resulted in a
downward pressure on premium rates
and intense competition among
insurance carriers and brokers for
market share. The occurrence of
catastrophic events can change loss
ratios and, subsequently, pricing,
thereby affecting a broker's contingent
commissions and overriders. The
Company's revenues, expenses and
associated hedging programs are also
affected by the general level of interest
rates and the income earned on
fiduciary funds as well as changes in
foreign currency exchange rates. The timing
of renewal cycles in different parts
of the world and lines of business
produces seasonality in its results.
Contingencies
The Company's financial results are
affected by the costs and other effects
of claims and lawsuits from both
private and governmental parties,
which may include claims and lawsuits
in the ordinary course of business,
consisting principally of alleged errors
and omissions in connection with the
placement of insurance and in rendering
consulting services, as well as claims
relating to the Company's discontinued
operations and tax matters, which may
affect its operations and administrative
expenses. The Company is also subject
to the risk of losses from the potential
uncollectibility of insurance and
reinsurance claims and advances on
behalf of clients and indemnifications
connected with the sales of certain
businesses.
Growth Plans
The Company plans to explore
geographical market expansion as well
as strategic and niche acquisitions
relating to its core business. There can
be no assurance that the Company will
be able to achieve its growth objectives
or consummate any acquisition or joint
venture opportunities it may pursue or
if a transaction is consummated, what
the financial benefit, if any, will be to
the Company. Growth in certain
markets or products can impact the
historical quarterly comparisons of
earnings based on insurance renewal
cycles.
Restructuring/Cost Saving Efforts
The Company's future earnings will be
affected by its ability to effectuate
additional internal consolidation and
other cost savings initiatives and its
investment in new technology,
products and personnel.
While the Company periodically reassesses
material trends and uncertainties affecting its
results of operations and financial condition in
connection with its preparation of
management's discussion and analysis of
results of operations and financial condition
contained in its quarterly and annual reports,
the Company undertakes no obligation to
publicly update or revise any particular
forward-looking statement in light of future
events.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
ALEXANDER & ALEXANDER SERVICES INC.
By: /s/Albert A. Skwiertz, Jr.
Albert A. Skwiertz, Jr.
Senior Vice President & General Counsel
Date: July 16, 1996
ht:Z:96FORM8K:CC8K079
Alexander & Alexander Services Inc.
1185 Avenue of the Americas
New York, NY 10036
Telephone: 212 444-4500
FAX: 212 444-4696
VIA EDGAR
July 16, 1996
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Re: Current Report on Form 8-K
Gentlemen:
Enclosed for filing please find one conformed copy of the
Current Report on Form 8-K for Alexander & Alexander
Services Inc. (the "Company").
Sincerely,
/s/ Andrea L. Schuman
Andrea L. Schuman
Attorney
ALS/ht
Enc.
ht:Z:96FORM8K/EDGAR
