Good afternoon. My name is McKenzie and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Crawford & Company second 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 session. Instructions will follow at that time. (Operator Instructions) As a reminder, ladies and gentlemen, this conference is being recorded today, Monday, August 05, 2013. Now I would like to introduce, Allen W. Nelson, Crawford & Company's General Counsel and Chief Administrative Officer.

Thank you, McKenzie. 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 include but are not limited to statements regarding the funded status of our defined benefit pension plans, 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 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 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 headings, business risk factors, legal proceedings and management's discussion and analysis of financial condition and results of operations as well as any 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. Jeffrey Bowman, President and Chief Executive Officer of Crawford & Company. Jeff, please begin our 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 second quarter 2013 results. Bruce will then review the second 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 increased global 2013 guidance. We are pleased with our second quarter results as they reflect solid positive results in all segments and a better balance of contribution from our operations than we have seen for some time. In particular, Broadspire reported profitable results and an operating improvement even excluding a one-time benefit this quarter. Our Americas segment reported increased case volume and a rebound in performance. As a result, our second quarter 2013 financial metrics showed very good gains and we have raised our expectations in certain aspects of our guidance for the year. Overall, revenues increased 2% over the second quarter of 2012. Consolidated operating earnings grew 27%. Our net income increased 63% quarter-over-quarter. We also announced today an increase in our dividend payments. We increased dividends on both our A and B shares by $0.01 to $0.05 and $0.04 respectively. Within the Americas segment, our U.S. Property and casualty business benefited from an increase in our contractor connection operations and catastrophe revenues. We also saw an increasing claims in our Canadian market. I will report more details on these areas in the business unit review but the headline news is that our Canadian business unit has had its busiest month for claims…

Companywide revenues before reimbursements in the 2013 second quarter were $298.9 million, an increase of 2% from $293.8 million in the prior year second quarter. This growth was driven by improved results in our Americas segment and improvement in Broadspire's operating performance. Our net income attributable to Crawford & Company was $17 million in the 2013 second quarter, up 63% over $10.4 million in the 2012 period. Second quarter 2013 diluted earnings per share were $0.31 for CRDA and $0.30 for CRDB, compared to earnings per share of $0.19 for CRDA and $0.18 for CRDB in the 2012 period. Consolidated operating earnings, a non-GAAP financial measure, totaled $30.4 million for the 2013 second quarter, up 27% over $24 million reported in the 2012 second quarter. During the prior year second quarter, the company recorded a special charge of $1.6 million related to a project to outsource certain aspects of our U.S. technology infrastructure. There were no special charges during the 2013 second quarter. The company's selling, general and administrative expenses, or SG&A, totaled $58.4 million or 19.5% of revenues in the 2013 second quarter, down from $59.1 million or 20.1% of revenues in the prior year quarter. 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. References to EPS in this call would generally be only for CRDB as that is the more dilutive measure. Revenues from the Americas segment totaled $82.6 million in the 2013 second quarter, up 7% over $77.6 million reported in last year's quarter. This increase was primarily due to growth in contractor connection and increasing claims activity in Canada and…

Thanks, Bruce. At the outset of my comments, I mentioned the overall balance of the results for the quarter as reported today. We are seeing the benefit of our business portfolio both across our business segments and within each segment itself. For example, is EMEA AP and legal settlement administration successfully broadened their new business pipeline to replace claims volume tied to two very large projects, Thailand in the first phase and Deepwater Horizon project in the second. I am very encouraged as well by both a change of direction from the first quarter results and by incremental claims volumes in Canada and Latin America supporting the overall Americas results. Our consolidated revenue improvement for the quarter was driven by a 5% increase in cases over the second quarter of 2012 where we saw case increases in Americas, CEMEA and Broadspire casualty business. Let me now turn to the performance of each of our business units. Starting with the Americas segment, which represented 28% of our consolidated revenue for the overall quarter. Overall performance in both revenue and operating earnings improved over the second quarter of 2012. Our contractor connection division grew 18% in assignments, and revenue grew 45% over the second quarter of 2012 with both current and new insurer's and consumer services clients being contracted. We also hosted our 15th Annual Conference with more than 2,800 attendees in May. We continue to develop and implement private label consumer website capabilities for all consumer services and are excited about this product's future. Our Canadian division also benefited from the startup of the Canadian contractor connection service. We successfully implemented a number of new programs in the second quarter. The EMEA AP operations represented 29% of our consolidated revenues for the second quarter of 2013. In the second quarter, our…

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

Nice performance across the board. Is there any common thread that runs through that? Some change in compensation structure? Or broader improvement in the economy? Is there any big picture change here?

No, I don’t say it is a big picture change. We are adhering to our strategy that we have laid down in each of the operations. The growth of our operating performance is showing a turnaround and we expect that to follow on into the second half of the year. But a lot of it is around listening to our clients, improving on our service with our clients and ensuring that we are executing in a very efficient way. I think also, some of our technology improvements are beginning to really start to take effect as well, Mark.

Right. In the Broadspire business, you talked about some client wins. Are you taking share? Are there more RFPs out on the street?

We are receiving more RFPs, and we are taking market share.

Right. In time past, I think you talked about having a good pipeline there but it's been hard to get sustained improvements. Do you think you would be able to sustain that this time?

Hi, Mark. This is Bruce. That's certainly what our plan is and what the business is driving towards. As Jeff has mentioned before, we are driving a sequential improvement in this business and that's certainly the plan for this year and looking forward.

Okay. In the EMEA AP business, how large was the contribution from cat in the quarter and maybe if not specifically, in historical terms, is this an average contribution from catastrophe revenue now that Thailand is running off? Is there still some to go before it settles down?

The incident happened, as you are aware, back in 2011; we are still working on a number of significant large claims there. We expect this, as we said, taper off towards the end of this particular year. Over the past few years, we have had incidents occurring in a number of the countries in the Asia-Pacific region. So I think we are pretty solid for the balance of the year on the EMEA AP operations in Asia-Pacific.

Okay. In contractor connection, the things like there is more of a positive impact this quarter. Could you talk about one, the margin impact of that? If you can say just directionally how big it is now relative to the Americas operation and what drove the good performance? More wider distribution? More frequency? What's happening?

I will take the strategic part of that and then Bruce will talk about the financials. We have been investing in contractor connection for a number of years. Over the past two or three years, we have developed private label consumer website capabilities. We have seen consumer growth. We have seen insurance market growth. Service quality is demanded in this particular product. We, as a corporation, have been investing in our infrastructure and our sales and marketing. So we are very bullish about the programs that we have got and the potential programs that we can build on for this operation. We see this as one of our, if you like, hot properties. So I am very excited about what is going on with the contractor connection operation. Obviously, we have expanded it to Canada in the past two years and that’s going very well as well. We have a form of contractor connection in the United Kingdom and in Australia. So this is something that we have got going on a global basis.

Yes, so in terms of the margin contribution, Mark. We disclosed the revenues the contractor connection provides to our U.S. P&C and Americas business in the Q, but as with other aspects of our business, there aren’t segments we have been hesitant to put too much specificity on the margins or the earnings there. I would tell you though, just from a directional basis, the margins in that part of our business tend to be higher because it’s providing a network service, a network access model. We don’t have as much fixed cost in that sort of a model. So the contribution margins tend to be higher.

Right. Any directional thoughts about the growth in the underlying business within the legal settlement excluding the large project? How is that looking?

Yes, it just kind of continues on with that. So we have really been pleased with the legal settlement this year, in terms of the balance of where their business is coming from. We have been talking about the Deepwater Horizon project and the fact that that will be declining over time and we have seen that. But we have also seen an increase in non-Gulf related work that's kind of offset the expected decline that we are seeing in the Gulf related work. So it’s a good story for us and one that we are very pleased with.

Any way to characterize the non-Gulf related work? I know you talked in times past about the cyclical influences, after a recession you might see an uptick in class action work down the road or years later. Is it that or something else?

I think it’s a number of things. I mean, obviously, our core operations we have been growing within the Garden City Group, in terms of both class action and bankruptcy. I think we are taking a significant amount of market share in both of those areas. We can continue to invest in those areas and are pleased with the significance we have got in, as the Gulf related business starts to decline then our overall business is achieving a better balance.

Your next question comes from the line of Adam Klauber with William Blair.

Couple of different questions. Again, good news on Broadspire. You mentioned that you are seeing increasing expense in medical management. Could you give us a ballpark of the revenue growth, excluding the one-timer? What portion of that was medical management? Number one. Number two. Would you say, the pipeline is as strong with medical going forward?

On the pipeline, we have significant bundled and unbundled opportunities that we are pursuing. We have one of the strongest pipelines we have had in, probably, the last few years. So we are seeing both unbundled medical and bundled medical as being very good opportunities for Broadspire.

Yes, and I think, Adam, in terms of the revenue growth in the quarter, when you back out the one-time benefit that we saw, the majority of it was coming from the medical side, although we saw improvement in the in the underlying workers comp and liability claims business in the quarter, even when you back out the one-time benefit. And I think, a lot of that is reflective of the fact that so much more of our handling of workers comp case is dealing with medical side and it is just growing and significant influence in the overall handling of our comp plan.

Right, okay. That’s really helpful. On the pension, you mentioned, I think, you reduced by $10 million. I would assume that the higher interest rates could help you out next year. What's your pension expense running this year? And do you have any sense, I know it's early, but would you expect to go down next year given what's happened with rates?

It should. We should see some benefit in expense and also in future cash contributions, going forward. Our pension liabilities on the balance sheet is just a roll forward from where we were at the end of the year. Just taking expense, less payments and we re-measure it at the end of 12/31. But if we were to re-measure today or through the end of the second quarter, we would have seen a pretty decent improvement.

And can you tell us how much you are spending this year in pension expenses? Or what would pension expense would be this year?

Our pension expense this year is about $3.6 million.

Okay, and then also, I know we have talked in the past, as rates go up, could eventually get away from the higher interest rates. How long do you tend to hold the money? Is it roughly seen as short-term rates, I take it?

It's short term rates. That’s correct.

Okay. Legal settlement, I know you bought a smaller EPO or EOC business. Is that getting any traction?

Yes, we have seen a couple of interesting cases that have come in through that particular division and they are working very closely with, obviously, the GCG organization to integrate and develop the relationships that the owner of the business had when we purchased them. We are quite pleased with the way that business is moving.

Okay, and then also legal settlement. Again, very nice jump in the backlog. Would you say, again ballparking, more of the jump is class action or is it more of bankruptcy?

I think it would probably be more on the class action side. As we look at the backlog, it is a pretty meaningful backlog. We are moving to where less than half of it is related to Gulf related work and we are seeing a greater proportion of the backlog related to non-gulf work, which we think bodes well for the future.

Okay, and then as far as the EMEA, did you get much business from floods? I know there were some pretty good floods in Europe. Did you get much business from that?

It wasn’t a large volume but we had some large claims that came out of it. It wasn’t to the degree of, say, a several years ago when Prague had happened. It was less than that but it has had a little bump in our German operations, from that perspective.

(Operator Instructions) There are no further questions at this time. I would now like to turn the call back over to Mr. Allen for any closing remarks.

Thank you. Thank you, everyone, for your time and questions this afternoon. I would like to thank you, everyone, for joining us and hope you will have a good week, Thanks so much.

Thank you for participating in today's Crawford & Company conference call. This call will be available for replay beginning at 6:00 PM today through 11:59 PM on August 19, 2013. The conference ID number for the replay is 22871358. The number to dial for the replay is 1-855-859-2056 or 404-537-3406. Thank you. You may now disconnect.