Crawford & Company · NYSE:CRD.A
Crawford & — 22nd Annual CFA NY Insurance Conference (March 2018)
32 slides from Crawford &'s conference presentation, Mar 20, 2018
Slide 1: Crawford & Company Investor Presentation
Crawford & Company Investor Presentation ///////////////////////////////////////////////////////////////////////////////////////////////////////////// ® 22nd Annual CFA NY Insurance Conference March 2018 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including statements about the expected future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and quantitative, that are not statements of historical
Slide 3: Refreshed Mission & Vision
Refreshed Mission & Vision Mission: To restore and enhance lives, businesses and communities Vision: To be the leading provider and most trusted source for expert assistance, serving those who insure and self insure the risks of businesses and communities anywhere in the world
Slide 4: Crawford & Company At A Glance
The world’s largest publicly listed independent provider of global claims management solutions Exchange / Ticker(s) Market Capitalization1 Annual Dividend Current Dividend Yield 2018 P/E Ratio1 NYSE / “CRD-A” & “CRD-B” $438.8mm (Both Share Classes) $0.28 (CRD-A), $0.20 (CRD-B) 3.6% (CRD-A), 2.4% (CR
Slide 5: Comprehensive experience across the spectrum of the claims world
Crawford & Company Crawford Claims Solutions P&C Adjusting Solutions 1.2 million P&C claims managed 70 Countries with physical location 40,000 WeGoLook® Lookers Global Technical Services Large or Complex Claims 400+ Global technical adjusters 2,500 Claims managed $4.2 billion Indemnity dollars Contr
Slide 6: Realigned operating segments to sharpen delivery to clients
6 5 3 2 4 1 Realigned operating segments to sharpen the method of delivery to Crawford’s clients and better position Crawford’s global sales teams to offer innovative solutions, expand market share, and deliver sales growth Re-Organized into Global Service Lines Goal: Deliver Sustained Revenue Growt
Slide 7: Executive Management Team
Executive Management Team Name Background Experience Harsha V. Agadi President and Chief Executive Officer Leadership positions at both public and private companies, including several Fortune 500 companies Member of the Crawford Board of Directors since 2010 30 Years Rohit Verma Chief Operating Offi
Slide 8: Crawford is Delivering Solutions that Address Client and Industry Challenges
Crawford is Delivering Solutions that Address Client and Industry Challenges New capital coming into industry Technological and sociological changes bringing new risks in an ever connected world Crawford responding to increased demand with global capabilities to address complex claims by specific lo
Slide 9: 2018 Global Market Facing Service Lines
2018 Global Market Facing Service Lines Effective in 2018, the Company has realigned its operating segments by moving to a global service line reporting structure consisting of Crawford Claim Solutions, Crawford TPA Solutions: Broadspire and Crawford Specialty Solutions. The Company's revised operat
Slide 10: Crawford's Claims Solutions
Crawford’s Claims Solutions Traditional field adjusting Drones Temporary Staffing Surveying for underwriting Vehicle & heavy equipment inspections Crowd sourced field inspections (WeGoLook) Catastrophe response Centralized intake/FNOL Global administration (FNOL to final payment) Comprehensive Suite
Slide 11: Crawford's TPA Solutions: Delivered by Broadspire
Crawford’s TPA Solutions: Delivered by Broadspire Comprehensive Suite of Services Workers compensation Accident & Health Medical management Employers liability Affinity/ Warranty Key Takeaways Auto/motor General liability Product liability & recall Disability and leave management 47% U.S. Fortune 25
Slide 12: Crawford's Specialty Solutions: Contractor Connection, GTS, GCG
Crawford’s Specialty Solutions: Contractor Connection, GTS, GCG Key Takeaways Contractor Connection Industry’s largest contractor managed repair network – general and specialty contractors Indemnity management averaging 7% estimate accuracy reduction Proven LAE savings and reduced cycle times Proven
Slide 13: Innovating to Accelerate Growth, Improve Client Experience and Reduce Costs
Innovating to Accelerate Growth, Improve Client Experience and Reduce Costs TruLook Claims triage process leverages self-service app, WeGoLook Lookers and traditional field adjusters to reduce costs and improve cycle times Drone Network Drone fleet provides quicker and safer inspections pre- and pos
Slide 14: TruLook: The Benefits
TruLookTM: The Benefits TruLookTM maximizes efficiencies throughout the claims-handling process to return accurate, precise information faster and at a lower cost. Reduce costs by 20% to 30% (on average) Process claims in as few as 3.7 days Reach claimants anytime and anywhere Increase customer sati
Slide 15: Contractor Connection: Overview
Contractor Connection®: Overview Provides contractor-managed repair network for residential and commercial services. Our network of more than 6,000 general and specialty contractors provide services in the U.S., U.K., Canada, Australia and Germany. Contractor Connection is a proven solution that pro
Slide 16: Total Construction Solution
Total Construction Solution Construction is a risky business. Choosing the right claims partner is critical for delivering projects on time and on budget while reducing total loss costs. Crawford offers an unparalleled solution. 4 Construction Expertise Designated Construction Liability Team Subroga
Slide 17: Global Workers Compensation Services
Global Workers Compensation Services A comprehensive approach to workers compensation that reduces overall claim costs while helping to ensure employees receive the support needed to enable a safe return to work 4 Workers compensation service expansion in Australia: Enabled by a Broadspire brand tha
Slide 18: Two Consecutive Years of Growth in Earnings
Two Consecutive Years of Growth in Earnings Positive trend in earnings over the last two years of operation for Crawford 24.6% Non-GAAP Earnings per Share CAGR for CRD-B 5
Slide 19: Crawford Is Focused on Shareholder Returns
Crawford Is Focused on Shareholder Returns Crawford continues to return capital to shareholders in the form of quarterly cash dividends and share repurchases Through the fourth quarter of 2017, Crawford has repurchased ~700k shares of CRD-A and ~188k shares of CRD-B under the Company’s two million s
Slide 20: 2018 Guidance
YEAR ENDING DECEMBER 31, 2018 Low End High End Consolidated revenues before reimbursements $1.12 $1.14 billion Net income attributable to shareholders of Crawford & Company $43.0 $48.0 million Diluted earnings per share--CRD-A $0.78 $0.88 per share Diluted earnings per share--CRD-B $0.71 $0.81 per s
Slide 21: Positioned For A Return To Growth
Positioned For A Return To Growth Successfully reduced costs and streamlined Crawford’s operations Refreshed Crawford’s core mission and values Recruited experienced, senior leadership Launched new products and services Re-organized Crawford into Global Service Lines to position the Company to take
Slide 22: Questions & Answers
Questions & Answers //////////////////////////////////////////////////////////////////////////
Slide 23: Appendix A: Global Service Lines
Appendix A: Global Service Lines //////////////////////////////////////////////////////////////////////////
Slide 24: Bringing Our Service Lines Together to Address Today's Problems
Bringing Our Service Lines Together to Address the Problems of Today and the Challenges of Tomorrow Corporations Total Property Solution for property managers, hotels Total Construction Solution for contractors Cyber Incident Management Product Recall Incident Management Technology-enabled TPA Solut
Slide 25: Appendix B: Consolidated Financial Information
Appendix B: Consolidated Financial Information //////////////////////////////////////////////////////////////////////////
Slide 26: 2017 Business Highlights
2017 Business Highlights Consolidated revenues were $1.106 billion in 2017 compared to $1.109 billion in 2016. Revenues grew on a constant dollar basis after considering foreign exchange impacts of $8.5 million in 2017 Three of our operating segments achieved their 10% operating margin goal for the
Slide 27: Full Year 2017 Revenues, Operating Earnings & Adjusted EBITDA
Full Year 2017 Revenues, Operating Earnings & Adjusted EBITDA Revenues ($ in millions) Consolidated Operating Earnings (1) ($ in millions) Adjusted EBITDA (1) ($ in millions) (1) See Appendix for non-GAAP explanation and reconciliation 27
Slide 28: Appendix B: Non-GAAP Financial Information
Appendix B: Non-GAAP Financial Information //////////////////////////////////////////////////////////////////////////
Slide 29: Measurements of financial performance not calculated in accordance with GAAP should be considered as
Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to other similarly-titled measurement
Slide 30: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA is used by management to evaluate, assess and benchmark our operational results and the Company believes that adjusted EBITDA is relevant and useful information widely used by analysts, investors and other interested parties. Adjusted EBITDA is defined as net income w
Slide 31: Quarter Ended Quarter Ended Quarter Ended Quarter Ended Full Year Full Year December 31,
Quarter Ended Quarter Ended Quarter Ended Quarter Ended Full Year Full Year December 31, December 31, December 31, December 31, Guidance Guidance Unaudited ($ in thousands) 2017 2017 2016 2016 2018 * 2018 * Revenues Before Reimbursements Total Revenues $ 313,541 $ 293,624 $ 1,198,000 Reimbursements
Slide 32: Reconciliation of Non-GAAP Items (continued)
RECONCILIATION OF NON-GAAP ITEMS (continued) Adjusted EBITDA Quarter Ended Quarter Ended Year Ended Year Ended Full Year Full Year December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, Guidance Guidance Unaudited ($ in thousands) 2017 2017 2016 2016
Crawford & — 22nd Annual CFA NY Insurance Conference (March 2018) on 6ix