Crawford & Co.
Annual Report 2019

Plain-text annual report

Beyond the 2019 ANNUAL REPORT Our mission & vision p.2 Our reach p.4 Our letter to shareholders p.6 Our services p.10 At Crawford, we believe true innovation begins by going beyond what’s been done before. Our innovation p.24 Our values & responsibility p.28 Our people p.30 Our financial highlights p.31 From new technologies to process improvements, our passion for what’s possible enables us to address the challenges of carriers, brokers and corporations today while anticipating what lies ahead. 1.6M claims handled worldwide 50+ years as a public company $18B+ claims managed annually 47% of Fortune 250 companies served Our mission & vision Restoring and enhancing lives, businesses and communities. What started nearly 80 years ago as an idea to make milk truck deliveries more efficient has evolved into a global enterprise — going beyond the claim to solve complex, strategic challenges for businesses around the world. Today, our continued growth is guided by a common mission and vision that set us apart in an industry where lives, businesses and communities are at stake. Our vision is to be the leading provider and most trusted source for expert assistance, serving those who insure and self-insure the risks of businesses and communities anywhere in the world. Crawford 2019 Annual Report 3 Our reach As the world’s largest publicly-listed independent provider of claims management and outsourcing solutions, our global footprint delivers the right local expertise wherever losses occur. Together, our experts form an unsurpassed claim handling and outsourcing network, providing global solutions that are executed locally 24/7 to support our clients and their customers. KEY Crawford reach Office location 4 4 Crawford 2019 Annual Report Crawford 2019 Annual ReportGlobal coverage that goes beyond borders. 70 countries 9K employees worldwide 50K field resources 6K network contractors Crawford 2019 Annual Report 5 5 Crawford 2019 Annual ReportOur letter to shareholders TO OUR SHAREHOLDERS Though 2019 had its share of challenges, Crawford & Company® has emerged stronger and more determined to realize our mission to restore and enhance lives, businesses and communities around the world. We are more nimble and capable than at any point in our history and have laid the foundation for transformative growth. The talented people of Crawford® are more focused than ever on executing our strategic priorities and realizing our true potential. We are moving forward, together, beyond the claim. Growth We accomplished a great deal in 2019, and I am optimistic about our ability to grow in 2020 as we pursue sustained revenue and earnings growth. As we exited 2019, we experienced the strongest sales pipeline in the company’s history. We made the right investments to attract and acquire new clients, and I expect this to continue through 2020 and beyond. Our successes in 2019 have helped us offset the impacts of benign weather. Our revenue from weather-related surge events dipped in 2019 with most events taking place outside of the U.S., trends that were reflected in the industry at large. We are taking advantage of Harsha V. Agadi President and Chief Executive Officer 6 Crawford 2019 Annual Reportgrowth opportunities in our existing core business The Penta acquisition on July 3, 2019 has been and continuing our efforts to reduce volatility extremely well received. Penta will enhance from weather. Our primary objective is to grow delivery of the large loss adjusting, accounting, organically across all of our global service lines. and construction and engineering services across the Benelux region. The strategic cross- Despite a calmer than usual storm season, selling that we envisioned has now come to the damage Hurricane Dorian inflicted on the fruition as we have expanded our servicing of Bahamas was significant and made recovery global clients. efforts difficult. Nevertheless, Crawford’s catastrophe teams were on the ground ensuring claims were being handled swiftly. On the other side of the globe, our colleagues in Australia endured deadly, country-wide bushfires, which devastated over 27 million acres. We have focused intensely on restoring and enhancing lives, businesses and communities that have been impacted by these unprecedented crises. “Our primary objective is to grow organically across all of our global service lines.” Crawford Claims Solutions has solidified a very important new relationship with a top-five U.S. carrier. This was a massive, cross-functional People Readiness effort that involved the hard work and dedication I am very proud of our people who work hard of a number of people. I thank each and every one every day to execute and enhance the services of them for their efforts, and I’m pleased to report we deliver to our clients. To win the war on talent, that the partnership was finalized in February we are focused on attracting the right talent and 2020. Crawford Third Party Administration: engaging our people. We’ve made investments in Broadspire continues to acquire new clients expanding our adjuster footprint in 2019. We filled globally and accelerated its client acquisitions some of our most important leadership roles by winning more than 150 new clients in 2019. internally and spent valuable time developing Crawford Contractor Connection experienced our talent through programs such as Executive several important wins in the U.S., UK and Canada Leadership and Emerging Leaders. and also enjoyed significant expansion with a key top-five U.S. carrier. We continue to invest in our We are particularly excited about our efforts in Global Technical Services’ sales team and have support of diversity and inclusion. We recently added 65+ programs. The team has an impressive announced the inception of our Office of sales pipeline with momentum building every day. Diversity & Inclusion, which will be a great asset The growth in new business accounts reflects to our business in 2020. our commitment to the market and the proven, effective solutions we offer. 7 Crawford 2019 Annual ReportDiversity is a powerful multiplier of growth Claims Fabric is bringing a modern, responsive and has a positive impact on organizational user interface to standardize, enhance and performance, and we have already made streamline the adjuster experience. Additionally, strategic decisions that demonstrate our Claims Fabric will provide real-time integration commitment to a diverse workforce. of Crawford’s systems with clients and partners. “Diversity is a powerful multiplier of growth and has a positive impact on organizational performance.” This single platform will become the hub of all information sharing within Crawford’s loss adjusting business in 2020. Because technology is the most critical enabler of intelligent solutions, Crawford is focused on transforming our business data into usable insights. We have initiated projects to routinely capture and classify claims data and large losses. This is critical in our efforts to scale up In 2019, we made key changes in operational our production and use proof points to support leadership. Over one-third of those changes our value propositions. Our clients depend on resulted in promoting or hiring a woman for the us for solutions that solve their challenges. Our role. Moreover, our Global Senior Management thoughtful investments in technology will help us team is comprised of over 40% women or serve them like never before. minorities, and six of the nine members of our Global Executive Management team are women or minorities. Lastly, we are honored to have “Because technology is Dame Inga Beale join our board of directors in 2020. Dame Inga is the former CEO of Lloyd’s of London and was the first female CEO in the global insurance and reinsurance market’s 325- year history. She brings the count of Crawford’s female board members to three, which is another important step towards our diversity and inclusion goals. Systems Readiness the most critical enabler of intelligent solutions, Crawford is focused on transforming our business data into usable insights.” Fiscal Responsibility 2019 was a record year for share buybacks, an From innovative new technologies, like Claims important part of our capital allocation strategy. Fabric, to tailored One Crawford solutions, We ended the year financially strong with our we are making changes that are setting the leverage at a three-year low, while our free cash foundation for Crawford’s success. flows are at a three-year high. This strength allows us to pursue growth opportunities invest 8 Crawford 2019 Annual Reportin our talented workforce, make strategic continuing to deliver on returns to shareholders. acquisitions and return value to our shareholders. We have momentum in the market. Staying We will remain fixated on growing revenue, understand their needs will be key to delivering leveraging our robust sales pipeline and client- our unique One Crawford solutions. close to our clients and prospects to centric solutions to evolve the business. With our continued focus on improving our financial strength, our plan is to deliver cash flow growth rates above revenue growth rates while Looking Forward While this year has been challenging on many fronts, we remain steadfast in our mission to restore and enhance lives, businesses and communities and determined in our execution of our strategic priorities. We will work together relentlessly and bring extraordinary energy to rethinking and reshaping our industry as we drive towards our goal of sustained revenue and earnings growth. We are moving Crawford beyond the claim and into a brighter future with opportunity and success for all. Thank you to our shareholders, employees, clients and the communities we serve. It is truly an honor to lead this great organization and to serve each of you every day. Harsha V. Agadi President and Chief Executive Officer 9 Crawford 2019 Annual ReportOur services CASE STUDY Innovative startup seeks industry- leading claims management partner. COMPANY: OPENLY, INC. | INDUSTRY: PREMIUM HOME INSURANCE Created to modernize and simplify insurance with a focus on independent agents, Openly is an InsurTech startup that launched its insurance product in 2019. According to Co-Founder and CEO, Ty Harris, “We started Openly because there was an evident gap in the market for premium insurance made simple. Consumers should have more complete coverage at competitive prices, and our use of data, sophisticated pricing, cutting edge technology and insurance expertise give us the opportunity to bring something better to the market.” 10 10 Crawford 2019 Annual Report Crawford 2019 Annual Report“ The number one thing we need to be when there is a total loss is empathetic. This is where Crawford comes in.” Chris Bacon, Chief Customer Officer, Openly, Inc. Challenge Solution Independent agents for personal Openly decided to fully outsource claims insurance don’t always have access to handling to Crawford. Our focus on top-tier the latest innovations and technologies. customer support and innovative solutions “It should be simple and easy for agents were a perfect fit for its model. Openly’s to issue a home policy, but in fact, it’s independent agents write the policies, a very clunky, challenging process” and Crawford manages everything from the explains Chief Customer Officer, Chris first notice of loss all the way through to repair Bacon. “From a product perspective, of the damaged property. This means Openly there are just a lot of ‘gotcha moments’ can take advantage of all of our market-leading within the insurance contract that our property and casualty services, WeGoLook’s new approach addresses.” on demand workforce and Contractor Having been independent agents access to over 6,000 vetted contractors. Connection’s managed repair network with themselves, the co-founders wanted to create a product with responsive support services for agents, but they needed a trusted partner for the critical claims processing of their business. So they turned to Crawford & Company. Crawford 2019 Annual Report 11 Our comprehensive global expertise allows us to go beyond the claim to offer seamless, intelligent solutions to our clients around the world. Specialized expertise for every claim Loss Adjusting From minor damage to catastrophic events, Crawford has the right team, the right technology and the right processes to help businesses and communities restore and rebuild. Through our global network of experts, we have experience handling any type of loss – from simple to large and complex – in virtually every industry. 12 Crawford 2019 Annual Report CASE STUDY Streamlining the claims handling process Challenge When a large Florida insurance carrier was battling existing hurricane claims and an increase in volume from more recent storms, it quickly found itself experiencing low closure rates and inconsistent outcomes resulting in more litigation and regulatory pressures. Solution We implemented our Total Property Solution, which streamlines the claims handling process through key services to counteract dramatic increases in claim volume as a result of catastrophic events. These services included a centralized claim intake center operating 24/7, assisted self- service tools, an on-demand workforce, traditional field adjusting and Contractor Connection, all of which were managed by Crawford’s desk operations. 27% reduction in cycle time 23% reduction in loss adjustment expense 23% improvement in estimate accuracy 13 Crawford 2019 Annual ReportDelivering responsive service in the aftermath Catastrophe Response With one of the largest trained and credentialed field forces in the industry, Crawford is ready to respond to natural and man-made disasters in virtually every location around the world. Our teams of adjusters are unmatched in experience and depth and are supported by ongoing innovations such as RENOVO, our proprietary, state-of-the-art adjuster portal and WeGoLook, our on-demand field force. CASE STUDY Challenge Rebuilding after a devasting storm In February 2019, Townsville, located on the Eastern coast of Australia, was devastated by one of the worst natural disasters to affect the state of Queensland. A slow-moving, low-pressure tropical system and monsoon trough stalled for nearly a week over the Townsville region, causing widespread flooding and wind damage to many properties. 80+% of claims settled (above industry average) Solution In the immediate aftermath of the event, Crawford mobilized over 50 adjusters into Townsville and the surrounding areas. Crawford Australia was well supported by colleagues from New Zealand and handled over 2,220 commercial, business interruption, marine, motor and household claims. After eight months of hard work, Crawford is approaching the milestone of over 80% of claims now being settled, which is above the industry average. Crawford 2019 Annual Report 15 A faster repair and restore cycle Managed Repair With over 6,000 rigorously-vetted contractors, Crawford Contractor Connection maintains the largest independently-managed network of contractors in the world. Through our proven managed repair model, we improve time-in- process, reduce claims handling expenses and deliver estimate accuracy while ensuring a world- class customer experience from first notice of loss all the way through to finished repair. 16 Crawford 2019 Annual Report CASE STUDY World-class customer service through to the finished repair Challenge An electrical fire caused more than $1 million in damage to the home of a high-profile property owner. There was significant structural and smoke damage throughout the home and high-value cars and auto lifts were destroyed. The insurance carrier needed a trusted partner to deliver speed, accuracy and world-class customer service from first notice of loss all the way through to finished repair. Solution A Contractor Connection emergency services network member completed a site inspection and began work the same day of receiving the claim. The services included air purification and pack-out of salvageable contents. The extensive cleaning process was completed in a month. Once cleaning was complete, an accredited Contractor Connection general contractor was assigned to complete repairs and restore the home to its original condition. A site inspection and estimate was completed the same day the assignment was received and work to restore the property began immediately upon client approval. $1M total cost of repairs 1 hour on-site emergency response 1 day estimate upload Crawford 2019 Annual Report 17 A better way to manage risk Third Party Administration Managing risks, claims and losses in multiple locations around the world requires a significant investment in infrastructure and resources. As a trusted partner, Crawford helps organizations of every size and type, and in every geography, meet the needs of their customers while helping to reduce costs and overhead through a variety of third party administration (TPA) activities. CASE STUDY Delivering immediate results for a fast-casual restaurant Challenge A global chain of high-volume fast casual restaurants with 2,000+ locations and 65,000+ employees was experiencing rising general liability claim costs and an increase in workers compensation claims from cuts, punctures and scrapes while washing dishes. Solution Using detailed data analysis and a cross- functional team of experts, Crawford TPA Solutions: Broadspire developed a customized solution for the client, which included the application of predictive modeling and in-house medical management for workers compensation claims. Additional recommendations included training to reduce common injuries that occur within the first year of employment. These solutions, and others, were implemented while maintaining a close eye on claim quality and the satisfaction and well-being of each patron and injured worker. Crawford 2019 Annual Report 19 17% reduction in total workers comp incurred 34% reduction in total liability incurred Greater efficiencies and personalized care Medical Management 20 Crawford 2019 Annual Report Crawford TPA Solutions: Broadspire offers a comprehensive set of end-to-end clinical management programs to support our TPA services and improve outcomes for both claimants and insurers. Our clinical professionals understand the value of the right care, utilizing best-fit services and personalized solutions to restore the lives of those who suffer from illness or injury. CASE STUDY A tailored medical solution for an injured worker Challenge Claims that involve head injuries typically require the worker to receive prolonged care and can cost as much as $1M in some cases. This was the case for one 44 year-old worker who had become a paraplegic after being injured on the job. As a result, he was unable to return to work and required long-term care. Solution The Crawford TPA Solutions: Broadspire case manager assigned to the litigated claim went above and beyond to ensure the injured worker experienced better health outcomes while controlling costs. She made frequent home visits and coordinated an evaluation by a brain injury specialist, who determined that four hours a day for five days a week of home health care was more appropriate than 24/7. In addition, the case manager worked closely with the injured worker’s physician to implement a bulk medication delivery system that resulted in significant savings. $1M+ in savings 88% reduction in home health hours Crawford 2019 Annual Report 21 Lower costs. Better results. On-Demand Services WeGoLook, a Crawford company, combines technology with an on-demand workforce of over 45,000+ Lookers across the U.S., Canada and the UK to help businesses and individuals gather and validate information anytime and anywhere. From insurance claim inspections to fleet assessment and franchise monitoring, Crawford helps clients enhance their businesses with accurate and timely information at a fraction of the cost of traditional offerings. 22 Crawford 2019 Annual Report CASE STUDY Improving the way insurance renewals are handled Challenge Annual homeowner policy renewals are commonplace in the insurance industry. For an insurance provider in the Northeastern U.S., the inability to acquire timely, accurate information from its field teams caused delays and added considerable expense. Solution Showcasing some of Crawford’s latest innovations, WeGoLook customized a version of its self-service app, YouGoLook, to meet the provider’s renewal specifications. YouGoLook empowers policyholders to complete their homeowner renewal inspections autonomously, guiding them through the data and photo capture process based on the provider’s requirements. The app is designed to streamline low-risk evaluations, saving critical time for the insurer and insured. 63% of renewal orders completed 56% of those in less than 24 hours 40% decrease in operating time Crawford 2019 Annual Report 23 Our innovation Seamless, sophisticated solutions 1.5K+ claims processed in the first six weeks 30 days rigorous SLAs completed CASE STUDY Integrated solutions help insurance carrier succeed Challenge A mid-size insurance company needed a trusted partner to manage its $500M premium small business program and help drive claims innovations that shape its business moving forward. Solution A dedicated team was established to lead new claims managment processes utilizing Crawford’s vehicle services and WeGoLook, along with an AI solution partner for auto appraisals and property loss inspections. Contractor Connection and Crawford Global Technical Services were leveraged for more significant losses, while an innovation council was developed to ensure the carrier could continue providing its clients with best-in-class services. Crawford 2019 Annual Report 25 Going beyond the claim to deliver next-generation solutions Crawford’s global Claims Fabric is an API-first environment that supports the exchange and integration of data and technology services, internally and externally, throughout the lifecycle of a claim. DIGITAL FIRST NOTICE INTELLIGENT OF LOSS TRIAGE CLAIMS RESOLUTION DATA ANALYTICS AND BUSINESS INSIGHTS Benefits • Accelerate and enhance claims processing • Improve customer satisfaction • Improve accuracy and safety of claim data • Support all regulatory requirements to make data collection, storage and enrichment straightforward and safe • Simplify the claims experience for our clients and their customers • Improve user experience for all stakeholders 26 26 Crawford 2019 Annual Report Crawford 2019 Annual Report Digital first notice of loss Intelligent triage In 1971, Crawford was the first to pioneer a Crawford is simplifying triage for all 24/7 claims intake service. Today, we are claims with solutions that leverage our accelerating and enhancing the industry digital FNOL and automatically route standard with Omnis, a truly digital, global, claims to the correct resources. Factors omnichannel FNOL process that has such as severity, complexity, licensing removed all barriers for reporting an incident. requirements and client guidelines are all With this API-powered approach, Crawford is taken into consideration by our automated centralizing all claim-related data at the first technologies to achieve the most efficient notification and orchestrating actions based and financially viable outcomes for clients on inputs, rules and more. and their customers. Claims resolution Data analytics and business insights From adjuster mobilization tools to drone Crawford’s data analytics and business image reconnaissance, we are constantly insights (DABI) framework offers a adding cutting-edge technologies to our comprehensive solution for collecting, suite of innovations to improve outcomes reconciling, organizing, analyzing and throughout the life of the claim. sharing data on a customizable platform. Unlike other systems, DABI is agile and can generate applications on-demand that are fully configurable. This customer-focused approach to data analysis uses predictive analytics that allow our clients to garner insights into how their claims processing will look in the future. Technologies CAT RENOVO SELF-SERVE PORTALS FRAUD SCREENING 360 VR VIDEO STREAMING DRONES JOBTRAK EMPLOYERWORKS CLAIMS PROCESS MACHINE 27 Our values & responsibility Our mission to restore and enhance lives, businesses and communities is embedded in our values – to restore is a part of everything we do. R E S P EC T E M P OW E R M E N T S U STA I N A B I L IT Y T R A I N I N G O N E C R AW FO R D R EC O G N IT I O N E N T R E P R E N E U R I A L S P I R IT 28 Crawford 2019 Annual Report Promoting a more inclusive culture Crawford has always embraced diversity, and this year, we are excited to formalize our commitment with the establishment of the Office of Diversity & Inclusion. This new office will be responsible for designing and implementing programs that promote an inclusive culture and focus on achieving the company’s diversity goals. Crawford is an active member of the Business Insurance Diversity & Inclusion Institute, an organization dedicated to promoting and advancing diversity & inclusion in every facet of the commercial insurance industry. Additionally, in 2017, the company launched the Women Leadership Exploration and Development (LEAD) program, a high impact e-learning and networking experience that empowers women leaders to achieve their career goals. Crawford 2019 Annual Report 29 Our people Global executive management team 1. Harsha V. Agadi President and Chief Executive Officer 4. Kieran Rigby Global President, Crawford Claims Solutions 7. Larry C. Thomas Global President, Crawford Specialty Solutions 2. Joseph O. Blanco General Counsel 5. Bonnie C. Sawdey Chief People Officer 8. Greta G. Van Chief Strategy Officer 3. Danielle M. Lisenbey Global President, TPA Solutions: Broadspire 6. W. Bruce Swain 9. Rohit Verma Chief Financial Officer Global Chief Operating Officer 7 4 6 1 8 5 9 2 3 30 Crawford 2019 Annual Report2019 financial highlights (dollars in millions, except per share amounts) (unaudited) FOR THE YEARS ENDED DECEMBER 31, 2019 2018 Revenues Before Reimbursements Non-GAAP Revenues Before Reimbursements(1) Net Income Attributable to Shareholders of Crawford & Company Consolidated Adjusted Operating Earnings(1) Consolidated Adjusted EBITDA(1) Operating Cash Flow Diluted Earnings per Share – CRD-A Diluted Earnings per Share – CRD-B $ $ $ $ $ $ $ $ 1,005.8 1,027.4 12.5 78.7 112.8 $ $ $ $ $ 75.2 $ 0.26 0.19 $ $ 1,071.0 1,041.1 26.0 89.5 127.2 52.4 0.50 0.42 Return on Average Shareholders’ Investment 7.6% 14.7% Percentage of Total Company Revenues Before Reimbursement by Business Segment 33.8% Crawford Claims Solutions 39.2% Crawford TPA Solutions: Broadspire 27.0% Crawford Specialty Solutions 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 $1,042.2 $1,010.6 $1,029.6 $1,041.1 $1,027.4 Non-GAAP Revenues Before Reimbursements(1) ($ in millions) 1,600.6 1,504.8 1,688.2 1,697.6 1,590.8 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 $52.8 $80.1 $94.6 $89.5 $78.7 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 $89.6 $114.2 $130.9 $127.2 $112.8 Consolidated Adjusted Operating Earnings (1) ($ in millions) Consolidated Adjusted EBITDA(1) ($ in millions) $13.5 $13.6 $13.7 $13.5 $13.2 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 $171.2 $106.4 $171.7 $137.3 $125.2 Cases Received (in thousands) Total Cash Dividends Paid ($ in millions) Net Debt(1) ($ in millions) 31 Crawford 2019 Annual Report(1) Measurements of financial performance not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to other similarly-titled measurements employed by other companies. For additional information about the non-GAAP financial information presented herein, see the Appendix shown on our website at http://investors.crawfordandcompany.com/phoenix.zhtml?c=83420&p=quarterlyearnings. All periods exclude the impact of the disposed GCG business. Board of directors 1. Harsha V. Agadi President and Chief Executive Officer, Crawford & Company 2. Jesse C. Crawford Chief Executive Officer, Crawford Media Services, Inc. 3. Jesse C. Crawford, Jr Independent Investor 4. Lisa Hannusch Founder Rhino Inspired, LLC 5. Michelle Jarrard President BioCircuit Technologies, Inc. 6. Charles H. Ogburn Non-Executive Chairman of the Board, Crawford & Company 7. Rahul Patel Partner King & Spalding LLP 8. D. Richard Williams Non-Executive Chairman of the Board, Primerica, Inc. 6 2 8 7 5 6 1 4 3 32 Crawford 2019 Annual Report CORPORATE INFORMATION Corporate Headquarters 5335 Triangle Parkway, NW Peachtree Corners, GA 30092 404.300.1000 Inquiries Individuals seeking financial data should contact: W. Bruce Swain Investor Relations Chief Financial Officer 404.300.1051 Form 10-K A copy of the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission is available without charge upon request to: Joseph O. Blanco General Counsel Crawford & Company 5335 Triangle Parkway, NW Peachtree Corners, GA 30092 404.300.1021 Our Form 10-K is also available online at either www.sec.gov or in the Investor Relations section at www.crawco.com Annual Meeting The Annual Meeting of shareholders will be held at 2 p.m. on May 15, 2020, at the corporate headquarters of: Crawford & Company 5335 Triangle Parkway, NW Peachtree Corners, GA 30092 404.300.1000 Company Stock Shares of the Company’s two classes of common stock are traded on the NYSE under the symbols CRD-A and CRD-B, respectively. The Company’s two classes of stock are substantially identical, except with respect to voting rights and the Company’s ability to pay greater cash dividends on the non-voting Class A Common Stock than on the voting Class B Common Stock, subject to certain limitations. In addition, with respect to mergers or similar transactions, holders of Class A Common Stock must receive the same type and amount of consideration as holders of Class B Common Stock, unless different consideration is approved by the holders of 75 percent of the Class A Common Stock, voting as a class. Transfer Agent EQ Shareowner Services P.O. Box 64854 St. Paul, MN 55164-0854 1.800.468.9716 www.shareowneronline.com Internet Address www.crawco.com Certifications In 2019, Crawford & Company’s chief executive officer (CEO) provided to the New York Stock Exchange the annual CEO certification regarding Crawford’s compliance with the New York Stock Exchange’s corporate governance listing standards. In addition, Crawford’s CEO and chief financial officer filed with the U.S. Securities and Exchange Commission all required certifications regarding the quality of Crawford’s public disclosures in its fiscal 2019 reports. Financial Information The financial information contained herein should not be considered a substitute for the Company’s audited financial statements, inclusive of footnotes and Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in the Company’s annual report on Form 10-K, as filed with the Securities and Exchange Commission. The Form 10-K also contains detailed discussions of certain major uncertainties, contingencies, risks, and other issues the Company faces. A copy of the Form 10-K including the full financial statements, can be obtained by calling 404.300.1021 or accessing it online at either www.sec.gov or in the Investor Relations section at www.crawco.com. Forward-Looking Statements This report contains forward-looking statements, including statements about the future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and quantitative, that are not statements of historical fact may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from historical experience or Crawford & Company’s present expectations. Accordingly, no one should place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Crawford & Company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise or not arise after the date the forward-looking statements are made. For further information regarding Crawford & Company, and the risks and uncertainties involved in forward-looking statements, please read Crawford & Company’s reports filed with the SEC and available at www.sec.gov or in the Investor Relations section of Crawford & Company’s website at www.crawco.com. Crawford & Company 5335 Triangle Parkway, NW Peachtree Corners, GA 30092 An equal opportunity employer www.crawco.com 

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