Xerox to Drop Insurance, Financial Services : Restructuring: Move will contribute to a $1.4-billion charge against the company, which wants to concentrate on its core operation.

Xerox Corp. said Monday that it plans to leave the insurance and other financial services businesses so it can focus on its core document processing business.

The office machine giant also announced charges of more than $1.4 billion to pay for the moves and the adoption of required accounting changes.

Xerox said it will “disengage” from Crum & Forster, a property and casualty insurer; Furman Selz, an institutional brokerage and research, investment banking and management firm, and Xerox Life, which sells annuities and life insurance.

It said its Xerox Credit Corp. and the international subsidiaries that provide financing to buyers of its office equipment will not be affected by the move.

“The decision to exit from insurance and other financial services is consistent with our previous actions to reduce the amount of the corporation’s resources devoted to those businesses and to downsize, restructure and refocus them to become stronger, stand-alone entities,” Chairman and Chief Executive Paul Allaire said in a statement.

“The global market for digital publishing, color copying and printing, and electronic printing is growing over 10% annually,” he said.

Xerox said it will take an after-tax charge of $778 million for the fourth quarter of 1992 in connection with its exit from the financial businesses.

The company also said it will adopt new post-retirement benefits and income tax accounting for 1992 and take $650 million in charges as a result.

It said adoption of FASB 106 will result in an after-tax charge of $606 million relating to prior years and an incremental 1992 after-tax charge of $44 million. It noted that these amounts are consistent with its previous estimates.

Xerox said adoption of another standard, FASB 109, will decrease shareholders’ equity by $23 million, rather than the $200 million estimated in its 1991 annual report, adding: “It is unlikely that adoption of this will have a material impact on future operating results.”

The company said it started an operational and legal restructuring of Crum & Forster in 1992. In connection with moves to strengthen the unit’s balance sheet, Xerox Financial Services Inc. is providing up to $300 million in notes and reinsurance to strengthen the unit.

Stuart Ross, chairman and chief executive of Xerox Financial Services, said the parent company has opened talks on selling the majority of Furman Selz to its employees, as well as on the sale of Xerox Life to potential buyers.

To ensure that Xerox maintains a strong financial position, its directors are considering the issuance of up to $500 million in new equity during the first half of 1993, the company said.

Xerox’s stock was off $1.50 cents at $85.125 in late afternoon trading on the New York Stock Exchange.