Good afternoon. My name is Laurie and will be your conference facilitator today. At this time I would like to welcome everyone to the Crawford & Company first quarter 2013 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. (Operator Instructions) As a reminder this conference is being recorded today, Monday, May 06, 2013. Now I would like to introduce, Allen W. Nelson, Crawford & Company's General Counsel and Chief Administrative Officer.

Thank you, Laurie. Some of the matters to be discussed in the 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 benefit 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 maybe 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, reflect events or circumstances occurring on or 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 or not necessarily indicative of results to be expected for 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, 2012, filed with the Securities and Exchange Commission, particularly the information under the heading, business risk factors, legal proceedings and management's discussion and analysis of financial conditions and results of operations, as well as subsequent company's 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. Jeff Bowman, President and Chief Executive Officer of Crawford & Company. Jeff, you may begin the conference.

Thanks, Allen. A warm welcome to our investors, clients, and employees this afternoon. I am 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 first quarter 2013 results. Bruce will then review the first quarter financials in more detail which will be followed a review of our business performance, comments on our strategic initiatives, and conclude with our corporate focus and our current 2013 guidance. I am pleased that our first quarter was an improvement over the 2012 results and generally in line with our initial expectations. As reported this morning, our first quarter 2013 revenues increased 7% over 2012, reflecting continued improved performance in our EMEA, AP and legal settlement administration segment results, and the benefit of handling claims from super storm sandy which arose in the 2012 fourth quarter in our Americas segment. Consolidated operating earnings grew 25% over 2012 as earnings from our Americas, LSA and EMEA, AP segments improved. On a GAAP basis, our net income increased 61% during the quarter. Within the Americas segment, our U.S. property and casualty business benefitted from the continued completion of super storm Sandy claims. Together, with ongoing cost control measures as well as the implementation of innovative technology, this helped U.S. property and casualty generate strong [profit] improvement over the 2012 first quarter. We have seen claim assignments increase over the 2012 first quarter in both Canada and the USA. I will get into more detail in the business unit review. Our EMEA, AP segment results saw improvement in our core UK and CEMEA operations during the quarter, as a result of the business transformation…

Companywide revenues before reimbursements in the 2013 first quarter were $286.3 million, up 7% from $267.8 million in the prior year's first quarter. Our handling of claims from super storm Sandy in the Americas segment and strong results in or legal settlement administration and EMEA, AP segments drove this improvement. Our net income attributable to Crawford & Company totaled $9.7 million in the 2013 first quarter, up 61% over the $6.1 million in the 2012 period. First quarter 2013 diluted earnings per share were $0.18 for CRDA and $0.17 CRDB, compared to diluted earnings per share of $0.12 for CRDA and $0.11 for CRDB in the 2012 period. Consolidated operating earnings, a non-GAAP financial measure, totaled $18 million for the 2013 first quarter, up 25% over the $14.4 million reported in the 2012 first quarter. During the prior year first quarter, the company recorded a special charge of $0.9 million related to a project to outsource certain aspects of our U.S. technology infrastructure. There were no special charges during the 2013 first quarter. Included in other income for the 2013 first quarter was a $2.3 million gain from the sale of the rights to a customer contract in Latin America. This amount is included in the Americas segment operating earnings. The company's selling, general and administrative expenses or SG&A totaled $59 million or 20.6% of revenues in the 2013 first quarter, up from $55.7 million or 20.8% of revenues in the prior year quarter primarily due to an increase in non-continuing professional fees. Since 2011, the company has paid a higher dividend on its CRDA common stock than on its CRDB shares. This dividend differential can sometimes result in different earnings per share for each class of stock due to the two class method of computing EPS as required by…

Thanks, Bruce. Results for the first quarter improved over the same quarter last year. Revenue increased by 7% and we saw improvement in our EMEA, AP business unit through the execution of cost reduction and business transformation programs in the UK. Operating earnings improvement in the Americas and the EMEA, AP are largely related to our response to global catastrophe. Our ability to respond rapidly and efficiently with both highly qualified people and advanced technology affirms our leadership position in our industry and demonstrates our capability to handle major events globally. An important part of our strategy is investing in technology, innovation to deliver process improvement and increase speed, automation and analytics. These are all factors that our clients demand of us on a global, regional and local basis. We have also recruited teams into the specialty markets business in marine, aviation, and offshore energy. The recent acquisition of a controlling interest in the Lloyd Warwick International Corporation was a part of that strategy. Our consolidated revenue improvement for the quarter reflected a 6% increase in cases over the first quarter of 2012. We saw case increases in the U.S., CEMEA and Broadspire's casualty business, with particular growth in U.S. catastrophe cases primarily as a result of super storm Sandy. We continue to be focused on strengthening our balance sheet through disciplined operating processes in our accounts receivable and unbilled revenue. Let me now turn to the outlook for each of our business units. Starting with the Americas segment, which represents a 29% of our overall consolidated revenue for the quarter. Overall performance in both revenue and operating earnings improved greatly over the first quarter of 2012, as the Americas business continues to benefit from claims related to super storm Sandy. We were pleased with our response to Sandy, which…

(Operator Instructions) Our first question comes from the line of Mark Hughes of SunTrust.

The Broadspire business developments with case flow contract wins, you think the top line will be back in positive territory when we look at 2Q or later in the year?

Yeah, we see some of the miss in the quarter as a timing issue. We have implemented new software. We has some short term pressure loading up some new clients in the medical bill review section, and we see that catching up in the second and third quarters. So we are concerned but we see a very positive situation coming up in medical bill review which was our largest miss in the quarter. Our new sales are ramping up. We have actually at the end of April, already hit our quarter two target and that is good news for the quarters going forward. We have had cost reductions in place as well. We are now beginning to see the benefit of those ring in. If we look at the workers comp claims, we are down over Q1 '12 but we are up over Q4 '12. And I must admit the down against the Q1 '12 was -- the analysis we saw is, we took on a number of new programs last year in the first quarter, which put that figure up slightly. So we think while our volume is down there is a stabilization and a slight movement upwards. And all the new accounts will really support that.

Yeah. How about in the U.S. P&C business? If you take out the storm contribution, how are the margins trending in that business? I think maybe the mix of cases has changed, perhaps. How is that influencing the profitability?

Hey, Mark, this is Bruce. We did see in the quarter some contribution from super storm Sandy, obviously. I think as the trend that we have seen in U.S. property and casualty and also our Canadian and UK operations for that matter is, a trend towards higher value claims being outsourced to companies like ours and many of the smaller value claims being handled telephonically or through direct repair facility. So we do see the mix moving more towards more complex claims as compared to where we were several years ago.

In the EMEA AP segment, with the Thai flood revenue winding down a bit, how should we think about the top line there in coming quarters? Do you have a more difficult year-over-year comps that it will be hard to be in positive territory? Are new case counts supporting the revenue there? How is that going to shake out?

Yeah, one thing, as we think about EMEA AP this year within our guidance, we see EMEA EP is kind of steady as she goes. We expect operating improvement in the UK, and as Jeff mentioned, we had a really kind of a business transformation project that was occurring last year in 2012 in the UK. And they had better results in the first quarter this year and we expect their results to improve as we go through this year. And for our CEMEA, our European operations exclusive of the UK, for those operations to continue to provide good year-over-year figures as they did in the first quarter. That’s going to help make up to the fact that the contribution from the Thai flooding loss is going to diminish as we go throughout this year. So we think that within this segment, the mix of business will substantially offset the loss of the Thai business.

And, Mark, on the Thailand issue, I mean we probably got round about 300 files that we are still working on there. And we see that taking approximately the next two quarters to work its way out of the system.

Yes. Okay. And then Bruce, the $2.3 million gain, was that this quarter?

That was this quarter. That was in the 2013 first quarter.

And that was a pretax within the EMEA AP, is that right?

No, it was part of the Americas operating earnings.

And then was that, so would we assume that was taxed at the 34%?

Yeah.

(Operator Instructions) Your next question comes from the line of Adam Klauber of William Blair.

The revenue backlog from legal settlement has jumped nicely from $105 million to $135 million. Is the percentage from the Gulf claim, is that materially different now than it was a year ago, of the backlog?

I think it's probably fairly comparable.

Okay. And you alluded to, you've had some new wins there. Which area is that coming from?

That’s coming from both the class action arena and the bankruptcy area.

Okay. So somewhat well spread out?

Yeah. I mean we are seeing, if you like, a little bit of rebalancing where we are not as dependent in that business unit on the one project. But we are seeing some significant projects coming in to the division which is very good.

Okay. Great. And then in Broadspire, you mentioned that you have had some new client wins.

Yes.

So does the ramp up from newer clients, does that ramp up incrementally as that relationship gets older, more seasoned?

Yes, it does. I mean some of these new clients wins are quite large. We are bringing them on. There is a period of implementation to get the history loaded up to get the system in place. And some of those are one, two, three months. So we are very positive on both the wins we have had this quarter and the pipeline we have got for the future. We obviously don’t give names of the clients but they are some household names within there.

Right. But even once these systems are implemented, say the first quarter versus the fourth quarter it's implemented, does business tend to build up as that relationship matures?

It does, Adam. This is Bruce. It will build up over, say an 18 month period for a comp program and probably over a shorter period of time if you are just looking at a casualty or reliability program.

Okay.

And Adam, it's still so that cross-selling of services that can go into those organizations as we get involved and may see the wide spectrum of services that we have as an organization and that grows the business as well.

Okay. And then also, you mentioned A&H, I think once or twice, and it sounds like that's newer potential area for you. Could that be significant and how long will that take to begin to show?

Okay. I will turn on for that question in a conservative way. The answer is, yes it is a new business line for us in both the America's organization and the global organization, i.e. EMEA AP as well. We are working with a number of major insurers at the moment, putting in place the [spoke] programs for them, which are dealing with high severity, low value claims. And this is a process driven type of business. And we see this having very good, sticky factor into the organization for the future. And we are very excited about it as we get more and more involved with our clients from there.

Okay. But it sounds like it will take a little while to....

Yeah, I mean this is not a -- clearly it's more a dimmer switch than it is a light switch.

Right. But it could be significant as we look down a couple years?

Hopefully so.

(Operator Instructions) Your next question is a follow up from Mark Hughes with SunTrust.

Updated estimates for cash flow for the year and then pension, how much you expect to contribute this year and what the GAAP pension expense ought to be this year compared to last year, if you could update on those measures.

Right. So from operating cash flow we are guiding $65 million to $70 million for this year, and that’s consistent with where we came out last quarter. Our pension contribution, in the U.S. we expect to be $19 million under the requirements of MAP 21. That’s compared to $13 million that we had last year. Our UK cash contributions to our defined benefit plans, they tend to run in the $6 million to $7 million range each year. When we look at our DB expense -- so that’s all the cash side. When you look at the DB expense this year, the expense is down slightly on a consolidated basis compared to last year, I think last year we were at about $3.6 million and this year will be at about $3.3 million. So pretty flat from an expense standpoint but our cash contributions are going to up a bit.

Then how about the CapEx, any changes there?

I think about $32 million or so. So that’s probably a pretty consistent number going forward.

At this time there are no further questions. I will now turn the call to Mr. Bowman for any final remarks.

Thank you. Thank you everyone for your time and questions this afternoon and I would like thank everyone for joining us. Have a great day and a good week. Thanks very much.