Crawford & Company · NYSE:CRD.A
Crawford & — New York Society of Security Analysts (March 2013)
26 slides from Crawford &'s conference presentation, Mar 18, 2013
Slide 1: Crawford & Company
Exhibit 99.1 Crawford & Company New York Society of Security Analysts March 18, 2013
Slide 2: Forward-Looking Statements and Additional Information
FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION Forward-looking Statements –This presentation contains forward-looking statements, including statements about the future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and quant
Slide 3: A Business Services Leader since 1941
A Business Services Leader since 1941 The world’s largest independent provider of global claims management solutions Multiple globally recognized brand names: Crawford, Broadspire, GCG Clients include multinational insurance carriers, brokers and local insurance firms as well as 200 of the Fortune 5
Slide 4: Our Global Strength
OUR GLOBAL STRENGTH $1.2 Billion Revenue Company 70+ Countries 700 Locations 8,500 Employees Crawford & Company 4
Slide 5: Diversified Business and Clients
Diversified Business and Clients 2012 Revenues of $1.2 Billion Broadspire EMEA/AP • Workers’ Compensation and Liability Claims Administration • Medical and Case Management 20.3% 31.2% • Property and Casualty Services • Long-Term Care Services • Global Technical • Integrated Disability Management Ser
Slide 6: Catalysts/Drivers
Catalysts/Drivers Cyclical Positive Industry Claim Trends: Increased underwriting pressure creates a positive claim trend. Weather/Catastrophe Trends: Catastrophic events worldwide are increasing in severity and frequency. Crawford is uniquely positioned to serve these markets. Healthcare: Increased
Slide 7: Crawford Provides More Than Claims Services
Crawford Provides More Than Claims Services P&C outsourced claims services provided about $575 million, or 49%, of total Crawford revenue in 2012 • Claims services is a mature business in most geographies • Revenues are driven by claims volume, which is affected by regional economies, economic growt
Slide 8: Crawford's Expertise
Crawford’s Expertise Claims Services: Thai Flooding Catastrophe Response Business Process Outsourcing: Deepwater Horizon Consulting: Medical Management
Slide 9: Catastrophe Response: Thai Flooding
Catastrophe Response: Thai Flooding Top ten historic insurance loss Crawford handling losses in excess of $4 billion Flooding affected an area the size of South Carolina Leveraged global capabilities through deployment of 160 staff including 50 support staff and 35 senior adjusters from other locati
Slide 10: Global Natural Catastrophe Update
Global Natural Catastrophe Update Natural catastrophes worldwide 1980 2012 – Natural catastrophes per year more than doubled over period Crawford is uniquely positioned to respond on a global basis Number of Events 1 200 1 000 800 600 400 200 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 20
Slide 11: High-Volume Claims Services: Deepwater Horizon
High-Volume Claims Services: Deepwater Horizon TheGardenCityGroup(GCG) isthe recognized leaderin legal administration services for class action settlements and other claims administration, bankruptcy cases and legal noticing programs. Largest program is the combined GCCF/Deepwater Horizon settlement
Slide 12: Consulting: Medical Management
Consulting: Medical Management Case managers proactively manage medical treatment in the rehabilitation process, enabling our clients’ employees to recover as quickly as possible in the most cost-effective manner. • Customers who used medical bill review in 2011 averaged over savings 60% from the id
Slide 13: Financial Review and Operational Focus
Financial Review and Operational Focus
Slide 14: 2012 Business Summary
2012 Business Summary Record revenues of $1.177 billion Record consolidated operating earnings of $110.2 million Record operating cash flow of $92.9 million Including special payment, dividends of $0.20 per CRDA and per$0.16 CRDB 1,177 1,125 110.2 78.6 Crawford & Company 14
Slide 15: Crawford Segment Performance 2012
Crawford Segment Performance 2012 Crawford & Company 15
Slide 16: 2013 Operational Focus
2013 Operational Focus Sustain Operating Performance through Improved Profitability Americas improvement in U.S. Property and Casualty and Canada Continued progress in Broadspire Strengthen the Balance Sheet Manage debt levels and pension obligations Drive operating cash flow to support business gro
Slide 17: Most Recent 2013 Guidance
Most Recent 2013 Guidance OnFebruary25, 2013,Crawfordreaffirmedinitialfull year2013 guidanceasfollows: Consolidated revenues before reimbursements between $1.05 and $1.08 billion Consolidated operating earnings between $85.0 and $93.0 million Consolidated cash provided by operating activities betwee
Slide 18: Enhanced Return to Shareholders
Enhanced Return to Shareholders Dividends and Buyback: During the 2013 first quarter, Crawford declared a regular quarterly dividend of $0.04 on CRDA and $0.03 on CRDB Crawford also paid a special dividend of $0.06 per share on both classes of stock during the 2012 fourth quarter During 2012, Crawfo
Slide 19: Crawford Capital Structure
Crawford Capital Structure Improving Balance Sheet Supports Return to Shareholders Debt reduced by $62 million, or 25% since 2010 Pension risk management implemented in 2009 Material improvement in cash flow from both operations and working capital management Crawford & Company 19
Slide 20: Management Alignment with Shareholders
Management Alignment with Shareholders Balanced short and long term system focused on strategic priorities and aligned with shareholders Incentive Compensation Plan Matrix: Stock Ownership Guidelines: Business Multiple of Metric: Corporate:Units: Officer: Base Salary: Operating Earnings 40% 40% Pres
Slide 21: Capital Structure and Governance
Capital Structure and Governance Class A and B Shares: As of December 31, 2012, there were approximately 29.3 million shares of Class A Common Stock and 24.7 million shares of Class B Common Stock outstanding. Thetwo classes aresubstantially identical,exceptwithrespectto thevoting rights of the Clas
Slide 22: Crawford Is Positioned for Strong Returns
CRAWFORD IS POSITIONED FOR STRONG RETURNS Crawford & Company 22
Slide 23: Appendix
Crawford & Company Appendix
Slide 24: Non-GAAP Financial Information
Non-GAAP Financial Information Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to oth
Slide 25: Non-GAAP Financial Information
Non-GAAP Financial Information Reconciliation of Non-GAAP Items Unaudited ($ in thousands) 2008 2009 2010 2011 2012 Revenues Before Reimbursements Total Revenues $ 1,135,916 $ 1,048,202 $ 1,110,801 $ 1,211,362 $ 1,266,138 Reimbursements (87,334) (78,334) (80,384) (86,007) (89,421) Revenues Before Re
Slide 26: Crawford & Company
Crawford & Company
Crawford & — New York Society of Security Analysts (March 2013) on 6ix