Q2 2025 Crawford & Co Earnings Call

August 5, 2025

Today's call in conjunction with this call a supplementary financial presentation is available on our website at www Dot Kroeker Dot com under the Investor relation section all lines have been please on mute to prevent any background noise. After the speakers' remarks, there will be a question and.

Answer period, and instructions will follow at that time should anyone need assistance at any time as your rig. This conference. Please press Star then zero and an operator will assist you as a reminder, ladies and gentlemen. This conference is being recorded today Tuesday August 520, 25 now I.

I'd like to introduce Tim is Stevenson Crawford <unk> Company's General Counsel. Please go ahead.

Angelina some of the matters to be discussed in this conference call and in the supplementary financial presentation may include forward looking statements that involve risks and uncertainties.

These statements may relate to among other things our expected future operating results and financial condition, our ability to grow our revenues and reduce our operating expenses expectations regarding our anticipated contributions to our underfunded defined benefit pension plans collectability of our billed and Unbilled accounts receivable.

<unk> from our recently completed acquisitions, our continued compliance with the financial and other covenants contained in our financing agreements, our long term capital resource and liquidity requirements and our ability to pay dividends in the future.

Good morning. My name is Angeline and I will be your conference facilitator. Today at this time, I would like to welcome everyone to the Crawford & Company. Second quarter 2025 earnings release conference. Call in conjunction with this, call is supplementary. Financial presentation is available on our website at www.cro.cop.net

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

Thank you Angeline. Some of the matters to be discussed in this conference call and in the supplementary Financial presentations. May include forward-looking statements involve risks and uncertainties.

Honorable Council, please go ahead.

Thank you, Angeline. Some of the matters to be discussed in this conference call and in the supplementary financial presentations may include forward-looking statements that involve risks and uncertainties.

In addition, you are reminded that operating results for any historical period are not necessarily indicative of the 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 June 32000, and twenty-five filed with the Securities and Exchange Commission, particularly the information under the headings risk factors and management's managements discussion and analysis of financial condition and results of operations as well as some.

These statements May relate to, among other things are expected future operating results in financial condition. Our ability to grow our revenues and reduce our operating expenses. Expectations regarding our anticipated contributions, to our underfunded defined benefit pension plans, collectibility of our build and unbuild. Accounts receivable results from our recently. Completed Acquisitions, our continued compliance with the financial and other covenants. Contained in our financing agreements, our long-term capital resource, and liquidity requirements, and our ability to pay dividends in the future.

These statements may relate to, among other things, our expected future, operating results, and financial condition. Our ability to grow our revenues and reduce our operating expenses. Expectations regarding our anticipated contributions to our underfunded defined benefit pension plans, collectibility of our billed and unbilled accounts receivable, results from our recently completed acquisitions, our continued compliance with the financial and other covenants contained in our financing agreements, our long-term capital resources and liquidity requirements, and our ability to pay dividends in the future.

Piquancy company filings with the SEC.

This presentation also includes certain non-GAAP financial measures as defined under the SEC rules as required a reconciliation is provided for these matters.

The company's actual results achieved in future quarters could differ materially from the results that may be implied by such forward-looking statements, the 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 day of the call, or to reflect the occurrence of unanticipated events.

To those most directly comparable GAAP measures.

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

That to now introduce Mr Road Verma, Chief Executive Officer of Crawford <unk> Company.

Good morning, and welcome to our second quarter 2025 earnings call. Joining me today is Bruce Swain, our Chief Financial Officer, and Tom Stevenson, Our General counsel after our prepared remarks, we will open the call for your questions.

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

This quarter, we continued to make progress on our strategic objectives consolidated revenue grew year over year with three of our four segments delivering topline growth.

For a complete discussion regarding factors which could affect the company's financial performance. Please refer to the company's form, 10 Q for the quarter, end of June 30th, 2025 file with the Securities and Exchange Commission, particularly the information under, the headings risk factors and management discussion and Analysis of financial conditions and results of operation as well as subsequent company filings with the SEC.

This presentation also includes certain non-GAAP financial measures as defined under the SEC rules.

As required, a Reconciliation is provided for these matters.

While we're seeing the effects of lower property claims frequency in the U S, which put some pressure on revenues in our North America loss adjusting and platform solutions segments, we saw encouraging results across the broader business.

For a complete discussion regarding factors which could affect the company's financial performance. Please refer to the company's form 10q for the quarter end of June, 3020, 2025 filed with the Securities and Exchange Commission. Particularly the information under, the headings risk factors and management, management discussion and Analysis of financial condition, and results of operation, as well as subsequent company filings with the SEC.

To those most directly comparable gaap measures I would like now to now introduce Mr. Road Verma Chief Executive Officer of Crawford company. Grow it.

This presentation also includes certain non-gaap Financial measures as defined under the SEC rules.

As required, a Reconciliation is provided for these matters.

Notably we achieved growth in our non weather segments, highlighting the effectiveness of our diverse business model and disciplined execution and navigating various market options.

To those most directly comparable gaap measures I would like now to now introduce Mr. Road Verma Chief Executive Officer of Crawford company. Grow it.

Thank you. Tammy. Good morning and Welcome to our second quarter 20125. Earnings call. Joining me today is Bruce Wayne our Chief Financial Officer and Tammy Stevenson our general counsel. After our prepared remarks, we will open the call for your questions.

This morning, I'll review, our segment operations for the second quarter before handing it over to Bruce for a deeper dive into our financial performance.

This quarter, we continue to make progress on our strategic objectives. Consolidated Revenue, grew year-over-year with 3 of our 4 segments, delivering Topline growth.

As you've heard me say before our scale expertise and long standing legacy of service excellence are true differentiators in the marketplace.

Thank you. Tammy good morning and Welcome to our second quarter 2025 earnings call. Joining me today is Bruce Wayne our Chief Financial Officer and Tammy Stevenson our general counsel. After our prepared remarks, we will open the call for your questions.

We operate in over 70 countries with 10000 employees and access to more than 50000 field resources and it's one of the only companies with the capability to respond to complex claims of any size anywhere.

Platform solution segments, we saw encouraging results across the broader business.

Ated Revenue, grew year-over-year with 3 or 4, segments, delivering Topline growth.

Each year, we managed more than $20 billion in claims globally, reflecting our reliability and meeting the needs of the world's leading carriers corporations and public entities.

Notably, we achieved growth in our non-weather segments, highlighting the effectiveness of our diverse business model, and disciplined execution, and navigating various Market options.

While we're seeing the effects of lower property claims frequency in the US, which puts some pressure on revenues in our North America, Los adjusting and platform solution segments, we saw encouraging results across the broader business.

This morning, I'll review our segment operations for the second quarter before. Handing it over to Bruce for a deeper dive into our financial performance.

Our global presence deep technical expertise and over eight decades of experience position us competitively as a critical partner to clients navigating increased complexity and risk across a wide range of geographies and market conditions.

Notably we achieve growth in our non-weather segments, highlighting the effectiveness of our diverse business model and disciplined execution, and navigating various markets.

As you've heard me say before our scale expertise and long-standing Legacy of service Excellence are 2 different in the marketplace.

This morning, I'll review our segment operations for the second quarter before. Handing it over to Bruce for a deeper dive into our financial performance.

We see several core components driving our growth.

First the global frequency of weather events continues to add volatility to claim staffing needs are carriers.

We operate in over 70 countries with 10,000 employees and access to more than 50,000 field resources and was 1 of the only companies with the capability to respond to complex claims of any size anywhere.

As you've heard me say before our scale expertise and long-standing Legacy of service Excellence are 2 different in the marketplace.

That heightened demand for our proven capabilities in managing complex weather related claims.

At the same time, our diversified business model ensures that we're not solely dependent on weather.

Each year we manage more than 20 billion dollars in claims globally reflecting our reliability in meeting. The needs of the world's leading carriers corporations and public entities.

When one area experiences lower claims volume like we've been seeing in U S property that downturn can be offset by growth in non weather related areas of our businesses like broad spire and parts of international operations.

Each year we manage more than 20 billion dollars in claims globally reflecting our reliability in meeting. The needs of the world's leading carriers corporations and public entities.

Our Global presence deep technical expertise and over 8 Decades of experience position us. Competitively, as a critical partner to clients, navigating increased complexity and risk across a wide range of geographies and market conditions.

We see several core components driving our growth.

We continue to gain market share where carriers are increasingly prioritizing reliability scalability and compliance signaling a flight to quality service providers.

First, the global frequency of weather events continues to add volatility to claim, staffing needs or carriers.

As a trusted well established partner, we believe Crawford is uniquely positioned to surpass those expectations.

That heightens demand for our proven capabilities in managing complex weather related claims.

We see several core components driving our growth.

We have formed many valuable strategic partnerships with clients across the globe and remain focused on deepening those relationships across multiple service lines and new geographies.

at the same time, our Diversified business model ensures that we're not solely dependent on whether

First, the global frequency of weather events continues to add volatility to claim, staffing needs or carriers.

That heightens demand for our proven capabilities in managing complex weather related claims.

Finally, our market leadership is reinforced by our deep bench of technical expertise and our investment in cutting edge technology.

When 1 area experiences lower claims volume, like we've been seeing in US property that downturn can be offset by growth in non-weather related areas of our businesses like broadspire and parts of international operations.

at the same time, our Diversified business model ensures that we're not solely dependent on whether

These capabilities not only set us apart from competitors, but are also a key factor in winning new business and enhancing profitability.

We continue to gain market share, where carriers are increasingly prioritizing reliability, scalability, and compliance, signaling a flight to quality service providers.

With these drivers in place we are confident in our ability to generate sustainable long term growth regardless of quarter to quarter weather fluctuations.

As a trusted well-established partner, We Believe Crawford is uniquely positioned to surpass those expectations.

We continue to gain market, share where carriers are, increasingly prioritizing, reliability scalability and compliance signaling a flight to quality service providers.

In the second quarter consolidated revenue grew two 8% with North America loss, adjusting international operations and broad spot each contributing to our topline growth and broad spar, having another record revenue quarter.

We have formed many valuable strategic Partnerships with clients across the globe and remain focused on deepening, those relationships across multiple service lines and new geographies.

As a trusted well-established partner, We Believe Crawford is uniquely positioned to surpass those expectations.

Finally, our Market leadership is reinforced by our deep bench of technical expertise and our investment in Cutting Edge technology.

Consolidated operating earnings were largely consistent with last year's second quarter and improved sequentially compared to first quarter 2025.

We have formed many valuable strategic Partnerships with clients across the globe and remain focused on deepening, those relationships across multiple service lines and new geographies.

These capabilities not only set us apart from competitors, but are also a key factor in winning new business and enhancing profitability.

Excluding the impact of a nonrecurring international tax item consolidated operating margin would have been seven 8% representing an improvement over the second quarter of 2024.

Finally, our Market leadership is reinforced by our deep bench of technical expertise and our investment in Cutting Edge technology.

With these drivers in place, we are confident in our ability to generate sustainable long-term growth. Regardless of quarter to quarter weather fluctuations,

Bruce will share more details on that shortly.

These capabilities not only set us apart from competitors, but are also a key factor in winning new business and enhancing profitability.

North America loss adjusting saw in year over year decrease in operating earnings due to lower U S property claims activity.

<unk> operating earnings decreased year over year due to a strategic headcount additions and investment in technology International.

With these drivers in place, we are confident in our ability to generate sustainable long-term growth. Regardless of quarter-to-quarter weather fluctuations,

In the second quarter, Consolidated Revenue grew 2.8% with North America, Los adjusting International operations, and broadspire. Each contributing to our Topline growth and broadspire having another record, Revenue quarter.

Operations and platform solutions bolstered improve operating earnings and margin expansion.

Consolidated, operating earnings were largely consistent with last year's second quarter and improved sequentially compared to first quarter 2025.

We continue to see strong new business momentum, which is encouraging for future growth.

Based on the company's solid performance and confidence in our continued growth. Our board has approved an increase in the quarterly dividend to seven five cents per share for both CRD, a and <unk> or.

Excluding the impact of a non-recurring international tax item. Consolidated, operating margin would have been 7.8%, representing an improvement over the second quarter of 2024,

Consolidated, operating earnings were largely consistent with last year's second quarter and improved sequentially compared to first quarter 2025

Bruce will share more details on that shortly.

Our balance sheet remains strong with liquidity well maintained and a leverage ratio steady at 175 times EBITDA.

North America, Los adjusting saw an year-over-year, decrease in operating earnings due to lower us property claims activity.

Excluding the impact of a non-recurring international tax item, consolidated operating margin would have been 7.8%, representing an improvement over the second quarter of 2024.

In the second quarter storm activity was relatively stable year over year up just 1%.

Bruce will share more details on that shortly.

And broadspire operating earnings decrease year-over-year due to strategic headcount additions and investment in technology.

A three 8% decline in weather related revenue in the quarter was offset by revenue growth of five 2% and our non weather businesses, enabling us to achieve consolidated revenue growth in the quarter.

International operations and platform Solutions, posted improve operating earnings and margin expansion.

We continue to see strong new business momentum, which is encouraging for future growth.

North America, Los adjusting saw an year-over-year, decrease in operating earnings due to lower us property, claims, activity and broadspire. Operating earnings decrease year-over-year due to strategic headcount additions and investment in technology.

We are seeing a lower frequency of claims filed for comparable events. We believe this is largely related to affordability dynamics playing in the residential property market in the U S.

International operations and platform Solutions, posted improved operating earnings and margin expansion.

Based on the company's solid performance and confidence. In our continued growth. Our board has approved an increase in the quarterly dividend to 7 and a half cents per share for both crda and crdb.

We continue to see strong new business momentum, which is encouraging for future growth.

Higher deductible and concern for increased insurance pricing has suppressed residential property claims filings.

Our balance sheet remains strong with liquidity, well-maintained, and a leverage ratio steady at 1.75 times IBA.

Based on the company's solid performance and confidence. In our continued growth. Our board has approved an increase in the quarterly dividend to 7 and a half cents per share for both crda and crdb.

We view the lower U S property claims frequency as a temporary dynamic and not a structural shift.

in the second quarter storm activity, was relatively stable year-over-year up, just 1%

As reinsurance pricing stabilizes, we expect this trend to normalize over the next 12 to 18 months in.

Our balance sheet remains strong with liquidity, well-maintained, and a leverage ratio steady at 1.75 times ibida.

In the meantime, the resilience of our non weather segment and the strength of our balanced model continues to support steady sustainable growth.

A 3.8% decline in weather related Revenue in the quarter was offset by Revenue. Growth of 5.2% in our non-weather businesses, enabling us to achieve Consolidated Revenue growth in the quarter.

in the second quarter storm activity, was relatively stable year-over-year up, just 1%

We are seeing a lower frequency of claims filed for comparable events.

This topline results demonstrates the effectiveness of our diversified business model, which enables us to respond and grow in an environment of changing weather patterns and market dynamics.

We believe this is largely related to affordability, Dynamics playing in the residential property Market in the US.

Our capital allocation strategy is rooted in discipline, our long term value creation, we remain focused on deploying capital in ways that support sustainable growth strengthen our competitive position and return value to <unk> shareholders.

We are seeing a lower frequency of claims filed for comparable events.

We view the lower us property, claims frequency, as a temporary Dynamic, and not a structural shift.

We believe this is largely related to affordability, Dynamics playing in the residential property Market in the US.

As reinsurance pricing stabilizes, we expect this trend to normalize over the next 12 to 18 months.

We continue to invest in our core business with an emphasis on operational excellence initiatives technology enhancements and talent development, ensuring we are well positioned to serve clients and expand market share.

our deductible and concern for increased Insurance pricing, has suppressed residential property claims filing,

We view the lower us property, claims frequency, as a temporary Dynamic, and not a structural shift.

In the meantime, the resilience of our non-weather segments, and the strength of our balance model continues to support steady sustainable growth.

As reinsurance pricing stabilizes, we expect this trend to normalize over the next 12 to 18 months.

We are also open to evaluating M&A opportunities that can expand our capabilities and our geographic reach our.

This Top Line, results, demonstrates the effectiveness of our Diversified business model, which enables us to respond and grow in an environment of changing weather patterns and market dynamics.

Our balance sheet reflects our progress in reducing leverage and our liquidity position is strong, giving us the financial flexibility to respond to both opportunities and challenges as they arise.

In the meantime, the resilience of our non-weather segments, and the strength of our balance model continues to support steady sustainable growth.

We remain committed to returning capital to shareholders and are pleased to have had the opportunity to raise our dividend.

This Top Line, results, demonstrates the effectiveness of our Diversified business model, which enables us to respond and grow in an environment of changing weather patterns and market dynamics.

Our Capital allocation strategy is rooted in discipline and long-term value creation. We remain focused on deploying capital in ways that support sustainable growth, strengthen our competitive position and return value to short shareholders.

With that let me turn over the call to Bruce for a deeper look at our segment operational and financial performance.

Crawford operates through our four core segments that represent the global reach of our business North America, La suggesting which includes our loss adjusting operations in the U S and Canada accounted for 24% of second quarter 2025 revenues.

International operations, covering all service lines outside of North America contributed 34% of quarterly revenues and broad spire. Our U S. Based third party administration business represented 31% of quarterly revenues.

Angeline: Quarter 2025 earnings release conference call. In conjunction with this call, a supplementary financial presentation is available on our website at www.croco.com under the investor relation section. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer period. Instructions will follow at that time. Should anyone need assistance at any time during this conference, please press star, then zero, and an operator will assist you. As a reminder, ladies and gentlemen, this conference is being recorded today, Tuesday, August 5, 2025. Now, I would like to introduce Tami Stevenson, Crawford & Company's general counsel. Please go ahead.

Platform solutions, which includes contractor connection networks and subrogation services accounted for 11% of revenues.

Flexibility to respond to both opportunities and challenges as they arise.

Okay.

Our North America loss adjusting segment delivered two 7% revenue growth in the second quarter driven by continued strength in our global technical services business.

We remain committed to returning Capital to shareholders, and are pleased to have had the opportunity to raise our dividend.

Performance in U S field operations was impacted by reduced property claims activity and industry wide trend related to affordability pressures and lower claim frequency as.

As a result operating earnings in the segment declined 6% year over year and operating margin decreased by 54 basis points.

With that, let me turn over the call to Bruce for a deeper. Look at our segment, operational and financial performance. Thank you Rowan, Crawford operates through our 4 core segments that represent the global reach of our business. North America law suggesting, which includes our loss adjusting operations in the US, and Canada accounted for 24%. A second quarter of 2025 revenues.

As Robert mentioned, we don't anticipate this pattern to be a long term trend and we expect industry trends to stabilize over the next 12 to 18 months.

Crawford remains a destination for top tier specialized suggesting talent and we continue to invest in building a best in class team to meet the evolving needs of our clients.

Rohit Verma: Thank you, Angeline. Some of the matters to be discussed in this conference call and in the supplementary financial presentations may include forward-looking statements that involve risks and uncertainties. These statements may relate to, among other things, our expected future operating results and financial condition, our ability to grow our revenues and reduce our operating expenses, expectations regarding our anticipated contributions to our underfunded defined benefit pension plans, collectibility of our build and unbuild accounts receivable, results from our recently completed acquisitions, our continued compliance with the financial and other covenants contained in our financing agreements, our long-term capital resource and liquidity requirements, and our ability to pay dividends in the future. The company's actual results achieved in future quarters could differ materially from the results that may be implied by such forward-looking statements.

International operations, covering all service lines outside North America, contributed 34% of quarterly revenues and broadspire, our us-based third-party administration business represented, 31% of quarterly revenues.

Platform Solutions, which includes contractor connection networks and subregion services accounted for 11% of revenues.

International operations delivered another strong quarter with revenues, increasing six 6% year over year or six 9% in constant currency we.

We saw particularly strong performance across the UK, Europe, and Asia, where organic new business growth in weather related claims activity supported the topline.

Our North America law, suggesting segment, delivered 2.7% Revenue growth in the second quarter driven by continued strength in our Global Technical Services business.

Operating earnings grew 34% with the operating margin expanding by 143 basis points, reflecting our focus on pricing productivity and disciplined execution.

Performance in US field operations, was impacted by reduced property, claims activity, an industry-wide Trend related to affordability, pressures, and lower claim frequency.

As a result operating earnings in the segment declined 6%, year-over-year and operating margin decreased by 54 basis points.

The second quarter was a strong result for this segment, we're mindful about potential margin fluctuation as we move through the balance of the year.

Rohit Verma: The 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 occurrence of unanticipated events. In addition, you are reminded that operating results for any historical period are not necessarily indicative of the results to be expected for any future period. For a complete discussion regarding factors which could affect the company's financial performance, please refer to the company's Form 10-Q for the quarter ended June 30, 2025, 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 Results of Operation, as well as subsequent company filings with the SEC. This presentation also includes certain non-GAAP financial measures as defined under the SEC rules.

As growth mentioned, we don't anticipate this pattern to be a long-term Trend and we expect industry Trends to stabilize over the next 12 to 18 months.

That said, we're pleased by the momentum, we're seeing and optimistic about driving continued success in our international business.

<unk> delivered record quarterly revenues of $100 6 million in the second quarter, reflecting year over year growth of three 6%.

Crawford remains a destination for top tier, specialized adjusting talent and we continue to invest in building a best-in-class team to meet the evolving needs of our clients.

We saw consistent growth across all service lines, driven by new client wins, we have a strong retention rate of 95, 4%, which we view as a testament to the quality of our service and the trust, we built with our clients.

International operations delivered, another strong quarter with revenues, increasing 6.6% year-over-year or 6.9% in constant currency.

We saw particularly strong performance across the UK, Europe and Asia, were organic new business growth and weather related claims activity, supported the Top Line.

In the second quarter, we continued to strategically add head count to support new client on boarding and this activity as well as higher investments in technology impacted operating earnings and margin.

Operating earnings grew 34% with the operating margin expanding by 143 basis points, reflecting our focus on pricing productivity and disciplined execution.

We believe these investments strengthen our team and position us well to support growth in the second half of the year and beyond <unk> continues to build momentum and remains a key contributor to the strength of our non weather dependent portfolio.

Rohit Verma: As required, a reconciliation is provided for these matters to those most directly comparable GAAP measures. I would like now to introduce Mr. Rohit Verma, Chief Executive Officer of Crawford & Company. Rohit.

While the second quarter was a strong result for this segment, we are mindful about potential margin fluctuation as we move through the balance of the year.

That said, we're pleased by the momentum. We're seeing and optimistic about driving continued success, in our international business.

Okay.

Turning to platform solutions revenues declined nine 2% year over year.

Tami Stevenson: Thank you, Tami. Good morning and welcome to our second quarter 2025 earnings call. Joining me today is Bruce Swain, our Chief Financial Officer, and Tami Stevenson, our General Counsel. After our prepared remarks, we will open the call for your questions. This quarter, we continue to make progress on our strategic objectives. Consolidated revenue grew year over year, with three of our four segments delivering top-line growth. While we're seeing the effects of lower property claims frequency in the US, which put some pressure on revenues in our North America loss-adjusting and platform solution segments, we saw encouraging results across the broader business. Notably, we achieved growth in our non-weather segments, highlighting the effectiveness of our diverse business model and disciplined execution in navigating various market options.

Primarily due to a significant pullback in claims outsourcing from one of our key networks clients.

Broadspire delivered record, quarterly revenues of 100.6 million in the second quarter, reflecting your view your growth of 3.6%.

However, we achieved year over year revenue growth in both contractor connection of 2%.

Subrogation or our practice business, which grew two 8%.

We saw consistent growth across all service lines driven by new client wins. We have a strong retention rate of 95.4% which we view as a testament to the quality of our service and the trust we built with our clients.

Platforms delivered operating earnings growth of 113% and expanded operating margin by over 500 basis points. This performance was driven by higher margin business mix and meaningful improvements in operational efficiency, particularly within the networks business.

In the second quarter we continue to strategically. Add headcount to support new client on boarding. And this activity is well as higher investments in technology impacted operating earnings and margin.

Platform solutions continues to execute well and is an important component of our comprehensive portfolio of offerings.

We believe these Investments, strengthen our team and position us. Well to support growth in the second half of the year and Beyond broadspire continues to build momentum and remains a key contributor to the strength of our non-weather dependent portfolio.

And now for a look at our consolidated financials.

Turning to platform Solutions.

Tami Stevenson: This morning, I'll review our segment operations for the second quarter before handing it over to Bruce for a deeper dive into our financial performance. As you've heard me say before, our scale, expertise, and longstanding legacy of service excellence are true differentiators in the marketplace. We operate in over 70 countries, with 10,000 employees and access to more than 50,000 field resources, and one of the only companies with the capability to respond to complex claims of any size, anywhere. Each year, we manage more than $20 billion in claims globally, reflecting our reliability in meeting the needs of the world's leading carriers, corporations, and public entities. Our global presence, deep technical expertise, and over eight decades of experience position us competitively as a critical partner to clients navigating increased complexity and risk across a wide range of geographies and market conditions.

And the 2025 second quarter companywide revenues before reimbursements were $323 million, an increase of two 8% compared to the prior year period.

Revenues, decline 9.2% year-over-year.

Foreign exchange rates decreased revenues before reimbursements from approximately 500000 or 2%.

GAAP net income attributable to shareholders totaled $7 8 million compared to $8 6 million in the same period of 2024.

Due to a significant pullback and claims Outsourcing from 1 of our key networks clients. However, we achieved year-over-year Revenue growth in both contract connections of 2% and subregion or our practice business, which grew 2.8%.

Platforms delivered, operating earnings growth of 113% and expanded operating margin by over 500 basis points.

GAAP diluted EPS in the 2025 second quarter was 16.

Wrote CRD, a and CRD b, a slight decrease from 17 for both share classes in the 2024 period on a non-GAAP basis diluted EPS was <unk> 22 for boats CRD, a and CRD b compared to 25 cents for both share classes in the prior year period.

This performance was driven by a higher margin business, mix and meaningful improvements in operational efficiency, particularly within the Network's business.

platform Solutions, continues to execute well and as an important component of our comprehensive portfolio of offerings,

And now for a look at our Consolidated financials.

The company's non-GAAP operating earnings totaled $22 million in the 2025 second quarter were six 8% of revenues compared to $22 1 million or 7% of revenues in the prior year period.

Tami Stevenson: We see several core components driving our growth. First, the global frequency of weather events continues to add volatility to claim staffing needs of carriers. That heightens demand for our proven capabilities in managing complex weather-related claims. At the same time, our diversified business model ensures that we're not solely dependent on weather. When one area experiences lower claims volume, like we've been seeing in US property, that downturn can be offset by growth in non-weather-related areas of our businesses, like broad spire and parts of international operations. We continue to gain market share where carriers are increasingly prioritizing reliability, scalability, and compliance, signaling a flight to quality service providers. As a trusted, well-established partner, we believe Crawford is uniquely positioned to surpass those expectations.

In the 2025 second quarter companywide revenues. Before reimbursements were 323 million, an increase of 2.8% compared to the prior year period.

Consolidated adjusted EBITDA was $31 4 million in the 2022nd quarter compared to $30 6 million in the 2024 quarter. The EBITDA margin of nine 7% was consistent with last year's second quarter.

Foreign exchange rates decreased revenues before reimbursements for approximately 500,000 or 0.2%.

Gaap net income attributable to shareholders totaled, 7.8 million compared to 8.6 million in the same period of 2024.

Companys cash and cash equivalents as of June 32025 totaled $58 5 million compared to $55 4 million at December 31, 2024.

Total receivables were $281 4 million as of June 32025 up $8 3 million from the 2020 for year end.

Well, crda and crdb a slight decrease from 17 cents for both share classes in the 2024, period on a non-gaap basis. Diluted EPS was 22 cents for both crda and crdb compared to 25 cents for both share classes in the prior year period.

The company's total debt outstanding as of June 32025 totaled $225 4 million up from $218 1 million as of December 31, 2024.

The company's non-gaap operating earnings totaled 22 million in the 2025 second quarter or 6.8% of revenues compared to 22.1 million or 7% of revenues in the prior year period.

Tami Stevenson: We have formed many valuable strategic partnerships with clients across the globe and remain focused on deepening those relationships across multiple service lines and new geographies. Finally, our market leadership is reinforced by our deep bench of technical expertise and our investment in cutting-edge technology. These capabilities not only set us apart from competitors but are also a key factor in winning new business and enhancing profitability. With these drivers in place, we are confident in our ability to generate sustainable long-term growth regardless of quarter-to-quarter weather fluctuations. In the second quarter, consolidated revenue grew 2.8%, with North America loss-adjusting, international operations, and broad spire each contributing to our top-line growth and broad spire having another record revenue quarter. Consolidated operating earnings were largely consistent with last year's second quarter and improved sequentially compared to first quarter 2025.

Net debt was $166 9 million as of June 32025, while our U S pension liability was $25 million, reflecting our funded ratio of 93, 5%.

We made no discretionary contributions to our U S defined benefit pension plan during the second quarter of 2025, and we do not intend to make contributions through the remainder of the year.

Consolidated adjusted. Evita was 31.4 million in the 2025. Second quarter compared to 30.6 million in the 2024 quarter. The iPad. Do margin of 9.7% was consistent with last year's second quarter,

Okay.

Operating cash flow for the second quarter of 2025 was $21 1 million with free cash flow of $2 6 million.

Companies cash and cash equivalents, as of June 30th, 20225 totaled 58.5 million compared to 5 5. 4, 2 4.

This compares to a use of $8 3 million last year with free cash flow of negative $26 7 million.

Total receivables were, 281.4 million as of June 30th, 2025 up to 8.3 million from the 2024 year end.

The significant improvement in operating and free cash flow in the 2025 second quarter was primarily due to improved earnings and improvement in working capital levels.

The company's total debt outstanding as of June 3020 total 225.4 million up from 218.1 million as of December 312022.

Unallocated corporate costs were $7 million in the 2025 second quarter compared to cost of $5 1 million in the 2024 period.

Net debt was 166.9 Million as of June 3202, while our us pension liability was 20.5 million reflecting a funded ratio of 93.5%.

The increase was primarily due to a nonrecurring indirect tax expense of $3 1 million related to an international tax law change and an increase in self insurance expense, partially offset by a decrease in professional fees.

Tami Stevenson: Excluding the impact of a non-recurring international tax item, consolidated operating margin would have been 7.8%, representing an improvement over the second quarter of 2024. Bruce will share more details on that shortly. North America loss-adjusting saw an year-over-year decrease in operating earnings due to lower US property claims activity, and broad spire operating earnings decreased year over year due to strategic headcount additions and investment in technology. International operations and platform solutions posted improved operating earnings and margin expansion. We continue to see strong new business momentum, which is encouraging for future growth. Based on the company's solid performance and confidence in our continued growth, our board has approved an increase in the quarterly dividend to 7.50 cents per share for both CRDA and CRDB. Our balance sheet remains strong, with liquidity well maintained and a leverage ratio steady at 1.75 times EBITDA.

We made no discretionary contributions to our us defined benefit Pension Plan during the second quarter of 2025 and we do not intend to make contributions through the remainder of the year.

During the 2025 second quarter non service pension costs were $2 4 million consistent with the same period of 2024.

Operating cash flow for the second quarter of 2025 was 21.1 million with free cash flow of 2.6 million?

We recognized a pre tax contingent earn out cost of 80000 to 2025 second quarter compared to cost of 430000 in 2024 period.

This compares to a use of 8.3 Million last year with free cash flow of negative, 26.7 million.

During the second quarter of 2025, the company did not repurchase any shares of CRD, a or CRD b. As a reminder, approximately $1 1 million shares are eligible to be repurchased under our 2021 share repurchase authorization.

The significant Improvement in operating in a free cash flow in the 2025. Second quarter was primarily due to improved earnings and Improvement in working capital levels.

Unallocated corporate costs were 7 million in the 2025. Second quarter compared to cost of 5.1 million in the 2024 period.

With that I'll turn the call back over to ROE for concluding remarks.

Thank you Bruce as we entered the second half of the year, we remain focused on delivering high quality outcomes for our clients.

Tami Stevenson: In the second quarter, storm activity was relatively stable, year over year up just 1%. A 3.8% decline in weather-related revenue in the quarter was offset by revenue growth of 5.2% in our non-weather businesses, enabling us to achieve consolidated revenue growth in the quarter. We are seeing a lower frequency of claims filed for comparable events. We believe this is largely related to affordability dynamics playing in the residential property market in the US. Higher deductible and concern for increased insurance pricing have suppressed residential property claims filing. We view the lower US property claims frequency as a temporary dynamic and not a structural shift. As reinsurance pricing stabilizes, we expect this trend to normalize over the next 12 to 18 months. In the meantime, the resilience of our non-weather segments and the strength of our balanced model continue to support steady, sustainable growth.

Historically, the second half of any year, often brings heightened weather activity and our teams are well prepared to respond.

The increase was primarily due to a non-recurring. Indirect tax expense of 3.1 million related, to an international tax law change, and an increase in Self Insurance expense partially offset by a decrease in professional fees.

We remain confident in our strategy and the long term growth opportunity ahead for Crawford, our second quarter results reflect continued execution across our global platform strong performance in key segments and progress on our journey towards margin improvement.

During the 2025 second quarter non-service, pension cost for 2.4 million consistent with the same period of 2024.

We recognized pre-tax contingent earnout cost of 80,000 and the 2025 second quarter compared to cost of 430,000 in the 2024 period.

With a solid balance sheet, a robust business model and a highly experienced team we remain focused on delivering for our clients deepening strategic partnerships and continuing to drive value for our shareholders.

During the second quarter of 2025, the company did not repurchase any shares of CRDA or CRDB.

Thank you for your time today and Julien Please open the call for questions.

As a reminder, approximately 1.1 million Shares are eligible to be repurchased under our 2021. Share repurchase authorization.

With that, I'll turn the call back over to Rowan for concluding remarks.

Thank you.

At this time, if you would like to ask a question. Please press Star then the number one on your telephone keypad to Vizio Your question Chris.

Thank you Bruce, as we enter the second half of the year. We remain focused on delivering high-quality outcomes for our clients.

Press the pound key if you are using a speakerphone. Please pick up your handset before asking your question, we will pause for a moment to compile the Q&A roster.

Historically, the second half of any year, often brings heightened weather activity and our teams are well prepared to respond.

Tami Stevenson: This top-line results demonstrate the effectiveness of our diversified business model, which enables us to respond and grow in an environment of changing weather patterns and market dynamics. Our capital allocation strategy is rooted in discipline and long-term value creation. We remain focused on deploying capital in ways that support sustainable growth, strengthen our competitive position, and return value to short shareholders. We continue to invest in our core business with an emphasis on operational excellence initiatives, technology enhancements, and talent development, ensuring we are well positioned to serve clients and expand market share. We are also open to evaluating M&A opportunities that can expand our capabilities and our geographic reach. Our balance sheet reflects our progress in reducing leverage, and our liquidity position is strong, giving us the financial flexibility to respond to both opportunities and challenges as they arise.

Your first question comes from Maxwell feature with <unk> Securities. Please go ahead.

Hey, good morning, I'm on for Mark Hughes.

We remain confident in our strategy and the long-term growth opportunity ahead for Crawford. Our second quarter results, reflects continued execution, across our Global platform, strong performance and key segments, and progress on our journey towards margin Improvement.

Did you call out the specific GTS growth number if not.

The exact number there.

What has been your experience lately with adding head count in GTS.

With a solid balance sheet, or robust business model and a highly experienced team. We remain focused on delivering for our clients. Deepening strategic Partnerships and continuing to drive value for our shareholders.

I'll, let Bruce get you on the number but our experience continues to be very strong in terms of adding expertise as you know we had a target of adding 200 back in 2023, and we hit that target well before time. Since then we've continued to add resources.

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

Thank you.

At this time, if you would like to ask a question, please press star. Then the number 1 on your telephone keypad to enjoy your question.

To walk through our GTS unit in the U S as well as globally.

Our GTS U S had modest growth this year, mainly because of the suppressed frequency of weather claims.

Press the pound key. If you are using a speaker-phone, please pick up your handset before. Asking your question, we'll pause for a moment to compile the Q&A roster.

Tami Stevenson: We remain committed to returning capital to shareholders and are pleased to have had the opportunity to raise our dividend. With that, let me turn over the call to Bruce for a deeper look at our segment operational and financial performance.

Your first question comes from Maxwell richer with the truist Securities. Please go ahead.

But overall, we are very pleased with the trajectory of what's happening with with GTS, both in the U S as well as as well as globally.

Bruce Swain: Thank you, Rohit. Crawford operates through our four core segments that represent the global reach of our business. North America loss adjusting, which includes our loss adjusting operations in the US and Canada, accounted for 24% of second quarter 2025 revenues. International operations, covering all service lines outside North America, contributed 34% of quarterly revenues. In broad spire, our US-based third-party administration business represented 31% of quarterly revenues. Platform solutions, which includes contractor connection, networks, and subrogation services, accounted for 11% of revenues. Our North America loss adjusting segment delivered 2.7% revenue growth in the second quarter, driven by continued strength in our global technical services business. Performance in US field operations was impacted by reduced property claims activity, an industry-wide trend related to affordability pressures and lower claim frequency.

Yes, I don't have the specific GTS growth number, but I would tell you that substantially all of our growth in North America loss adjusting is coming from the GTS business.

Uh, what, what has been your experience lately with with adding headcount, and, and GTS?

Allied Bruce, uh, get to you on the number.

Great. Thank you and then do you have any observations you can share with us on how the weather has trended thus far in Q3 Q4.

Obviously, no big South eastern storms.

But broadly speaking what are you observing.

Yes, the weather continues to be.

In terms of adding expertise, as you know, we had a target of adding 200 back in 2023. And we, we hit that Target. Well before time since then we've continued to add resources, um, to uh, to our to our GTS unit in the US as well as globally.

Sort of a flat to last year I think the biggest thing that we continue to see is the suppressed frequency of.

Claims being filed in U S property, and we believe as I said on the call generally related to.

Uh, RTS us. Um, had, you know, modest growth this year mainly because of the suppressed uh frequency of of uh of whether claims

Excuse me the affordability challenges that were seeing with insurance in the U S market, where deductibles have increased and in pricing on insurances increase and that is dissuading filing of any claims.

But overall we are very pleased with the trajectory of um what's happening with uh with GTS both in the US um, as well as as well as globally.

Our comparable claims I should say or similar weather events as we've seen in the prior years.

Bruce Swain: As a result, operating earnings in the segment declined 6% year over year, and operating margin decreased by 54 basis points. As Rohit mentioned, we don't anticipate this pattern to be a long-term trend, and we expect industry trends to stabilize over the next 12 to 18 months. Crawford remains a destination for top-tier, specialized adjusting talent, and we continue to invest in building a best-in-class team to meet the evolving needs of our clients. International operations delivered another strong quarter, with revenues increasing 6.6% year over year, or 6.9% in constant currency. We saw particularly strong performance across the UK, Europe, and Asia, where organic new business growth and weather-related claims activity supported the top line. Operating earnings grew 34%, with the operating margin expanding by 143 basis points, reflecting our focus on pricing, productivity, and disciplined execution.

Okay.

Yeah, I don't have the specific GTS growth number, but I would tell you that substantially all of our growth in North America, Los adjusting is coming from the the GTS business.

Thank you understood and then in regards to Workers' comp are you are you seeing any change in severity or frequency there any signs of emerging medical inflation.

No I mean, nothing nothing out of the ordinary I mean, the workers' comp claims continue to be a similar trend as we've seen in the past and then youre seeing the general inflation and medical costs that we've seen on a year to year basis, but nothing that I would say is off trend.

Great, thank you. And then, do you have any observations you can share with us on how the weather has trended thus far into Q3? Obviously, no big Southeastern storms. But broadly speaking, what are you observing?

Great. Thank you very much.

Thank you Max.

Your next question comes from Kevin <unk> with Barrington. Please go ahead.

Hey, good morning.

Just wanted to do.

Hey, just wanted to follow up on.

The discussion about <unk>.

Yeah. The weather continues to be, uh, you know, sort of flat to last year. I think the biggest thing that we continue to see is the suppressed frequency of um, claims being filed in US property and we believe, as I said on the call generally related to, excuse me, the affordability challenges that we're seeing with insurance in the US market where, um, deductibles have increased and, uh, and pricing on insurances increased. And that is dissuading, um, filing of any claims. Um, or compare about claims, I should say, or similar, whether events as we've seen in the prior years.

Sure property claims frequency in the U S related to affordability.

You mentioned that.

Do you expect that to be temporary.

Bruce Swain: While the second quarter was a strong result for this segment, we are mindful about potential margin fluctuation as we move through the balance of the year. That said, we're pleased by the momentum we're seeing and optimistic about driving continued success in our international business. Broad spire delivered record quarterly revenues of $100.6 million in the second quarter, reflecting year-over-year growth of 3.6%. We saw consistent growth across all service lines driven by new client wins. We have a strong retention rate of 95.4%, which we view as a testament to the quality of our service and the trust we've built with our clients. In the second quarter, we continued to strategically add headcount to support new client onboarding, and this activity, as well as higher investments in technology, impacted operating earnings and margin.

Thank you understood. And then, in regards to workers comp, are you, are you seeing any change in severity or frequency there? Any signs of of emerging medical inflation?

Stabilize.

Over the next 12 to 18 months just based on.

Yes.

History, adjusting I guess, but so could you just dig into that.

Comment a little bit more and why you expect that.

I mean, the workers comp claims continue to be of similar Trend as we've seen in the past. And then, you know, you're seeing the general inflation in medical costs that we've seen on a year-to-year basis. But nothing that I would say is off trend,

Sure Kevin as you're very familiar with that the insurance industry is overall is we are experiencing what would be termed as a hard market for property over the last I would say three to five years.

Great, thank you very much.

Thank you, Max.

The reinsurance rates are particularly heartened as a result of which and we have seen significant severity in the property space.

Angeline, do we have another question?

From wildfires as well as severe convective storms and to some extent hurricane activity.

<unk> created some.

Angeline.

A pressure in terms of pricing and many of the carriers responded with higher deductibles and higher pricing.

Bruce Swain: We believe these investments strengthen our team and position us well to support growth in the second half of the year and beyond. Broad spire continues to build momentum and remains a key contributor to the strength of our non-weather-dependent portfolio. Turning to platform solutions, revenues declined 9.2% year over year, primarily due to a significant pullback in claims outsourcing from one of our key networks clients. However, we achieved year-over-year revenue growth in both contractor connection of 2% and subrogation for our practice business, which grew 2.8%. Platforms delivered operating earnings growth of 113% and expanded operating margin by over 500 basis points. This performance was driven by a higher margin business mix and meaningful improvements in operational efficiency, particularly within the networks business. Platform solutions continues to execute well and is an important component of our comprehensive portfolio of offerings.

You can actually see that now in the results that we're seeing from the carriers as far as their property loss ratios are concerned. The most recent reinsurance renewals that we've been watching seem to have softened quite a bit.

Have you lost the operator? I think we may have lost.

Folks, give us just 1 minute.

And we believe that that will continue to soften unless we see some major storm activity.

As they continue to soften we believe market dynamics will play out and.

Pricing will start to ease up and deductibles will start to come down which will then trigger back.

Sort of normalization of claims frequency.

Angeline.

And we believe that it could take anywhere from 12 to 18 months for this dynamic to play out. So that's the reason why were thinking that the claims frequency should return back to normalcy, because market dynamics and will eventually play out as reinsurance pricing eases up.

Apologies, 1 moment.

Okay. Thanks.

Helpful.

Also wanted to.

We're waiting for the next person that is in queue for question. Angeline. Angeline, we're waiting for the next person, please. Sure, your next question comes from. Kevin stritzke with Berrington. Please go ahead.

You ask about broad spire.

Bruce Swain: And now for a look at our consolidated financials. In the 2025 second quarter, company-wide revenues before reimbursements were $323 million, an increase of 2.8% compared to the prior year period. Foreign exchange rates decreased revenues before reimbursements by approximately $500,000, or 0.2%. GAAP net income attributable to shareholders totaled $7.8 million compared to $8.6 million in the same period of 2024. GAAP diluted EPS in the 2025 second quarter was $0.16 for both CRDA and CRDB, a slight decrease from $0.17 for both share classes in the 2024 period. On a non-GAAP basis, diluted EPS was $0.22 for both CRDA and CRDB compared to $0.25 for both share classes in the prior year period. The company's non-GAAP operating earnings totaled $22 million in the 2025 second quarter, or 6.8% of revenues, compared to $22.1 million, or 7% of revenues in the prior year period.

Talked about the continued new business momentum there.

And some continued investments in staffing and technology.

To meet that.

Demand and business momentum.

Hey, good morning. Um, just wanted to do. I just wanted to follow up on, um, the discussion about, uh, lower property claims frequency in the US related to affordability. And, um, you mentioned, uh, that

Kind of wondering where we are in the cycle of those investments relative to.

you expect that to be temporary uh, and

Margins and.

If we start to see margins or if we continue to see margins improve as we move through the back half of the year as you.

Stabilize um over the next 12 to 18 months this based on uh you know the industry adjusting I guess uh but so could you just dig into that?

Revenue growth ramps up and you leverage those investments.

Uh, comment a little bit more. And and why you expect that?

Yes, I think Kevin margin from from my perspective has been well within the tolerance range of 100 to 200 basis points going up or down. So we believe that this is a very normal margin fluctuation for us in broad spire as we go through the investment cycle.

We have quite a lot of new business that we expect to start early part of next year and some late later part of this year and those and where we've been staffing for that as you know a key element of it.

Severe convective storms and, and to some extent hurricane activity. That created some, um,

Of service in this business is making sure that we have solid staff that is trained and ready to go as new clients are onboard it and thats what leads to a higher level of NPS that we continue to see in a higher level of retention that we see in this business.

Bruce Swain: Consolidated adjusted EBITDA was $31.4 million in the 2025 second quarter, compared to $30.6 million in the 2024 quarter. The EBITDA margin of 9.7% was consistent with last year's second quarter. The company's cash and cash equivalents as of June 30, 2025, totaled $58.5 million, compared to $55.4 million at December 31, 2024. Total receivables were $281.4 million as of June 30, 2025, up to $8.3 million from the 2024 year-end. The company's total debt outstanding as of June 30, 2025, totaled $225.4 million, up from $218.1 million as of December 31, 2024. Net debt was $166.9 million as of June 30, 2025, while our US pension liability was $20.5 million, reflecting a funded ratio of 93.5%. We made no discretionary contributions to our US defined benefit pension plan during the second quarter of 2025, and we do not intend to make contributions through the remainder of the year.

I expect that we would probably stay on that same investment journey and it will be more like next year. When we start to see some of the results of this but as we continue to add new business. We will continue to add the staffing I think that the margin fluctuation somewhere between 13% to 16% is where we.

Pressure in terms of pricing and many of the carriers responded with high deductibles and higher pricing. Uh, you can actually see that now in the results that we're seeing from the carriers as far as their property loss, ratios are concerned the most recent reinsurance, renewals that, we've been watching seem to have softened quite a bit and and we believe that that will continue to soften unless we see some major storm activity.

We will fluctuate.

Okay, Yeah that makes sense I appreciate that I also wanted to ask you about.

International operations.

Can you just also discuss the.

New business momentum there that you mentioned, maybe dig into that a little bit more and then I had a follow up on international as well.

Uh, as they continue to soften, We Believe market dynamics will play out and, um, pricing will start to ease up and deductibles will start to come down, which will then trigger back the, um, sort of normalization of claims frequency. Uh, and we believe that it could take anywhere from 12 to 18 months for this Dynamic to play out. So, that's the reason why we're thinking that, um, the claims frequency should return back to normaly, because market dynamics will eventually play out as reinsurance pricing pieces up.

Okay, thanks that's that's helpful. Um, also wanted to um,

Absolutely as you know international has continuously been a turnaround story for us for the last three years or four years I would say.

Ask about broadspire. Um,

We've tried to change the mix of business and improve the margin as a result of that mix post COVID-19.

When we look at the international business and the growth that we've seen which is about 7% and revenue, it's largely been coming from our operations.

Bruce Swain: Operating cash flow for the second quarter of 2025 was $21.1 million, with free cash flow of $2.6 million. This compares to a use of $8.3 million last year, with free cash flow of negative $26.7 million. The significant improvement in operating free cash flow in the 2025 second quarter was primarily due to improved earnings and improvement in working capital levels. Unallocated corporate costs were $7 million in the 2025 second quarter, compared to a cost of $5.1 million in the 2024 period. The increase was primarily due to a non-recurring indirect tax expense of $3.1 million related to an international tax law change and an increase in self-insurance expense, partially offset by a decrease in professional fees. During the 2025 second quarter, non-service pension costs were $2.4 million, consistent with the same period of 2024.

Talked about the continued new business momentum there. Uh, and and some continued Investments and Staffing and Technology, uh, to to meet that, uh, demand and business momentum. I just

In UK.

As well as as well as Europe.

kind of wondering where we are in the cycle of those Investments relative to, uh, margins and, um,

Both those regions. We believe we have significant headroom still to grow we've also seen a return.

Our Asia business, our return to revenue growth in our Asia business.

But largely I believe that our largest more near term opportunities lie in.

If we start to see margins or if we continue to see margins improve, uh, as we move through the back, half of the year, as you, you know, Revenue growth ramps up and you, you know, you leverage those Investments.

In Europe, as well as U K.

yeah, I think um Kevin margin from from

And we will continue to see that.

Okay, Great and then.

You also.

You mentioned in your comments.

Potential margin fluctuation in international.

Is there something specific we should be thinking about there or is that just kind of.

Typical quarter to quarter potential volatility.

I would say its typical quarter to quarter volatility I mean, if you compare our margins this year to last year of which about 140 basis points.

<unk>.

And thats been sort of a continuous trend for us to move the margin up.

Bruce Swain: We recognized pre-tax contingent earnout cost of $80,000 in the 2025 second quarter, compared to a cost of $430,000 in the 2024 period. During the second quarter of 2025, the company did not repurchase any shares of CRDA or CRDB. As a reminder, approximately 1.1 million shares are eligible to be repurchased under our 2021 share repurchase authorization. With that, I'll turn the call back over to Rohit for concluding remarks.

However, as we look at quarter to quarter, there are weather fluctuations our investment fluctuations theres. Some technology fluctuations I think those things will drive the margins. So I think we were just trying to make sure that they have an understanding of that.

100 basis points, um, going up or down. So, we believe that this is a very normal margin. Fluctuation for us in, uh, in in broadspire as we go through the investment cycle. Um, we have quite a lot of new business, uh, that we expect to start early part of next year and some at later part of this year. And, and those and where we've been Staffing for that as, you know, a key element of um, of service in this business is making sure that we have solid staff. Um, that is trained and ready to go. As new clients are on boarded, and that's what leads to a higher level of NPS. That we continue to see in a higher level of retention that we see in this business, um, I expect that, you know, we would probably stay,

Okay, Great and then.

Lastly, maybe if you can.

Hello, Chad capital allocation a bit more you raised the dividend, which was nice to see.

On that same investment journey and it'll be more like next year when we start to see some of the results of this. But as we continue to add new business, we will continue to add the Staffing. I think that the margin fluctuation somewhere between say 13 to 16% is where um we will we will fluctuate.

Rohit Verma: Thank you, Bruce. As we enter the second half of the year, we remain focused on delivering high-quality outcomes for our clients. Historically, the second half of any year often brings heightened weather activity, and our teams are well prepared to respond. We remain confident in our strategy and the long-term growth opportunity ahead for Crawford. Our second quarter results reflect continued execution across our global platform, strong performance in key segments, and progress on our journey towards margin improvement. With a solid balance sheet, a robust business model, and a highly experienced team, we remain focused on delivering for our clients, deepening strategic partnerships, and continuing to drive value for our shareholders. Thank you for your time today. Angeline, please open the call for questions.

Didnt repurchase any shares but.

Okay. Yeah, that makes sense. Uh, appreciate that. Um, I also wanted to ask about

I assume you still might have an appetite for that.

Uh, International operations.

Market conditions are.

Uh, can you just also discuss the

Favorable, but any any more comments.

um,

Oh, you intend to approach.

I'll, probably start and then let Bruce comment on that look our first priority for capital allocation. As you know has always been to invest in our margin for their long term growth and profitability in the health of the health of the business.

New business momentum there. That you mentioned, maybe dig into that a little bit more and then I had a follow-up on International as well.

That will always be the first priority so that youll see that in the form of Capex youll see that in the form of any acquisitions that we make so that will always remain our first priority.

Then when we looked at our cash flow the health of our business the quality of earnings the growth prospects in the business, we felt that and our and our leverage position, we felt very comfortable that putting up half a cent increase was well within our comfort zone to do and that's the reason why we why we did that and we have been signaling signaling this to.

Absolutely, as you know, International has continuously been a turnaround story for us for the last 3 years or 4 years, I would say, um, as we've tried to change the mix of business and improve the margin as a result of that mixed postco. Uh, when we look at the international business and the growth that we've seen, which is about 7% in, in Revenue, it's largely been coming from our operations in in UK.

Angeline: Thank you. At this time, if you would like to ask a question, please press star then the number one on your telephone keypad. To resolve your question, press the pound key. If you are using a speakerphone, please pick up your handset before asking your question. We'll pause for a moment to compile the Q&A roster. Your first question comes from Maxwell Fritscher with Truist Securities. Please go ahead.

As well as Europe. Um, both those regions, we believe we have significant headroom still to grow. We've also seen a return, uh, in our Asia business, a return to revenue growth in our Asia business.

You and others that we have a real desire to continue to have not just revenue and earnings growth, but then implied dividend growth from that.

But largely, I believe that our largest more near-term opportunities lie in, uh, in Europe as well as UK.

As far as share repurchase is concerned as you know we are buyers of shares when its below our intrinsic value. We still have $1 1 million shares left in our authorization.

And we'll continue to see that.

Okay, great. And then you also, um,

mentioned in your comments.

So far our approach has been to be opportunistic to Dubai large blocks of business that come in the market. We haven't seen any of that come in and and as a result of that you didn't see us buy any shares this quarter. So I don't know Bruce if theres anything else you want to add to that I think maybe the only other thing to add to that as well.

Maxwell Fritscher: Hi, good morning. I'm on for Mark Hughes. Did you call out the specific GTS growth number? If not, what was the exact number there? And what has been your experience lately with adding headcount and GTS?

Uh, potential margin fluctuation in international. Is that, is there something specific we should be thinking about there? Or is that just kind of

Typical quarter-to-quarter potential volatility. I would say it's...

Typical quarter.

Rohit Verma: I'll let Bruce get to you on the number. But you know our experience continues to be very strong in terms of adding expertise. As you know, we had a target of adding 200 back in 2023, and we hit that target well before time. Since then, we've continued to add resources to our GTS unit in the US as well as globally. Our GTS US had modest growth this year, mainly because of the suppressed frequency of weather claims. But overall, we are very pleased with the trajectory of what's happening with GTS, both in the US as well as globally.

Organic growth is our primary strategy. We also want to look at inorganic growth opportunities and feel we've got the balance sheet strength and liquidity.

Better. And and that's been sort of a continuous uh trend for us to to move the margin up.

Um,

<unk> to be opportunistic out in the marketplace. If there are compelling.

Assets that come on the market so while we haven't.

Done any M&A this year that doesn't mean, we're not out there scouting for businesses that could.

Investment fluctuations. There's some technology fluctuations and I think those things will drive the margin. So I think we were just trying to make sure that there was an understanding of that.

Okay, great. And then

Add value to the company's platform.

lastly, maybe if you can, uh,

And we have been doing much more aqua hires which is.

Sort of acquisition of teams as opposed to acquisition of companies or legal entities, and that's where a lot of the GTS growth has come from.

Bruce Swain: Yeah, I don't have the specific GTS growth number, but I would tell you that substantially all of our growth in North America loss adjusting is coming from the GTS business.

Okay.

Great. Thanks again for all the insights.

Okay. Thank you Kevin Thank you Kevin always a pleasure.

Ladies and gentlemen, as a reminder, if you do have a question. Please press star followed by one.

Maxwell Fritscher: Great, thank you. And then do you have any observations you could share with us on how the weather has trended thus far into 3Q? Obviously, no big southeastern storms, but broadly speaking, what are you observing?

Rohit Verma: Yeah, the weather continues to be sort of flat to last year. I think the biggest thing that we continue to see is the suppressed frequency of claims being filed in US property. And we believe, as I said on the call, generally related to, excuse me, the affordability challenges that we're seeing with insurance in the US market, where deductibles have increased and pricing on insurance has increased. And that is dissuading filing of any claims or comparable claims, I should say, or similar weather events as we've seen in the prior years.

There seems to be no further questions at this time I would now like to turn the call back over to Mr. <unk> for closing remarks. Please go ahead.

Thank you Angelina and thank you to all our employees clients and shareholders for your continued commitment to Crawford <unk> company, Thank you and God bless.

Thank you for the participation in today's Crawford <unk> Company Conference call. This call will be available for replay beginning at 11 30, a M. Eastern standard time today through 11, 59 PM Eastern standard time on August 12 2025.

touch on Capital allocation a bit more, you raised the dividend, which was nice to see. Um, didn't repurchase any shares. But, you know, I assume you still might have an appetite for that. Um, you know, market conditions are, uh, favorable but any, any more, uh, comments on how you intend to approach, I'll probably start and then let Bruce comment on that. Look, our first priority for Capital allocation, as you know, has always been to invest in our margin for the long term growth and profitability and the health of the health of the business. Uh, that'll always be the first priority, so that you'll see that in the form of capex, you'll see that in the form of any um, Acquisitions that we make, so that will always remain the first priority. Um then uh when we looked at our cash flow, the health of our business, the quality of earnings, the growth prospects in the business, we felt that and our and our leverage position, be, felt very comfortable that, you know, putting up half a cent increase.

Maxwell Fritscher: Thank you. Understood. And then in regard to workers' comp, are you seeing any change in severity or frequency there? Any signs of emerging medical inflation?

The conference I'd number for the replay is 35518 pound and the number to dial for the replay is 18886606264. Thank you and you may now disconnect have a great day.

Rohit Verma: No, I mean, nothing out of the ordinary. I mean, the workers' comp claims continue to be of similar trend as we've seen in the past. And then you know you're seeing the general inflation in medical costs that we've seen on a year-to-year basis, but nothing that I would say is off-trend.

Maxwell Fritscher: Great. Thank you very much.

Rohit Verma: Thank you, Max.

Angeline: Your next question comes from Kevin Shricke with Barrington. Please go ahead.

Kevin Shricke: Hey, good morning.

Rohit Verma: Hi, Kevin.

Kevin Shricke: I just wanted to follow up on the discussion about lower property claims frequency in the US related to affordability. And you mentioned that you expect that to be temporary and stabilize over the next 12 to 18 months just based on the industry adjusting, I guess. But so can you just dig into that comment a little bit more and why you expect that?

Was was well within our comfort zone to do. And that's the reason why we why we did that. And we have been signaling signaling this to you and others that we have a real desire to continue to have not just revenue and earnings growth, but then implied dividend growth from that. Um, as far as share repurchase is concerned, as you know, we are buyers of shares when it's below our intrinsic value. We still have 1.1 million shares left in our authorization. Um, so far our approach has been to be opportunistic to to buy large blocks of business that come in the market. We haven't seen any of that come in and and as a result of that you didn't see us uh buy any shares uh this quarter. So I don't know. Bruce if there's anything else you want to add to that? I think maybe the only other thing to to add to. That is you know, while you know, organic growth is our primary strategy. We also want to look at inorganic growth opportunities and you know, feel we've got the balance sheet strength and liquidity to, uh, to be opportunistic out in the marketplace if there are uh, compelling, uh, assets that that. Come on.

The market. So while we haven't uh, you know, done any uh m&a this year, that doesn't mean we're not out there, uh, scouting for businesses that could uh add value to the companies and platform.

and we have been doing much more Aqua hires, which is

You know, sort of acquisition of teams as opposed to acquisition of companies or legal entities. Yeah, that's where a lot of the GTS growth has come from. Yeah,

Okay, great. Thanks again. Uh, for all the insights.

Rohit Verma: Sure. Kevin, as you are very familiar with that, the insurance industry has overall been experiencing what would be termed as a hard market for property over the last, I would say, three to five years. The reinsurance rates are particularly hardened as a result of it. And we have seen significant severity in the property space coming from wildfires as well as severe convective storms and, to some extent, hurricane activity. That created some pressure in terms of pricing, and many of the carriers responded with higher deductibles and higher pricing. You can actually see that now in the results that we're seeing from the carriers as far as their property loss ratios are concerned. The most recent reinsurance renewals that we've been watching seem to have softened quite a bit. And we believe that that will continue to soften unless we see some major storm activity.

Kevin, thank you. Kevin. Always a pleasure.

Ladies and gentlemen, as a reminder, if you do have a question, please press star, followed by 1.

There seemed to be no further questions at this time. I'd now like to turn the call back over to Mr. Verma, for closing remarks, please go ahead.

Thank you Angeline, and thank you to all our employees clients and shareholders for your continued commitment to Crawford and company. Thank you. And God bless.

Thank you for the.

This call will be available for replay beginning at 11:30 a.m. eastern standard time today through 11:59 p.m. Eastern Standard Time on August 12th of 2025.

Rohit Verma: As they continue to soften, we believe market dynamics will play out and pricing will start to ease up and deductibles will start to come down, which will then trigger back the sort of normalization of claims frequency. And we believe that it could take anywhere from 12 to 18 months for this dynamic to play out. So that's the reason why we're thinking that the claims frequency should return back to normalcy because market dynamics will eventually play out as reinsurance pricing heals up.

The conference ID number for the replay is 35518 pound. And the number to dial for the replay is 1888660 6264. Thank you. And you may now disconnect have a great day.

Kevin Shricke: Okay, thanks. That's helpful. I also wanted to ask about broad spire. Talked about the continued new business momentum there and some continued investments in staffing and technology to meet that demand and business momentum. I'm just kind of wondering where we are in the cycle of those investments relative to margins, and if we start to see margins or if we continue to see margins improve as we move through the back half of the year as you, you know, revenue growth ramps up and you, you know, you leverage those investments.

Rohit Verma: Yeah, I think, Kevin, margin from my perspective has been well within the tolerance range of, you know, 100 to 200 basis points going up or down. So we believe that this is a very normal margin fluctuation for us in broad spire as we go through the investment cycle. We have quite a lot of new business that we expect to start early part of next year and some at the later part of this year. And those, and we've been staffing for that. As you know, a key element of service in this business is making sure that we have solid staff that is trained and ready to go as new clients are onboarded. And that's what leads to a higher level of NPS that we continue to see and a higher level of retention that we see in this business.

Rohit Verma: I expect that, you know, we would probably stay on that same investment journey, and it'll be more like next year when we start to see some of the results of this. But as we continue to add new business, we will continue to add the staffing. I think that the margin fluctuation somewhere between, say, 13 to 16% is where we will fluctuate.

Kevin Shricke: Okay. Yeah, that makes sense. Appreciate that. I also wanted to ask about international operations. Can you just also discuss the new business momentum there that you mentioned? Maybe dig into that a little bit more and then follow up on international as well.

Rohit Verma: Absolutely. As you know, international has continuously been a turnaround story for us for the last three years or four years, I would say, as we've tried to change the mix of business and improve the margin as a result of that mix post-COVID. When we look at the international business and the growth that we've seen, which is about 7% in revenue, it's largely been coming from our operations in the UK as well as Europe. Both those regions, we believe we have significant headroom still to grow. We've also seen a return in our Asia business, a return to revenue growth in our Asia business. But largely, I believe that our largest, more near-term opportunities lie in Europe as well as the UK. And we'll continue to see that.

Kevin Shricke: Okay, great. And then you also mentioned in your comments potential margin fluctuation in international. Is there something specific we should be thinking about there, or is that just kind of typical quarter-to-quarter potential volatility?

Rohit Verma: I would say it's typical quarter-to-quarter volatility. I mean, if you compare our margin this year to last year, it's about 140 basis points better. And that's been sort of a continuous trend for us to move the margin up. However, as we look at quarter-to-quarter, you know, there are weather fluctuations, there are investment fluctuations, there are some technology fluctuations, and I think those things will drive the margin. So I think we were just trying to make sure that there was an understanding of that.

Kevin Shricke: Okay, great. And then lastly, maybe if you can touch on capital allocation a bit more. You raised the dividend, which was nice to see. Didn't repurchase any shares, but you know, I assume you still might have an appetite for that. You know, market conditions are favorable, but any more comments on how you intend to approach?

Rohit Verma: Yeah, I'll probably start and then let Bruce comment on that. Look, our first priority for capital allocation, as you know, has always been to invest in our margin for the long-term growth and profitability and the health of the business. That'll always be the first priority. So that you'll see that in the form of CapEx. You'll see that in the form of any acquisitions that we make. So that'll always remain the first priority. Then when we looked at our cash flow, the health of our business, the quality of earnings, the growth prospects in the business, we felt that, and our leverage position, we felt very comfortable that, you know, putting a half a cent increase was well within our comfort zone to do. And that's the reason why we did that.

Rohit Verma: And we have been signaling this to you and others that we have a real desire to continue to have not just revenue and earnings growth, but then implied dividend growth from that. As far as share repurchase is concerned, as you know, we are buyers of shares when it's below our intrinsic value. We still have 1.1 million shares left in our authorization. So far, our approach has been to be opportunistic to buy large blocks of business that come in the market. We haven't seen any of that come in. And as a result of that, you didn't see us buy any shares this quarter. So I don't know, Bruce, if there's anything else you want to add to that.

Bruce Swain: I think maybe the only other thing to add to that is, you know, while you know organic growth is our primary strategy, we also want to look at inorganic growth opportunities and, you know, feel we've got the balance sheet strength and liquidity to be opportunistic out in the marketplace if there are compelling assets that come on the market. So while we haven't, you know, done any M&A this year, that doesn't mean we're not out there scouting for businesses that could add value to the companies and platform.

Rohit Verma: And we have been doing much more acquihires, which is, you know, sort of acquisition of teams as opposed to acquisition of companies or legal entities.

Bruce Swain: Yeah, that's where a lot of the GTS growth has come from.

Rohit Verma: Yep.

Kevin Shricke: Okay. Great. Thanks again for all the insights.

Bruce Swain: Thank you, Kevin.

Rohit Verma: Thank you, Kevin. Always a pleasure.

Angeline: Ladies and gentlemen, as a reminder, if you do have a question, please press star followed by one. There seem to be no further questions at this time. I'd now like to turn the call back over to Mr. Verma for closing remarks. Please go ahead.

Rohit Verma: Thank you, Angeline, and thank you to all our employees, clients, and shareholders for your continued commitment to Crawford & Company. Thank you and God bless.

Angeline: Thank you for the participation in today's Crawford & 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 August 12th of 2025. The conference ID number for the replay is 35518 POUND, and the number to dial for the replay is 1-888-660-6264. Thank you, and you may now disconnect. Have a great day.

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