Form 8-K - Current report

2,463

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 3, 2023

CRAWFORD & COMPANY

(Exact Name of Registrant as Specified in Its Charter)

Georgia

(State or Other Jurisdiction of Incorporation)


1-10356		58-0506554

(Commission File Number)		(IRS Employer Identification No.)

5335 Triangle Parkway, Peachtree Corners, Georgia		30092

(Address of Principal Executive Offices)		(Zip Code)

(404) 300-1000

(Registrant's Telephone Number, Including Area Code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities Registered Pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock — $1.00 Par Value	CRD-A	New York Stock Exchange, Inc.
Class B Common Stock — $1.00 Par Value	CRD-B	New York Stock Exchange, Inc.

Item 2.02. Results of Operations and Financial Condition

On August 3, 2023, Crawford & Company (the "Company") issued a press release containing information about the Company's financial results for the second quarter 2023. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by this reference.

Item 7.01. Regulation FD Disclosure

The Company has made available on the Company's website at https://ir.crawco.com a presentation designed to enhance the information presented at its quarterly earnings conference call on Friday, August 4, 2023 at 8:30 a.m. Eastern Time. A copy of the presentation is attached hereto as Exhibit 99.2 and is incorporated herein by this reference.

Item 9.01. Financial Statements and Exhibits

(d) The following exhibits are being filed herewith:


Exhibit No.		Description

99.1		Press Release dated August 3, 2023

99.2		Slide Presentation

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

The information contained in this current report on Form 8-K and in the accompanying exhibits shall not be incorporated by reference into any filing of the Company with the SEC, whether made before or after the date hereof, regardless of any general incorporation by reference language in such filing, unless expressly incorporated by specific reference to such filing. The information, including the exhibits hereto, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

SIGNATURE

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	CRAWFORD & COMPANY
	(Registrant)

	By:	/s/ W. BRUCE SWAIN
		W. Bruce Swain
		Executive Vice President -
		Chief Financial Officer

Dated: August 3, 2023

Exhibit 99.1

Crawford & Company®

5335 Triangle Parkway

Peachtree Corners, GA 30092

FOR IMMEDIATE RELEASE

CRAWFORD & COMPANY REPORTS 2023 SECOND QUARTER RESULTS

CONTINUING REVENUE GROWTH LEADS TO EARNINGS AND MARGIN EXPANSION

ATLANTA, (August 3, 2023) -- Crawford & Company® (NYSE: CRD-A and CRD-B), is pleased to announce its financial results for the second quarter ended June 30, 2023.

Based in Atlanta, Crawford & Company (NYSE: CRD‐A and CRD‐B) is a leading global provider of claims management and outsourcing solutions to insurance companies and self‐insured entities with an expansive network serving clients in more than 70 countries. The Company’s two classes of stock are substantially identical, except with respect to voting rights for the Class B Common Stock (CRD-B) and protections for the non-voting Class A Common Stock (CRD-A). More information is available on the Company's website.

GAAP Consolidated Results

Second Quarter 2023

•

Revenues before reimbursements of $320.7 million, up 9% over $293.3 million for the 2022 second quarter

•

Net income attributable to shareholders of $8.4 million, compared with $5.8 million in the same period last year

•

Diluted earnings per share of $0.17 for both CRD-A and CRD-B, compared with diluted earnings per share of $0.12 for both CRD-A and CRD-B in the prior year second quarter

Non-GAAP Consolidated Results

Second Quarter 2023

Non-GAAP consolidated results for 2023 exclude the non-cash, after-tax adjustments for amortization of intangible assets of $1.5 million, non-service related pension costs of $1.6 million, and a contingent earnout adjustment of $0.5 million. Non-GAAP consolidated results for 2022 exclude a similar adjustment for amortization of intangible assets of $1.5 million, non-service related pension credits of $(0.4) million, and a contingent earnout adjustment of $0.2 million.

•

Foreign currency exchange rates decreased revenues before reimbursements by $7.5 million or (3)%. Presented on a constant dollar basis to the prior year, revenues before reimbursements totaled $328.1 million, increasing 12% over the 2022 second quarter

•

Net income attributable to shareholders, on a non-GAAP basis, totaled $12.0 million in the 2023 second quarter, compared with $7.2 million in the same period last year

•

Diluted earnings per share, on a non-GAAP basis, totaled $0.24 for both CRD-A and CRD-B in the 2023 second quarter, compared with $0.15 for both CRD-A and CRD-B in the prior year second quarter

•

Consolidated adjusted operating earnings, on a non-GAAP basis, were $22.8 million, or 7.1% of revenues before reimbursements in the 2023 second quarter, compared with $12.3 million, or 4.2% of revenues, in the 2022 second quarter

•

Consolidated adjusted EBITDA, a non-GAAP financial measure, was $31.5 million, or 9.8% of revenues before reimbursements in the 2023 second quarter, compared with $21.2 million, or 7.2% of revenues, in the 2022 second quarter

Management Comments

“We continued our trend of growth and margin improvement with another strong performance in the second quarter. This was our eleventh consecutive quarter of consolidated revenue growth, reflecting the strength of our client relationships and the commitment of our people to excellence,” commented Rohit Verma, Chief Executive Officer of Crawford & Company. “Platform Solutions revenue grew 22% for the second quarter, related to strong activity in our Networks and Contractor Connection service lines. Revenue in our North America Loss Adjusting segment grew 15%, largely driven by the addition of specialty adjusters to our Global Technical Service team, as well as the addition of several new accounts. At Broadspire, usage of our Medical Management service increased as a result of new workers’ compensation business as well as enhanced post-pandemic stability in the sector. Our International business performed well, with improved margins reflecting work done on cost efficiency in 2022 as well as growth in the current year.

“Our balance sheet and cash generation remain strong, providing Crawford the financial flexibility to continue to invest in the technologies and people who will enhance our operational excellence as we execute on our strategic initiatives to drive continued shareholder value,” Mr. Verma concluded.

Segment Results for the Second Quarter

North America Loss Adjusting

North America Loss Adjusting revenues before reimbursements were $75.8 million in the second quarter of 2023, increasing 15.3% from $65.8 million in the second quarter of 2022.

The segment had operating earnings of $3.9 million in the 2023 second quarter, increasing from $2.6 million in the second quarter of 2022. The operating margin was 5.1% in the 2023 quarter and 4.0% in the 2022 quarter.

International Operations

International Operations revenues before reimbursements were $95.3 million in the second quarter of 2023, up 1.7% from $93.7 million in the same period of 2022, including $0.6 million from the Van Dijk acquisition. Absent foreign exchange rate decreases of $6.2 million, revenues would have been $101.5 million for the 2023 second quarter.

Operating earnings were $3.7 million in the 2023 second quarter, compared to a $(0.7) million operating loss in the 2022 period. The segment’s operating margin for the 2023 quarter was 3.9% as compared with (0.7)% in the 2022 quarter.

Broadspire

Broadspire segment revenues before reimbursements were $83.9 million in the 2023 second quarter, increasing 4.7% from $80.1 million in the 2022 second quarter.

Broadspire recorded operating earnings of $8.1 million in the second quarter of 2023, representing an operating margin of 9.7%, increasing from $7.7 million, or 9.6% of revenues, in the 2022 second quarter.

Platform Solutions

Platform Solutions revenues before reimbursements were $65.6 million in the second quarter of 2023, up 22.1% from $53.7 million in the same period of 2022.

Operating earnings were $8.1 million in the 2023 second quarter, increasing over the $4.6 million in the 2022 period. The segment’s operating margin for the 2023 quarter was 12.3% as compared with 8.6% in the 2022 quarter.

Unallocated Corporate and Shared Costs and Credits, Net

Unallocated corporate costs were $1.1 million in the second quarter of 2023, compared with $1.9 million in the same period of 2022. The decrease in the 2023 second quarter was primarily due to an offset to certain internal allocations and other cost reductions.

Other Matters

The Company recognized pretax contingent earnout expenses totaling $0.7 million and $0.3 million in the 2023 second quarter and comparable 2022 period, respectively, related to the fair value adjustment of earnout liabilities arising from recent acquisitions. This adjustment, which is not a component of operating earnings, is based on favorable changes to projections of acquired entities over the respective earnout periods, which span multiple years.

The Company recognized non-service pension costs of $2.1 million in the 2023 second quarter compared with credits of $(0.6) million in the comparable 2022 period. Non-service pension costs represent the U.S. and U.K. non-service defined benefit pension costs, which are non-operating in nature as the U.S. plan is frozen and the U.K. plans are closed to new participants.

Balance Sheet and Cash Flow

The Company’s consolidated cash and cash equivalents position as of June 30, 2023, totaled $47.5 million, compared with $46.0 million at December 31, 2022. The Company’s total debt outstanding as of June 30, 2023, totaled $242.8 million, compared with $238.9 million at December 31, 2022.

The Company’s operations provided $27.2 million of cash during the first six months of 2023, compared with $(12.8) million used in 2022. The increase in cash provided was primarily driven by an increase in net income and improvement in working capital.

The Company made no contributions to its U.S. defined benefit pension plan and $1.0 million in contributions to its U.K. plans for the first half of 2023, compared with no contributions to the U.S. plan and $0.3 million to the U.K. plans in 2022.

There were no shares repurchased during 2023. During the first six months of 2022, the Company repurchased 2,656,474 shares of CRD-A and 963,472 shares of CRD-B at an average per share cost of $7.41 and $7.32, respectively. The total cost of share repurchases during 2022 was $26.7 million through June 30, 2022.

Conference Call

As previously announced, Crawford & Company will host a conference call on August 4, 2023, at 8:30 a.m. Eastern Time to discuss its second quarter 2023 results. The conference call can be accessed live by dialing 1-888-396-8049 and using Conference ID 31233038. A presentation for tomorrow’s call can also be found on the investor relations portion of the Company’s website, https://ir.crawco.com. The call will be recorded and available for replay through September 4, 2023. You may dial 1-877-674-7070 and use passcode 233038# to listen to the replay.

Non-GAAP Presentation

In the normal course of business, our operating segments incur certain out-of-pocket expenses that are thereafter reimbursed by our clients. Under U.S. generally accepted accounting principles (“GAAP”), these out-of-pocket expenses and associated reimbursements are required to be included when reporting expenses and revenues, respectively, in our consolidated results of operations. In the foregoing discussion and analysis of segment results of operations, we do not include a gross up of segment expenses and revenues for these pass-through reimbursed expenses. The amounts of reimbursed expenses and related revenues offset each other in our results of operations with no impact to our net income or operating earnings. A reconciliation of revenues before reimbursements to consolidated revenues determined in accordance with GAAP is self-evident from the face of the accompanying unaudited condensed consolidated statements of operations.

Operating earnings is the primary financial performance measure used by our senior management and chief operating decision maker (“CODM”) to evaluate the financial performance of our Company and operating segments, and make resource allocation and certain compensation decisions. Unlike net income, segment operating earnings is not a standard performance measure found in GAAP. We believe this measure is useful to others in that it allows them to evaluate segment and consolidated operating performance using the same criteria used by our senior management and CODM. Consolidated operating earnings represent segment earnings including certain unallocated corporate and shared costs, but before net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, contingent earnout adjustments, non-service pension costs and credits, income taxes and net income or loss attributable to noncontrolling interests.

Adjusted EBITDA is not a term defined by GAAP and as a result our measure of adjusted EBITDA might not be comparable to similarly titled measures used by other companies. However, adjusted EBITDA is used by management to evaluate, assess and benchmark our operational results. The Company believes that adjusted EBITDA is relevant and useful information widely used by analysts, investors and other interested parties. Adjusted EBITDA is defined as net income attributable to shareholders of the Company with adjustments for depreciation and amortization, net corporate interest expense, contingent earnout adjustments, non-service pension costs and credits, income taxes and stock-based compensation expense.

Unallocated corporate and shared costs and credits include expenses and credits related to our Chief Executive Officer and Board of Directors, certain provisions for bad debt allowances or subsequent recoveries such as those related to bankrupt clients, certain unallocated professional fees and certain self-insurance costs and recoveries that are not allocated to our individual operating segments.

Income taxes, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, contingent earnout adjustments, and non-service pension costs and credits are recurring components of our net income, but they are not considered part of our segment operating earnings because they are managed on a corporate-wide basis. Income taxes are calculated for the Company on a consolidated basis based on statutory rates in effect in the various jurisdictions in which we provide services and vary significantly by jurisdiction. Net corporate interest expense results from capital structure decisions made by senior management and the Board of Directors, affecting the Company as a whole. Stock option expense represents the non-cash costs generally related to stock options and employee stock purchase plan expenses which are not allocated to our operating segments. Amortization expense is a non-cash expense for finite-lived customer-relationship and trade name intangible assets acquired in business combinations. Contingent earnout adjustments relate to changes in the fair value of earnouts associated with our recent acquisitions. Non-service pension costs and credits represent the U.S. and U.K. non-service defined benefit pension costs, which are non-operating in nature as the U.S. plan was frozen in 2002 and the U.K. plans are closed to new participants. None of these costs relate directly to the performance of our services or operating activities and, therefore, are excluded from segment operating earnings to better assess the results of each segment's operating activities on a consistent basis.

A significant portion of our operations are international. These international operations subject us to foreign exchange fluctuations. The following table illustrates revenue as a percentage of total revenue for the major currencies of the geographic areas that Crawford does business:


		Three Months Ended										Six Months Ended
(in thousands)		June 30, 2023					June 30, 2022					June 30, 2023					June 30, 2022
Geographic Area	Currency	USD equivalent		% of total			USD equivalent		% of total			USD equivalent		% of total			USD equivalent		% of total
U.S.	USD	$	201,246		62.8	%	$	174,959		59.6	%	$	398,014		62.8	%	$	340,452		59.5	%
U.K.	GBP		34,725		10.8	%		33,435		11.4	%		67,849		10.7	%		67,485		11.8	%
Canada	CAD		24,107		7.5	%		24,676		8.4	%		48,468		7.7	%		48,936		8.5	%
Australia	AUD		22,926		7.1	%		23,643		8.1	%		45,920		7.2	%		42,360		7.4	%
Europe	EUR		14,301		4.5	%		14,372		4.9	%		28,339		4.5	%		28,910		5.1	%
Rest of World	Various		23,360		7.3	%		22,260		7.6	%		45,067		7.1	%		44,227		7.7	%
Total Revenues, before reimbursements		$	320,665		100.0	%	$	293,345		100.0	%	$	633,657		100.0	%	$	572,370		100.0	%

Following is a reconciliation of consolidated operating earnings to net income attributable to shareholders of Crawford & Company on a GAAP basis:


	Three Months Ended						Six Months Ended
(in thousands)	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Operating earnings:
North America Loss Adjusting	$	3,900		$	2,649		$	11,965		$	6,783
International Operations		3,742			(661	)		6,777			(3,726	)
Broadspire		8,148			7,667			16,075			14,101
Platform Solutions		8,106			4,596			18,072			12,633
Unallocated corporate and shared costs, net		(1,098	)		(1,945	)		(5,217	)		(4,940	)
Consolidated operating earnings		22,798			12,306			47,672			24,851
(Deduct) add:
Net corporate interest expense		(4,309	)		(1,780	)		(8,708	)		(3,298	)
Stock option expense		(139	)		(130	)		(295	)		(336	)
Amortization of intangible assets		(1,979	)		(2,060	)		(3,878	)		(3,786	)
Non-service pension costs and credits		(2,095	)		572			(4,266	)		1,115
Contingent earnout adjustments		(725	)		(303	)		(973	)		(2,359	)
Income tax provision		(5,206	)		(2,768	)		(10,477	)		(5,194	)
Net loss (income) attributable to noncontrolling interests		82			(7	)		33			(67	)
Net income attributable to shareholders of Crawford & Company	$	8,427		$	5,830		$	19,108		$	10,926

Following is a reconciliation of net income attributable to shareholders of Crawford & Company on a GAAP basis to non-GAAP adjusted EBITDA:


	Three Months Ended					Six Months Ended
(in thousands)	June 30, 2023		June 30, 2022			June 30, 2023		June 30, 2022
Net income attributable to shareholders of Crawford & Company	$	8,427	$	5,830		$	19,108	$	10,926
Add (Deduct):
Depreciation and amortization		9,191		9,356			18,241		18,455
Stock-based compensation		1,586		1,750			2,609		3,410
Net corporate interest expense		4,309		1,780			8,708		3,298
Non-service pension costs and credits		2,095		(572	)		4,266		(1,115	)
Contingent earnout adjustments		725		303			973		2,359
Income tax provision		5,206		2,768			10,477		5,194
Non-GAAP adjusted EBITDA	$	31,539	$	21,215		$	64,382	$	42,527

Following is a reconciliation of operating cash flow to free cash flow for the six months ended June 30, 2023 and 2022:


Six Months Ended
(in thousands)	June 30, 2023			June 30, 2022			Change
Net Cash Provided by (Used in) Operating Activities	$	27,169		$	(12,752	)	$	39,921
Less:
Property & Equipment Purchases, net		(1,914	)		(3,123	)		1,209
Capitalized Software (internal and external costs)		(16,031	)		(12,561	)		(3,470	)
Free Cash Flow	$	9,224		$	(28,436	)	$	37,660

Following are the reconciliations of GAAP Pretax Earnings, Net Income and Earnings Per Share to related non-GAAP Adjusted figures, which reflect each of 2023 and 2022 before amortization of intangible assets, non-service related pension costs (credits) and contingent earnout adjustments:


Three Months Ended June 30, 2023
(in thousands)	Pretax earnings		Net income attributable to Crawford & Company		Diluted earnings per CRD-A share		Diluted earnings per CRD-B share
GAAP	$	13,551	$	8,427	$	0.17	$	0.17
Adjustments:
Amortization of intangible assets		1,979		1,484		0.03		0.03
Non-service related pension costs		2,095		1,557		0.03		0.03
Contingent earnout adjustments		725		537		0.01		0.01
Non-GAAP Adjusted	$	18,350	$	12,005	$	0.24	$	0.24


Three Months Ended June 30, 2022
(in thousands)	Pretax earnings			Net income attributable to Crawford & Company			Diluted earnings per CRD-A share(1)			Diluted earnings per CRD-B share(1)
GAAP	$	8,605		$	5,830		$	0.12		$	0.12
Adjustments:
Amortization of intangible assets		2,060			1,545			0.03			0.03
Non-service related pension credits		(572	)		(444	)		(0.01	)		(0.01	)
Contingent earnout adjustments		303			224			-			-
Non-GAAP Adjusted	$	10,396		$	7,155		$	0.15		$	0.15


Six Months Ended June 30, 2023
(in thousands)	Pretax earnings		Net income attributable to Crawford & Company		Diluted earnings per CRD-A share(1)		Diluted earnings per CRD-B share
GAAP	$	29,552	$	19,108	$	0.39	$	0.39
Adjustments:
Amortization of intangible assets		3,878		2,909		0.06		0.06
Non-service related pension costs		4,266		3,170		0.06		0.06
Contingent earnout adjustments		973		720		0.02		0.02
Non-GAAP Adjusted	$	38,669	$	25,907	$	0.52	$	0.53


Six Months Ended June 30, 2022
(in thousands)	Pretax earnings			Net income attributable to Crawford & Company			Diluted earnings per CRD-A share			Diluted earnings per CRD-B share
GAAP	$	16,187		$	10,926		$	0.22		$	0.22
Adjustments:
Amortization of intangible assets		3,786			2,840			0.06			0.06
Non-service related pension credits		(1,115	)		(865	)		(0.02	)		(0.02	)
Contingent earnout adjustments		2,359			1,747			0.03			0.03
Non-GAAP Adjusted	$	21,217		$	14,648		$	0.29		$	0.29

(1) Sum of reconciling items may differ from total due to rounding of individual components.

Following is information regarding the weighted average shares used in the computation of basic and diluted earnings per share:


	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Weighted-Average Shares Used to Compute Basic Earnings Per Share:
Class A Common Stock		28,956		28,757		28,899		29,827
Class B Common Stock		19,848		19,987		19,848		20,381
Weighted-Average Shares Used to Compute Diluted Earnings Per Share:
Class A Common Stock		29,770		29,145		29,456		30,151
Class B Common Stock		19,848		19,987		19,848		20,381

Further information regarding the Company’s operating results for the three and six months ended June 30, 2023, financial position as of June 30, 2023, and cash flows for the six months ended June 30, 2023 is shown on the attached unaudited condensed consolidated financial statements.

About Crawford & Company

Based in Atlanta, Crawford & Company (NYSE: CRD-A and CRD-B) is a leading provider of claims management and outsourcing solutions to insurance companies and self-insured entities with an expansive network serving clients in more than 70 countries. The Company's two classes of stock are substantially identical, except with respect to voting rights for the Class B Common Stock (CRD-B) and protections for the non-voting Class A Common Stock (CRD-A). More information is available at www.crawco.com.

TAG: Crawford-Financial, Crawford-Investor-News-and-Events

FOR FURTHER INFORMATION REGARDING THIS PRESS RELEASE, PLEASE CALL BRUCE SWAIN AT (404) 300-1051.

This press release contains forward-looking statements, including statements about the expected future financial condition, results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and quantitative, that are not historical facts may be “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and other federal 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, including factors that could cause our actual financial condition, results or earnings to differ from those described in any forward-looking statements, please read Crawford & Company’s reports filed with the SEC and available at www.sec.gov and in the Investor Relations section of Crawford & Company’s website at www.crawco.com.

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In Thousands, Except Per Share Amounts and Percentages)


Three Months Ended June 30,	2023			2022			% Change

Revenues:
Revenues Before Reimbursements	$	320,665		$	293,345			9	%
Reimbursements		13,073			10,306			27	%
Total Revenues		333,738			303,651			10	%

Costs and Expenses:
Costs of Services Provided, Before Reimbursements		234,031			218,134			7	%
Reimbursements		13,073			10,306			27	%
Total Costs of Services		247,104			228,440			8	%

Selling, General, and Administrative Expenses		66,582			65,397			2	%
Corporate Interest Expense, Net		4,309			1,780			142	%
Total Costs and Expenses		317,995			295,617			8	%

Other (Loss) Income, Net		(2,192	)		571		nm

Income Before Income Taxes		13,551			8,605			57	%
Provision for Income Taxes		5,206			2,768			88	%

Net Income		8,345			5,837			43	%

Net Loss (Income) Attributable to Noncontrolling Interests		82			(7	)	nm

Net Income Attributable to Shareholders of Crawford & Company	$	8,427		$	5,830			45	%

Earnings Per Share - Basic:
Class A Common Stock	$	0.17		$	0.12			42	%
Class B Common Stock	$	0.17		$	0.12			42	%

Earnings Per Share - Diluted:
Class A Common Stock	$	0.17		$	0.12			42	%
Class B Common Stock	$	0.17		$	0.12			42	%

Cash Dividends Per Share:
Class A Common Stock	$	0.06		$	0.06			—
Class B Common Stock	$	0.06		$	0.06			—

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In Thousands, Except Per Share Amounts and Percentages)


Six Months Ended June 30,	2023			2022			% Change

Revenues:
Revenues Before Reimbursements	$	633,657		$	572,370			11	%
Reimbursements		24,677			19,070			29	%
Total Revenues		658,334			591,440			11	%

Costs and Expenses:
Costs of Services Provided, Before Reimbursements		461,109			423,715			9	%
Reimbursements		24,677			19,070			29	%
Total Costs of Services		485,786			442,785			10	%

Selling, General, and Administrative Expenses		129,951			130,239			(0	)%
Corporate Interest Expense, Net		8,708			3,298			164	%
Total Costs and Expenses		624,445			576,322			8	%

Other (Loss) Income, Net		(4,337	)		1,069		nm

Income Before Income Taxes		29,552			16,187			83	%
Provision for Income Taxes		10,477			5,194			102	%

Net Income		19,075			10,993			74	%

Net Loss (Income) Attributable to Noncontrolling Interests		33			(67	)	nm

Net Income Attributable to Shareholders of Crawford & Company	$	19,108		$	10,926			75	%

Earnings Per Share - Basic:
Class A Common Stock	$	0.39		$	0.22			77	%
Class B Common Stock	$	0.39		$	0.22			77	%

Earnings Per Share - Diluted:
Class A Common Stock	$	0.39		$	0.22			77	%
Class B Common Stock	$	0.39		$	0.22			77	%

Cash Dividends Per Share:
Class A Common Stock	$	0.12		$	0.12			—
Class B Common Stock	$	0.12		$	0.12			—

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

As of June 30, 2023 and December 31, 2022

Unaudited

(In Thousands, Except Par Values)


	June 30,			December 31,
	2023			2022
ASSETS

Current Assets:
Cash and Cash Equivalents	$	47,479		$	46,007
Accounts Receivable, Net		160,333			141,106
Unbilled Revenues, at Estimated Billable Amounts		129,121			126,274
Income Taxes Receivable		9,164			9,098
Prepaid Expenses and Other Current Assets		29,032			28,782
Total Current Assets		375,129			351,267

Net Property and Equipment		25,406			27,809

Other Assets:
Operating Lease Right-of-Use Asset, Net		92,535			93,334
Goodwill		76,720			76,622
Intangible Assets Arising from Business Acquisitions, Net		86,852			88,039
Capitalized Software Costs, Net		90,119			82,975
Deferred Income Tax Assets		18,812			19,573
Other Noncurrent Assets		56,201			51,888
Total Other Assets		421,239			412,431

Total Assets	$	821,774		$	791,507

LIABILITIES AND SHAREHOLDERS’ INVESTMENT

Current Liabilities:
Short-Term Borrowings	$	30,552		$	27,048
Accounts Payable		44,094			50,847
Accrued Compensation and Related Costs		76,558			79,285
Self-Insured Risks		15,500			12,614
Income Taxes Payable		143			1,208
Operating Lease Liability		24,028			22,910
Other Accrued Liabilities		64,518			56,293
Deferred Revenues		33,950			29,282
Total Current Liabilities		289,343			279,487

Noncurrent Liabilities:
Long-Term Debt and Finance Leases, Less Current Installments		212,217			211,810
Operating Lease Liability		82,359			84,628
Deferred Revenues		25,472			24,737
Accrued Pension Liabilities		25,250			25,914
Other Noncurrent Liabilities		37,238			41,553
Total Noncurrent Liabilities		382,536			388,642

Shareholders’ Investment:
Class A Common Stock, $1.00 Par Value		28,977			28,764
Class B Common Stock, $1.00 Par Value		19,848			19,848
Additional Paid-in Capital		81,025			78,158
Retained Earnings		226,348			213,094
Accumulated Other Comprehensive Loss		(204,840	)		(215,321	)
Shareholders’ Investment Attributable to Shareholders of Crawford & Company		151,358			124,543
Noncontrolling Interests		(1,463	)		(1,165	)
Total Shareholders’ Investment		149,895			123,378

Total Liabilities and Shareholders’ Investment	$	821,774		$	791,507

CRAWFORD & COMPANY

SUMMARY RESULTS BY OPERATING SEGMENT WITH DIRECT COMPENSATION AND OTHER EXPENSES

Unaudited

(In Thousands, Except Percentages)

Three Months Ended June 30,


	North America Loss Adjusting						%	International Operations						%	Broadspire						%	Platform Solutions						%
	2023			2022			Change	2023			2022			Change	2023			2022			Change	2023			2022			Change

Revenues Before Reimbursements	$	75,827		$	65,775		15.3%	$	95,312		$	93,710		1.7%	$	83,888		$	80,114		4.7%	$	65,638		$	53,746		22.1%

Direct Compensation, Fringe Benefits & Non-Employee Labor		54,619			48,349		13.0%		62,331			65,311		(4.6)%		54,500			49,801		9.4%		43,689			36,467		19.8%

% of Revenues Before Reimbursements		72.0	%		73.5	%			65.4	%		69.7	%			65.0	%		62.2	%			66.6	%		67.9	%

Expenses Other than Reimbursements, Direct Compensation, Fringe Benefits & Non-Employee Labor		17,308			14,777		17.1%		29,239			29,060		0.6%		21,240			22,646		(6.2)%		13,843			12,683		9.1%

% of Revenues Before Reimbursements		22.8	%		22.5	%			30.7	%		31.0	%			25.3	%		28.3	%			21.1	%		23.6	%

Total Operating Expenses		71,927			63,126		13.9%		91,570			94,371		(3.0)%		75,740			72,447		4.5%		57,532			49,150		17.1%

Operating Earnings (Loss) (1)	$	3,900		$	2,649		47.2%	$	3,742		$	(661	)	nm	$	8,148		$	7,667		6.3%	$	8,106		$	4,596		76.4%

% of Revenues Before Reimbursements		5.1	%		4.0	%			3.9	%		(0.7	)%			9.7	%		9.6	%			12.3	%		8.6	%

Six Months Ended June 30,


	North America Loss Adjusting		%	International Operations			%	Broadspire		%	Platforms Solutions		%
	2023	2022	Change		2023	2022	Change	2023	2022	Change	2023	2022	Change

Revenues Before Reimbursements	$152,954	$130,213	17.5%		$187,175	$182,982	2.3%	$165,070	$156,568	5.4%	$128,458	$102,607	25.2%

Direct Compensation, Fringe Benefits & Non-Employee Labor	108,783	94,606	15.0%		123,752	128,607	(3.8)%	107,141	97,748	9.6%	84,600	68,318	23.8%

% of Revenues Before Reimbursements	71.1%	72.7%			66.1%	70.3%		64.9%	62.4%		65.9%	66.6%

Expenses Other than Reimbursements, Direct Compensation, Fringe Benefits & Non-Employee Labor	32,206	28,824	11.7%		56,646	58,101	(2.5)%	41,854	44,719	(6.4)%	25,786	21,656	19.1%

% of Revenues Before Reimbursements	21.1%	22.1%			30.3%	31.8%		25.4%	28.6%		20.1%	21.1%

Total Operating Expenses	140,989	123,430	14.2%		180,398	186,708	(3.4)%	148,995	142,467	4.6%	110,386	89,974	22.7%

Operating Earnings (Loss)(1)	$11,965	$6,783	76.4%		$6,777	$(3,726)	nm	$16,075	$14,101	14.0%	$18,072	$12,633	43.1%

% of Revenues Before Reimbursements	7.8%	5.2%			3.6%	(2.0)%		9.7%	9.0%		14.1%	12.3%

(1) A non-GAAP financial measurement which represents net income attributable to the applicable reporting segment excluding income taxes, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, non-service pension costs and credits, contingent earnout adjustments, and certain unallocated corporate and shared costs and credits. See pages 3 and 4 for additional information about segment operating earnings.

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Year to Date Period Ended June 30, 2023 and June 30, 2022

Unaudited

(In Thousands)


	2023			2022
Cash Flows From Operating Activities:
Net income	$	19,075		$	10,993
Reconciliation of net income to net cash provided by (used in) operating activities:
Depreciation and amortization		18,241			18,455
Stock-based compensation		2,609			3,410
Loss (gain) on disposal of property and equipment		116			(1,544	)
Contingent earnout adjustments		973			2,359
Changes in operating assets and liabilities:
Accounts receivable, net		(15,107	)		1,241
Unbilled revenues, net		1,828			(27,557	)
Accrued or prepaid income taxes		(1,217	)		(5,275	)
Accounts payable and accrued liabilities		(3,928	)		(9,403	)
Deferred revenues		4,529			(1,080	)
Accrued retirement costs		750			(3,016	)
Prepaid expenses and other operating activities		(700	)		(1,335	)
Net cash provided by (used in) operating activities		27,169			(12,752	)

Cash Flows From Investing Activities:
Acquisitions of property and equipment		(1,914	)		(3,123	)
Capitalization of computer software costs		(16,031	)		(12,561	)
Payments for business acquisitions, net of cash acquired		—			(25,941	)
Cash proceeds from sale of property and equipment		—			3,032
Net cash used in investing activities		(17,945	)		(38,593	)

Cash Flows From Financing Activities:
Cash dividends paid		(5,854	)		(6,034	)
Repurchases of common stock		—			(26,749	)
Increases in short-term and revolving credit facility borrowings		20,958			86,865
Payments on short-term and revolving credit facility borrowings		(18,879	)		(6,011	)
Payments of contingent consideration on acquisitions		(4,916	)		(1,654	)
Other financing activities		213			(285	)
Net cash (used in) provided by financing activities		(8,478	)		46,132

Effects of exchange rate changes on cash and cash equivalents		1,062			(1,400	)
Increase (Decrease) in cash, cash equivalents, and restricted cash(1)		1,808			(6,613	)
Cash, cash equivalents, and restricted cash at beginning of year(1)		46,645			53,689
Cash, cash equivalents, and restricted cash at end of period(1)	$	48,453		$	47,076

(1) The 2023 amounts include beginning restricted cash of $638 at December 31, 2022, and ending restricted cash of $974 at June 30, 2023, and the 2022 amounts include beginning restricted cash of $461at December 31, 2021, and ending restricted cash of $822 at June 30, 2022, which we present as part of "Prepaid expenses and other current assets" on the Balance Sheets.

Second Quarter 2023 Financial Results CRD-A & CRD-B (NYSE) ® Crawford & Company

Forward-Looking Statements & Additional Information Q2 2023 FINANCIAL RESULTS Forward-Looking Statements This presentation contains forward-looking statements, including statements about the expected 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. Results for any interim period presented herein are not necessarily indicative of results to be expected for the full year or for any other future period. 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 Securities and Exchange Commission and available at www.sec.gov or in the Investor Relations portion of Crawford & Company's website at https://ir.crawco.com. Crawford's business is dependent, to a significant extent, on case volumes. The Company cannot predict the future trend of case volumes for a number of reasons, including the fact that the frequency and severity of weather-related claims and the occurrence of natural and man-made disasters, which are a significant source of cases and revenue for the Company, are generally not subject to accurate forecasting. Revenues Before Reimbursements ("Revenues") Revenues Before Reimbursements are referred to as "Revenues" in both consolidated and segment charts, bullets and tables throughout this presentation. Segment and Consolidated Operating Earnings Under the Financial Accounting Standards Board's Accounting Standards Codification ("ASC") Topic 280, "Segment Reporting," the Company has defined segment operating earnings as the primary measure used by the Company to evaluate the results of each of its four operating segments. Segment operating earnings represent segment earnings, including the direct and indirect costs of certain administrative functions required to operate our business, but excludes unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, contingent earnout adjustments, non-service pension costs and credits, income taxes and net income or loss attributable to noncontrolling interests. Earnings Per Share The Company's two classes of stock are substantially identical, except with respect to voting rights for the Class B Common Stock (CRD-B) and protections for the non-voting Class A Common Stock (CRD-A). More information available on the Company’s website. The two-class method is an earnings allocation method under which earnings per share ("EPS") is calculated for each class of common stock considering both dividends declared and participation rights in undistributed earnings as if all such earnings had been distributed during the period. As a result, the Company may report different EPS for each class of stock due to the two-class method of computing EPS as required by ASC Topic 260 - "Earnings Per Share". Segment Gross Profit Segment gross profit is defined as revenues, less direct costs, which exclude indirect centralized administrative support costs allocated to the business. Indirect expenses consist of centralized administrative support costs, regional and local shared services that are allocated to each segment based on usage. Non-GAAP Financial Information For additional information about certain non-GAAP financial information presented herein, see the Appendix following this presentation.

STRATEGIC UPDATE Rohit Verma, Chief Executive Officer 3 Q2 2023 FINANCIAL RESULTS

Countries 70 Employees 10,000 50,000 Field Resources $18B+ Claims Managed Annually Crawford Today: Stronger than ever; Partnering with the best Q2 2023 FINANCIAL RESULTS

Climate change continues to drive global demand in weather-related claims Gaining market share within fragmented U.S. independent loss adjusting market Industry-leading Insurtech capabilities creating significant growth in Platforms segment Growing and strengthening strategic partnerships across business segments Uniquely positioned in the industry with the ability to leverage the Crawford ecosystem to deliver end-to-end solutions Increased presence in rapidly growing P&C insurance markets with strong outsourced claims processing tailwinds Growth Drivers Q2 2023 FINANCIAL RESULTS

11th consecutive quarter of revenue growth Revenue growth across ALL business segments Net income increased by nearly 50% YoY Operating earnings up 85% YoY Margin expansion and improved profitability Added $26 million in new and enhanced business $40 million increase in operating cash flow Returning capital to shareholders; raised quarterly dividend to $0.07 per share for the third quarter NPS remains at a healthy level of 46 YoY Revenue Growth Q2 Highlights Q2 2023 FINANCIAL RESULTS 9% YoY Non-GAAP Adjusted Operating Earnings Growth* 85% $293M $321M $12M $23M 6 * See Appendix for non-GAAP explanation and reconciliation 2Q ‘22 2Q ‘23 2Q ‘22 2Q ‘23

Margin Improvement Strategy Driving Results Increased YoY Operating Margins Across Business Segments International Operations 3.9% +463 bps Broadspire 9.7% +14 bps North America Loss Adjusting 5.1% +112 bps +380bps 12.3% Platform Solutions Align pricing with the value we deliver Aggressively address low productivity pockets Optimize cost structure to current market dynamics Roll out new systems and improved processes for efficiency gains Q2 2023 FINANCIAL RESULTS

Our Capital Allocation Strategy Q2 2023 FINANCIAL RESULTS Committed to Employing a Disciplined Approach to Capital Allocation Investing in long-term growth through Cap Ex and M&A Debt Repayment Reduce leverage (1.80x EBITDA in Q2 2023) Raised quarterly dividend to $0.07 per share for CRD-A and CRD-B Returned over $120 million of capital to shareholders through share buybacks and dividends since 2019

Q2 2023 FINANCIAL RESULTS OPERATIONAL UPDATE Joseph Blanco, President

International Operations Comprised of All Reported Service Lines Outside of North America: UK Europe Australia Asia Latin America Legal Services 30% of YTD revenues North America Loss Adjusting Broadspire (US-only) Platform Solutions (US-only) Third Party Administration for: Workers' Compensation Auto and Liability Claims Medical Management Disability RMIS Accident and Health Service Lines Include: Contractor Connection Networks Catastrophe WeGoLook Subrogation (Praxis) Comprised of the Following North American Service Lines: US GTS US Field Ops Canada Loss Adjusting Canada TPA Canada Contractor Connection edjuster 24% of YTD revenues 26% of YTD revenues 20% of YTD revenues Operating Segments Q2 2023 FINANCIAL RESULTS

Q2 revenue growth of 15% over prior year Expert adjuster additions continued through Q2 New account nominations with strong growth in forensic accounting and engineering GTS and Field Ops collaboration driving increased market share and subsequent improved utilization Operating margin expanded 112 bps over prior year North America Loss Adjusting Q2 Revenues $75.8M Q2 Operating Earnings $3.9M Q2 2023 FINANCIAL RESULTS

Q2 revenue growth of 1.7% over prior year and 8.3% when measured in constant currency $4.4 million OE improvement with continued growth in UK TPA business, large loss performance in Latin America, and efficiency improvement measures in Europe driving increased margins Actions to improve pricing and productivity drove favorable results Operating margin expanded 463 bps YoY Q2 2023 FINANCIAL RESULTS Q2 Revenues $95.3M International Operations Q2 Operating Earnings $3.7M

Q2 revenue growth of 5% YoY, aided by increased Medical Management revenue growth of over 7% from prior year New sales momentum in alternative markets and data & analytical services Innovative technology including advanced data analytics and predictive modeling driving market share increase Operating margin expanded 14 bps YoY Retained 97% of our Broadspire business year to date Broadspire Q2 2023 FINANCIAL RESULTS Q2 Revenues $83.9M Q2 Operating Earnings $8.1M

Q2 revenue growth of 22% over prior year Next generation software driving repeatable SaaS revenue and enabling Crawford’s goal to touch every claim Networks revenues grew 18% YoY; Contractor Connection revenues grew 14% Subrogation revenues nearly doubled YoY Increased contribution from Contractor Connection from pricing actions and increased client utilization Operating margin expanded 380 bps YoY Platform Solutions Q2 2023 FINANCIAL RESULTS Q2 Revenues $65.6M Q2 Operating Earnings $8.1M

FINANCIAL UPDATE Bruce Swain, Chief Financial Officer Q2 2023 FINANCIAL RESULTS

Q2 2023 Financial Summary Q2 2023 FINANCIAL RESULTS (1) See Appendix for non-GAAP explanation and reconciliation Quarter Ended ($ in millions, except per share amounts) June 30, 2023 June 30, 2022 % Change Revenues $320.7 $293.3 9% Non-GAAP Revenues excluding foreign exchange fluctuations(1) $328.1 $293.3 12% Net Income Attributable to Shareholders of Crawford & Company $8.4 $5.8 45% Diluted Earnings per Share CRD-A $0.17 $0.12 42% CRD-B $0.17 $0.12 42% Non-GAAP Diluted Earnings per Share (1) CRD-A $0.24 $0.15 60% CRD-B $0.24 $0.15 60% Adjusted Operating Earnings (1) $22.8 $12.3 85% Adjusted Operating Margin (1) 7.1% 4.2% 290 bps Adjusted EBITDA (1) $31.5 $21.2 49% Adjusted EBITDA Margin (1) 9.8% 7.2% 260 bps

North America Loss Adjusting Q2 2023 FINANCIAL RESULTS Three months ended (in thousands, except percentages) June 30, 2023 June 30, 2022 Variance Revenues $75,827 $65,775 15.3% Direct expenses 62,469 54,507 14.6% Gross profit 13,358 11,268 18.5% Indirect expenses 9,458 8,619 9.7% Operating earnings $3,900 $2,649 47.2% Gross profit margin 17.6% 17.1% 0.5% Operating margin 5.1% 4.0% 1.1% Total cases received 73,685 76,419 (3.6)% Full time equivalent employees 2,055 1,992 3.2%

International Operations Q2 2023 FINANCIAL RESULTS Three months ended (in thousands, except percentages) June 30, 2023 June 30, 2022 Variance Revenues $95,312 $93,710 1.7% Direct expenses 78,281 80,297 (2.5)% Gross profit 17,031 13,413 27.0% Indirect expenses 13,289 14,074 (5.6)% Operating earnings (loss) $3,742 $(661) nm Gross profit margin 17.9% 14.3% 3.6% Operating margin 3.9% (0.7)% 4.6% Total cases received 114,073 147,297 (22.6)% Full time equivalent employees 3,643 3,625 0.5%

Broadspire Q2 2023 FINANCIAL RESULTS Three months ended (in thousands, except percentages) June 30, 2023 June 30, 2022 Variance Revenues $83,888 $80,114 4.7% Direct expenses 64,128 62,383 2.8% Gross profit 19,760 17,731 11.4% Indirect expenses 11,612 10,064 15.4% Operating earnings $8,148 $7,667 6.3% Gross profit margin 23.6% 22.1% 1.5% Operating margin 9.7% 9.6% 0.1% Total cases received 143,448 139,123 3.1% Full time equivalent employees 2,614 2,463 6.1%

Platform Solutions Q2 2023 FINANCIAL RESULTS Three months ended (in thousands, except percentages) June 30, 2023 June 30, 2022 Variance Revenues $65,638 $53,746 22.1% Direct expenses 51,726 43,895 17.8% Gross profit 13,912 9,851 41.2% Indirect expenses 5,806 5,255 10.5% Operating earnings $8,106 $4,596 76.4% Gross profit margin 21.2% 18.3% 2.9% Operating margin 12.3% 8.6% 3.7% Total cases received 116,131 117,867 (1.5)% Full time equivalent employees 1,473 1,224 20.3%

Additional Financial Matters Q2 2023 FINANCIAL RESULTS Unallocated Corporate and Shared Costs and Credits Unallocated corporate costs of $1.1 million in Q2 ‘23 compared to costs of $1.9 million in the prior year Variance was primarily due to an offset to certain internal allocations and other cost reductions Non-service Pension Costs and Credits During Q2 ‘23 non-service pension costs were $2.1 million compared to a $(0.6M) credit in Q2 ‘22 These costs and credits are not a component of operating earnings and are added back for non-GAAP earnings and EPS Contingent Earnout Adjustment Recognized a pre-tax contingent earnout expense totaling $0.7 million in Q2 ‘23, compared to $0.3 million in the prior year Based on changes to projections of certain acquired entities Quarterly Dividend Following Q2 ‘23 Crawford raised the quarterly dividend to $0.07 per share Share Repurchases There were no shares repurchased in Q2 ‘23 Approximately 1.8 million shares are eligible to be repurchased under our 2021 Share Repurchase Authorization

Balance Sheet Highlights Q2 2023 FINANCIAL RESULTS (1) See Appendix for non-GAAP explanation and reconciliation Unaudited ($ in thousands) June 30, 2023 December 31, 2019 Dec 31, 2022 December 31, 2018 Change Change Cash and cash equivalents $ 47,479 $ 46,007 $ 1,472 Accounts receivable, net 160,333 141,106 19,227 Unbilled revenues, net 129,121 126,274 2,847 Total receivables 289,454 267,380 22,074 Goodwill 76,720 76,622 98 Intangible assets arising from business acquisitions, net 86,852 88,039 (1,187 ) Deferred revenues 59,422 54,019 5,403 Pension liabilities 25,250 25,914 (664 ) Short-term borrowings and current portion of finance leases 30,552 27,048 3,504 Long-term debt, less current portion 212,217 211,810 407 Total debt 242,769 238,858 3,911 Total stockholders' equity attributable to Crawford & Company 151,358 124,543 26,815 Net debt (1) 195,290 192,851 2,439

Net Debt and Pension Liability Q2 2023 FINANCIAL RESULTS $195.3M Net debt at $195.3 million $171.7M Leverage Ratio of 1.80x EBITDA at end of Q2 2023 $25.3M Pension liability at $25.3 million $87.0M Funded Ratio of US pension plan is 93.4% at end of Q2 2023

Operating and Free Cash Flow Q2 2023 FINANCIAL RESULTS (1) See Appendix for non-GAAP explanation and reconciliation Unaudited ($ in thousands) 2023 2019 2022 2018 Change Change Net Income Attributable to Shareholders of Crawford & Company $ 19,108 $ 10,926 $ 8,182 Depreciation and Other Non-Cash Operating Items 20,817 21,932 (1,115 ) Loss (Gain) on Disposals of Property and Equipment, net 116 (1,544) 1,660 Contingent Earnout Adjustments 973 2,359 (1,386 ) Billed Receivables Change (15,107 ) 1,241 (16,348 ) Unbilled Receivables Change 1,828 (27,557 ) 29,385 Change in Accrued Compensation, 401K, and Other Payroll (5,563 ) (16,805 ) 11,242 Change in Accrued and Prepaid Income Taxes (1,217 ) (5,275 ) 4,058 Other Working Capital Changes 7,239 2,296 4,943 U.K. Pension Contributions (1,025 ) (325 ) (700 ) Cash Flows from Operating Activities 27,169 (12,752 ) 39,921 Property & Equipment Purchases, net (1,914 ) (3,123 ) 1,209 Capitalized Software (internal and external costs) (16,031 ) (12,561 ) (3,470 ) Free Cash Flow(1) $ 9,224 $ (28,436 ) $ 37,660

Financial strength and liquidity provide flexibility to pursue market opportunities Leveraging established relationships with carriers to create “sticky” revenue Positioned to capitalize on the changing landscape due to climate change and demographic shifts Leading the industry with next generation Insurtech capabilities Summary Q2 2023 FINANCIAL RESULTS

Appendix: Non-GAAP Financial Information 26 Q2 2023 FINANCIAL RESULTS

Non-GAAP Financial Information Q2 2023 FINANCIAL RESULTS Measurements of financial performance not calculated in accordance with GAAP should be considered as supplements to, and not substitutes for, performance measurements calculated or derived in accordance with GAAP. Any such measures are not necessarily comparable to other similarly-titled measurements employed by other companies. Reimbursements for Out-of-Pocket Expenses In the normal course of our business, our operating segments incur certain out-of-pocket expenses that are thereafter reimbursed by our clients. Under GAAP, these out-of-pocket expenses and associated reimbursements are required to be included when reporting expenses and revenues, respectively, in our consolidated results of operations. In this presentation, we do not believe it is informative to include in reported revenues the amounts of reimbursed expenses and related revenues, as they offset each other in our consolidated results of operations with no impact to our net income or operating earnings. As a result, unless noted in this presentation, revenue and expense amounts exclude reimbursements for out-of-pocket expenses. Net Debt Net debt is computed as the sum of long-term debt, capital leases and short-term borrowings less cash and cash equivalents. Management believes that net debt is useful because it provides investors with an estimate of what the Company's debt would be if all available cash was used to pay down the debt of the Company. The measure is not meant to imply that management plans to use all available cash to pay down debt. Free Cash Flow Management believes free cash flow is useful to investors as it presents the amount of cash the Company has generated that can be used for other purposes, including additional contributions to the Company's defined benefit pension plans, discretionary prepayments of outstanding borrowings under our credit agreement, and return of capital to shareholders, among other purposes. It does not represent the residual cash flow of the Company available for discretionary expenditures.

Non-GAAP Financial Information (cont.) Q2 2023 FINANCIAL RESULTS Segment and Consolidated Operating Earnings Operating earnings is the primary financial performance measure used by our senior management and chief operating decision maker to evaluate the financial performance of our Company and operating segments and make resource allocation and certain compensation decisions. Management believes operating earnings is useful to others in that it allows them to evaluate segment and consolidated operating performance using the same criteria our management and chief operating decision maker use. Consolidated operating earnings represent segment earnings including certain unallocated corporate and shared costs and credits, but before net corporate interest expense, stock option expense, amortization of customer-relationship intangible assets, contingent earnout adjustments, non-service pension costs and credits, income taxes and net income or loss attributable to noncontrolling interests. Segment and Consolidated Gross Profit Gross profit is defined as revenues less direct expenses which exclude indirect overhead expenses allocated to the business. Indirect expenses consist of centralized administrative support costs, regional and local shared services that are allocated to each segment based on usage. Adjusted EBITDA Adjusted EBITDA is used by management to evaluate, assess and benchmark our operational results and the Company believes that adjusted EBITDA is relevant and useful information widely used by analysts, investors and other interested parties. Adjusted EBITDA is defined as net income attributable to shareholders of the Company with recurring adjustments for depreciation and amortization, net corporate interest expense, contingent earnout adjustments, non-service pension costs and credits, income taxes and stock-based compensation expense. Adjusted EBITDA is not a term defined by GAAP and as a result our measure of adjusted EBITDA might not be comparable to similarly titled measures used by other companies. Adjusted Revenue, Operating Earnings, Pretax Earnings, Net Income, Diluted Earnings per Share and EBITDA Included in non-GAAP adjusted measurements as an add back or subtraction to GAAP measurements, are impacts of amortization of customer-relationship intangible assets, contingent earnout adjustments, and non-service pension costs and credits, which arise from non-core items not directly related to our normal business or operations, or our future performance. Management believes it is useful to exclude these charges when comparing net income and diluted earnings per share across periods, as these charges are not from ordinary operations.

The following table illustrates revenue as a percentage of total revenue in the major currencies of the geographic areas in which Crawford does business: Total Revenue Before Reimbursements by Major Currency Q2 2023 FINANCIAL RESULTS Three Months Ended (in thousands) June 30, 2023 June 30, 2022 Geographic Area Currency USD equivalent % of total USD equivalent % of total U.S. USD $ 201,246 62.8% $ 174,959 59.6% U.K. GBP 34,725 10.8% 33,435 11.4% Canada CAD 24,107 7.5% 24,676 8.4% Australia AUD 22,926 7.1% 23,643 8.1% Europe EUR 14,301 4.5% 14,372 4.9% Rest of World Various 23,360 7.3% 22,260 7.6% Total Revenues, before reimbursements $ 320,665 100.0% $ 293,345 100.0%

Revenues and Costs of Services Provided Reconciliation of Non-GAAP Items Q2 2023 FINANCIAL RESULTS Quarter Ended Quarter Ended Quarter Ended Quarter Ended Unaudited ($ in thousands) June 30, 2023 December 31, June 30, 2022 December 31, 2019 2018 Revenues Before Reimbursements Total Revenues $ 333,738 $ 303,651 Reimbursements (13,073 ) (10,306 ) Revenues Before Reimbursements 320,665 293,345 Costs of Services Provided, Before Reimbursements Total Costs of Services 247,104 228,440 Reimbursements (13,073 ) (10,306 ) Costs of Services Provided, Before Reimbursements $ 234,031 $ 218,134

Operating Earnings Reconciliation of Non-GAAP Items (cont.) Q2 2023 FINANCIAL RESULTS Quarter Ended Quarter Ended Quarter Ended Quarter Ended June 30, 2023 December 31, June 30,2022 December 31, Unaudited ($ in thousands) 2019 2018 North America Loss Adjusting $ 3,900 $ 2,649 International Operations 3,742 (661 ) Broadspire 8,148 7,667 Platform Solutions 8,106 4,596 Unallocated corporate and shared costs and credits, net (1,098 ) (1,945 ) Consolidated Operating Earnings 22,798 12,306 (Deduct) Add: Net corporate interest expense (4,309 ) (1,780 ) Stock option expense (139 ) (130 ) Amortization expense (1,979 ) (2,060 ) Non-service pension costs and credits (2,095 ) 572 Contingent earnout adjustments (725 ) (303 ) Income tax provision (5,206 ) (2,768 ) Net loss (income) attributable to noncontrolling interests 82 (7 ) Net Income Attributable to Shareholders of Crawford & Company $ 8,427 $ 5,830

Adjusted EBITDA Reconciliation of Non-GAAP items (cont.) Q2 2023 FINANCIAL RESULTS Quarter Ended December 31, Quarter Ended December 31, June 30, 2023 December 31, June 30, 2022 December 31, Unaudited ($ in thousands) 2019 2018 Net income attributable to shareholders of Crawford & Company $ 8,427 $ 5,830 Add (Deduct): Depreciation and amortization 9,191 9,356 Stock-based compensation 1,586 1,750 Net corporate interest expense 4,309 1,780 Non-service pension costs and credits 2,095 (572 ) Contingent earnout adjustments 725 303 Income tax provision 5,206 2,768 Adjusted EBITDA $ 31,539 $ 21,215

Net Debt Non-GAAP Financial Information (cont.) Q2 2023 FINANCIAL RESULTS June 30, 2023 December 31, Dec 31, 2022 December 31, Unaudited ($ in thousands) 2019 2018 Short-term borrowings $ 30,494 $ 26,990 Current installments of finance leases and other obligations 58 58 Long-term debt and finance leases, less current installments 212,217 211,810 Total debt 242,769 238,858 Less: Cash and cash equivalents 47,479 46,007 Net debt $ 195,290 $ 192,851

Segment Gross Profit Non-GAAP Financial Information (cont.) Q2 2023 FINANCIAL RESULTS Three months ended Three months ended ($ in thousands) June 30, 2023 December 31, 2019 June 30, 2022 December 31, 2018 North America Loss Adjusting $ 13,358 $ 11,268 International Operations 17,031 13,413 Broadspire 19,760 17,731 Platform Solutions 13,912 9,851 Segment gross profit 64,061 52,263 Segment indirect costs: North America Loss Adjusting (9,458 ) (8,619 ) International Operations (13,289 ) (14,074 ) Broadspire (11,612 ) (10,064 ) Platform Solutions (5,806 ) (5,255 ) Unallocated corporate and shared costs, net (1,098 ) (1,945 ) Consolidated operating earnings 22,798 12,306 Net corporate interest expense (4,309 ) (1,780 ) Stock option expense (139 ) (130 ) Amortization expense (1,979 ) (2,060 ) Non-service pension costs and credits (2,095 ) 572 Contingent earnout adjustments (725 ) (303 ) Income tax provision (5,206 ) (2,768 ) Net loss (income) attributable to noncontrolling interests 82 (7 ) Net income attributable to shareholders of Crawford & Company $ 8,427 $ 5,830

Reconciliation of Second Quarter Non-GAAP Results Q2 2023 FINANCIAL RESULTS Three Months Ended June 30, 2023 Unaudited ($ in thousands) Pretax Earnings Pretax (Loss) Earnings Net Income Attributable to Crawford & Company Net (Loss) Income Attributable to Crawford & Company Diluted Earnings per CRD-A Share Diluted (Loss) Earnings per CRD-A Share Diluted Earnings per CRD-B Share Diluted (Loss) Earnings per CRD-B Share GAAP $ 13,551 $ 8,427 $ 0.17 $ 0.17 Adjustments: Amortization of intangible assets 1,979 1,484 0.03 0.03 Non-service-related pension costs 2,095 1,557 0.03 0.03 Contingent earnout adjustments 725 537 0.01 0.01 Non-GAAP Adjusted $ 18,350 $ 12,005 $ 0.24 $ 0.24 Three Months Ended June 30, 2022 Unaudited ($ in thousands) Pretax Earnings Pretax Earnings Net Income Attributable to Crawford & Company Net Income Attributable to Crawford & Company Diluted Earnings per CRD-A Share(1) Diluted Earnings per CRD-A Share Diluted Earnings per CRD-B Share(1) Diluted Earnings per CRD-B Share GAAP $ 8,605 $ 5,830 $ 0.12 $ 0.12 Adjustments: Amortization of intangible assets 2,060 1,545 0.03 0.03 Non-service-related pension credits (572 ) (444 ) (0.01 ) (0.01 ) Contingent earnout adjustments 303 224 — — Non-GAAP Adjusted $ 10,396 $ 7,155 $ 0.15 $ 0.15 (1) Sum of reconciling items may differ from total due to rounding of individual components

Reconciliation of Year to Date Non-GAAP Results Q2 2023 FINANCIAL RESULTS Six Months Ended June 30, 2023 Unaudited ($ in thousands) Pretax Earnings Pretax (Loss) Earnings Net Income Attributable to Crawford & Company Net (Loss) Income Attributable to Crawford & Company Diluted Earnings per CRD-A Share(1) Diluted (Loss) Earnings per CRD-A Share Diluted Earnings per CRD-B Share Diluted (Loss) Earnings per CRD-B Share GAAP $ 29,552 $ 19,108 $ 0.39 $ 0.39 Adjustments: Amortization of intangible assets 3,878 2,909 0.06 0.06 Non-service-related pension costs 4,266 3,170 0.06 0.06 Contingent earnout adjustments 973 720 0.02 0.02 Non-GAAP Adjusted $ 38,669 $ 25,907 $ 0.52 $ 0.53 Six Months Ended June 30, 2022 Unaudited ($ in thousands) Pretax Earnings Pretax Earnings Net Income Attributable to Crawford & Company Net Income Attributable to Crawford & Company Diluted Earnings per CRD-A Share Diluted Earnings per CRD-A Share Diluted Earnings per CRD-B Share Diluted Earnings per CRD-B Share GAAP $ 16,187 $ 10,926 $ 0.22 $ 0.22 Adjustments: Amortization of intangible assets 3,786 2,840 0.06 0.06 Non-service-related pension credits (1,115 ) (865 ) (0.02 ) (0.02 ) Contingent earnout adjustments 2,359 1,747 0.03 0.03 Non-GAAP Adjusted $ 21,217 $ 14,648 $ 0.29 $ 0.29 (1) Sum of reconciling items may differ from total due to rounding of individual components

Cover	Aug. 03, 2023
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 03, 2023
Entity File Number	1-10356
Entity Registrant Name	CRAWFORD & COMPANY
Entity Central Index Key	0000025475
Entity Tax Identification Number	58-0506554
Entity Incorporation, State or Country Code	GA
Entity Address, Address Line One	5335 Triangle Parkway
Entity Address, City or Town	Peachtree Corners
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30092
City Area Code	404
Local Phone Number	300-1000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Class A [Member]
Document Information [Line Items]
Title of 12(b) Security	Class A Common Stock — $1.00 Par Value
Trading Symbol	CRD-A
Security Exchange Name	NYSE
Common Class B [Member]
Document Information [Line Items]
Title of 12(b) Security	Class B Common Stock — $1.00 Par Value
Trading Symbol	CRD-B
Security Exchange Name	NYSE