Good afternoon. My name is Samantha and I will be your conference facilitator for today. At this time, I would like to welcome everyone to the Crawford & Company’s Q2 2012 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. [Operator Instructions] As a reminder, ladies and gentlemen, this conference is being recorded today, on Monday, August 6, 2012. Some of the matters to be discussed on this conference call and in the supplementary financial presentation may include forward-looking statements that involve risks and uncertainties. These statements may include but are not limited to statements regarding the funded status of our defined benefits pension plan, our 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 publicly 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 the operating results for any historical period are not necessarily indicative of the results that are to be expected in any future period. For a complete discussion regarding factors which could affect the company’s financial performance, please refer to the company’s Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission, particularly the information under the headings Business, Risk Factors, Legal Proceedings and Management Discussion and Analysis of Financial Conditions and Results of Operations as well as subsequent company filings with the SEC. This presentation 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 & Company. Mr. Bowman, you may begin your conference.

Thank you, Samantha. A warm welcome to our investors, clients and employees this afternoon. I’m Jeffrey Bowman, President and CEO of Crawford & 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 Q2 results; Bruce will then review the Q2 financials in more detail which will be followed by a review of our businesses, comments on our strategic initiatives, and conclude with an update on our corporate focus and increased 2012 guidance. Although segment results were mixed, our consolidated results were ahead of our initial expectations for the quarter. Our Q2 2012 revenue was 1% over 2011, and our operating results reflected a positive performance in our Legal Settlement Administration segment and a very strong performance in our AMEA AP operation which is responding to global events, particularly in Thailand. We continue to be very positive about our consolidated performance considering the current weather factors, and feel we are well positioned for the second half of the year which is why we are increasing our guidance. As we have discussed, our expectations coming into 2012 were that revenues relating to the special project in our Legal Settlement Administration segment would taper. We saw claims volumes decline in Q4 2011 and again in Q1 2012. However, in Q2 2012 Crawford’s GCG subsidiary was awarded a role to provide administration services in the recently announced class action surrounding the Deepwater Horizon settlement. We are very pleased to continue working on this important special project and our Q2 results in this segment reflect this activity. As we indicated in our press release, we continue to see substantial improvement in the Broadspire segment, as we have reduced losses…

Company-wide revenues before reimbursements in Q2 2012 were $293.8 million, up 1% from the $291.7 million in the prior-year Q2. Strong results in our Legal Settlement Administration and AMEA AP segments helped offset weather-related weakness in the Americas segment during the 2012 period. Our net income attributable to Crawford & Company totaled $10.4 million in Q2 2012, compared with $13.5 million in the 2011 period. Q2 2012 diluted earnings per share were $0.19 for CRDA and $0.18 for CRDB compared to earnings per share for each class of $0.25 in the 2011 period. Revenues, net income attributable to Crawford & Company, and earnings per share in Q2 2012 were not significantly impacted by foreign exchange movements. The company’s selling, general and administrative expenses -- or SG&A -- totaled $59.1 million or 20.1% of revenues in Q2 2012, increasing 3.0% from $57.2 million or 19.6% of revenues in the prior-year quarter. This increase in cost is primarily due to higher professional indemnity self-insurance expense, compensation costs, and professional fees. Corporate interest expense was $1.7 million lower in Q2 2012 reflecting the benefit of lower interest rates on our borrowings as a result of our Q4 2011 refinancing. During Q2 2012 the company recorded a pre-tax charge of $1.6 million related to a project to outsource certain aspects of our U.S. technology infrastructure. The company expects this project to continue through Q3 2012 with additional pre-tax costs of approximately $300,000 expected. This special charge decreased earnings per share by $0.02 in Q2 2012. There were no special charges in the 2011 quarter. As a result of changes in the mix of income we received from our various international operations and the related income tax rates, our effective tax rate is higher in 2012 than in 2011. During 2012 the company paid a…

Thanks, Bruce. As touched upon in my earlier comments, revenue and cases increased sequentially for the group versus Q1 2012 but decreased against Q2 2011, reflecting continued mild weather and a benign event environment in the U.S., U.K. and Canada. For the quarter we saw group case volume decrease 5.5% versus a year ago. As in Q1, a difference between Q2 2012 and Q2 2011 revenue reflected industry-wide swings in claims volume driven by high levels of weather and event losses a year ago, and unexpected very low levels of weather event losses through the most recent quarter. Unlike Q1, however, year-over-year gains in our Legal Settlement Administration segment were an important contributor to consolidated revenue performance this quarter and offset some of this softness. Another bright spot was the performance in the AMEA AP where our operating results reflect the strength of our industry-leading CAT response in the Asia-Pacific region. We have also seen an improvement in the Broadspire segment as the overall claims frequency at Broadspire accelerated primarily due to worker’s compensation case volumes. It is also important to note that we continue to handle a multi-year global product recall-related special project, demonstrating our unique global reach and capabilities in this business. We are pleased with the progress and developments being made by Broadspire, and in the quarter our Broadspire retention rate was extremely high at 99.4% which gives a year-to-date retention rate of 98.2%. Let me now turn to the outlook for each of our business units, starting with the Americas segment which represents 28% of our consolidated revenues year-to-date. Compared against the record claims frequency pattern in 2011, the U.S. property and casualty business saw claims frequency fall short of the prior year in Q2 2012 due to the benign weather we have discussed. Nonetheless, frequency…

[Operator Instructions] Your first question comes from the line of Adam Klauber with William Blair.

The Gulf contractor facility now, can you maybe talk about how it worked before? It seemed like with the government everyone just routed claims to you. So how does the business flow under the new setup?

We were actually the administrator on the original Gulf Coast claims facility, and that effectively meant handling the administration behind the scenes of all the claims. That facility is now a class action settlement and we have set up an operation on behalf of our clients in Louisiana and are handling the administration now under what is called DWH, which is Deepwater Horizon. So it’s moved from a facility to actually a class action settlement.

Okay, and as in a typical class action do you get paid time and T&M has far as just the workflow back and forth between the different parties? Is that how the revenues flow? And also along with that in this quarter was there any initial set up, any extra revenue that just hit this quarter because it was a new contract or is it just normal flow?

Hey Adam, this is Bruce. The billing is predominantly time and materials which is similar to what the Gulf Coast claims facility was. In any class action settlement you tend to have lumpy revenue and earnings streams from them and there does tend to be a fair amount of work on the onset of the program to get everything set up. But this is a project that we anticipate lasting for a few years in terms of how the class action settlement’s been set up. And not to say that the results that we saw in Q2 are going to continue on during the entire course of it but whatever happens along the way we’re in a position to participate being the administrator.

Okay, that’s helpful. On international operations the margin was clearly better. Is that driven by the, are the margins in the Asian business better? Why did the margin jump up so much in Q2?

Okay, 3 parts to our AMEA AP operations: it’s obviously the U.K., COMEA and then Asia-Pacific. Asia-Pacific, we have an ongoing arrangement with the flooding that took place last year which will continue for the balance of this year and very much into 2013 on the volume that we currently have. This is very large claims; this is a very large number of the large claims that we’re handling, so we see that as a part of the increase in the margin. We also have the balance of the Australian flooding that we’ve been working with the local insurers on and overseas markets as well, and again, that has been a very large exercise for us to undertake. Our European operations are improving their margins. We’ve had a lot of reorganization taking place there, and then in the U.K. we’re going through at this moment a change in our operation there where as I said we’re merging our commercial and our home operations in reply to really some changes that are happening in the U.K. market which are very specific to that market. And you know, putting that together with some of the cost controls that we’ve put in place and that margin is increasing. It’s been a very good story in Q2.

Okay, and then as far as Broadspire, it’s nice to see claim volumes begin to move up. I think you showed in one of your charts you actually had more growth in the medical management segment it looks like compared to the other segments. Is any of that third-party business or is that still part of the core business?

When you say third-party, Adam, are you talking about unbundled business?

Yes, correct.

Yes, we have seen a bit of a pickup in some of the unbundled business in our medical management business, and that certainly helps throughout 2012. That’s a focus that we have in that business, is to better penetrate the unbundled market and we think there’s a good opportunity there going forward. But as you pointed out, the increase in the worker’s comp claims is the core business of Broadspire and that’s a very encouraging sign for us.

Okay. And then as far as capital management and share buybacks, you announced the program earlier. How many shares did you buy and is there a rough estimate of how much cash you have to use whether for buybacks or other sources for this back half of the year?

All right, for the share repurchase, we said that we’d buy back up to 2 million shares over I believe the next 3 years from the time the announcement was made. We began in June and we repurchased 57,000 shares through the end of June and we’ll be executing on that program as we go forward throughout the rest of this year.

Your next question comes from the line of Jack Sherck with SunTrust.

How long do you expect the claims activity in Thailand to continue?

We see this continuing through the balance of this year and probably into at least the first 6 months of 2013.

Okay. And then just the timing of the class action revenue under the new contract in Legal Settlement -- why was backlog down sequentially with that contract win?

Well, the thing about the class action settlement that we’ve got similar to the Gulf Coast claims facility is the visibility that you have into the future work that you’re going to be performing is somewhat limited. So while this program is going to go on for multiple years, our visibility into the exact nature and amount of work that we’re going to be doing for our client -- we really have about a 90-day to 120-day window or so where we have good visibility into what that work is going to require. So that’s going to be reflected in our backlog that we report and it’s going to be reflected in the guidance that we provide as well.

Okay, I understand. And then on Broadspire, that nice jump you had in claims -- up 16%. How much of that was same customer volume versus new business?

Well, there’s a mixture of that, Jack. We’re seeing volume increases in the temporary staffing area and healthcare area, and then we have a number of new wins as well. We don’t split it down between new clients and old clients in that way but it is a healthy increase which we’re seeing and we see that at this moment continuing.

Okay, and then just a follow-up on Broadspire: any opportunities for cost savings through system changes or anything else like that we should expect?

Well, I mean technology’s been a big issue. We released RiskTech at the end of last year and in our medical merchant side we have a complete paperless organization there now, and that has resulted in us being able to take costs out of the operation. What I would say is we’re always looking at matching our costs to revenue and with Broadspire beginning to start to win new clients, to start to increase the volume they’ve got to assist us in getting that margin back up to where it should be.

Okay. And my final question is on the Americas: if claims volume kind of stays where it’s at with mild weather and so forth, how should we think about margins?

Jack, we don’t specifically break out on segment-level top rating margins but I’ll tell you, one of the challenges we have in our business is when claims volumes are declining and revenue is declining keeping our level of costs up with the drop in revenues. So in a stable revenue environment we’ll be able to adjust our cost base to get to an acceptable operating margin. The challenge we have is when revenues are dropping, our ability to cut costs and keep up with that. In a stable revenue environment we think we can get to an acceptable margin.

Your next question comes from the line of Mark Hughes with SunTrust.

In the U.S. business, any update on trends in outsourcing there? Obviously you’re being influenced by catastrophe claims volume -- what’s your sense about where we are in the cycle of carriers being more or less interested in outsourcing claims?

I think you’ve got to put it in context of the weather patterns taking place in the claims volume. There’s no doubt that our clients who tend to outsource anywhere from 100% to perhaps a maximum of 30% of claims have had situations in the past 3 quarters where the volume of claims has just decreased significantly, which affects our volume as an outsourcer to those companies where we don’t do 100% of the outsourcing of their claims. We’re not seeing a systemic change in that pattern; rather we’re seeing more by the different tiers of insurers that we look at we’re seeing different strategies being implemented. We’ve got lots of strategies around Contractor Connection, fast track claims that we’re doing and obviously our services of our high-end complex claims losses and then our casualty programs. We’ve seen a significant increase in casualty but we’ve seen there again a significant decrease in the property claims. But I wouldn’t say there’s a wholesale change. It’s basically the weather has had an effect on it.

Right. With the Legal Settlement, correct me if I’m wrong but with the class action lawsuit there’s a certain degree of activity upfront while the class action gets going and then it’s kind of backend-loaded once a settlement is reached. In this case it looks like you’ve started strongly on that upfront activity. If you wouldn’t mind saying again what you feel like the duration of at least this initial round of activity is, how long that might persist?

Mark, it’s Bruce. You are right. In a class action context it tends to have kind of a barbell shape where you’ve got a lot of activity in the frontend, and then once it winds through the attorneys of course you have a settlement and distribution at the end. What the frontend looks like is difficult to say right now. It’s relatively early on and the advertising and noticing are going out and claims are coming in. So as long as there’s incoming activity and questions from the class members, and materials being filed and activity related to collecting all of the information in order to make some quantification of damages then we’ll be involved in that; and that’s really down to the folks who are overseeing this project as to how far that frontend runs and when they will kind of move on to the next phase of the settlement. So typically with this business unit as a whole our visibility into the future revenues tends to be somewhat limited because of that fact. So as I think Jack may have asked a question related to the backlog, that’s one reason; that’s a factor that comes into our assessment of the backlog and also when we give guidance for the year.

One thing, Mark -- it’s Jeff. One thing we have to also bear in mind is that the current settlements have tumbled slightly in terms of the number of class actions advised; and as we reported out a couple of weeks ago, we said it’s the fewest monetary accord since the laws were overhauled in 1995. So we’re seeing the pace of new security lawsuits decrease at this moment which is something we have to bear in mind looking forward as well.

[Operator Instructions] We have no further questions. Mr. Bowman, would you like to make any closing remarks?

Yes. I’d like to thank everyone for their time and questions this afternoon and wish everyone joining us a pleasant afternoon and a great week. Thanks very much.

Thank you for participating in today’s Crawford & Company conference call. This call will be available for replay beginning at 6:00 p.m. today through 11:59 p.m. on August 20, 2012. The conference ID number for the replay is 13559676. The number to dial for the replay is 1 (855) 859-2056 or (404) 537-3406. Thank you. You may now disconnect.