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 (Date of earliest event reported) July 13, 1999
KAYE GROUP INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-21988 13-3719772
(State of other jurisdiction (Commission IRS Employer
of incorporation) File Number) Identification No.)
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122 East 42nd Street
New York, N.Y. 10168
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 338-2100
Total number of pages filed including cover and under pages: 5
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KAYE GROUP INC.
INDEX
Item 5. Other Events
Kaye Group Inc. (the "Company") on July 13, 1999 reported a partial client
account loss; expects third quarter shortfall but record earnings for 1999.
A Press Release announcing the actions described above was issued by the
Company on July 13, 1999 and is attached hereto as Exhibit 99.6.
Item 7. Financial Statements and Exhibits
(a) Not applicable
(b) Not applicable
(c) Exhibits
99.6 Press Release dated July 13, 1999, issued by the Company.
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Exhibit 99.6
Page 1 of 2
KAYE GROUP INC.
122 EAST 42ND STREET
NEW YORK, NY 10168
WWW.KAYEGROUP.COM
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NEWS RELEASE Contact Person: Michael P. Sabanos,
Senior Vice President & CFO
FOR IMMEDIATE RELEASE Phone: (212) 338-2273
Fax: (212) 867-0368
E-Mail: [email protected]
KAYE REPORTS PARTIAL CLIENT ACCOUNT LOSS
Expects Third Quarter Shortfall but Record Earnings for 1999
NEW YORK, NY July 13, 1999 KAYE GROUP INC. (Nasdaq-KAYE) today reported that
effective July 1, 1999 they no longer served as primary insurance broker for the
Combined Coordinating Council, Inc. CCC is a New York City-based risk management
service organization for several metropolitan area hospitals, and has been one
of the company's largest accounts. Michael P. Sabanos, Kaye's Chief Financial
Officer, said that the loss of CCC revenue will result in an expected drop in
Kaye's calendar third quarter 1999 earnings compared to the calendar third
quarter last year. He added, however, that continued business growth should
result in record earnings for the full year. Mr. Sabanos commented, "Attrition
is an unpleasant but inevitable fact of the highly competitive insurance
business. Overall, our retention rate is on par with the industry." The company
said it expects to report second and third quarter earnings on July 26th and
October 25th, respectively.
Bruce D. Guthart, Kaye Chairman, President, and Chief Executive Officer, said
that he regretted the loss of the business, and added, "We do everything
reasonably possible to retain all profitable business, but we've also worked
very successfully to keep new accounts coming in the door. The good news is that
our core retail and wholesale businesses today- middle-market commercial
accounts and small business niche program accounts- are thriving. Strong organic
growth and several accretive acquisitions made in the last twelve months are
driving us to our best year ever."
Kaye Group Inc. offers insurance brokerage, risk management, and underwriting
services throughout the country. Kaye's retail and wholesale insurance brokerage
subsidiaries procure property/casualty and employee benefits insurance and
provide a full range of brokerage and risk management services for commercial
and individual clients, as well as other insurance agents and brokers. Kaye's
principal insurance company subsidiary is Old Lyme Insurance Company of Rhode
Island, Inc. (A.M. Best rated A- (Excellent)). Old Lyme underwrites low limits
of property and casualty insurance for certain niche/affinity group accounts
produced by the brokerage subsidiaries. These accounts include residential real
estate, restaurants, "Main Street" stores and service establishments, automobile
service stations, contractors, and other businesses.
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Exhibit 99.6
Page 2 of 2
CAUTIONARY STATEMENT
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. This press release or any other written or oral
statements made by or on behalf of the Company may include forward-looking
statements that reflect the Company's current views with respect to future
events and financial performance. These forward-looking statements are subject
to certain uncertainties and other factors that could cause actual results to
differ materially from such statements. These uncertainties and other factors
(which are described in more detail elsewhere in documents filed by the Company
with the Securities and Exchange Commission) include, but are not limited to,
uncertainties relating to general economic conditions and cyclical industry
conditions, uncertainties relating to government and regulatory policies,
volatile and unpredictable developments (including storms and catastrophes), the
legal environment, the uncertainties of the reserving process, and the
competitive environment in which the Company operates. The words "believe",
"expect", "anticipate", "project", "plan", and similar expressions identify
forward-looking statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of their dates. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events, or otherwise.
# # #
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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.
KAYE GROUP INC.
By: /s/ Michael P. Sabanos
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Name: Michael P. Sabanos
Title: Senior Vice President &
Chief Financial Officer
Dated: July 16, 1999
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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.
KAYE GROUP INC.
By: /s/ Michael P. Sabanos
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Name: Michael P. Sabanos
Title: Senior Vice President &
Chief Financial Officer
Dated: July 16, 1999
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