Crawford & Company’s 2007 Q2 results up despite U.S. segment slowdown

Crawford & Company (NYSE: CRDA and CRDB), an independent provider of claims management solutions to insurance companies, has reported a 25% increase in 2007 Q2 revenues.
Overall, the company reported a 2007 Q2 profit of US$6.1 million compared to a 2006 Q2 net income of US$4.2 million.
The 2007 Q2 net income included a gain of US$3.1 million related to the 2006 sale of the companys former corporate headquarters.
Crawford & Company CEO Thomas W. Crawford noted gains made in the companys international operations compensated for decreases experienced in the companys U.S. property and casualty segment.
Crawfords international revenues jumped from US$73 million in 2006 Q2, for example, to US$88.6 million in 2007 Q2. On the other hand, the companys U.S. property and casualty segment revenues declined from US$51.6 million in 2006 Q2 to US$43.9 million in 2007 Q2
The U.S. property and casualty segment experienced a downturn in revenues compared to last years second quarter, primarily as a result of the absence of significant catastrophic activity, Crawford said in a press release. According to the ISOs property claim service unit, the 2007 second quarter had the second lowest number of second-quarter U.S. catastrophic events in the past 10 years.
We continue to adjust our staffing levels in light of this and, as a result of our new case management system which we introduced in the 2007 first quarter, we are capturing operating efficiencies in our field branches which should lead to better operating performance in this segment during the remainder of the year.
Despite the reduction in catastrophe-related claims, we were encouraged by a slight increase in non-catastrophe related property and casualty claim referrals during the current quarter.