Segment Information

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information

10. Segment Information

The Company has four reportable segments consisting of North America Loss Adjusting, International Operations, Broadspire, and Platform Solutions. The Company's reportable segments are comprised of the following:

•North America Loss Adjusting, which services the North American property and casualty market. This is comprised of Loss Adjusting operations in the U.S. and Canada, including Global Technical Services. The Canadian operations include all operations within that country including third party administration and Contractor Connection.

•International Operations, which services the global property and casualty market outside North America. This is comprised of Loss Adjusting operations in the U.K., Europe, Australia, Asia and Latin America, and includes Crawford Legal Services. International Operations includes all operations within the respective countries, including Loss Adjusting, Global Technical Services, Legal Services, third party administration, and where applicable, Contractor Connection services.

•Broadspire, which provides third party administration for workers' compensation, auto and liability, disability absence management, medical management, and accident and health to corporations, brokers and insurers in the U.S.

•Platform Solutions, which consists of the Contractor Connection, Networks, and Subrogation service lines in the U.S. The Networks service line includes Catastrophe operations.

The Platform Solutions reportable segment represents the aggregation of certain service line operating segments.

Effective January 1, 2024, the Company combined the operating segments within North America Loss Adjusting and International Operations, and accordingly, there are no operating segments within these reportable segments to aggregate.

Financial information for the three and nine months ended September 30, 2024 and 2023 related to the Company's reportable segments, including a reconciliation from segment operating earnings to income before income taxes, the most directly comparable GAAP financial measure, is presented below:

	Three Months Ended						Nine Months Ended
(in thousands)	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Revenues:
North America Loss Adjusting	$	79,329		$	79,987		$	232,724		$	233,946
International Operations		105,741			98,066			306,116			285,241
Broadspire		99,009			92,229			290,394			263,527
Platform Solutions		45,296			59,839			116,022			188,297
Total segment revenues before reimbursements		329,375			330,121			945,256			971,011
Reimbursements		13,351			12,066			37,396			36,743
Total revenues	$	342,726		$	342,187		$	982,652		$	1,007,754
Segment Operating Earnings:
North America Loss Adjusting	$	5,443		$	10,468		$	14,807		$	22,433
International Operations		5,136			2,197			12,528			8,974
Broadspire		14,402			13,532			42,297			29,607
Platform Solutions		3,833			8,523			6,417			26,595
Total segment operating earnings		28,814			34,720			76,049			87,609
(Deduct) Add:
Unallocated corporate and shared costs, net		(6,979	)		(4,781	)		(20,065	)		(9,998	)
Net corporate interest expense		(4,682	)		(4,556	)		(12,534	)		(13,264	)
Stock option expense		(188	)		(145	)		(494	)		(440	)
Amortization of acquisition-related intangible assets		(1,932	)		(1,986	)		(5,656	)		(5,864	)
Contingent earnout adjustments		2,128			(2,127	)		1,547			(3,100	)
Non-service pension costs		(2,441	)		(2,170	)		(7,313	)		(6,436	)
Income before income taxes	$	14,720		$	18,955		$	31,534		$	48,507

Operating earnings is the primary financial performance measure used by the Company's senior management and chief operating decision maker ("CODM") to evaluate the financial performance of the Company's operating segments and make resource allocation and certain compensation decisions. The Company believes this measure is useful to investors in that it allows them to evaluate segment operating performance using the same criteria used by the Company's senior management and CODM. Operating earnings will differ from net income computed in accordance with GAAP since operating earnings represents segment earnings before certain unallocated corporate and shared costs and credits, net corporate interest expense, stock option expense, amortization of acquisition-related intangible assets, contingent earnout adjustments, non-service pension costs, income taxes, and net income or loss attributable to noncontrolling interests.

Segment operating earnings includes allocations of certain corporate and shared costs. If the Company changes its allocation methods or changes the types of costs that are allocated to its four operating segments, prior period amounts presented in the current period financial statements are adjusted to conform to the current allocation process.

Intersegment transactions are not material for any period presented. Certain of the Company’s reportable segments represent the aggregation of certain business units which represent separate operating segments.

Revenues before reimbursements by major service line in the International Operations, Broadspire and Platform Solutions segments are shown in the following table. The Company considers all North America Loss Adjusting revenues to be primarily derived from one service line.

	Three Months Ended				Nine Months Ended
(in thousands)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
International Operations
International Loss Adjusting	$	98,986	$	91,414	$	286,792	$	266,708
Crawford Legal Services		6,755		6,652		19,324		18,533
Total Revenues before Reimbursements--International Operations	$	105,741	$	98,066	$	306,116	$	285,241
Broadspire
Claims Management	$	50,293	$	47,919	$	148,549	$	135,778
Medical Management		48,716		44,310		141,845		127,749
Total Revenues before Reimbursements--Broadspire	$	99,009	$	92,229	$	290,394	$	263,527
Platform Solutions
Contractor Connection	$	17,051	$	19,013	$	52,114	$	58,110
Networks		20,787		34,160		41,903		110,027
Subrogation		7,458		6,666		22,005		20,160
Total Revenues before Reimbursements--Platform Solutions	$	45,296	$	59,839	$	116,022	$	188,297