Claims manager Crawford swings to loss
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Crawford & Co. on Thursday reported a net loss of $52 million during the fourth quarter of 2015 on expenses related to its GAB Robins Holdings U.K. Ltd. acquisition.
That compares with the $3.7 million profit the Atlanta-based claims management provider reported in fourth quarter of 2014, Crawford said in a statement.
The firm posted revenue of $300.5 million during the fourth quarter, a 1.7% decrease from the prior-year period.
The company's workers compensation and liability TPA unit, Broadspire Services Inc., was a “bright spot” in the overall results as increased casualty claim referrals, market share gains and new products drove revenue and earnings growth, Crawford interim CEO Harsha V. Agadi said in the statement.
Broadspire posted revenue before reimbursements of $75.4 million in the fourth quarter, up 9.1% from the same period in 2014.
In a statement, Crawford said it incurred $17.3 million in restructuring costs during the quarter related to the implementation of Crawford's Global Businesses Center in Manila, Philippines, the GAB Robins acquisition, and restructuring of the firm's Americas and Europe, Middle East and Africa/Asia Pacific business segments.
Crawford also reported goodwill impairment charges of $49.3 million during the quarter associated with the restructuring.
“While our overall results are not yet where they need to be, I am very excited by the opportunities in front of us and am optimistic on the direction of our company as we work to improve our profitability and uncover opportunities to grow revenues,” Mr. Agadi said. “Our cost reduction plans are expected to enable our businesses to achieve their target operating margins in the current claim environment while providing significant leverage as volumes grow.”
For full-year 2015, Crawford swung to a net loss of $45.6 million from a profit of $31.1 million in 2014. Revenue, however, increased 2.0% to $1.24 billion year over year.
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