Canadian Underwriter

Crawford & Company reports revenues before reimbursements of US$287.8 million in Q1 2015, up from US$275.3 million

May 11, 2015   by Canadian Underwriter

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Atlanta, Georgia-based claims management solutions firm Crawford & Company has reported consolidated revenues before reimbursements of $287.8 million, compared with $275.3 million for first quarter 2014.

Revenues before reimbursements were US$87.9 million in Q1 2015, up from US$87.9 million in Q1 2014

In the Americas segment, Crawford & Company said in a statement last week that revenues before reimbursements were US$89.5 million, increasing from US$87.9 million in the first quarter of 2014. “The growth in special project revenues in the U.S. was partially offset by weaker Canadian operating results,” the company reported. “Additionally, our North American Contractor Connection business, while performing well, showed a modest slowdown in growth given the difficult comparison with the polar vortex in the first quarter of 2014.”

A headwind in the first quarter of 2015 was that the U.S. dollar strengthened against most foreign currencies in the segment, resulting in a negative exchange rate impact on segment revenues of approximately 5%. Operating earnings were US$5.0 million in the 2015 first quarter, compared with US$6.9 million in the first quarter of 2014, representing an operating margin of 6% and 8% in the 2015 and 2014 periods, respectively. [click image below to enlarge]

Crawford & Company reported a net income of US$3 million for Q1 2015

“The challenging market environment has continued through the 2015 first quarter, driving a further mix shift from high margin property claims, which typically results from severe weather, to high volume, low-value claims both in the U.S. and internationally,” Jeffrey T. Bowman CEO of Crawford & Company, said in the statement.

The company also reported a net income attributable to shareholders of US$3 million for the first quarter of 2015 ending March 31, down from US$6.7 million in the same period last year.