Q3 2025 Crawford & Co Earnings Call

Paul.

In conjunction with this call a supplementary financial presentation is available on our website at www Dot Crocco Dot com under the Investor Relations section all lines have been placed 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. 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 November 4th 2025, now I would like to introduce Tammy Stevenson Crawford <unk> Company's general counsel.

Thank you correctly some of the matters to be discussed in this conference call and the supplementary financial presentation may include forward looking statements 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 earning expenses.

Expectations regarding our anticipated contributions to our underfunded underfunded defined benefit pension plans.

The ability of our billed and Unbilled accounts receivable financial 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 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 day 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 results to be expected for any future periods.

Speaker #1: In conjunction with this call, a supplementary financial presentation is available on our website, at www.crawco.com. Under the Investor Relations section, all lines have been placed on mute to prevent any background noise.

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 September 32025 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 operations as well.

Speaker #1: After the speakers' 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.

Subsequent company's filings with the SEC.

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

Speaker #1: As a reminder, ladies and gentlemen, this conference is being recorded today. Tuesday, November 4th, 2025. Now, I would like to introduce Tami Stevenson, Crawford & Company's General Counsel.

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

I would now like to introduce Mr wrote Burma CEO.

Of Crawford <unk> company.

Speaker #2: Thank you, Carly. Some of the matters to be discussed in this conference call in the supplementary financial presentation may include forward-looking statements that involve risks and uncertainties.

Thank you Tammy good morning, and welcome to our third quarter 2025 earnings call. Joining me today is Bruce Swain, our Chief Financial Officer, and Dominic Stevens, then our general counsel.

Speaker #2: 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 earning expenses, expectations regarding our anticipated contributions to our underdefined underfunded defined benefit pension plans, collectibility of our billed and unbilled accounts receivable, financial 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.

After our prepared remarks, we will open the call for your questions.

Crawford <unk> company delivered a solid third quarter with improved operating earnings across three segments and improved margins across all segments, reflecting the strength of our diversified business lines.

Broad spire and international performed particularly well consolidated revenues came in slightly below the prior year due to the continued absence of significant weather and lower U S claims activity in North America loss adjusting.

<unk> achieved record quarterly revenue performance with improved margins and our international operations delivered record revenue growth with margin expansion across key markets.

Speaker #2: The company's actual results achieved and future quarters could differ materially from 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.

Consolidated operating earnings improved significantly up 22% year over year, reflecting the strength of our core portfolio and disciplined cost management.

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

Speaker #2: In addition, you are reminded that operating results from any historical period are not necessarily indicative of results to be expected for any future periods.

Crawford <unk> company combined global scale with deep expertise to tackle the widest variety of claims anywhere in the world.

Speaker #2: 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 ended September 30, 2025, filed with the Securities and Exchange Commission.

Operating in over 70 countries with a team of 10000 professionals, we have the capability to manage claims of any size or complexity.

Speaker #2: Particularly, the information under the headings risk factors, and management's discussion and analysis of financial condition, and results of operations, as well as subsequent company filings with the SEC.

Each year, we handled billions of dollars in claims underscoring the confidence that top insurers cooperations and public entities placed in our services.

Speaker #2: This presentation also includes certain non-GAAP financial measures as defined under SEC rules. As required, a reconciliation is provided for those measures to the most directly comparable GAAP measures.

Our expertise.

Experience and technical knowledge enabled us to deliver solutions across diverse markets, while our global footprint allows us to establish and sustained strong relationships with clients navigate an increasingly complex risks.

Speaker #2: I would now like to introduce Mr. Rohit Verma, CEO of Crawford & Company. Rohit?

This unique combination of scale skill and reliability provides a clear competitive advantage in the claims management industry.

Speaker #3: Thank you, Tami. Good morning and welcome to our 3rd Quarter 2025 Earnings Call. Joining me today is Bruce Swain, our Chief Financial Officer, and Tami Stevenson, our General Counsel.

With over eight decades of experience Crawford has continually evolved its business model to address the increasingly complex and dynamic claims environment.

Speaker #3: After our prepared remarks, we will open the call for your questions. Crawford & Company delivered a solid 3rd quarter with improved operating earnings across three segments and improved margins across all segments reflecting the strength of our diversified business lines.

Our growth trajectory is supported by a set of long term drivers that position us to create sustainable value.

Speaker #3: Broadspire and International performed particularly well, consolidated revenues came in slightly below the prior year, due to the continued absence of significant weather and lower U.S.

Burst severe weather events around the world create opportunities for Crawford's weather related services.

Our scale and expertise enable us to respond quickly and effectively providing support to carriers. When claims are most urgent.

Speaker #3: claims activity in North America Loss Adjusting. Broadspire achieved record quarterly revenue performance with improved margins and international operations delivered record revenue growth with margin expansion across key markets.

We have diversified Crawford's model with a multiline multi geography approach, which allows us to balance performance across economic as well as weather cycles to.

Speaker #3: Consolidated operating earnings improved significantly, up 22% year over year, reflecting the strength of our core portfolio and disciplined cost management. This morning, I'll review our segment operations for the 3rd quarter before handing it over to Bruce for a deeper dive into our financial performance.

To create a strong foundation for consistent profitability and long term value creation.

U S carriers increasingly seek establish reliable partners and Crawford is well positioned with our focus on operational excellence, our scale and our specialized expertise to grow our market share in a fragmented space.

Speaker #3: Crawford & Company combines global scale with deep expertise to tackle the widest variety of claims anywhere in the world. Operating in over 70 countries, with a team of 10,000 professionals, we have the capability to manage claims of any size or complexity.

Across all business segments, we continue to expand and deepen relationships with key clients and partners.

These partnerships enhance cross segment opportunities generate new business and reinforce our position as a trusted partner for complex claims management solutions globally.

Speaker #3: Each year, we handle billions of dollars in claims, underscoring the confidence that top insurers, corporations, and public entities place in our services. Our expertise experience and technical knowledge enable us to deliver solutions across diverse markets, while our global footprint allows us to establish and sustain strong relationships with clients navigating increasingly complex risks.

Finally, crawford's combination of specialized knowledge and advanced technology platforms strengthens both the efficiency and client outcomes.

By leveraging proprietary systems automation and data analytics, we enhance service quality and further differentiate ourselves in the marketplace.

Turning to our quarterly results Crawford and company delivered a solid performance this quarter <unk>.

Speaker #3: This unique combination of scale, skill, and reliability provides a clear competitive advantage in the claims management industry. With over eight decades of experience, Crawford has continually evolved its business model to address the increasingly complex and dynamic claims environment.

Consolidated revenues were slightly lower than the third quarter of 2024, primarily due to reduced U S property claims activity.

However, operating earnings grew 22% year over year with margin expansion across all four segments, demonstrating the benefits of our diversified business model and ongoing initiatives to improve operational efficiency.

Speaker #3: Our growth trajectory is supported by a set of long-term drivers that position us to create sustainable value. First, severe weather events around the world create opportunities for Crawford's weather-related services.

This quarter, we saw continued momentum at <unk>, which delivered a record quarterly revenue performance contributing meaningfully to revenue and margin growth.

Speaker #3: Our scale and expertise enable us to respond quickly and effectively, providing support to carriers when claims are most urgent. We have diversified Crawford's model with a multi-line, multi-geography approach, which allows us to balance performance across economic as well as weather cycles.

International operations also had a record quarter, expanding both topline results and margin across key segments.

Revenue for North America loss, adjusting and platform solutions was impacted by the absence of significant weather events and lower U S claims activity, but our North America loss adjusting business saw strong operating earnings growth. Thanks to the operational efficiency and solid performance from the U S Global technical services business.

Speaker #3: To create a strong foundation for consistent profitability, and long-term value creation. U.S. carriers increasingly seek established, reliable partners, and Crawford is well-positioned with our focus on operational excellence, our scale, and our specialized expertise to grow our market share in a fragmented space.

non-GAAP EPS was <unk> 32 for both CRD, a and CRD B and the company paid a quarterly dividend of seven five cents per share.

In the third quarter, we added $29 million in new business, reflecting the continued strength of our pipeline and the depth of our client relationships.

Speaker #3: Across all business segments, we continue to expand and deepen relationships with key clients and partners. These partnerships enhance cross-segment opportunities, generate new business, and reinforce our position as a trusted partner for complex claims, management solutions globally.

This takes our total new business added in the year to $78 million.

Our strong balance sheet and liquidity remained key strengths, providing the foundation for our continued investment in growth initiatives.

Speaker #3: Finally, Crawford's combination of specialized knowledge and advanced technology platforms strengthens both efficiency and client outcomes. By leveraging proprietary systems, automation, and data analytics, we enhance service quality, and further differentiate ourselves in the marketplace.

The leverage ratio remains low at 164 times, EBITDA, reflecting disciplined capital management and cash flow generation.

We have a disciplined approach to capital deployment with focus on long term growth through strategic initiatives, including targeted M&A aqua hires to expand capabilities and ongoing capital expenditures.

Speaker #3: Turning to our quarterly results, Crawford & Company delivered a solid performance this quarter. Consolidated revenues were slightly lower than the 3rd quarter of 2024, primarily due to reduced U.S.

We remain committed to returning capital to shareholders. In addition to the dividend, we opportunistically repurchased shares.

Speaker #3: property claims activity. However, operating earnings grew 22% year over year, with margin expansion across all four segments demonstrating the benefits of our diversified business model and ongoing initiatives to improve operational efficiency.

In the third quarter, we repurchased over 275000 shares of CRD, a and <unk>.

And subsequent to the close of the quarter. Our board of Directors authorized. The addition of 2 million shares of common stock through the stock repurchase program and extended the program termination date through December 31 2027.

Speaker #3: This quarter, we saw continued momentum at Broadspire, which delivered a record quarterly revenue performance. Contributing meaningfully to revenue and margin growth. International operations also had a record quarter, expanding both top-line results and margin across key segments.

With that let me turn the call over to Bruce for a deeper look at our segment operational and financial performance. Thank you Road Rockford operates throughout our four core segments that represent the global reach of our business North America loss, adjusting which includes our loss adjusting operations in the U S and Canada.

Speaker #3: Revenue for North America Loss Adjusting and Platform Solutions was impacted by the absence of significant weather events and lower U.S. claims activity, but our North America Loss Adjusting business saw strong operating earnings growth thanks to the operational efficiency and solid performance from the U.S.

Accounted for 24% of third quarter of 2025 revenues International operations, covering all service lines outside of North America contributed 35% of quarterly revenues and broad spire. Our U S. Based third party administration business represented 32% of quarterly revenues.

Speaker #3: Global Technical Services business. Non-GAAP EPS was 32 cents for both CRDA and CRDB, and the company paid a quarterly dividend of 7.5 cents per share.

Form solutions, which includes contractor connection networks and subrogation services accounted for 9% of revenues.

Speaker #3: In the 3rd quarter, we added 29 million dollars in new business. Reflecting the continued strength of our pipeline and the depth of our client relationships.

And North American law, suggesting revenue decreased two 9% year over year, primarily reflecting lower significant weather and property claim activity in the U S. Despite the revenue headwind operating earnings increased 28% compared to the prior year driven by strong performance in our <unk>.

Speaker #3: This takes our total new business added in the year to 78 million dollars. Our strong balance sheet and liquidity remain key strengths, providing the foundation for our continued investment and growth initiatives.

Speaker #3: The leverage ratio remains low at 1.64 times EBITDA, reflecting disciplined capital management and cash flow generation. We have a disciplined approach to capital deployment, with focus on long-term growth through strategic initiatives, including targeted M&A, acqui-hire to expand capabilities, and ongoing capital expenditures.

<unk> business and improvements in our Canadian operations.

Operating margins expanded 215 basis points, reflecting both mix shift towards higher margin services and ongoing operational efficiencies North America loss adjusting continues to attract top tier insurance, suggesting talent are key.

Speaker #3: We remain committed to returning capital to shareholders. In addition to the dividend, we opportunistically repurchase shares. In the 3rd quarter, we repurchased over 275,000 shares of CRDA and CRDB.

Key competitive advantage in delivering expertise and high quality service to our clients.

With our current visibility, we expect the lower claims activity to persist through the fourth quarter of 2025. However, we anticipate a return to more typical claims activity over the coming 12 months to 18 months.

Speaker #3: And subsequent to the close of the quarter, our board of directors authorized the addition of 2 million shares of common stock to the stock repurchase program and extended the program termination date to December 31, 2027.

International operations showed continued momentum with revenue growth of six 7% and operating earnings increasing 45% year over year improvements were driven by a combination of weather related claims in Australia, and Asia, and new client wins, demonstrating the segment's ability to capture.

Speaker #3: With that, let me turn the call over to Bruce for a deeper look at our segment operational and financial performance.

Speaker #2: Thank you, Rohit. Crawford operates throughout our four core segments that represent the global reach of our business: North America Loss Adjusting, which includes our Loss Adjusting operations in the U.S.

<unk> opportunities across key regions, including the U K, Europe Asia and Australia.

Speaker #2: and Canada, accounted for 24% of 3rd quarter 2025 revenues. International operations, covering all service lines outside North America, contributed 35% of quarterly revenues. And Broadspire, our U.S.-based third-party administration business, represented 32% of quarterly revenues.

Operating margins expanded 174 basis points, reflecting disciplined execution efficient operations and strong pricing.

Pleased with the continued progress in our international business as we capitalize on our recognition as a trusted partner capable delivering expertise and consistent results for insurers and corporations worldwide.

Speaker #2: Platform Solutions, which includes contractor connection, networks, and subrogation services, accounted for 9% of revenues. In North America Loss Adjusting, revenue decreased 2.9% year over year, primarily reflecting lower significant weather and property claim activity in the U.S.

We anticipate some moderation in the fourth quarter related to the absence of onetime benefits, we realized in the fourth quarter of 2024, but the underlying long term trajectory of the business remains strong.

<unk> delivered record quarterly revenues of $103 4 million in the third quarter, reflecting year over year growth of four 4%.

Speaker #2: Despite the revenue headwind, operating earnings year, driven by strong increased 28% compared to the prior performance in our GTS business and improvements in our Canadian operations.

Operating earnings increased eight 1% and operating margins expanded 51 basis point, reflecting the segment scale efficiency and consistent execution.

Speaker #2: Operating margins expanded 215 basis points, reflecting both mixed shift towards higher margin services and ongoing operational efficiencies. North America Loss Adjusting continues to attract top-tier insurance adjusting talent.

Client retention remains strong at 93, 5% underscoring the trust and long term relationships broad sprayers built across its customer base and our new business pipeline is robust. These results reflect broad spire is growing leadership position in the tpa market and its critical role in Crawford's growth strategy.

Speaker #2: A key competitive advantage in delivering expertise and high-quality service to our visibility, we expect the lower claims activity to persist through the 4th quarter clients.

Platform solutions experienced a challenging quarter with revenues down 36% year over year due to ongoing weather related declines in the cat and contractor connection business lines.

Speaker #2: of 2025. However, we anticipate a return to more typical claims activity over the coming 12 to 18 months. International operations showed continued momentum, with revenue growth of 6.7% and operating earnings increasing 45% year over year.

Operating earnings decreased 33% compared to the prior year, although operating margins improved by 47 basis points, reflecting our progress in managing cost and improving efficiencies.

Speaker #2: Improvements were driven by a combination of weather-related claims in Australia and Asia and new client wins, demonstrating the segment's ability to capture opportunities across key regions including the U.K., Europe, Asia, and Australia.

Okay.

On this slide you can see the decline in storm activity, which continues to impact our results for North America loss, adjusting and platform solutions segments.

In the third quarter storm activity was down 35% year over year contributing to a 16% decline in weather related revenue at.

Speaker #2: Operating margins expanded 174 basis points, reflecting disciplined execution, efficient operations, and strong pricing. We're pleased with the continued progress in With our current our international business as we capitalize on our recognition as a trusted partner capable of delivering expertise and consistent results for insurers and corporations worldwide.

At the same time, our non weather business delivered revenue growth of three 4% highlighting the resilience of our diversified model and the ability to partially mitigate volatility and weather dependent segments.

The reduced frequency of U S property claims continues to reflect market dynamics, including affordability considerations in higher deductibles as the broader insurance market stabilizes, we expect weather related claims activity to return to more typical levels over the next 12 months to 18 months.

Speaker #2: We anticipate some moderation in the 4th quarter related to the absence of one-time benefits we realized in the 4th quarter of 2024. But the underlying long-term trajectory of the business remains strong.

Speaker #2: Broadspire delivered record quarterly revenues of 103.4 million in the 3rd quarter, reflecting year-over-year growth of 4.4%. Operating earnings increased 8.1% and operating margins expanded 51 basis points, reflecting the segment scale, efficiency, and consistent execution.

Meanwhile, the strength of our non weather businesses, including broad spire and international operations continues to provide steady revenue and earnings support demonstrating the value of our multiline multi geography model.

And now for a look at our consolidated results.

In the 2025 third quarter companywide revenues before reimbursements were $322 2 million a decrease of two 2% compared to the prior year period foreign exchange rates increased revenues before reimbursements by $3 4 million or one 1%.

Speaker #2: Client retention remained strong at 93.5%, underscoring the trust and long-term relationships Broadspire has built across its customer base, and our new business pipeline is robust.

Speaker #2: These results reflect Broadspire's growing leadership position in the TPA market and its critical role in Crawford's growth strategy. Platform Solutions experienced a challenging quarter, with revenues down 36% year-over-year due to ongoing weather-related declines in the CAT and contractor connection business lines.

GAAP net income attributable to shareholders totaled $12 4 million compared to $9 5 million in the same period of 2024.

GAAP diluted EPS into 2025 third quarter was 25 cents for both CRD, a and CRD B an increase from 19 cents for both share classes in the 2024 period.

Speaker #2: Operating earnings decreased 33% compared to the prior year, although operating margins improved by 47 basis points, reflecting our progress in managing cost and improving efficiencies.

On a non-GAAP basis.

<unk> EPS was <unk> 32 for both CRD, a and CRD b, increasing from 22 cents for both share classes in the prior year period.

Speaker #2: On this slide, you can see the decline in storm activity, which continues to impact results for our North America Loss Adjusting and Platform Solutions segments.

The company's non-GAAP operating earnings totaled $26 6 million into 2023rd quarter were eight 3% of revenues.

Speaker #2: In the 3rd quarter, storm activity was down 35% year-over-year contributing to a 16% decline in weather-related revenue. At the same time, our non-weather business delivered revenue growth of 3.4%, highlighting the resilience of our diversified model and the ability to partially mitigate volatility in weather-dependent segments.

Third to $21 8 million were six 6% of revenues in the prior year period.

Consolidated adjusted EBITDA was $36 3 million in the 2025 third quarter or 11, 3% of revenues increasing from $29 $6 million were 9% of revenues in the 2024 quarter.

The companys cash and cash equivalents as of September 32025 totaled $68 8 million compared to $55 4 million at December 31, 2024.

Total receivables were $263 3 million as of September 32025 down $9 8 million from the 2020 for year end.

The company's total debt outstanding as of September 32025 totaled $218 1 million consistent with total debt outstanding as of September 32024.

Net debt was $149 3 million as of September 32025, while our U S pension liability was $24 million, reflecting our funded ratio of 93, 1%.

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

Operating cash flow through the third quarter of 2025 was $51 7 million with free cash flow of $24 1 million. This compares to $11 1 million in operating cash flow last year with free cash flow of negative $18 4 million a significant improvement in operating and free cash flow in the 2012.

Five year to date period was primarily due to improved earnings and improvement in working capital levels.

Unallocated corporate costs were $5 9 million in the 2025 third quarter compared to cost of $7 million into 2024 period.

The decrease was due to lower professional fees and nonrecurring items, partially offset by higher self insured medical cost.

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

We recognized pre tax contingent earn out cost of less than 100000 in the 2025 third quarter compared to a credit.

A $2 1 million in the 2024 period.

During the third quarter of 2025, the company repurchased approximately 275000 shares of CRD, a and CRD B as Robert mentioned, we are increasing our share repurchase authorization with the addition of 2 million shares and as a result, approximately $2 8 million shares are eligible to be repurchased under our 2000.

21 share repurchase authorization with that I'll turn the call back over to ROE for concluding remarks.

Thank you Bruce Crawford delivered a solid third quarter with strong earnings improvement as our diversified model continues to provide stability to weather and market fluctuations.

We remain focused on investing in long term growth, while returning capital to shareholders and our balance sheet and low leverage ratio provided the financial flexibility to explore opportunities, while maintaining our commitment to the dividend and share repurchase programs.

As Bruce mentioned in looking forward.

The close of this year, we expect the continued absence of significant weather events and lower U S claims activity to impact results.

We anticipate that fourth quarter 2025 revenue will not repeat that $30 million revenue lift we saw in the last year's fourth quarter from Hurricanes Helene and Milton.

Which will make for a difficult comparison of Q4 2025 to Q4 2024.

Moving forward, we remain focused on the elements of our business that we can control achieving operational efficiency delivering quality customer service, winning new clients and expanding our business with existing customers.

We remain committed to creating long term value through a balanced approach to investment cost discipline and returning capital to shareholders.

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

Okay.

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

Okay.

Yes.

M T.

Thanks, Tom.

Gary.

Okay.

Paul.

Amen to compile the Q&A roster.

Your first question comes from the line of Mark Hughes with true it.

Okay.

Yes. Thank you very much good morning.

Good morning morning, Mark.

North American law, suggesting margin.

That was pretty strong with the topline decline.

How much of that was the mix shift you talked about the GTS in Canada.

I know you've been pursuing more long term operational efficiencies.

Sticky is that better margin there.

Mark if you if you think about the business as you rightly pointed out it really has three component parts to it we've got in the U S are large and complex business, which we call our global technical services, we have our field operations business and then obviously Canada.

Our.

Large and complex business continues to do well as a matter of Fox on a full year basis that business is growing and if you look at on a year to date basis as well that North America loss adjusting has a slight growth about 1% for the full year. The weakness that we're seeing is in our smaller size I would say residential claims activity.

And depending on the.

The quarter back end that can have a strong bearing so typically in Q3, we have higher residential claims activity that's coming from both severe convective storms as well as hurricanes, we did not see that as a result of which the mix was more towards the large and complex side and you saw a better margin.

We continue to grow our large and complex side like I said, it's growing this year already despite the no no real weather activity. So we believe that as that business continues to grow and takes a bigger hold in the portfolio, we should see and continue.

Continued improvement and improvement in the margins, we're seeing that seeing the margins in that business stake in fact to some extent getting better.

For our large and complex that is.

Very good.

You had made an interesting point last quarter about higher insurance costs higher deductibles.

We're about <unk>.

<unk> companies raising rates.

Consumers reported claim that was depressing some of these.

Residential claims.

You might have assumed in <unk> any update on that point.

Yeah, I think what we're seeing is a certified duality, where youre seeing the.

Commercial lines.

The rate adequacy is starting to get pass through the customers are actually seeing rate declines.

I'll go into customers on the commercial side and we believe that claims activity. There has resumed to normal other than of course, the lack of activity from weather.

On the residential side, we still don't see that being passed onto the consumer I don't know how your property insurance looks like but my home insurances continues to grow go up.

And really it's starting to turn more into cat color. Historically, if you look at reinsurance markets funds once the carriers and achieve rate adequacy. One of the carriers does go out and starts to discount and then eventually the market follow so I believe still is as Bruce mentioned in his remarks that in 12 to 18 months, we should start to see the deductibles come down are normal claims.

Activity resume but we have not seen that happen yet despite.

Our view that the property market has achieved rate adequacy.

Yeah.

International margin was also up who is that.

Incremental.

Flow through from weather claims was that we would do GTS impact there as well.

International as you know has been an important push for us from a from both growth as well as profitability perspective at the main focus being on profitability. There was definitely weather in Q3, we saw weather.

In Australia, we saw weather in in UK, and then we have seen weather in Europe in earlier part of the year that is still sort of flowing through the flowing through the system.

Again, our target is to get international to a 10% margin in the.

In the medium to long term and that is a journey. We're on as we've shared with you before we will see probably quarterly fluctuations because of weather and other cyclicality reasons in our business, but our trend is to keep moving international up.

And then any more you can say about the business pipeline and broad spire.

So your sales initiative.

Fear about, uh, insurance companies. Raising rates if, uh, consumers report a claim that that was suppressing some of these uh, residential claims like, you might have assumed in 3 Q. Any update on that uh, point.

Just a little more movement in the market.

What is contributing to that.

We had actually seen a slowdown in the RFP activity into.

Into Q2, we've kind of seen that pick back up in Q3 as you know the sales cycles on this business are long, but we've been growing at a nice clip I think this quarter, we reported almost 4% growth I think for the full year, we're still looking at or I should say year to date. The nine months, we're looking at somewhere around that 3% to 4% as well.

That's the kind of growth that we expect to continue seeing on an organic basis, but margins are healthy.

Improved this quarter I think you will recall that last quarter, we had a discussion about a slight drop in margins was at $50 or 70 basis points I think and we had said that that's within the within the realm of tolerance. So we continue to invest in that business. We believe there is still a strong trajectory for that business.

And unexpected that business to continue growing.

Yeah, I think Mark what we're seeing is, uh, is sort of a duality where you're seeing the commercial lines, the, uh, the rate adequacy starting to get past the customers, they're actually seeing rate declines, uh, that are going to customers on the commercial side, and we believe that claims activity, there has resumed to normal other than of course the lack of activity from weather. On the residential side, we still don't see that being passed on to the consumer. I don't know, um, how your property insurance looks like, but my home insurance, just continues to grow, go up. Uh, and really, it's starting to turn more into cat cover, historically, if you look at Insurance markets once the, once the carrier is achieved rate, adequacy 1 of the carriers, does go out and starts to Discount and then eventually the market follows. So our belief still is as Bruce mentioned in his remarks that in 12 to 18 months, we should start to see the deductibles come down and normal claims activity resumed. But we have not seen that happen yet despite

As.

As the months and quarters go by.

uh, a view that uh, the property Market has achieved rate adequacy

Yeah.

I appreciate that thank you.

Thank you Mark.

Your next question comes from the line of Kevin Spanky with Barrington Research.

the uh, International margin was also up was that uh, just incremental

Great. Thank you good morning.

Flow-through from weather claims was that there was their GTS impact there as well.

Hi, Kevin.

I wanted to start off.

Okay.

Continuing the discussion on the.

Insurance affordability.

It sounds like Youre, not youre not seeing that in your international markets. It's just kind of a U S specific only at this point is that correct.

We believe that it is it is a phenomenon that we've seen we are seeing more in the U S market, we did see that in the international markets, but they recovered a far more quickly than what we've seen in the U S.

Okay. Thanks.

And you talked about broad spire margin there you had a nice ramp up sequentially.

Uh, International as, you know, has been, um, an important push for us from a, from both growth as well as profitability perspective with the main focus being on profitability. Uh, there was definitely weather in Q3. We saw whether in, uh, in Australia, we saw weather in, uh, in UK and then we had seen weather in Europe in earlier, part of the year that is still sort of flowing through the flowing through the system. Um, again, our Target is to get International to a 10% margin in the, uh, in the medium to long term and that is the journey. We're on, as we've shared with you before we will see probably quarterly fluctuations because of weather and other cyclicality reasons in our business, but our trend is to keep moving International up.

And yes, you talked about last quarter kind of the <unk>.

Yeah, and then any more you can say about the business pipeline and broadspire, is this your sales initiative? Uh, is there just a little more movement in the market?

Bandwidth that you would expect those margins to remain in but just wondering if there is there anything specific that helped the margin sequentially in the third.

um, what is uh, contributing to that

you know, we had actually seen a

Third quarter versus second quarter that was just more revenue ramping up or if there are any.

Cost items to call out there.

Not really Kevin I think we had mentioned that we had we always try to hire for broad spine in advance so that as the clients are coming on we know when the clients are coming on so sometimes.

You know the sales Cycles on this business are long. But uh we've been growing at a nice clip I think uh this quarter we reported almost 4% growth. I think for the full year we're still looking at or I should say year to date the 9 months, we're looking at, you know, somewhere around that 3 to 4% as well.

They straddled quarter boundaries. So we will see that we've taken the cost on a little bit sooner than what the revenue is coming in just because of the straddling or without those boundaries.

We feel very good about the <unk> business and we believe that we will continue to see growth I think the margin will remain in this band because we still believe there is room for investment in that business from a technology perspective, we believe that AI can be a major enabler in that business rather than a disruptor for us.

50, or 70 basis points. I think. And we had said that, you know, that's within the within the realm of tolerance. So we continue to invest in that business. We believe there is still a strong trajectory for that business and and expect that business to continue growing. Um, as uh,

As the months and quarters go by.

And we are identifying opportunities, where we can deploy AI. So in the short term you might see some more capital expense going into that business and or somewhat investment going in that business, but longer term I think it should just continue to help the margins in it and make it an important contributor to profitability for the company.

Appreciate that. Thank you.

Thank you, Mark.

Your next question comes from the line of Kevin Stein key with bington research.

Uh great. Thank you. Good morning.

Okay. Good.

Sure.

I thought it was <unk>.

Interesting or.

I wanted to start off uh, continuing this discussion on the uh,

It's somewhat impressive.

The last.

A couple of quarters, particularly this quarter with the.

The significant decline in platform solutions revenue related to <unk>.

In in Insurance affordability. Um it sounds like you're not you're not seeing that uh in your International markets. It's just kind of a us uh specific only at this point. Is that correct?

Weather events in insurance affordability despite that.

Revenue decline you you actually improve the margin year over year. The platform solutions. So can you kind of talk about how you were able to accomplish that.

We we believe that it is uh it it is a phenomenon that we've seen. We are seeing more in the US market. We did see that in the in the international markets but they recovered a, you know, far more quickly than what we've seen uh in the US.

Some of that as we've talked about before is a little bit of a mix shift.

Got as you know that there are really three predominant businesses in there we've got our catastrophe business, our subrogation business, which goes by the name of practices in our contractor connection business. The catastrophe business is is that as the name suggests is to serve clients during the times of catastrophe.

Okay, thanks and you you talked about the broadspire margin there, you had a nice ramp up sequentially. Um and yeah, you talked about last quarter, kind of the the bandwidth that you would expect those margins to remain in. But you know, I was just wondering if there's anything specific that helped the margin sequentially in the

Usually creates big revenue.

But the margin profile on that is not the same as the margin profile than the other two businesses. So when there is a mix shift we tend to see the margin improve because of the mix shift, but ideally we would like to see this business grow and we believe that as normal.

third quarter versus second quarter, you know, if that was just more Revenue, ramping up, or if there are any uh,

You know, cost items to call out there.

Claims reporting patterns resume a normal weather patterns resume we will start to see this business come back up.

Okay great.

Bruce you had called out.

Our national.

Not really Kevin. I think we had mentioned that, uh, we had we always try to hire for broad spine in advance so that as the clients are coming on, we know when the clients are coming on. So sometimes, uh, you know, they straddle quarter boundaries so we will see that we've taken the cost down a little bit sooner than what the revenue is coming in. Just because of the straddling over those boundaries.

It related to the fourth quarter some some.

One time benefits in the year ago quarter.

I have in my notes here that you had.

One time tax benefit and helped in the year ago quarter on that.

The margin in international but is there anything else.

We should be aware of there.

The tax benefit is one item last year at the end of the year, we had some pretty significant revenue in our middle East business related to floods that had occurred earlier in the year.

We're not, we feel very good about the broadspire business, and we believe that, you know, we will continue to see growth. I think the margin will remain in this band because, um, we still believe there is room for investment in that business from a technology perspective, we believe that AI can be a major enabler in that business rather than a disruptor for us. And uh, and we are identifying opportunities where we can deploy AI. So, in the short term we might see some more Capital expense going into that business and or somewhere investment going in that business. But longer term, I think it should just continue to help the margins and make it an important.

We also had.

Contributor to profitability for the company.

Some higher revenues and in Asia.

Okay good. Um,

Particularly in Taiwan related to some earthquake quite claims and had some flooding losses.

In Latin America, So you know.

Those kind of four items, when you're a bunch in the tax benefit.

Kind of equally contributed to.

The outperformance in last year's fourth quarter, and we just don't expect that.

To repeat notwithstanding the fact that we still expect.

International results.

Trajectory to remain to remains strong and.

Yeah, I thought it was uh, interesting or or uh if someone impressive that, you know, the last uh couple quarters, you know, particularly this quarter with the significant decline in platform Solutions, re Revenue related to, you know, whether events and and insurance affordability. Despite that uh Revenue decline, you you actually improved the margin year-over-year for platform Solutions. Can so can you kind of talk about how uh you were able to accomplish that?

But it's just not going to be.

The same quarterly result, as we had last year.

Okay.

Okay understood that's helpful.

In relation to the.

Increase in the share repurchase authorization, maybe just.

Yes, I'll talk about.

How active do you expect to be there.

Uh huh.

And the rationale you see for continuing to repurchase shares.

Sure so we.

We think of our shares is trading well below their intrinsic value and it's.

And are recognized by the by the board as well.

We have kind of an open market share repurchase plan that we that we execute on kind of given the trading volumes that we have you don't see.

You know, some of that, um, as we've talked about before is a little bit of a mix shift. Um, we've got as you know, that there are really 3 predominant businesses in there, we've got a catastrophe business, our subrogation business, which goes by the name of practice and our contractor connection business, the catastrophe business is, um, it's the name suggests is to serve clients during the times of catastrophe. Um, that usually creates big Revenue. Um, but the margin profile on that is not the same as the margin profile in the other 2 businesses. So, uh, when there's a mix shift, we tend to see the margin improve because of the mix shift. But ideally we would like to see this business grow. And we believe that as, you know, normal um claims reporting patterns resume and normal weather patterns resume, we will start to see this business, uh, come back up.

Okay, great. Um,

Hugely significant amounts that are being repurchased in this last quarter. It was 275000 shares and in the absence of any large blocks or significant changes in the trading volume that's probably about the level that you would.

You would see again kind of dependent on the price as well, where we're disciplined buyers were not buyers it at any price.

Bruce you had called out for international uh related to the fourth quarter. Some some uh 1-time benefits in the year ago quarter. I I I have in my notes here that you had a 1-time tax benefit and helped you in the year ago quarter on the the the margin and international. But is there anything else um that that we should we should be aware of their

To the extent there are blocks that come up.

Certainly be interested in.

Looking at those to the extent that there that our stock is trading.

Significantly below what our assessment of intrinsic value is.

I think it's.

It's something that Youll continue to see us active in Peru.

The end of 'twenty seven based on the current authorization.

Okay. Good.

Helpful. I appreciate you taking the questions I will turn it back over thanks.

Uh, particularly entire, uh, Taiwan related to some earthquake, Quake claims and had, uh, some flooding losses and, uh, in Latin America. So, you know, those kind of 4 items when you bunch in the, the tax benefit, um,

Okay.

Thank you Kevin.

Yeah.

Okay.

Okay.

Okay.

If you can check to see if there's any other questions.

Again, if you would like to ask a question press star one on your telephone keypad.

Um, kind of equally contributed to the the outperformance in last year's fourth quarter, and we just don't expect that to to repeat notwithstanding. The fact that we we still expect the, you know, International results, you know, trajectory to remain to remain strong and uh,

Yeah.

But it's just not going to be, um, the same quarterly result as we had last year.

There are no further questions at this time I will now turn the call back over to Mr. Verma for any closing remarks.

Thank you Carla.

Okay, understood. That's, that's helpful. Um, and and the relation to the, uh,

And a big thank you to all our employees clients and shareholders for your continued commitment to Crawford <unk> company. We look forward to seeing you next quarter, Thank you and God bless.

increase in the the share repurchase authorization maybe just uh

Yes.

You know, talk about, um, uh, how active you expect to be there? Uh, and, uh,

Thank you for participating in today's Crawford <unk> Company Conference call. This call will be available for replay beginning at 11 30, a M. Eastern time today through 11 59 PM Eastern time on November 11, 2025, the conference I'd number for the replay is 35064.

kind of the rationale you see, uh, for continuing to, uh, repurchase shares

Three to pound the number to dial for the replay is one 870 702030. Thank.

Sure. So, you know, we we think of our our shares as trading, well, below their intrinsic value and it's, uh, you know, recognized by the, by the board as well. Uh, we have kind of an open market share repurchase plan that we that we execute on, you know, kind of given the, the trading volumes that we have.

Thank you you may now disconnect.

You don't see, you know, uh, hugely significant amounts that are being repurchased in this last quarter, it was 275,000 shares and in the absence of any large blocks or significant changes in the trading volume, that's probably about the level that you would that you would see again kind of depending upon the on the price as well. We're we're disciplined buyers. We're not buyers at at at any price, uh, to the extent. There are blocks that that come up. Uh, we would certainly be interested in, uh, in looking at those to the extent that they're, uh, that our stocks trading. Uh, you know, significantly below what our assessment of intrinsic value is so, you know, I think it it's it's something that you'll continue to see us active in through, uh, the end of, uh, 27 based on the current authorization,

Okay good. Uh, that's helpful. I appreciate you uh, taking the questions. I I will turn it back over. Thanks.

Okay.

Carly. If you check to see if there's any other questions.

again, if you would like to ask a question press star 1 on your telephone keypad,

There are no further questions at this time. I will now turn the call back over to Mr. Verma, for any closing remarks

Thank you, Carly.

And a big thank you to all our employees clients and shareholders for your continued commitment to Crawford & Company. We look forward to seeing you next quarter. Thank you. And God bless.

Thank you for participating in today's Crawford & Company conference call. This call will be available for replay beginning at 11:30 a.m. Eastern Time today, through 11:59 p.m. Eastern Time on November 11, 2025.

The conference ID number for the replay is 3500, 6432 pound. The number to dial for the replay is 1 800 770202030.

Thank you. You may now disconnect