U.S.I. Sees Layoffs, Restates Earnings

[UpInArms]

http://www.nationalunderwriter.com/pandc/hotnews/viewPC.asp?article=12_21_04_15_15614.xml&src=5

NU Online News Service, Dec. 21, 3:24 p.m. EST—Citing the effects of the soft market and other expenses, U.S.I. Holdings Corporation has laid-off about 1 percent of its workforce of 2,500 people and restated its earnings guidance for 2004.

After the close of the stock markets yesterday, the Briarcliff Manor, N.Y.-based insurance broker issued a statement saying it lowered its earning guidance for 2004 from $1.02 to $1.07 a share, to 96 cents to 98 cents a share.

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The layoffs were made in middle and high-middle management areas, none of which have major client responsibility.

U.S.I. said it plans to dispose of three of the firm's operations that have performed poorly. While not specifically naming the operations, the three were described as either underperforming or not fitting with the character of the insurance brokerage service.

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