8-K

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): May 5, 2008

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.)

1001 Summit Blvd., Atlanta, Georgia	30319
(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))

ITEM 2.02. Results of Operations and Financial Condition

On May 5, 2008, Crawford & Company (the “Company”) issued a press release containing information about the Company’s financial condition, results of operations, and cash flows for the first quarter of 2008. A copy of the press release is attached hereto as Exhibit 99.1.

The press release contains non-GAAP financial measures and a reconciliation to the related GAAP measure is included. Operating earnings is one of the key performance measures used by the Company’s senior management to evaluate the performance of its business and make resource allocation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate its performance using the same criteria that management uses.

ITEM 8.01. Other Events

The Company has made available on the Company’s website at www.crawfordandcompany.com a presentation designed to enhance the information presented at its quarterly earnings conference call on Monday, May 5, 2008 at 3:00 p.m. Eastern Time. A copy of the presentation is attached hereto as Exhibit 99.2.

ITEM 9.01. Financial Statements, Pro Forma Financial Statements and Exhibits

(c) Exhibits

Exhibit No.	Description
99.1	Press Release dated May 5, 2008
99.2	First Quarter 2008 Earnings Conference Call Presentation

2

SIGNATURES

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: May 5, 2008

3

EXHIBIT INDEX

Number	Descriptions
99.1	Press Release issued May 5, 2008
99.2	First Quarter 2008 Earnings Conference Call Presentation

4

EX-99.1

Exhibit 99.1

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830

FOR IMMEDIATE RELEASE	Date: May 5, 2008
	From: Jeffrey T. Bowman
	Chief Executive Officer

Crawford Reports Substantial Improvement in 2008 First Quarter Results

Net Income Rises 174% on Revenue Growth of 5%

Crawford & Company (NYSE: CRDA and CRDB), the world’s largest independent provider of claims management solutions to insurance companies and self-insured entities, today announced its financial results for the first quarter ended March 31, 2008.

Consolidated Results

First quarter 2008 consolidated revenues before reimbursements totaled $255.5 million compared to $243.6 million in the 2007 first quarter. First quarter 2008 net income was $9.1 million compared to net income of $3.3 million for the 2007 first quarter. First quarter 2008 basic and diluted earnings per share were $0.18 compared to $0.07 in the prior-year quarter. During the 2007 first quarter, the Company recognized a gain on disposal of assets of $2.5 million, net of related income taxes, or $0.05 per share, as a result of the sale of the Company’s subrogation services unit.

Crawford’s operating cash flows for the 2008 first quarter reflected cash used in operations of $4.1 million compared to cash used in the prior year period of $32.2 million. This improvement was primarily due to higher net income, a reduction in the growth of accounts receivable balances, and lower payments for accounts payable and accrued liabilities. The Company’s consolidated cash and cash equivalent position as of March 31, 2008 totaled $42.8 million.

Effective with the 2008 first quarter, the Company realigned its internal reporting structure to include the results of its Strategic Warranty Services business within its U.S. Property & Casualty segment. This business was previously managed as a component of the Legal Settlement Administration segment. All prior period segment results have been restated to reflect this change.

International Operations

First quarter 2008 revenues before reimbursements for the International Operations segment grew to $106.7 million from $83.9 million for the same period in 2007. Compared to the 2007 first quarter, during the current quarter the U.S. dollar was weaker against most major foreign currencies, resulting in a net exchange rate benefit in the current quarter. Excluding the benefit of exchange rate fluctuations, international revenues would have been $97.2 million in the 2008 first quarter, reflecting growth in

Page 1 of 9

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830

revenues on a constant dollar basis of 15.8%. International operating expenses increased by $17.7 million in U.S. dollars, a 22.2% increase, and by 11.2% on a constant dollar basis. Operating earnings improved to $9.0 million in the current quarter, more than doubling last year’s first quarter operating earnings of $4.0 million. The related operating margin was 8.4% in the 2008 first quarter, improving from the 4.7% operating margin in the 2007 first quarter.

U.S. Property & Casualty

U.S. Property & Casualty revenues before reimbursements were $49.5 million in the first quarter of 2008 compared to $51.0 million in the 2007 first quarter. Revenues generated by the Company’s catastrophe adjuster group were $1.9 million in both the 2008 and 2007 first quarters. The prior-year quarter included $375,000 in revenues generated by the Company’s subrogation services unit which was sold February 28, 2007. Operating earnings in the U.S. Property and Casualty segment improved to $5.9 million, or 12.0% of revenues, compared to $3.4 million, or 6.6% of revenues in the 2007 first quarter.

Broadspire

Revenues before reimbursements from the Broadspire segment were $80.3 million in the 2008 first quarter compared to $84.5 million generated in the 2007 quarter. In the 2008 first quarter, the Broadspire segment’s operating earnings improved to $1.7 million, or 2.2% of revenues from a loss in the prior-year period of ($681,000), or (0.8%) of revenues.

Legal Settlement Administration

Legal Settlement Administration revenues before reimbursements were $19.0 million for the 2008 first quarter, compared to $24.2 million in the 2007 quarter. Operating earnings totaled $2.5 million in the 2008 first quarter, or an operating margin of 13.2% of revenues, compared to $2.6 million, or 10.9% of revenues, in the prior-year period. The segment’s awarded project backlog totaled approximately $50.5 million at March 31, 2008 as compared to $31.1 million at March 31, 2007.

Mr. Jeffrey T. Bowman, chief executive officer of Crawford & Company, stated, “Our first quarter 2008 operating results reflect strong performance despite a difficult U.S. economic environment. Our consolidated revenues before reimbursements improved by nearly 5% on the strength of our international business.”

“We were also pleased with our net income growth during the 2008 first quarter, which was achieved primarily through strong cost reduction initiatives that were implemented in 2007. This is the highest quarterly earnings excluding special credits we have generated since the 2001 second quarter. Our selling, general and administrative (“SG&A”) costs declined by 8% in the quarter reflecting the recovery of a previously written-off accounts receivable balance and lower self-insurance expenses as well as the benefit of synergies we realized in the Broadspire acquisition. As a percentage of revenues before reimbursements, SG&A costs were 19.8% in the 2008 first quarter, down from 22.6% in the prior-year quarter.”

Page 2 of 9

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830

Mr. Bowman concluded, “Despite challenging macro trends in the U.S. property & casualty and workers’ compensation markets, our outlook for 2008 is for a significant improvement in consolidated operating results over 2007 even on modest overall sales gains, as we focus on improving our efficiency. This company and management team is committed to managing our operations toward improved operating performance throughout the year, while at the same time continuing to enhance our industry-leading quality.”

Crawford & Company updated its guidance for 2008 as follows:

• Consolidated revenues before reimbursements between $990 million and $1.02 billion.

• Consolidated operating earnings between $56.8 million and $61.6 million.

• After reflecting stock-based compensation expense, net corporate interest expense, intangible asset amortization expense, and income taxes, consolidated net income on a GAAP basis between $20.2 million and $23.3 million, or $0.40 to $0.46 per share.

Crawford & Company’s management will host a conference call with analysts on Monday, May 5, 2008 at 3:00 P.M. EDT to discuss quarterly earnings and other developments. The call will be recorded and available for replay through May 12, 2008. You may dial 1-800-642-1687 (706-645-9291 international) to listen to the replay. The access code is 44899872. Alternatively, please visit our web site at www.crawfordandcompany.com for a live audio web cast and related financial presentation.

Further information regarding the Company’s financial position, operating results, and cash flows for the quarter ended March 31, 2008 is shown on the attached unaudited statements. Operating earnings (a non-GAAP financial measure) is the key financial performance measure used by the Company’s senior management to evaluate the performance of its segments and make resource allocation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate operating performance using the same criteria that management uses. Operating earnings exclude net corporate interest expense, stock option expense, income tax expense, amortization of customer relationship intangible assets, unallocated corporate and shared costs and certain other charges and credits. Net corporate interest expense, stock option expense and income taxes are recurring components of the Company’s net income, but they are not considered part of operating earnings since they are managed on a corporate-wide basis. Net corporate interest expense results from capital structure decisions made by the Company, stock option expense relates to historically granted stock options which are not allocated to operating segments, and income taxes are based on statutory rates in effect in each of the locations where the Company provides services and vary throughout the world. Amortization expense relates to non-cash amortization of customer relationship intangible assets resulting from business combinations. These costs

Page 3 of 9

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830

are not allocated to the segments for assessing performance. None of the aforementioned costs relate directly to the performance of the Company’s services and are therefore excluded in order to accurately assess the results of segment operating activities on a consistent basis. Certain other credits and charges represent events (gain on disposal of assets, loss on extinguishment of debt, etc.) that are not considered part of segment operating earnings since they historically have not regularly impacted the Company’s operating performance and are not expected to regularly impact future performance. Following is a reconciliation of segment operating earnings (loss) to consolidated net income on a GAAP basis and the related margins as a percentage of revenues before reimbursements for all periods presented:

	Quarter ended
	March 31, 2008			% Margin		March 31, 2007			% Margin
Operating Earnings (Loss):
U.S. Property & Casualty	$	5,949		12.0	%	$	3,376		6.6	%
International Operations		8,987		8.4			3,964		4.7
Broadspire		1,747		2.2			(681	)	(0.8	)
Legal Settlement Administration		2,497		13.2			2,636		10.9
Unallocated corporate and shared (costs) credits		651		0.3			(1,772	)	(0.7	)
Add/(Deduct):
Other credit		—		—			3,978		1.6
Stock option expense		(195	)	(0.1	)		(295	)	(0.1	)
Amortization expense		(1,508	)	(0.6	)		(1,436	)	(0.6	)
Net corporate interest expense		(4,416	)	(1.7	)		(4,368	)	(1.8	)
Income taxes		(4,644	)	(1.8	)		(2,095	)	(0.9	)
Net income	$	9,068		3.5		$	3,307		1.4

Based in Atlanta, Georgia, Crawford & Company (www.crawfordandcompany.com) is the world's largest independent provider of claims management solutions to insurance companies and self-insured entities, with a global network of more than 700 locations in 63 countries. Major service lines include property and casualty claims management, integrated claims and medical management for workers’ compensation, legal settlement administration, including class action and bankruptcy claims administration, warranty inspections and risk management information services. The Company’s shares are traded on the NYSE under the symbols CRDA and CRDB.

Page 4 of 9

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 256-0830

Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. The results achieved in the quarter ended March 31, 2008 are not necessarily indicative of future prospects for the Company. Actual results in future quarters may differ materially. For a discussion regarding factors which could affect the Company’s financial performance, see the Company’s Form 10-K for the year ended December 31, 2007 filed with the Securities and Exchange Commission, in particular the information under the headings “Business,” “Risk Factors,” “Legal Proceedings” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

The Company undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. The Company’s actual results may differ materially from those projected in forward-looking statements made by, or on behalf of, the Company.

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

Page 5 of 9

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD, ATLANTA, GEORGIA 30319 (404) 300-1000

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Unaudited

(In Thousands, Except Per Share Amounts)

Quarter Ended March 31	2008		2007		% Change
Revenues:
Revenues Before Reimbursements	$	255,512	$	243,608	5	%
Reimbursements		19,161		19,416	-1	%
Total Revenues		274,673		263,024	4	%
Costs and Expenses:
Cost of Services Before Reimbursements		186,743		182,707	2	%
Reimbursements		19,161		19,416	-1	%
Total Cost of Services		205,904		202,123	2	%
Selling, General, and Administrative		50,641		55,109	-8	%
Corporate Interest Expense, Net		4,416		4,368	1	%
Total Costs and Expenses		260,961		261,600	0	%
Gain on Disposal of Subrogation Business		—		3,978	nm
Income Before Income Taxes		13,712		5,402	154	%
Income Taxes		4,644		2,095	122	%
Net Income	$	9,068	$	3,307	174	%
Earnings Per Share - Basic and Diluted	$	0.18	$	0.07	173	%
Average Numbers of Shares Used to Compute:
Basic Earnings Per Share		50,575		50,390
Diluted Earnings Per Share		50,666		50,490
Cash Dividends Declared Per Share:
Class A Common Stock	$	0.00	$	0.00
Class B Common Stock	$	0.00	$	0.00

nm = not meaningful

Page 6 of 9

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD, ATLANTA, GEORGIA 30319 (404) 300-1000

CRAWFORD & COMPANY

SUMMARY RESULTS BY OPERATING SEGMENT

Quarter Ended March 31

Unaudited

(In Thousands, Except Percentages)

	U.S. Property & Casualty						%		International						%		Broadspire						%		Legal Settlement Administration						%
	2008			2007			Change		2008			2007			Change		2008			2007			Change		2008			2007			Change
Revenues Before Reimbursements	$	49,510		$	50,996		-2.9	%	$	106,710		$	83,940		27.1	%	$	80,313		$	84,520		-5.0	%	$	18,979		$	24,152		-21.4	%
Compensation & Benefits		30,577			33,166		-7.8	%		73,857			58,886		25.4	%		45,414			49,954		-9.1	%		9,269			10,876		-14.8	%
% of Revenues		61.8	%		65.1	%				69.2	%		70.2	%				56.5	%		59.1	%				48.8	%		45.0	%
Expenses Other than Reimbursements, Compensation & Benefits		12,984			14,454		-10.2	%		23,866			21,090		13.2	%		33,152			35,247		-5.9	%		7,213			10,640		-32.2	%
% of Revenues		26.2	%		28.3	%				22.4	%		25.1	%				41.3	%		41.7	%				38.0	%		44.1	%
Total Operating Expenses		43,561			47,620		-8.5	%		97,723			79,976		22.2	%		78,566			85,201		-7.8	%		16,482			21,516		-23.4	%
Operating Earnings (Loss) (1)	$	5,949		$	3,376		76.2	%	$	8,987		$	3,964		126.7	%	$	1,747		$	(681	)	356.5	%	$	2,497		$	2,636		-5.3	%
% of Revenues		12.0	%		6.6	%				8.4	%		4.7	%				2.2	%		-0.8	%				13.2	%		10.9	%

(1) A non-GAAP financial measurement which represents earnings (loss) before net corporate interest expense, amortization of customer-relationship intangible assets, stock option expense, income tax expense, unallocated corporate and shared costs, and gains on asset sales.

Page 7 of 9

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD, ATLANTA, GEORGIA 30319 (404) 300-1000

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2008 and December 31, 2007

(In Thousands)

	Unaudited			*
	March 31 2008			December 31 2007
Assets
Current Assets:
Cash and Cash Equivalents	$	42,841		$	50,855
Accounts Receivable, Net		191,078			178,528
Unbilled Revenues, Net		130,948			136,652
Prepaid Expenses and Other Current Assets		18,638			16,717
Total Current Assets		383,505			382,752
Property and Equipment		152,161			153,733
Less Accumulated Depreciation		(104,730	)		(104,467	)
Net Property and Equipment		47,431			49,266
Other Assets:
Goodwill		262,319			263,769
Intangible Assets Arising from Business Acquisitions, Net		116,932			118,678
Capitalized Software Costs, Net		41,690			40,032
Deferred Income Tax Assets, Net		18,607			18,923
Other Noncurrent Assets		28,449			29,362
Total Other Assets		467,997			470,764
Total Assets	$	898,933		$	902,782
Liabilities and Shareholders' Investment
Current Liabilities:
Short-Term Borrowings	$	35,015		$	29,389
Accounts Payable		38,513			39,601
Accrued Compensation and Related Costs		58,660			69,655
Other Accrued Current Liabilities		56,826			57,360
Self-Insured Risks		18,030			18,290
Accrued Income Taxes		14,431			10,435
Deferred Revenues		64,575			64,363
Current Installments of Long-Term Debt and Capital Leases		2,313			2,475
Total Current Liabilities		288,363			291,568
Noncurrent Liabilities:
Long-Term Debt and Capital Leases, Less Current Installments		182,955			183,449
Deferred Revenues		56,315			58,925
Self-Insured Risks		19,108			18,439
Postretirement Medical Benefit Obligation		1,970			1,898
Accrued Pension Liabilities		74,362			76,977
Other Noncurrent Liabilities		12,328			12,265
Total Noncurrent Liabilities		347,038			351,953
Minority Interest in Equity of Consolidated Affiliates		4,899			5,046
Shareholders' Investment:
Class A Common Stock, $1.00 Par Value		26,191			25,935
Class B Common Stock, $1.00 Par Value		24,697			24,697
Additional Paid-in Capital		19,743			19,057
Retained Earnings		232,955			223,793
Accumulated Other Comprehensive Loss		(44,953	)		(39,267	)
Total Shareholders' Investment		258,633			254,215
Total Liabilities and Shareholders' Investment	$	898,933		$	902,782

* Derived from the audited Consolidated Balance Sheet

Page 8 of 9

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD, ATLANTA, GEORGIA 30319 (404) 300-1000

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Quarter Ended March 31, 2008 and March 31, 2007

Unaudited

(In Thousands)

	2008			2007
Cash Flows From Operating Activities:
Net Income	$	9,068		$	3,307
Reconciliation of Net Income to Net Cash Used In Operating Activities:
Depreciation and Amortization Expense		7,336			7,265
Stock-Based Compensation Costs		962			687
Loss on Sales of Property and Equipment, net		21			78
Gain on Sale of Subrogation Business		—			(3,978	)
Changes in Operating Assets and Liabilities, net of effects of acquisitions and disposition:
Accounts Receivable, net		(13,987	)		(1,529	)
Unbilled Revenues, net		3,849			(11,366	)
Accrued Income Taxes		3,696			1,387
Accounts Payable and Accrued Liabilities		(3,424	)		(16,895	)
Deferred Revenues		(2,225	)		(5,946	)
Accrued Retirement Costs		(8,369	)		(4,211	)
Prepaid Expenses and Other Operating Activities		(1,064	)		(1,024	)
Net Cash Used In Operating Activities		(4,137	)		(32,225	)
Cash Flows From Investing Activities:
Acquisitions of Property and Equipment, net		(2,149	)		(3,240	)
Capitalization of Computer Software Costs		(4,384	)		(2,675	)
Proceeds from Sale of Investment Security		—			5,000
Proceeds from Sale of Subrogation Business		—			5,000
Other Investing Activities		—			(762	)
Net Cash (Used In) Provided By Investing Activities		(6,533	)		3,323
Cash Flows From Financing Activities:
Increase in Short-Term Borrowings, net		3,567			2,168
Payments on Long-Term Debt and Capital Lease Obligations		(732	)		(780	)
Other Financing Activities		(20	)		(6	)
Net Cash Provided by Financing Activities		2,815			1,382
Effect of Exchange Rate Changes on Cash and Cash Equivalents		(159	)		921
Decrease in Cash and Cash Equivalents		(8,014	)		(26,599	)
Cash and Cash Equivalents at Beginning of Period		50,855			61,674
Cash and Cash Equivalents at End of Period	$	42,841		$	35,075

Page 9 of 9

EX-99.2

the

STRENGTH of

WORKING

TOGETHER

SM

First Quarter 2008

Earnings Conference Call

Monday, May 5, 2008

Exhibit 99.2

2

First Quarter Earnings Review

May 5, 2008

•

Founded in 1941, Crawford is the largest independent global provider of

claims management solutions and a fully integrated global provider for

the growing multi-national market.

•

Crawford is divided into four reporting segments that support the

strategic positioning of the company in a changing market place:

–

U.S. Property & Casualty

•

Serves the U.S. insurance company market

–

International Operations

•

Serves the global insurance industry and multinational corporations

–

Broadspire

•

Serves large national accounts, carriers and self-insured entities

–

Legal Settlement Administration

•

Provides administration for class action settlements and bankruptcy

matters

•

The Company’s independence, global presence and diversified

business lines are key competitive advantages which set Crawford

apart

from its competitors.

3

Forward-looking Statements and Segment

Operating Earnings

Forward Looking Statements:

Some of the matters discussed in this presentation include forward-looking

statements that involve risks and uncertainties. The Company’s actual results

achieved in future quarters may differ materially from results that might be

implied by such forward-looking statements. The Company undertakes no

obligation to publicly release any revisions to any forward-looking statement

made in this presentation to reflect events or circumstances occurring after the

date of this presentation, or to reflect the occurrence of unanticipated events. 

For a complete discussion regarding factors which could affect the Company’s

financial performance, please refer to the Company’s Form 10K for the year

ended December 31, 2007 filed with the Securities and Exchange Commission,

particularly the information under the headings “Business”, “Risk Factors”,

“Legal Proceedings”, and “Management’s Discussion and Analysis of Financial

Condition and Results of Operations”.

Segment Operating Earnings:

Segment operating earnings represent earnings before net corporate interest

expense, amortization of customer-relationship intangible assets, stock option

expense, income tax expense, unallocated corporate and shared costs, and

gains on asset sales.

4

“The Strength of Working Together”

“The Strength of Working Together”

is unifying the

Company around consistent goals:

Adaptive leadership team responding to economic conditions

Increasing emphasis on sources of additional revenue growth

–

Cross selling Crawford services into the existing client base

–

Identifying new large client opportunities

–

Mid-market competition as economy weighs on “Mom & Pops”

Driving technology forward

–

Point of competitive strength

–

Firm delivery dates and increased support

Crawford continues to restore and improve its reputation

–

Quality improving at the branch level

–

Investing in training

Being a target-driven organization

–

Achieving financial goals

5

First Quarter 2008 Overview

•

Strong performance in a difficult operating

environment

Revenue growth of 4.9% supported by cost reduction

initiatives

Net Income up 174%

•

Strong revenue growth internationally offset declines

in U.S. businesses

International growth (before currency effects) of 15.8%

Revenue declines at U.S. P&C, Broadspire, and L.S.A.

•

Solid earnings per share performance at $0.18

Double-digit operating earnings in U.S. P&C and L.S.A.

All four segments reported positive operating earnings and

margin improvement

SG&A costs reduced by 8.1%

•

Planned for difficult U.S. economy

Continued growth trends internationally

Ongoing emphasis on growing existing client base through

cross selling

Focus on cost control

US claims value holding steady

0

20

40

60

80

100

120

1Q 2008

1Q 2007

Revenue

$ in millions

0

2

4

6

8

10

1Q 2008

1Q 2007

Net Income

$ in millions

$255.5

$243.6

$9.1

$3.3

6

First Quarter 2008 Highlights

•

Broadspire

Revenue decline of 5.0%

Positive operating earnings of $1.7 million in

2008

Claims frequency down 5.7% in worker’s

compensation

Increased cross selling, new RFP activity,

Expanding BPO operations

•

U.S. Property & Casualty

Revenue decline of 2.9%

Operating margin of 12.0% in 2008 from 6.6%

in 2007

Operating earnings up 76%

Property claims up 2.2%

Strong margin growth in tough environment

66

68

70

72

74

76

1Q 2008

1Q 2007

Broadspire Claims

Claims referred in 000s

69.1

75.4

85

90

95

100

105

110

1Q 2008

1Q 2007

USP&C Claims

Claims referred in 000s

93.9

106.3

7

First Quarter 2008 Highlights

•

Legal Settlement Administration

Revenue declined 21.4%

Operating margin increased to 13.2% in

2008 from 10.9% in 2007

Operating earnings declined 5.3%

Growing backlog of $50.5 million

0

10

20

30

40

50

1Q 2008

1Q 2007

Backlog

Backlog in millions

150

152

154

156

158

160

1Q 2008

1Q 2007

International Claims

Claims referred in 000s

•

International

Strong global revenue growth of 27.1%

Operating margin increased to 8.4% in 2008

from 4.7% in 2007

Operating earnings increased 127%

Strength in Canada, UK and Asia Pacific

Claims referred increased 3.4%

159.0

153.8

$50.5

$31.1

8

Updating 2008 Outlook

•

Consolidated revenue before reimbursements between $990

million and $1.02 billion

•

Consolidated operating earnings between $56.0 million and

$61.6 million

•

After reflecting stock-based compensation expense, net

corporate interest expense, amortization of customer-

relationship intangible assets and income taxes, consolidated

net income on a GAAP basis between $20.2 million and $23.3

million

•

Earnings per share of $.40 to $.46

•

Continue to focus on cost reduction

•

Continue to improve operational quality

•

Strong global growth should offset U.S. declines

•

Emphasis on expanded sales and marketing activities

the

STRENGTH of

WORKING

TOGETHER

SM

First Quarter 2008

Financial Review

10

First Quarter 2008 Financials

Quarter Ended March 31

2008

2007

% Change

Revenues:

Revenues Before Reimbursements

$255,512

$243,608

5%

Reimbursements

19,161

19,416

-1%

Total Revenues

274,673

263,024

4%

Costs and Expenses:

Cost of Services Before Reimbursements

186,743

182,707

2%

Reimbursements

19,161

19,416

-1%

Total Cost of Services

205,904

202,123

2%

Selling, General, and Administrative

50,641

55,109

-8%

Corporate Interest Expense, Net

4,416

4,368

1%

Total Costs and Expenses

260,961

261,600

0%

Gain on Disposal of Subrogation Business

-

3,978

nm

Income Before Income Taxes

13,712

5,402

154%

Income Taxes

4,644

2,095

122%

Net Income

$9,068

$3,307

174%

Earnings Per Share -

After Gain on Disposal

$0.18

$0.07

173%

Earnings Per Share -

Before Gain on Disposal

$0.18

$0.02

800%

nm = not meaningful

CRAWFORD  &  COMPANY

CONDENSED CONSOLIDATED STATEMENTS  OF  INCOME

(In Thousands, Except Per Share Amounts)

Unaudited

11

0

10

20

30

40

50

60

1Q 2008

1Q 2007

Revenue

0

1

2

3

4

5

6

1Q 2008

1Q 2007

Operating Earnings

$ in millions

$ in millions

First Quarter 2008 Financials

$51.0

$49.5

$3.4

$5.9

Improved margins through strong cost management

Catastrophe revenue flat from 2007 to 2008

Reduction in claim referrals due to major client decision

to insource

high volume, low margin vehicle claims.

U.S. Property & Casualty Summary Results

For the quarter ended March 31, 2008 and 2007

in Thousands Except Percentages

Unaudited

2008

2007

% Change

Revenues

49,510

$  

50,996

$  

-2.9%

Total Operating Expenses

43,561

47,620

-8.5%

Operating Earnings

5,949

$    

3,376

$    

76.2%

Operating Margin

12.0%

6.6%

5.4%

12

0

20

40

60

80

100

120

1Q 2008

1Q 2007

Revenue

0

2

4

6

8

10

1Q 2008

1Q 2007

Operating Earnings

$ in millions

$ in millions

First Quarter 2008 Financials

$106.7

$83.9

$9.0

$4.0

Revenue increased 15.8% on a constant dollar basis

Significant new client wins in Canada

International Summary Results

For the quarter ended March 31, 2008 and 2007

in Thousands Except Percentages

Unaudited

2008

2007

% Change

Revenues

106,710

$

83,940

$ 

27.1%

Total Operating Expenses

97,723

79,976

22.2%

Operating Earnings

8,987

$   

3,964

$   

126.7%

Operating Margin

8.4%

4.7%

3.7%

13

0

20

40

60

80

100

1Q 2008

1Q 2007

Revenue

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

1Q 2008

1Q 2007

Operating Earnings

$ in millions

$ in millions

First Quarter 2008 Financials

$80.3

$84.5

($0.7)

$1.7

Improved margin through strong cost management

Strong client retention

Broadspire Summary Results

For the quarter ended March 31, 2008 and 2007

in Thousands Except Percentages

Unaudited

2008

2007

% Change

Revenues

80,313

$   

84,520

$   

-5.0%

Total Operating Expenses

78,566

85,201

-7.8%

Operating Earnings (Loss)

1,747

$     

(681)

$      

356.5%

Operating Margin

2.2%

-0.8%

3.0%

14

0

5

10

15

20

25

1Q 2008

1Q 2007

Revenue

0

0.5

1

1.5

2

2.5

3

1Q 2008

1Q 2007

Operating Earnings

$ in millions

$ in millions

First Quarter 2008 Financials

$19.0

$24.2

$2.6

$2.5

Improved margins through strong cost management

Backlog of over $50 million

Legal Settlement Administration Summary Results

For the quarter ended March 31, 2008 and 2007

in Thousands Except Percentages

Unaudited

2008

2007

% Change

Revenues

18,979

$  

24,152

$  

-21.4%

Total Operating Expenses

16,482

21,516

-23.4%

Operating Earnings

2,497

$    

2,636

$    

-5.3%

Operating Margin

13.2%

10.9%

2.3%

15

First Quarter 2008 Financials

Crawford & Company

Consolidated Balance Sheet Highlights

As of March 31, 2008 and December 31, 2007

(in thousands)

Unaudited

    March 31,

    December 31,

                2008

                2007*

Change

Cash and cash equivalents

$42,841

$50,855

($8,014)

Accounts receivable, net

191,078

178,528

12,550

Work in process

130,007

136,652

(6,645)

     Total receivables

321,085

315,180

5,905

Deferred revenues, net                   

108,538

109,603

(1,065)

Pension liabilities

74,362

76,977

(2,615)

Current portion of long-term debt, capital leases

and short-term borrowings

37,328

31,864

5,464

Long-term debt

182,955

183,449

(494)

     Total debt

220,283

215,313

4,970

Total stockholders' equity

257,861

254,215

3,646

Net debt**

177,442

164,458

12,984

Total debt / capitalization

46%

46%

* Derived from the audited Consolidated Balance Sheet

**Net debt is defined by the Company as long-term debt, capital leases and short-term borrowings, 

   net of cash and cash equivalents.

16

First Quarter 2008 Financials

Crawford & Company

Free Cash Flow

For the year-to-date period ended March 31, 2008 and 2007

Unaudited

                                        (In Thousands)

    March 31,

    March 31,

              2008

             2007

Operating Cash Flow (Use)

($4,137)

($32,225)

   Less: Capital Expenditures

(2,211)

(3,293)

   Less: Capitalized Software

(4,384)

(2,675)

   Less: Required Debt Payment

(525)

(525)

Free Cash Flow (Use)

($11,257)

($38,718)

the

STRENGTH of

WORKING

TOGETHER

SM