Q3 2020 Crawford & Co Earnings Call

Ladies and gentlemen, please standby. This is the operator todays conference is scheduled to begin momentarily until that time your lines will be again placed on music hold thank you for your patience.

[music].

Good morning.

My name is James and I will be your conference facilitator today.

At this time I'd like.

Welcome everyone to the Crawford and company third quarter 2020 earnings release Conference call.

In conjunction with this call a supplementary financial presentation is available on our website www dot crocco dot com under.

Under the Investor Relations section.

All lines have been placed on mute to prevent any background noise and after the speakers remarks, there will be a question and answer period.

Instructions will follow at that time.

Then when need assistance at any time during this conference. Please press Star and then zero and an operator will assist you.

As a reminder, ladies and gentlemen, this conference is being recorded today Tuesday November Threerd 2020.

Some of the matters to be discussed in this conference call.

Supplementary financial presentation may include forward looking statements that involve risk and uncertainty.

These statements may relate to among other things the impact of COVID-19, our expected future operating results and financial condition are.

Our ability to grow our revenues and reduce our operating expenses.

Expect patients regarding our anticipated contributions to our underfunded.

Defined benefit pension plan.

Collectability of our billed and Unbilled accounts receivable financial results from our recently completed acquisitions or continued compliance with the financial and other covenants contained in our financial agreements.

Our long term capital resource and quit a D requirements and our ability to pay dividends in the future.

The company's actual results achieved in future quarters could differ materially from results that maybe implied by such forward looking statements.

Company undertakes no obligation to publicly release revisions to any forward looking statements made in this conference call to reflect events or circumstances occurring after the date of the call or to reflect the occurrences of unanticipated events.

In addition, you are reminded that operating results for any historical period are not necessarily indicative of results to be expected for any future period.

For a complete discussion regarding factors, which could affect the companys financial performance. Please refer to the company's form 10-Q for the quarter ended September Thirtyth 2020 filed with the Securities and Exchange Commission.

Particularly the information under the headings risk factors and management's discussion and analysis of financial condition and stuff and results of operation.

As well as subsequent company filings with the <unk> easy.

This presentation also includes certain non-GAAP financial measures defined under FCC rules.

As required a reconciliation is provided for those measures to the most directly comparable GAAP measures are.

I'd now like to introduce Mr., Rohit Verma, Chief Executive Officer of Crawford <unk> Company.

You may begin your conference.

Thank you. So my James Good morning, everyone. Joining me today is Bruce Swain, our Chief Financial Officer, Joseph Blanco, Our President and Tammy Stevenson, our general counsel.

After our prepared remarks, we've been open the call for your questions.

Our three fold focus over the last nine months has been to protect the health and safety up our global workforce navigate the financial turmoil created by the pandemic and deliver on our client commitments and that is proving successful.

I'm proud of the commitment and client centric focus our teams continue to demonstrate in the face of the pandemic.

Further our continued focus on execution aided by the surge in weather related activity in the U.S. resulted in strong third quarter performance.

We exceeded our expectations and achieve sequential improvement over the second quarter.

Today, our financial position remains very healthy.

As we move into the fourth quarter, we remain well positioned to continue taking advantage of our global scale and competitive position in the market.

Turning to our results for the quarter, we delivered solid year over year growth supported by a core business and for their propelled by weather related activity in the U.S.

We reported GAAP revenues before reimbursement of 253.1 million and net income attributable to shareholders of 24.4 million or 46 cents per share in.

In addition, we generated 57.3 million in operating cash flow through September Thirtyth 2020.

On a non-GAAP basis.

Sorted revenues before reimbursement of 255.2 million and operating earnings were 28.2 million in the third quarter.

Our third quarter revenues reflected growth over last year and operating earnings were 19% over the 2019 quarter.

Adjusted EBITDA was 35.2 million in the third quarter up from 32.2 million in the 2019 third quarter, representing a gain of 9.4%.

Adjusted EBITDA margin was 13.8% in the 2023rd quarter up 120 basis points over the prior year quarter.

Hi can weather related activity was a key driver of enhance revenues during the quarter.

As a reminder, weather related activity does create some seasonality within our business.

As such we tend to see higher claims volume in the second and third quarters as summer in the Northern Hemisphere is Brian storm season.

In contrast, there may be less storm activity in the first and fourth quarters why weather, but it remains a key driver of our results. We continue to push growth of non weather related business in our portfolio.

And I'm pleased to say, we have made great strides in this endeavor.

According to the on global CAG recap, we saw a spike in U.S. cat events during the third quarter, resulting in about $40 billion in economic losses, with an estimated 30 billion in insured losses.

This was the highest quarterly estimated cat losses of 2020, largely driven by the events in the month of August.

As such cat events bolstered our third quarter results, particularly in our <unk> segment.

Claims volume was largely led by the tropical strong aside from the U.S., followed by Hurricanes, Laura and Sally.

The UK also saw an increased number of storms flooding and heat waves one other parts of the world where generally benign.

As a result in the 2023rd quarter, we handled over 10000 claims and contractor assignments across our G. ourselves.

Our teams also handle claims for 16 of the top 20 U.S. carriers during the severe storms.

The consequential spike in claims activity from recent large carrier wins contributor to the third quarter revenues.

Globally third quarter business activity increased from the prior quarters, but has not yet recovered to pre corporate levels.

COVID-19 continues to impact our Crawford TBS solutions business, causing a slowdown to both claims and medical management services.

However, we did benefit from an increased volume of business interruption claims in the UK supplemented by event cancellation claims in UK and Europe.

Although U.S. unemployment levels have broadly decreased and second quarter highs the unemployment rate at 7.9% in the third quarter remains significantly higher than levels seen prior to COVID-19.

While overall claims volume is increasing the lack of medical management claims does provide headwinds to our margins.

Turning to our global service lines in Crawford claims solutions, we saw momentum from new client wins and the benefits of our investment in these client solutions.

Ccs garnered a significant amount of new client wins during the quarter, adding about $9 million in annualized revenues.

Activity from large scale Cline also lift.

Lifted revenues during the quarter.

We are continuing to add to the Dallas site, which is online and functional to better support one of our large carrier clients.

Through the end of October we had the highest number of adjusters within the past two years deployed and five storms in the U.S.

We expect to some subset of them to continue working through the fourth quarter.

We go look so its highest walliams ever as this product continues to be successful in winning remote claims handling business.

During the quarter, we launched a digital assist solution. The portal provides an la carte access to the full suite of profit inspection adjusting and fulfillment offerings.

The digital tools range from Crawfords, you go look self service up from traditional field services and contractor connection.

Additionally, the innovative solutions provides client mid single touch ordering instant service and intelligence severity based tree Arash.

In contractor connection we continue to see a return on investment we have made in this business.

During the quarter, our revenue growth, what's supposed supported by strong claims volume in the U.S.

Our average daily assignment levels were strong in August and September which May also provide tailwinds in the fourth quarter.

Heavy weather activity in the U.S. during the second and third quarter of 2020 also led to an increase in assignment volume.

Weather aside eight of our top 10, you ask lines have seen and year over year increase in third quarter non search Wally.

Our digitally led solutions combined with our expertise offered by the workable and desk adjusting solutions have created tremendous momentum in the marketplace.

We want a top personal lines carry in Canada at the end of the third quarter and contractor connection is gaining traction in Germany, and Australia as we experienced a number of recent wins.

Additionally, we were selected by another large client in the UK, specifically for decontamination services as part of their back to were flat.

To remain connected to our contractors, we hosted virtual town halls conductive engagement surveys and launch contractor connection Academy, our learning management system.

GTS business interruption cyber and event cancellation claims also have seen significant traction.

GTS business into U.S. continues to thrive under new leadership brought on in the third quarter attaining its highest quarterly revenue in recent years.

From a geographic standpoint, Australia, and Europe were flat, while Latin America, and Middle East outperformed the third quarter of 2019.

We won one of our largest claims worth $500 million due to the delay of a significant global event in Asia.

In Canada, we beat our competition to win five new medical clients car.

Currently our pipeline consists of multiple business interruption opportunities related to COVID-19 in the UK.

To support the growth of G.D.S., we made a number of strategic hires in the U.S. and we continue to seek out international opportunities to further enhance our GTS business.

Despite the adverse effects of the economic slowdown we saw new client wins bring in $7 million in annualized revenue during the third quarter and renewed 96% of analyze business year to date.

In addition, we onboarded a significant number of client users to our new ecosystem.

We expect the advanced technology solution to support our growth within the business.

The decreased economic activity continues to be a challenge for several of our clients and has continued to impact our Crawford <unk> solutions business.

As non essential in medical services were delayed hospital bill volumes were lower than pre covert levels.

We also saw fewer claims in our medical management services unit.

Encouragingly total miles driven slowly began to pick up in the U.S. during the quarter and auto claims volume in Canada had returned to pre cold weekly levels.

Crawford TPS solutions business remains a meaningful contributor.

Two our brother diversification strategy.

Our relentless pursuit for service excellence stems from our legacy purpose and values.

Despite social distance orders, we remain very active with our clients having met virtually with over 3100 global clients and prospects during the third quarter.

Conducting virtual meetings allows us to stay connected and maintain its superior level of service driving continued momentum in pursuing new business growth.

We have a robust pipeline of over $265 million with door to 70, new or enhanced client programs.

We won over $22.5 million of new and enhanced business in the quarter, which shows the strength of our brand and differentiation in the market.

We are pleased to see our total net promoter score and B S is 42.

For context any scored above 30 is considered strong for our industry we.

We surveyed almost 70% of our top lines across all geographies. This year, an increase from last year.

To better serve our clients, we devised a structured process to understand shortcomings viewed by our lower scoring clients.

Over the years.

After introducing NPS two years ago. It has now become part of our standard operations to continue to improve client service.

Our balance sheet and liquidity positions are the strongest they have been in several years.

As of September Thirtyth, our net funded debt to adjusted EBITDA was 1.11 times and operating cash flow increased 35% year over year to $57.3 million.

We're proud of the excellent results, particularly amid the current economic environment.

Our disciplined capital allocation strategy remains top of mind as we build on our cash generation capability, while delivering value to shareholders.

As a result, we will balance investing in the business and returning cash to shareholders.

The board will continue to reevaluate the dividend and our share repurchase program regularly and we will continue to make investments to attract acquire and more seamlessly serve clients.

As part of our capital allocation strategy, we have reinvigorated, our M&A pipeline as seen through our acquisition of Crawford Carlyle in October recognized as a market leader in loss adjusting claims management solution and legal services in Chile.

Our partnership with profit car why to date has been highly successful are.

Our team has already identified synergies and regional business development opportunities, which will further enhance our client offerings and increase our technical expertise in the region.

The move formalizes, our longstanding relationship as magnifies, our ability to restore and enhanced lives businesses and communities as we become the largest loss adjusting company in Latin America.

In November we acquired the H.B. group in Australia.

It should be illegal illegal services for wider which will complement the Crawford TPS solution segment in Australia, and the larger Asia region.

In addition to expanding our global footprint. We anticipate this acquisition will serve as a legal services global growth platform for us.

On that note I would like to turn the call over to Joseph.

Thank you Ryan.

As evident in our third quarter financial performance the resiliency of our global workforce has allowed us to provide the highest level of service to our clients. Despite the uncertainty created by code at 19.

As our greatest asset we remain committed to protecting the safety and well being of our employees do affect flexible remote worker regiments pp expert training and pre visit screenings to ensure the safety of our teams the.

The feedback we have received from employees remains overwhelmingly positive on further.

Further demonstrating our commitment to preserving the morale of our global workforce.

We're also investing in the development of our employees through state of the art training programs aligned with our purpose values and culture.

With oversight from members of our executive leadership team, our new employee resource groups provide support to key employees segments women and people of color.

Additionally, our women's leadership exploration and development lead program high impact E learning and networking experience empowers women leaders to achieve their career goals.

These internal programs and initiatives further promote an environment where employees are empowered to grow emboldened to act and inspired candidate.

With that let me turn the call over to Bruce to review the financial results of the third quarter in more detail.

Thank you Joseph Companywide revenues before reimbursements in the 2023rd quarter were 253.1 million compared with 254.7 million in the prior year's third quarter on a non-GAAP basis. The company saw revenues of 255.2 million.

Our net income attributable to shareholders of Crawford and company totaled 24.4 million in the 2023rd quarter compared to net income of 11 million in the 2019 period.

Third quarter 2020 diluted earnings per share was 46 cents for both CRB Yang and CRD b compared with diluted EPS of 21 cents for CRD, a 19 cents for CRD b in the 2019 period.

On a non-GAAP basis net income attributable to shareholders was 15.2 million, resulting in third quarter 2020 diluted EPS of 29 cents for both CRT D and CRT D as compared to 2019 diluted EPS of 23 cents for CRT, AE and 21 cents for CRT.

Me.

The company's non-GAAP operating earnings totaled 28.2 million in the 2023rd quarter or 11.1% of revenues compared with 23.7 million or 9.3% of revenues in the prior year period.

Consolidated adjusted EBITDA was $35.2 million in the 2023rd quarter were 13.8% of revenues compared to $32.2 million or.

Were 12.6% of revenues in the 2019 corner.

I will now review the third quarter performance of each of our segments profit claim solutions revenues totaled 98.4 million, increasing from 86.3 million reported in last year's quarter.

Absent foreign exchange rate fluctuations of approximately 900000.

Third quarter 2020 revenues would have been 99.2 million.

The segment reported operating earnings of 7.2 million in the 2023rd quarter or 7.3% of revenues increasing over operating earnings of 2.7 million or 3.1% of revenues in the prior year quarter.

Crawford specialty solutions revenues were 67.5 million in the 2023rd quarter down from $68.9 million in the prior year quarter.

Absent foreign exchange rate fluctuations of approximately 900000 revenues would have been 68.5 million for the quarter.

Operating earnings in Crawford specialty solutions totaled 17.4 million or 25.7% of revenues in the 2023rd quarter, increasing over operating earnings of 13.3 million or 19.3% of revenues into 2019 third quarter.

Revenues for Crawford TPH solutions were $87.2 million in the 2023rd quarter decreasing from 99.5 million in the 2019 period.

Absent foreign exchange rate fluctuations of 300000.

Third quarter 2020 revenues would have been 87.5 million.

[noise] Crawford TPH solutions operating earnings were 4.4 million during the current quarter compared to last year's third quarter operating earnings of 9.3 million.

Operating margin in this segment was 5.1% in the 2020 corner and 9.4% in the 2019 corner.

Unallocated corporate costs were 1 million in the third quarter of 2020 compared to cost of 1.6 million in the same period of 2019.

This decrease was driven by lower self insurance expense and a credit from the Canada emergency wage subsidy, partially offset by an increase in incentive compensation and severance cost.

[noise] Crawford recognized a non cash goodwill impairment in the 2021st quarter. The initial income tax benefit related to the impairment is being normalized through our effective tax rate during the remainder of the year during the 2023rd corner. The impact of this treatment decreased the initial income tax benefit by 1.9 million.

Or four cents per share.

In June 2020, we sold our 51% stake in what we'd work international for initial cash proceeds of 20.3 million.

Due to the two month reporting lag, putting our international resolves. This transaction was recognized in the 2023rd quarter.

Crawford recognized an after tax gain of 11.7 million on the disposition and an additional loss on the disposal of Crawford compliance Inc. of 600000 in the third quarter. Both disposals were in our Crawford specialty solutions segment, and the resulting in a net gain of 21 cents per share.

In July 2020, the company acquired the remaining 15% membership interest of we go look for 300000.

Noncompete agreements with former minority members were terminated under the terms of the purchase agreement as a result, the company recognized 1.1 million of accelerated amortization on the non compete agreements in the third quarter.

Subsequent to quarter end in October 2020, the company acquired the remaining 85% equity interest in Crawford car follow and its subsidiaries. The purchase price includes an initial lump sum payment of 11.6 million and a maximum of 11.7 million payable over the next.

Six years based on achieving certain EBITDA performance goals.

In November 2020, the company acquired 100% of H.B.A. group in Australia.

The purchase price includes an initial lump sum payment of 5 million and a maximum 3.2 million payable over the next four years based on achieving certain revenue and EBITDA performance goals.

We estimate the COVID-19 negatively impacted our revenues in the range of 21 to 25 million during the third quarter of 2020, and 46 to 54 million. So far this year we.

We expect the ongoing global economic slowdown from Cove in 19 could have a material impact to our results of operations financial condition and cash flows in one or more future quarters absence, the occurrence of weather surgeon Mads.

The companys cash and cash equivalent position as of September 32020 totaled 48.7 million compared to 51.8 million at the 2019 year end.

The company made $3.5 million contributions to its U.S. and UK defined benefit pension plans for 2020 compared with 500000 in 2019 during.

During the fourth quarter. The company made a discretionary contribution of 6 million to its U.S. pension plan. This takes total contributions to 9 million for the U.S. plan, which was our original intention for 2020.

The Companys total debt outstanding as of September 32020 totaled 127.8 million compared with a 177 million at the 2019 year end net debt stood at 79 million as of September 32020, marking the lowest level since 2013.

While our leverage ratio under our credit agreement of net funded debt to adjusted EBITDA closed at 1.11 times. Additionally, our pension liability was down to 56.5 million at the end of the third quarter, marking a multi year low.

We are pleased with our operating cash flow. So far this year cash provided by operations totaled 57.3 million from the 2020 period compared to 42.3 million provided by operations in the prior year period.

The increase in cash provided by operating activities was primarily due to a payroll tax deferral under cares Act and the benefit from the Canada emergency wage subsidy.

Free cash flow increased by 4.3 million compared with 2019, reflecting the higher operating cash flows partially offset by higher software development and capital expenditures in 2020 as compared with 2019.

Our free cash flow generation remains a top priority for the company.

As mentioned on prior calls we have placed a hold on our current share repurchase plan and did not repurchase any shares during the 2023rd quarter.

With that I would like to turn the call back to Robin for concluding remarks.

Thank you Bruce as we entered the fourth quarter, we are focused on maintaining our position as a leader within the industry through innovation and market leading solutions to that end, we will continue to evaluate our client solutions just at industry benchmarks globally.

Global footprint and empowered teams give us the reach and agility to meet the changing needs of the industry.

Crawfords emphasis on our people and delivering service excellence to our clients remain at the forefront of our priorities.

We are confident in our financial position and our ability to deliver superior results for our shareholders over the long term above all we remain committed to fulfilling our purpose of restoring it enhancing lives businesses and communities.

Thank you for your time today operator, please open the call for questions.

At this time, if you'd like to ask a question. Please press Star then the number one on your telephone keypad to withdraw your question press the pound key.

If you're using a speaker phone please pick up your handset before asking your question.

Well pause for just a moment to compile the Q and a roster.

Thank you James.

And our first question comes from the line of Mark Hughes with troops go ahead. Please your line is open.

Thanks, very much good morning.

Hi, Mark Hi, Mark.

The ER and I'm, sorry, I missed the first few minutes of the call. So I apologize if you've already touched on some of the the $500 million event. What does the revenue is that the revenue number and in the if or if not what's the timing.

I mean for a for that project.

Sure. So if the $500 million the total size of the loss. It's a major event Asia, which was cancelled and we will be handling that loss. It's a it's not possible for us to estimate what the revenue from that will be at this time, because it will be based on a time and expense charge and we are still working through the loss, we believe that over time will build.

The web and then realize that revenue in the coming 12 to 18 months.

I think that will be material to a DCF.

Ah, yes for the region it will be material.

Okay.

And then the well above the weather or.

Yes, if the claims.

How much follow through do you think there will be in the fourth quarter.

I think one of the dynamics recently has been the to you've been able to handle some of these claims very quickly. So you wouldn't see as much follow through.

Sort of curious.

How much there is do you think that extends into Fourq, you and you've had some more events here in the fourth quarter. So.

Curious.

Yeah go ahead, yeah, great question that is true we have been much faster in resolving some of this claims activity. We do believe that there are some tailwinds that we're carrying into the fourth quarter, but the reasons either event as well we've seen some activity pick up from that but it is hard to say how long that that will continue at this point.

But just reasonable to say that we'll have tailwinds into the fourth quarter.

The.

Okay. That's good actually it's harder, but strong level of daily assignments was that related to the cath or was that more log cabin.

Well as you know we've added a couple of very large clients to our contractor connection client base. So we have seen some organic growth just come into the.

Turning to the business from these new clients. We've also seen some of our historic lines pick up their volume as as we believe direct repair continues to be a preferred choice for a lot of our clients who are choosing not to send adjusters out into a into the marketplace. Given quoted concerns. So so we've seen growth from our new clients as well as just.

Enhance revenue from existing clients or.

Some of that is certainly related to the storms because the storms create pressure on the in sourcing of claims for the for all carriers, but we believe that this is a secular growth story and not just related to storms.

And then you say what the claims volume was deployed in in the DTA. If you look at the same customer.

Third showed decline short what we are seeing is that if you look at the average of September say compared to the average of General January and February were seeing achieving.

Achieving sort of flattish levels. Our concern is that there is still sort of medical management business, which is lagging behind which as you know in generally lags behind the claims volume we've seen our workers comp last time claims trend up which generates the medical management business, but there is still behind our true prequalified levels the biggest drop.

That we've seen has been in our auto liability and general liability claims which are directly related to the economic activity as you know as people travel more spend time in hotels go to restaurants more go to movie theaters, we will see that volume pickup but until that happens.

We believe that that volume would remain suppressed.

When you say flat levels in September you talking relative to just the most recent laundry I would take the average of Danbury February and say that we're starting to get to a flattish level over there, but remember a lot of that is is actually happening because of cobot claims and those claims usually don't generate significant medical management revenue.

Okay, who called the claims of medical management still though.

I got you.

And then just one more the Canada wage subsidy to this quarter what was that dollar amount.

Total amount was 4.7 million for the quarter.

Thank you.

Thanks, Mark Thanks, Mark.

And again as a reminder, if you'd like to ask a question. Please press Star then one on your telephone keypad. Our next question comes from the line of Greg Peters with Raymond James Go ahead. Please your line is open.

Good morning, Hey, I'm running.

I was wondering if you could comment on.

The savings you might be realizing from travel and entertainment you know a lot of other service providers, because you're doing things virtually are not traveling as much I'm just curious as we look across the three segments. If you.

You know we've.

We've seen some improvement then expenses and some of the areas, but I'm just wondering where the pickup is.

Yeah, we have seen we have seen a considerable benefit from lower travel and entertainment expense Mark not just across our segments, but in our administrative areas as well I would say that our travel and entertainment costs is currently trending down 50% this year, yeah, but but Greg.

Oh by the way good morning, hope you're well.

We have about 2% off our expense, which really is travelling travel then entertain so it's a it's not a significant chunk for us, but as Bruce mentioned, even in that there is about a 50% ending down.

Well, let me come at it this a different way how you how many of your employees are going to work from home position versus where we were a year ago and I guess ultimately I'm wondering is there opportunity for you to harvest some savings and reduced.

Office footprint type of scenario.

I would now I'll start off in a room with comment the vast majority of our employees earn work from home and have been sense since more and so we have largely been working remote.

Since since March and that continues today and that'll continue through the through the rest of this year and probably into the first quarter of 21, we are valuating or corporate real estate in light of that I think that this is still an evolving situation.

You know I don't see us going fully removed as a as a company I think that that we need to have places where employees can congregate and come together and interact we.

We're a business that that needs.

Contact amongst our employees are nurses with it with the adjusters are adjusters with their with their managers et cetera.

But we do think that there will be a rationalization as we go forward.

With the with a mixture of work from home and then people in the office and ultimately having what I would refer to as a as a clubhouse where the employees within a particular region to come into and a and b covered too.

Yep.

That makes sense and that's that's how we're moving forward Greg.

Got it all right up to 96% of our staff just so you know as working from home now.

Globally.

And what was that last year, you know just was that everyone from the office because I mean, given your business model. There's a there's a lot of remote work anyways, Yeah, I would say probably about if I take the total workforce there was probably about 20% of it that was working remote and that's an estimate.

Because we had adjusters, who were who are out and about but there were still tethered to an office. So whether they came in once a week or once every other week that obviously varied but.

But we did have brick and mortar and we do believe that having some form of brick and mortar is still important for the to demonstrate proximity to our clients, which which they like because one of the reasons. They pick US is because we are in places that they may not want to be are they couldn't afford to be.

Got it all right. Thank you for your answers.

Thank you Greg.

Our next question comes from the line of Mark Hughes with troops go ahead. Please your line is open.

Yes. Thank you. The are you talking about a nice backlog I think it's in the TV business. The 265 billion when does that potentially come to fruition, but kind of a jan one the backlog you're looking at it.

We're probably talking about our pipeline.

Correct, Yeah, right I would not call that backlog, because that's just pipeline of what what clients.

Clients are in various stages some of that may be an acquisition for us in acquisition mode. Some of them maybe in qualifying mode. Some of them maybe in presentation mode. That's just a demonstration that our sales is working and we're starting to build a huge pipeline of potential Klein candidates.

Yes there.

Sorry go ahead go ahead.

No. Please okay. Okay.

Okay. Thank you I was going to ask is when you look at the number of our key than the.

Out in the market.

Are those back to normal level or is that still somewhat for it.

It's definitely better than what it was mark in say the meat may through July timeframe.

But it's not back to where it used to be pretty cool that if you look at our numbers Weve roughly written in total new business 60, plus million dollars of new business. This year on an annualized basis and and so we feel good about that given the current circumstances of coal that we've had over 3000 client meetings, which have been which had been remote.

Just in this quarter. So we feel good about the activity, but the RFP activities not back to the levels that it used to be.

I think you mentioned one of the top personal lines carrier on Craig.

Though how significant can that be for greater connection.

In in Canadian turns is extremely significant continues terms as you know we have some very large clients in the U.S., so, but but for Canada. It could be one of the largest client wins in Canada for us in contractor connection.

Thank you.

And there are no further questions in queue at this time I'd like to turn the call back over to Mr. vermin for some closing remarks.

Thank you James I, just wanted to thank our employees, our clients and all our shareholders for their confidence and commitment to Crawford and company with our strong results in Q2, which are sequentially better Q3, which are sequentially better than Q2. It demonstrates the resilience of our almost 80 plus your business.

We are confident in our future of the company.

We want to wish everybody well be safe and God bless us all thank you so much.

Thank you for participating in todays Crawford and company conference call.

This call will be available for replay beginning at 11 30 am Eastern standard time today through 11, 59 PM Eastern standard time on December Threerd 2020.

The conference I'd number for the replay is 7888597, but.

The number to dial for the replay is 805 858367 or 416621 for six for two.

Thank you you may now disconnect.

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HM.

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