Alexander & Alexander Services Inc. will restructure its international insurance brokerage business and take a $75 million charge against its fourth-quarter earnings, resulting in a loss for the three months and the year, the company said yesterday.
Alexander & Alexander, a New York-based insurance company that has more than 800 employees in Maryland, also announced yesterday that it will close some of its 210 brokerage offices, cut its staff and sell some of its underwriting and management divisions.
Paul Rohner, chief financial officer of the company, said that although the company hasn't decided which offices would be closed or how many people would lose their jobs, he didn't expect the cuts to be large.
"There is a lot to be determined. . . . The plan is to more efficiently organize our office structure. We won't be significantly smaller," he said.
"It won't be 10 percent or anything like that," he added.
There is "no chance" the Baltimore-area offices will be closed, Mr. Rohner said.
Alexander & Alexander, which has 15,700 employees worldwide, is incorporated in Maryland, has its oldest brokerage office in Baltimore and has most of its paper-handling operations in Owings Mills.
The company said it would sell a Dutch underwriter and a Florida-based workers compensation management firm for a total of $57 million, or $40 million after taxes.
The two operations earned $5.5 million last year.
The company also said it will sell or discontinue a property tax consulting business.