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): November 3, 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 November 3, 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 third quarter of 2008. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by this reference.

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 operating segments 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 7.01. Regulation FD Disclosure

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, November 3, 2008 at 3:00 p.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

(c)        Exhibits

Exhibit No.	Description
99.1	Press Release dated November 3, 2008
99.2	Third Quarter 2008 Earnings Conference Call Presentation

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, whether made before or after the date hereof, regardless of any general incorporation 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.

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: November 3, 2008

3

EXHIBIT INDEX

Number	Descriptions
99.1	Press Release issued November 3, 2008
99.2	Third 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) 300-1000

FOR IMMEDIATE RELEASE	Date: November 3, 2008
	From: Jeffrey T. Bowman
	Chief Executive Officer

Crawford Reports Substantial Improvement in 2008 Third Quarter Results

Net Income Increases 100% on Revenue Growth of 9%

Crawford & Company (www.crawfordandcompany.com) (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 third quarter ended September 30, 2008.

Consolidated Results

Third quarter 2008 consolidated revenues before reimbursements totaled a record $266.9 million compared to $245.8 million in the 2007 third quarter. Third quarter 2008 net income was $6.9 million, up from $3.5 million for the 2007 third quarter. Third quarter 2008 diluted earnings per share were $0.13 compared to $0.07 in the prior-year quarter.

Year-to-date 2008 consolidated revenues before reimbursements totaled a record $785.7 million compared to $729.9 million in the 2007 period. Net income in the 2008 nine month period was $23.9 million, up 87% from $12.8 million for the 2007 nine months. Year-to-date 2008 diluted earnings per share were $0.47 compared to $0.25 in the prior-year period. Net income in the 2007 period included gains on the disposal of assets of $5.6 million, net of related income taxes, or $0.11 per share.

Crawford generated $33.1 million of cash from operations for the 2008 year-to-date period, compared to $3.9 million in cash provided by operations through the September 2007 year-to-date period. The $29.3 million improvement was due to higher earnings and improved working capital management. The Company’s consolidated cash and cash equivalents position as of September 30, 2008 totaled $56.8 million compared to $50.9 million at December 31, 2007.

International Operations

Third quarter 2008 revenues before reimbursements for the International Operations segment grew 19.3% to a record of $115.4 million from $96.7 million for the same period in 2007. Compared to the 2007 third quarter, during the current period the U.S. dollar was weaker against most major foreign currencies, resulting in a net exchange rate benefit. Excluding the benefit of exchange rate fluctuations, international revenues would have been $110.9 million in the 2008 third quarter, reflecting growth in revenues on a constant dollar basis of 14.6%. International operating expenses for the 2008 third quarter increased by

Page 1 of 11

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 300-1000

$16.3 million in U.S. dollars, an 18.0% increase (13.2% on a constant dollar basis) compared to the 2007 period. Operating earnings improved to $8.6 million in the current quarter, up 36.8% over last year’s third quarter operating earnings of $6.3 million. The related operating margin was 7.4% in the 2008 third quarter, improving from the 6.5% operating margin in the 2007 third quarter.

U.S. Property & Casualty

U.S. Property & Casualty revenues before reimbursements were $56.2 million in the third quarter of 2008, increasing 12.5% from $50.0 million in the 2007 third quarter. Revenues generated by the Company’s catastrophe adjuster group were $6.3 million in the 2008 third quarter, compared to $3.4 million in the 2007 period. Operating earnings in the 2008 third quarter in the U.S. Property and Casualty segment improved to $6.8 million, or 12.1% of revenues, compared to $3.5 million, or 7.0% of revenues in the 2007 third quarter. This improvement reflected the benefits of increased efficiencies from the Company’s ongoing technology investments in this segment and from higher case volumes that were partially driven by catastrophe claim increases.

Broadspire

Revenues before reimbursements from the Broadspire segment were $76.9 million in the 2008 third quarter down from $78.4 million in the 2007 quarter due primarily to reductions in revenue from existing programs, partially offset by new business gains. Operating earnings totaled $1.1 million in the 2008 third quarter, or an operating margin of 1.4% of revenues, compared to earnings of $1.4 million, or 1.8% of revenues, in the prior-year period.

Legal Settlement Administration

Legal Settlement Administration revenues before reimbursements were $18.4 million for the 2008 third quarter, compared to $20.6 million in the 2007 quarter, reflecting an overall slowdown in class action settlements. Operating earnings totaled $2.9 million in the 2008 third quarter, or an operating margin of 15.5% of revenues, compared to $2.1 million, or 10.3% of revenues, in the prior-year period partly as a result of cost containment initiatives. The segment’s awarded project backlog totaled approximately $43.5 million at September 30, 2008 as compared to $39.1 million at September 30, 2007.

Management’s Comments

Mr. Jeffrey T. Bowman, chief executive officer of Crawford & Company, stated, “Our third quarter 2008 operating results reflected sustained growth in our business, achieved through incremental revenues and the results of our continued focus on cost control and technology-led process improvements. This performance builds on the solid results generated thus far in 2008 in the face of an increasingly difficult macro-economic environment.

“Our consolidated revenues before reimbursements improved by nearly 9% on the strength of our International and U.S. Property & Casualty segments. The solid performance of our core business was enhanced by incremental activity in our catastrophe-related business due to Hurricanes Gustav and Ike in the United States.

Page 2 of 11

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 300-1000

“Operating cash flow through the 2008 third quarter showed a $29.3 million improvement over the 2007 period. We are driving this company to improve our working capital profile, primarily through a relentless focus on better management of processes related to unbilled revenues and accounts receivable. This improvement in operating cash flows is a direct result of those efforts and is net of $14.4 million in additional contributions to our U. S. defined benefit pension plan in 2008.

“We recently sold a non-core component of our European operations which will generate a pretax gain of approximately $2.2 million in our fourth quarter results. In addition, we are planning to restructure certain of our operations which is expected to result in a pretax charge of approximately $3.0 million in the 2008 fourth quarter.”

Mr. Bowman said, “We are pleased with our results through the first nine months of 2008, as our employees have worked hard to achieve this improvement in our operating results. Our outlook for the final quarter of 2008 reflects the incremental improvement we expect to achieve in the U.S. related to the influx of catastrophe-related claims, a gain generated from the sale of a non-core European operation, partially offset by a charge to restructure certain of our operations. We are committed to managing our operations toward improved core operating performance as we finish the year, while at the same time continuing to enhance our industry-leading quality.”

Updated Guidance

Crawford & Company updated its full-year guidance for 2008 as follows:

• Consolidated revenues before reimbursements between $1.04 billion and $1.05 billion.

• Consolidated operating earnings between $68.1 million and $72.4 million.

• After reflecting stock-based compensation expense, net corporate interest expense, customer-relationship intangible asset amortization expense, special charges and credits and income taxes, consolidated net income on a GAAP basis between $28.3 million and $30.4 million, or $0.54 to $0.58 diluted earnings per share.

Mr. Bowman added, “While our practice continues to be to provide initial earnings guidance for the coming year with our fourth quarter earnings release, our 10-Q that will be filed with the SEC next week will discuss the expectation of increases in our defined benefit pension expense and funding in the U.S. and the U.K. in 2009. This anticipated pension expense increase is a result of the recent stock market declines and downturns in the global economy which have negatively affected the asset values in our pension plans, as they have affected many other companies. We cannot specifically determine the impact at this time, but we believe that it is likely to materially affect reported results in fiscal 2009.”

Page 3 of 11

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 300-1000

Crawford & Company’s management will host a conference call with investors on Monday, November 3, 2008 at 3:00 P.M. EST to discuss quarterly earnings and other developments. The audio web cast and related financial presentation will be broadcast live on the Investor Relations homepage of our website at www.crawfordandcompany.com. It will be available for replay through November 2, 2009. Additionally, you may dial 1-800-642-1687 (706-645-9291 international) to listen to a replay of the call through November 10, 2008. The access code is 70532795.

On January 1, 2008 the Company’s strategic warranty services unit was moved from the Legal Settlement Administration segment to the U.S. Property & Casualty segment. Prior period amounts for both segments have been restated to reflect this transfer. Subsequent to March 31, 2007, the Company changed its method of allocating certain corporate overhead costs to each of its operating segments. Prior period amounts have been restated on the same basis as the new allocation method.

Further information regarding the Company’s financial position, operating results, and cash flows for the quarter ended September 30, 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 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, 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 to consolidated net income on a GAAP basis and the related margins as a percentage of revenues before reimbursements for all periods presented:

Page 4 of 11

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 300-1000

	Quarter ended										Year-to-date period ended
	September 30, 2008			% Margin		September 30, 2007			% Margin		September 30, 2008			% Margin		September 30, 2007			% Margin
Operating Earnings:
U.S. property & casualty	$	6,781		12.1	%	$	3,514		7.0	%	$	17,822		11.4	%	$	8,087		5.4	%
International operations		8,594		7.4			6,280		6.5			28,027		8.4			14,810		5.5
Broadspire		1,079		1.4			1,431		1.8			5,366		2.3			3,529		1.4
Legal settlement administration		2,853		15.5			2,126		10.3			8,492		14.9			7,795		11.9
Unallocated corporate and shared costs		(3,737	)	(1.4	)		(4,434	)	(1.8	)		(5,147	)	(0.7	)		(7,047	)	(1.0	)
Add/(Deduct):
Other credits		—		—			—		—			—		—			8,824		1.2
Stock option expense		(243	)	(0.1	)		(260	)	(0.1	)		(717	)	(0.1	)		(901	)	(0.1	)
Amortization expense		(1,507	)	(0.6	)		(1,575	)	(0.6	)		(4,521	)	(0.6	)		(4,518	)	(0.6	)
Net corporate interest expense		(4,334	)	(1.6	)		(4,572	)	(1.9	)		(13,406	)	(1.7	)		(13,172	)	(1.8	)
Income taxes		(2,564	)	(1.0	)		943		0.4			(11,994	)	(1.5	)		(4,595	)	(0.6	)
Net income	$	6,922		2.6		$	3,453		1.4		$	23,922		3.0		$	12,812		1.8

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

Page 5 of 11

Press Release

CRAWFORD & COMPANY 1001 SUMMIT BOULEVARD P.O. BOX 5047 ATLANTA, GEORGIA 30302 (404) 300-1000

This press release contains forward-looking statements, including statements about the 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. 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, please read the Crawford & Company reports filed with the United States Securities and Exchange Commission and available at www.sec.gov or in the Investor Relations section of Crawford & Company’s website at www.crawfordandcompany.com.

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

Page 6 of 11

Press Release

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

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Unaudited

(In Thousands, Except Earnings Per Share and Percentages)

Nine Months Ended September 30	2008		2007		% Change
Revenues:
Revenues Before Reimbursements	$	785,693	$	729,919	8	%
Reimbursements		69,578		54,874	27	%
Total Revenues		855,271		784,793	9	%
Costs and Expenses:
Cost of Services Provided, Before Reimbursements		574,243		547,189	5	%
Reimbursements		69,578		54,874	27	%
Total Cost of Services		643,821		602,063	7	%
Selling, General, and Administrative Expenses		162,128		160,975	1	%
Corporate Interest Expense, Net		13,406		13,172	2	%
Total Costs and Expenses		819,355		776,210	6	%
Gain on Sale of Subrogation Business		—		3,980	nm
Gain on Sale of Former Corporate Headquarters		—		4,844	nm
Income Before Income Taxes		35,916		17,407	106	%
Provision for Income Taxes		11,994		4,595	161	%
Net Income	$	23,922	$	12,812	87	%
Earnings Per Share - Basic and Diluted	$	0.47	$	0.25	88	%
Average Numbers of Shares Used to Compute:
Basic Earnings Per Share		50,621		50,434
Diluted Earnings Per Share		51,105		50,616

nm = not meaningful

Page 7 of 11

Press Release

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

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Unaudited

(In Thousands, Except Earnings Per Share and Percentages)

Three Months Ended September 30	2008		2007			% Change
Revenues:
Revenues Before Reimbursements	$	266,916	$	245,774		9	%
Reimbursements		24,416		20,196		21	%
Total Revenues		291,332		265,970		10	%
Costs and Expenses:
Cost of Services Provided, Before Reimbursements		196,874		185,533		6	%
Reimbursements		24,416		20,196		21	%
Total Cost of Services		221,290		205,729		8	%
Selling, General, and Administrative Expenses		56,222		53,159		6	%
Corporate Interest Expense, Net		4,334		4,572		-5	%
Total Costs and Expenses		281,846		263,460		7	%
Income Before Income Taxes		9,486		2,510		278	%
Provision for Income Taxes		2,564		(943	)	372	%
Net Income	$	6,922	$	3,453		100	%
Earnings Per Share:
Basic	$	0.14	$	0.07		100	%
Diluted	$	0.13	$	0.07		86	%
Average Numbers of Shares Used to Compute:
Basic Earnings Per Share		50,696		50,507
Diluted Earnings Per Share		51,867		50,697

nm = not meaningful

Page 8 of 11

Press Release

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

CRAWFORD & COMPANY

SUMMARY RESULTS BY OPERATING SEGMENT

Nine Months Ended September 30

Unaudited

(In Thousands, Except Percentages)

	U.S. Property & Casualty						% Change		International						% Change		Broadspire						% Change		Legal Settlement Administration						% Change
	2008			2007					2008			2007					2008			2007					2008			2007
Revenues Before Reimbursements	$	156,935		$	148,727		5.5	%	$	335,505		$	269,330		24.6	%	$	236,289		$	246,092		-4.0	%	$	56,964		$	65,770		-13.4	%
Compensation & Benefits		96,277			96,322		0.0	%		229,992			189,022		21.7	%		132,672			141,159		-6.0	%		26,571			30,544		-13.0	%
% of Revenues Before Reimbursements		61.3	%		64.8	%				68.6	%		70.2	%				56.1	%		57.4	%				46.6	%		46.4	%
Expenses Other than Reimbursements, Compensation & Benefits		42,836			44,318		-3.3	%		77,486			65,498		18.3	%		98,251			101,404		-3.1	%		21,901			27,431		-20.2	%
% of Revenues Before Reimbursements		27.3	%		29.8	%				23.0	%		24.3	%				41.6	%		41.2	%				38.5	%		41.7	%
Total Operating Expenses		139,113			140,640		-1.1	%		307,478			254,520		20.8	%		230,923			242,563		-4.8	%		48,472			57,975		-16.4	%
Operating Earnings (1)	$	17,822		$	8,087		120.4	%	$	28,027		$	14,810		89.2	%	$	5,366		$	3,529		52.1	%	$	8,492		$	7,795		8.9	%
% of Revenues Before Reimbursements		11.4	%		5.4	%				8.4	%		5.5	%				2.3	%		1.4	%				14.9	%		11.9	%

Three Months Ended September 30

Unaudited

(In Thousands, Except Percentages)

	U.S. Property & Casualty						% Change		International						% Change		Broadspire						% Change		Legal Settlement Administration						% Change
	2008			2007					2008			2007					2008			2007					2008			2007
Revenues Before Reimbursements	$	56,227		$	49,983		12.5	%	$	115,362		$	96,735		19.3	%	$	76,911		$	78,434		-1.9	%	$	18,416		$	20,622		-10.7	%
Compensation & Benefits		34,115			31,648		7.8	%		79,656			67,279		18.4	%		43,552			45,835		-5.0	%		8,494			9,287		-8.5	%
% of Revenues Before Reimbursements		60.7	%		63.3	%				69.0	%		69.5	%				56.6	%		58.4	%				46.1	%		45.0	%
Expenses Other than Reimbursements, Compensation & Benefits		15,331			14,821		3.4	%		27,112			23,176		17.0	%		32,280			31,168		3.6	%		7,069			9,209		-23.2	%
% of Revenues Before Reimbursements		27.2	%		29.7	%				23.6	%		24.0	%				42.0	%		39.8	%				38.4	%		44.7	%
Total Operating Expenses		49,446			46,469		6.4	%		106,768			90,455		18.0	%		75,832			77,003		-1.5	%		15,563			18,496		-15.9	%
Operating Earnings (1)	$	6,781		$	3,514		93.0	%	$	8,594		$	6,280		36.8	%	$	1,079		$	1,431		-24.6	%	$	2,853		$	2,126		34.2	%
% of Revenues Before Reimbursements		12.1	%		7.0	%				7.4	%		6.5	%				1.4	%		1.8	%				15.5	%		10.3	%

(1) A non-GAAP financial measurement which represents 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. See page 5 for a reconciliation of Operating Earnings to Net Income computed in accordance with GAAP.

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Press Release

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

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2008 and December 31, 2007

Unaudited

(In Thousands)

	September 30 2008			* December 31 2007
Assets
Current Assets:
Cash and Cash Equivalents	$	56,819		$	50,855
Accounts Receivable, Net		178,429			178,528
Unbilled Revenues, Net		131,752			136,652
Prepaid Expenses and Other Current Assets		20,593			16,717
Total Current Assets		387,593			382,752
Property and Equipment		157,114			153,733
Less Accumulated Depreciation		(109,734	)		(104,467	)
Net Property and Equipment		47,380			49,266
Other Assets:
Goodwill		262,913			263,769
Intangible Assets Arising from Business Acquisitions, Net		113,707			118,678
Capitalized Software Costs, Net		44,371			40,032
Deferred Income Tax Assets		17,950			18,923
Other Noncurrent Assets		27,256			29,362
Total Other Assets		466,197			470,764
Total Assets	$	901,170		$	902,782
Liabilities and Shareholders’ Investment
Current Liabilities:
Short-Term Borrowings	$	27,903		$	29,389
Accounts Payable		40,176			39,601
Accrued Compensation and Related Costs		77,909			69,655
Other Accrued Current Liabilities		52,488			57,360
Self-Insured Risks		18,564			18,290
Accrued Income Taxes		17,453			10,435
Deferred Revenues		59,067			64,363
Current Installments of Long-Term Debt and Capital Leases		2,296			2,475
Total Current Liabilities		295,856			291,568
Noncurrent Liabilities:
Long-Term Debt and Capital Leases, Less Current Installments		181,790			183,449
Deferred Revenues		50,186			58,925
Self-Insured Risks		18,638			18,439
Postretirement Medical Benefit Obligation		2,054			1,898
Accrued Pension Liabilities		52,190			76,977
Other Noncurrent Liabilities		13,690			12,265
Total Noncurrent Liabilities		318,548			351,953
Minority Interest in Equity of Consolidated Affiliates		4,944			5,046
Shareholders’ Investment:
Class A Common Stock, $1.00 Par Value		26,510			25,935
Class B Common Stock, $1.00 Par Value		24,697			24,697
Additional Paid-in Capital		24,822			19,057
Retained Earnings		247,809			223,793
Accumulated Other Comprehensive Loss		(42,016	)		(39,267	)
Total Shareholders’ Investment		281,822			254,215
Total Liabilities and Shareholders’ Investment	$	901,170		$	902,782

* Derived from the audited Consolidated Balance Sheet

Page 10 of 11

Press Release

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

CRAWFORD & COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2008 and September 30, 2007

Unaudited

(In Thousands)

	2008			2007
Cash Flows From Operating Activities:
Net Income	$	23,922		$	12,812
Reconciliation of Net Income to Net Cash Provided By Operating Activities:
Depreciation and Amortization		22,737			22,146
Stock-Based Compensation		4,389			2,251
Loss on Sales of Property and Equipment, Net		67			521
Gain on Sale of Subrogation Business		—			(3,980	)
Gain on 2006 Sale of Former Corporate Headquarters		—			(4,844	)
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions and Disposition:
Accounts Receivable		2,003			1,766
Unbilled Revenues		3,903			(12,899	)
Accrued Income Taxes		6,609			5,188
Accounts Payable and Accrued Liabilities		11,068			552
Deferred Revenues		(13,845	)		(18,354	)
Retirement Plan Liabilities		(23,435	)		(22	)
Prepaid Expenses and Other Operating Activities		(4,293	)		(1,265	)
Net Cash Provided By Operating Activities		33,125			3,872
Cash Flows From Investing Activities:
Acquisitions of Property and Equipment, Net		(9,737	)		(12,320	)
Capitalization of Computer Software Costs		(11,518	)		(8,326	)
Proceeds from Sale of Investment Security		—			5,000
Proceeds from Sale of Subrogation Business		—			5,000
Other Investing Activities, Net		(204	)		(1,603	)
Net Cash Used In Investing Activities		(21,459	)		(12,249	)
Cash Flows From Financing Activities:
(Decrease) Increase in Short-Term Borrowings, Net		(5,864	)		1,315
Payments on Long-Term Debt and Capital Lease Obligations		(1,970	)		(11,889	)
Proceeds from Stock-Based Compensation Plans		2,016			736
Other Financing Activities, Net		(20	)		(335	)
Net Cash Used In Financing Activities		(5,838	)		(10,173	)
Effect of Exchange Rate Changes on Cash and Cash Equivalents		136			2,178
Increase (Decrease) in Cash and Cash Equivalents		5,964			(16,372	)
Cash and Cash Equivalents at Beginning of Period		50,855			61,674
Cash and Cash Equivalents at End of Period	$	56,819		$	45,302

Page 11 of 11

EX-99.2

the

STRENGTH

of

WORKING

TOGETHER

SM

Third Quarter 2008

Earnings Conference Call

Monday, November 3, 2008

Exhibit 99.2

2

Third Quarter Earnings Review

November 3,

2008

•

Founded in 1941, Crawford is the largest independent global

provider of claims management solutions and a fully

integrated global provider of these solutions 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:

This

presentation

contains

forward-looking

statements,

including

statements

about

the

future

financial

condition,

results

of

operations

and

earnings

outlook

of

Crawford

&

Company.

Statements,

both

qualitative

and

quantitative,

that

are

not

historical

facts

may

be

“forward-looking”

statements

as

defined

in

the

Private

Securities

Litigation

Reform

Act

of

1995.

Forward-looking

statements

involve

a

number

of

risks

and

uncertainties

that

could

cause

actual

results

to

differ

materially

from

historical

experience

or

Crawford

&

Company’s

present

expectations.

Accordingly,

no

one

should

place

undue

reliance

on

forward-looking

statements,

which

speak

only

as

of

the

date

on

which

they

are

made.

Crawford

&

Company

does

not

undertake

to

update

forward-

looking

statements

to

reflect

the

impact

of

circumstances

or

events

that

may

arise

or

not

arise

after

the

date

the

forward-looking

statements

are

made.

For

further

information

regarding

Crawford

&

Company,

and

the

risks

and

uncertainties

involved

in

forward-looking

statements,

please

read

Crawford

&

Company

reports

filed

with

the

United

States

Securities

and

Exchange

Commission

and

available

at

www.sec.gov

or

in

the

Investor

Relations

section

of

Crawford

&

Company’s

website

at

www.crawfordandcompany.com.

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.

On

January

1,

2008

the

Company’s

Strategic

Warranty

Services

unit

was

moved

from

the

Legal

Settlement

Administration

segment

to

the

U.S.

Property

&

Casualty

segment.

Prior

period

results

for

both

segments

have

been

restated

to

reflect

this

transfer.

Subsequent

to

March

31,

2007,

the

Company

changed

its

method

of

allocating

certain

corporate

overhead

costs

to

each

of

its

operating

segments.

Prior

period

results

have

been

restated

to

reflect

the

current

allocation

method.

Segment

revenues

and

expenses

do

not

include

reimbursements

for

out-of-pocket

expenses.

4

“The Strength of Working Together”

“The Strength of Working Together”

is unifying the

Company around consistent goals:

Adaptive leadership team responding to changing

economic conditions

Sustained emphasis on sources of additional

revenue growth

–

Selling Crawford services into the existing client base through

key account management

Driving technology forward

–

Creating operational efficiencies

–

Global economies of scale

Being a target-driven organization

–

Setting goals for 2009 to 2011

5

Third Quarter 2008 Overview

•

Strong performance in a difficult operating

environment

Revenue growth of 8.6% over 2007 quarter

Net income up 100% over 2007 quarter

•

Sustained growth internationally and in U.S.

Property & Casualty offset declines in other

businesses

International revenue growth of 19.3% over 2007

quarter

U.S. Property & Casualty revenue up 12.5% with

catastrophe revenue up $2.9 million.

•

Improved earnings per share to $0.13 from $0.07

Improved operating margins in U.S. Property &

Casualty, International Operations, and Legal

Settlement Administration.

•

Improvement in cash and balance sheet metrics

$29.3 million improvement in cash flow from

operations over prior year-to-date period

200

210

220

230

240

250

260

270

3Q 2008

3Q 2007

Revenue

$ in millions

0

1

2

3

4

5

6

7

3Q 2008

3Q 2007

Net Income

$ in millions

$266.9

$245.8

$6.9

$3.5

the

STRENGTH

of

WORKING

TOGETHER

SM

Third Quarter 2008

Financial Review

7

Third Quarter 2008 Financials

Three Months Ended September 30

2008

2007

% Change

Revenues:

Revenues Before Reimbursements

$266,916

$245,774

9%

Reimbursements

24,416

20,196

21%

Total Revenues

291,332

265,970

10%

Costs and Expenses:

Cost of Services Provided, Before Reimbursements

196,874

185,533

6%

Reimbursements

24,416

20,196

21%

Total Cost of Services

221,290

205,729

8%

Selling, General, and Administrative Expenses

56,222

53,159

6%

Corporate Interest Expense, Net

4,334

4,572

-5%

Total Costs and Expenses

281,846

263,460

7%

Income Before Income Taxes

9,486

2,510

278%

Provision for Income Taxes

2,564

(943)

372%

Net Income

$6,922

$3,453

100%

Earnings Per Share:

Basic

$0.14

$0.07

100%

Diluted

$0.13

$0.07

86%

CRAWFORD  &  COMPANY

CONDENSED CONSOLIDATED STATEMENTS  OF  INCOME

Unaudited

(In Thousands, Except Earnings Per Share and Percentages)

8

60

70

80

90

100

110

120

3Q 2008

3Q 2007

Revenue

0

2

4

6

8

10

3Q 2008

3Q 2007

Operating Earnings

$ in millions

$ in millions

Third Quarter 2008 Financials

$115.4

$96.7

$8.6

$6.3

Operating earnings improve on both revenue and

margin gains.

Revenue increased 14.6% on a constant dollar basis.

Summary Results, International Operations

For the quarters ended September 30, 2008 and 2007

in Thousands Except Percentages

Unaudited

2008

2007

% Change

Revenues

115,362

$   

96,735

$   

19.3%

Total Operating Expenses

106,768

90,455

18.0%

Operating Earnings

8,594

$       

6,280

$     

36.8%

Operating Margin

7.4%

6.5%

9

40

50

60

70

80

90

3Q 2008

3Q 2007

Revenue

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

3Q 2008

3Q 2007

Operating Earnings

$ in millions

$ in millions

Third Quarter 2008 Financials

$76.9

$78.4

$1.4

$1.1

Operating margin and earnings decline due to

contracting revenue base.

Worker’s compensation market continues to be

challenging due to claim frequency declines.

Summary Results, Broadspire

For the quarters ended September 30, 2008 and 2007

in Thousands Except Percentages

Unaudited

2008

2007

%

Change

Revenues

76,911

$     

78,434

$   

-1.9%

Total Operating Expenses

75,832

77,003

-1.5%

Operating Earnings

1,079

$       

1,431

$     

-24.6%

Operating Margin

1.4%

1.8%

10

17

17.5

18

18.5

19

19.5

20

20.5

21

3Q 2008

3Q 2007

Revenue

0

0.5

1

1.5

2

2.5

3

3Q 2008

3Q 2007

Operating Earnings

$ in millions

$ in millions

Third Quarter 2008 Financials

$18.4

$20.6

$2.1

$2.9

Operating earnings increase 34% despite lower

revenue due to improvements in cost control.

Backlog of $43.5 million.

Summary Results, Legal Settlement Administration

For the quarters ended September 30, 2008 and 2007

in Thousands Except Percentages

Unaudited

2008

2007

% Change

Revenues

18,416

$     

20,622

$   

-10.7%

Total Operating Expenses

15,563

18,496

-15.9%

Operating Earnings

2,853

$       

2,126

$     

34.2%

Operating Margin

15.5%

10.3%

11

0

10

20

30

40

50

60

3Q 2008

3Q 2007

Revenue

0

1

2

3

4

5

6

7

3Q 2008

3Q 2007

Operating Earnings

$ in millions

$ in millions

Third Quarter 2008 Financials

$50.0

$56.2

$3.5

$6.8

Operating earnings up 93% on revenue growth and

technology-led operating efficiencies.

Catastrophe revenue up $2.9 million from hurricanes

Gustav and Ike.

Cases

up over 15% in quarter.

Summary Results, U.S. Property & Casualty

For the quarters ended September 30, 2008 and 2007

in Thousands Except Percentages

Unaudited

2008

2007

% Change

Revenues

56,227

$     

49,983

$   

12.5%

Total Operating Expenses

49,446

46,469

6.4%

Operating Earnings

6,781

$       

3,514

$     

93.0%

Operating Margin

12.1%

7.0%

12

Third Quarter 2008 Financials

Crawford & Company

Balance Sheet Highlights

As of September 30, 2008 and December 31, 2007

In thousands, except percentages

Unaudited

    September 30,

    December 31,

                 2008

                 2007

Change

Cash and cash equivalents

$56,819

$50,855

$5,964

Accounts receivable, net

178,429

178,528

(99)

Unbilled revenues

131,752

136,652

(4,900)

     Total receivables

310,181

315,180

(4,999)

Deferred revenues, net                   

99,567

111,036

(11,469)

Accrued pension liabilities

52,190

76,977

(24,787)

Current portion of long-term debt, capital leases

and short-term borrowings

30,199

31,864

(1,665)

Long-term debt

181,790

183,449

(1,659)

     Total debt

211,989

215,313

(3,324)

Total stockholders' equity

281,822

254,215

27,607

Net debt*

155,170

164,458

(9,288)

Total debt / capitalization

43%

46%

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

net of cash and cash equivalents.

13

Third Quarter 2008 Financials

Crawford & Company

Free Cash Flow

(a non-GAAP measurement)

For the year-to-date periods ended September 30, 2008 and 2007

In thousands

Unaudited

     September 30,

     September 30,

              2008

             2007

Variance

Net Income

$23,922

$12,812

$11,110

   Depreciation / Non-Cash Items

22,737

22,146

591

   Special Credits

-

(8,824)

8,824

   Change in Working Capital

1,382

(21,713)

23,095

   U.S. Pension Contributions

(14,916)

(549)

(14,367)

Cash Flow from Operating Activities

33,125

3,872

29,253

   Capital Expenditures for PP&E

(12,753)

(15,614)

2,861

   Internally Developed Software

(9,133)

(5,452)

(3,681)

   Mandatory Principal Payments

(1,575)

(1,575)

-

Free Cash Flow (non-GAAP)

$9,664

($18,769)

$28,433

the

STRENGTH

of

WORKING

TOGETHER

SM

Third Quarter 2008

Operations Review

15

Third Quarter 2008 Highlights

150

155

160

165

170

3Q 2008

3Q 2007

International Claims

Claims referred in 000s

159.4

168.4

•

International Operations

Strong global revenue growth of

19.3%.

Operating margin increased to

7.4% in 2008 from 6.5% in 2007.

Claims referred decreased 5.3%

due to absence of 2007 CAT

claims.

Revenue increased 14.6% on a

constant dollar basis.

Strong working capital

management.

16

Third Quarter 2008 Highlights

•

U.S. Property & Casualty

Revenue growth of 12.5%.

Operating margin increased to

12.1% in 2008 from 7.0% in 2007.

Catastrophe revenue up $2.9

million.

Technology-driven efficiencies

realized.

Claims referred increased 15.6%

due to increases in property and

CAT related claims.

75

85

95

105

115

125

135

3Q 2008

3Q 2007

U.S. P&C Claims

Claims referred in 000s

134.0

116.0

17

Crawford U.S. Catastrophe (CAT) Activity

0

5

10

15

2008

2007

CAT Cases

12.5

6.5

0

10

20

30

2008

2007

CAT Cases

20.2

9.9

0

2

4

6

8

2008

2007

CAT Revenues

$6.3

$3.4

$ in millions

0

5

10

15

2008

2007

CAT Revenues

$11.6

$6.5

$ in millions

Quarter ended Sept. 30:

Nine months ended Sept. 30:

In 000s

In 000s

18

Third Quarter 2008 Highlights

Claims referred in 000s

63.1

70.3

•

Broadspire

Revenue decline of 1.9%

Operating earnings of $1.1 million in the

quarter.

RiskTech

deployment on schedule

93% retention rate.

Worker’s Comp market continues

challenging as claims referred declined

10.3%.

Strong client retention and cross-selling

partially offset run-off revenue decline.

55

57

59

61

63

65

67

69

71

3Q 2008

3Q 2007

Broadspire

Claims

19

Third Quarter 2008 Highlights

•

Legal Settlement Administration

Revenue declined 10.7%.

Operating margin increased to 15.5%

from 10.3% in 2007 through strong

cost management.

Backlog of $43.5 million.

20

25

30

35

40

45

50

3Q 2008

3Q 2007

Backlog

Backlog in millions

$43.5

$39.1

20

Outlook

•

Full Year 2008:

–

Consolidated

revenue

before

reimbursements

between

$1.04

billion

and

$1.05

billion.

–

Consolidated

operating

earnings

between

$68.1

million

and

$72.4

million.

–

After

reflecting

stock-based

compensation

expense,

net

corporate

interest

expense,

customer-relationship

intangible

amortization

expense,

special

credits

and

charges

and

income

taxes,

consolidated

net

income

on

a

GAAP

basis

between

$28.3

million

and

$30.4

million.

–

Earnings

per

share

of

$.54

to

$.58.

•

2009:

–

While

our

practice

continues

to

be

to

provide

initial

earnings

guidance

for

the

coming

year

with

our

fourth

quarter

earnings

release,

our

10-Q

that

will

be

filed

with

the

SEC

next

week

will

discuss

the

expectation

of

increases

in

our

defined

benefit

plan

expense

and

funding

in

the

U.S.

and

U.K.

in

2009.

This

anticipated

pension

expense

increase

is

a

result

of

the

recent

stock

market

declines

and

downturns

in

the

global

economy

which

have

negatively

affected

the

asset

values

in

our

pension

plans

as

they

have

affected

many

other

companies.

We

cannot

specifically

determine

the

impact

at

this

time,

but

we

believe

that

it

is

likely

to

materially

affect

reported

results

in

fiscal

2009.

the

STRENGTH

of

WORKING

TOGETHER

SM