Good afternoon, my name is Benita and I will be your conference facilitator today. At this time I would like to welcome everyone to the Crawford & Company fourth quarter and year end 2011 earnings release conference call. In conjunction with this call a supplementary financial presentation is available on our website at www.CrawfordandCompany.com under the investor relations section. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question and answer period. Instructions will follow at that time. [Operator Instructions] As a reminder, ladies and gentlemen, this conference is being recorded today, Monday, February 13, 2012. Some of the matters to be discussed in this conference call and in the supplementary financial presentation may include forward-looking statements that involve risks and uncertainties. These statements may included, but are not limited to, statements regarding the funding status of our defined benefit pension plan or expectations related to future revenues and expenses, our long term liquidity requirements, and our ability to pay dividends in the future. The company’s actual results achieved in future quarters could differ materially from results that may be implied by such forward-looking statements. The company undertakes no obligation to publically release revisions to any forward-looking statements made in this conference call to reflect events or circumstances occurring after the date of the call or to reflect the occurrence of unanticipated events. In addition, you are reminded that operating results for any historical period are not necessarily indicative of results to be expected for any future period. For a complete discussion regarding factors that could affect the company’s financial performance, please refer to the company’s Form 10K for the year ended December 31, 2010 filed with the Securities & Exchange Commission, particularly the information under the headings business, risk factors, legal proceedings, and managements’ discussion and analysis of financial conditions and results of operations as well as subsequent company filings with the SEC. This presentation also includes certain non-GAAP financial measures as defined under SEC rules. As required, a reconciliation is provided for those measures to the most directly comparable GAAP measures. I would now like to introduce Mr. Jeffrey Bowman, President and Chief Executive Officer of Crawford and Company.

I’m Jeffrey Bowman, President and CEO of Crawford and Company. Joining me from the global executive management team this afternoon are Bruce Swain, our CFO and Allen Nelson, our General Counsel and Chief Administrative Officer. I will begin with some opening comments on our strong annual results and then an overview of our fourth quarter results. Bruce will then review the quarter and year end financials in more detail which will be followed by a review of our business, comments on our strategic initiatives and conclude with our corporate focus and initial 2012 guidance. If you called in to the call earlier than the start time, I hope you enjoyed the video named 2011 a year end review. You’ll be able to see this on our corporate website from Thursday, the 15th of February. I’m very pleased to report for the year record revenues. Before reimbursements they increased $94.9 million to $1.125 billion. Net income attributable to Crawford and Company shareholders was $45.4 million compared to $28.3 million in the prior year, an increase of 60%. Consolidated GAAP diluted earnings per CRB share reached $0.83 in 2011 compared to $0.53 in 2010. In December we were very pleased to enter into a new $325 million revolving credit facility which replaced a $100 million revolving credit facility and $218.6 million syndicated term loan. The new arrangement which matures in December 2016 provides us with the financial flexibility we need to pursue our long term strategic plans. It also reduces the company’s borrowing costs, extends the maturity of our credit facility, and improves our access to capital. We believe this agreement is a reflection of our solid operational performance and is an important endorsement of the financial security of Crawford and Company. We have also announced today the dividend on the A…

Companywide revenues before reimbursements in the 2011 fourth quarter were $265.6 million down 12% from the $301.5 million in the prior year’s fourth quarter. Expected declines in our legal settlement administration segment and weakness in the Americas’ segment accounted for the revenue drop. Our net income attributable to Crawford and Company totaled $4.5 million in the 2011 fourth quarter decreasing 70% from $14.8 million in the 2010 period. Fourth quarter diluted earnings per share for CRDB were $0.08 in the 2011 period compared to earnings per share of $0.28 in the 2010 period. During the 2011 fourth quarter the company recorded $4.6 million in special charges consisting of a $3.4 million write off of deferred financing costs related to the repayment of our then outstanding term loan B and $1.2 million in severance expense relating to our Broadspire segment. We also recorded a tax benefit of $5.5 million related to a change in the valuation allowance for foreign tax credits. The net of these items increased earnings per share by $0.05 in the 2011 fourth quarter. Beginning in the 2011 third quarter, the company paid a higher dividend on its CRDA common stock than on its CRDB shares. This dividend differential can result in different earnings per share for each class of stock due to the two class method of computing EPS as required by current accounting guidance. References to EPS in this call will generally be only for CRDB as that presents a more dilutive measure. Revenues, net income attributable to shareholders of Crawford and Company, and earnings per share in the 2011 fourth quarter were impacted by a number of non-operating items, including the positive effects of a tax adjustment and foreign exchange movements, partially offset by the special charges related to our debt financing and severance expenses.…

Consolidated cases decreased 3.8% versus the fourth quarter a year ago reflecting a moderating weather and event environment in North America. For the year, case volumes increased 6.7% which we were pleased with. The difference between the fourth quarter and the year as a whole demonstrates the industry wide significance of catastrophe losses through 2011. The number of global catastrophic events in the year was 820 per Munich Re and the global insured industry losses totaled $105 billion compared to $75.1 billion for the whole of 2008, $38.8 billion in 2009, and $49.6 billion in 2010. The previous highest annual insured loss value was 2005 at $101 billion and that was the year of Hurricane Katrina. Munich Re reports that Asia and Australia/Oceania represented an estimated $63 billion in insured losses, America $42 billion, and Europe $2 billion in 2011 making up the $105 billion in global insured losses. For the fourth quarter we saw the increasing claims mainly in our Asia Pacific arenas where the following events were reflected. In Australia, Queensland and Victoria flooding that took place in December 2010 to January 2011, the New Zealand earthquakes in February 2011 and June 2011, Japanese earthquake and tsunami and massive flooding in Thailand. Based on the recent information, we also see the number of federal disaster declarations is significantly up. In 2011 there were 99 disasters declared in the year. The highest number prior to that was 2010 at 81 for the year. All of this activity puts pressure on markets to respond with premium rate increases. This is not yet evident but there are reports of some hardening. We saw price firming in specific commercial lines in the second half of 2011. But the property casualty underwriting cycle remains volatile. Underwriting profitability has not deteriorated to the lows…

[Operator Instructions] Your first question comes from the line of Mark Hughes with SunTrust Robinson Humphrey Capital Markets.

The guidance, can you give me a sense of what you were incorporating for pension expense? What was it for the full year in 2011 and what do you expect in 2012?

For 2011 our overall pension expense was about $6.2 million and for ’12 that should be in the $3.3 million range.

What is the outlook for cash contributions and maybe just a broader question about what are your cash flow targets, cash flow from operations, cap ex, and pension contribution?

Pension contributions in the U.S. should be about $13 million for 2012 and then looking at the UK for 2012 we’ll probably be in the $6 to $7 million range, so total for the defined benefit plans think about $20 million. We will have forward-looking information relating to that in the 10K when we file that in a few weeks. We’ll put up a 5 year cash contribution table in the K when we file it. So there will be more information around the DB plans that you can get at that point in time. For operating cash flow, we’re looking at $30 to $35 million and that would be inclusive of those pension contributions, so that’s the initial guidance range that we’re setting. That doesn’t include any significant improvement in days sales outstanding, so to the extent that we can get some more traction in managing our receivable balances, that could help us beat that number.

How about Cap ex?

Cap ex we’re anticipating about $28 million for the year.

The number of RFPs within Broadspire, does that number continue at a high level as we start here early in 2012? I know that’s probably a lot of calendar year starts but what’s the sense of sales opportunities?

We’ve got a very active RFP pipeline at this moment. I think from our perspective it’s at one of the highest levels we’ve ever had and I think it follows on from the very strong third and fourth quarter wins that the Broadspire organization has had. So we’re very positive about going forward on that basis with our new revenue plan from both current RFPs and future ones. I think it’s a testament to the improvement in the technology and the quality of the processes that we’re putting in place which are getting recognized by the marketplace.

Can you give us a sense of how much business you won? If fourth quarter revenue was down a little bit in Broadspire, when might we anticipate that could stabilize?

Are you talking about the profitability mark or the revenue?

I was thinking revenue right there.

I think the revenue, obviously a lot of it is recurring revenue from the contracts and it’s really about client retention and we have very specific initiatives in place at this moment to ensure we have a very aggressive client retention process in place. We’re seeing Broadspire’s profitability being a significant initiative in 2012, now that we have RiskTech 1.2 out there and we see the take up from our clients about the technology and their quality issues that I mentioned earlier.

How long will it take for that to show up in the P&L?

Our expectation is that Broadspire will be at a minimum breakeven at the end of 2012.

One final question, the Gulf Coast business, when does that bottom out? And, can you give us some sense of how much it contributed to the top line in the legal settlement in the fourth quarter?

We’ve never disclosed the individual portions of the LSA segment. It’s something we won’t do on the call. But, we have as we’ve stated prior to, we have fairly limited transparency into the future on the GCCF project and that has been really the same since day one when we started working on it. We really look at 90 day windows at a maximum. As we’ve said we do see, as we’ve seen in the fourth quarter, that start to taper off as expected.

Your next question comes from Adam Klauber with William Blair & Company.

Why is it that the Americas broke even this quarter whereas in past quarters revenues dipped down whether you still made money?

It’s made up of really two issues. First, is that in the hurricane claims that we had that went up the northeast, we had higher than expected costs to service what was a very difficult hurricane in terms of a geographical spread where it went up a good portion of the east coast of the United States. Although that was profitable for us it wasn’t as profitable as we would normally expect. The other big issue, dealing with the US first, is that the claims volume in the regions really, because of the lack of any weather, really came in much harder than we’ve seen in prior periods. We saw a sort of compensating affect on that in the fourth quarter in the U.S. together with the mildest winter that Canada has ever had in its history. Again, claims volumes in the fourth quarter were very weak from our organizational point of view and that left us with a revenue shortfall that we haven’t seen in a while. Now, we’ve put initiatives in to deal with some of the cost issues around that if we don’t see improvement in the first quarter of this year.

In your guidance number, what level or in just rough terms, what level of weather are you expecting in the Americas? Is it a year more like say 2009 which was sort of light weather year or is it more like 2011? Can you give us some guidance there?

I’ll give you a conceptual discussion first. Number one is we do not budget hurricanes, or earthquakes, or catastrophes and obviously that is excluded from our guidance. What we budget for is weather events and we’re looking at a normalization of weather events really in the U.S. and in the Asia Pacific marketplace which will accordingly be down on the prior year. We have included in our guidance some revenue for the Thailand event which is beginning to mature from our perspective at this moment. We have, as I said in my commentary, we have put people into the region to deal with that. But, it is more of a normalization. I don’t have the ’09 figures with me.

Kind of year-in year-out when we’re setting our budgets in our initial guidance we think of kind of the weather related work that we’ll use catastrophe adjusters for in the U.S. at about a $17 to $18 million expectation. That excludes any hurricanes, or earthquakes, or other sort of headline grabbing catastrophic events, it’s more the day-to-day weather that may tax our resources where we have to bring in catastrophe adjusters.

On the Thailand loss, was there much revenue that flowed through in the fourth quarter or is most of it going to flow through in 2012? And, how does that compare to some of the events you saw in Australia and New Zealand?

To very different events, for sure. Firstly, there was no revenue associated with the 2011 figures because it was maturing as our international operations have an October year-end as you’re aware, so the effect was coming in the first quarter. We still are getting our hands around what is a fairly dynamic situation out there and it’s very difficult at this moment to anticipate what our revenue pattern is going to be until we see at least another month or two out of the situation from where we are. We’ve got a significant amount of claims and it’s been a very difficult CAT event to actually manage because of the location, the water events, and then the production facilities and getting information out of them to handle the actual claims. It’s a moving event at this moment. We’ve got several teams that are putting schedules together to try and get our hands around this. We’ve got a good handle on the claims themselves for our clients but not so much on where the revenue is going to come in terms of the long term on that. I’m actually going out there next month to visit with our team there.

Clearly, it’s still developing but does it have the potential to be the size of the New Zealand or Australia events from your perspective?

I think it would be bigger than New Zealand but I don’t think it would be as big as Australia. Australia was many thousands of claims, Thailand is not that environment it is much more business interruption claims within Thailand because they’re production facilities.

Then on Broadspire you mentioned the potential for breakeven sometime in 2012 or towards the end, does that mean you feel comfortable by the back half or the very end or is it possible it could be breakeven for the year?

We’re looking at sequential improvement on a quarterly basis. We’ve put in place some significant cost reduction programs. We brought in the technology. As I said, I think the year end breakeven is our goal at the moment and I think we’re in good shape with the revenue wins if we continue on with that progress to be in good shape at year end.

Legal and administration, clearly revenue has dropped a fair amount from BP. If we’re trying to think about the first half of this year versus fourth quarter is there still a material drop from what we saw in the fourth quarter that will likely be experienced in first quarter and second quarter or have we seen most of the drop to date?

This is Bruce, Adam, as Jeff indicated in his comments, we have kind of a 90 day outlook on this project and it’s subject to dramatic changes, and twists, and turns and we have a fairly good sense of where we’re going to be in the first quarter but after that it’s difficult to say and so we don’t have very high expectations for this outside of the first quarter. As we go through this quarter that could change one way or another but that’s just kind of the nature of this particular project in that it doesn’t give us the ability to forecast out for long periods of time.

So as you look at the first quarter, again I’m not looking for an exact number, but is the drop from fourth quarter to first quarter going to be very significant or is it going to be more moderate?

It’s hard to say. I mean, I think it would be probably moderate in the first quarter and then what happens after that is kind of the big question mark.

Also in the legal settlement business, there’s a lot in the headlines about a potential mortgage foreclosure settlement, broad based settlement, is that something you have the potential to be involved in?

No comment on that at the moment. I mean we’ve seen the headlines on that as well but I’m not going to talk about those issues over the phone. One thing I would say is that both the Americas and the EMEA AP region in the property and casualty arena, they’re looking at increases in their base revenue in 2012. So there’s some positives that are coming out on the revenue side that will offset somewhat some of the decreases we’re expecting in the LSA division because of the rundown of GCCF but not to the degree of the rundown.

Those increases, are those more from the complex or liability side?

Well there’s a whole range of issues around the programs that we’ve been putting on place through our taking over claims programs, nominations that we’ve received both internationally and both in the U.S. which we’re very excited about.

At this time I would like to turn the call back over to Mr. Bowman for closing remarks.

Thank you every one for your time and questions this afternoon. I’d like to thank everyone for joining us this afternoon and wish you a great rest of the week. Thank you.

Thank you for participating in today’s Crawford and Company conference call. This call will be available for replay beginning at 6PM today through 11:59 PM on February 13, 2012. The conference ID number for the replay is 47598056. The number to dial for the replay is 1-855-859-2056 or 404-537-3406. Thank you. You may now disconnect.