| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 0.15 | -99 |
| Graham Formula | 7.41 | -31 |
Crawford & Company (NYSE: CRD.A) is a global leader in claims management and outsourcing solutions, serving insurance carriers, brokers, and corporations across the U.S., U.K., Europe, Canada, Australia, and other international markets. Founded in 1941 and headquartered in Atlanta, Georgia, Crawford operates through three key segments: Crawford Loss Adjusting, Crawford TPA Solutions, and Crawford Platform Solutions. The company specializes in property, liability, auto, marine, and disaster-related claims, offering end-to-end services from initial loss reporting to complex claims resolution. With a strong focus on risk management and third-party administration (TPA), Crawford provides critical support for workers' compensation, disability management, and large-scale catastrophe responses. The company’s Contractor Connection platform enhances its value proposition by delivering outsourced contractor management for insurers. As a mid-cap player in the insurance brokerage sector, Crawford combines deep industry expertise with scalable technology solutions, positioning itself as a trusted partner in an evolving risk landscape.
Crawford & Company presents a mixed investment profile. Its diversified claims management services and global footprint provide stability, supported by consistent revenue ($1.34B in FY2023) and positive net income ($26.6M). The company’s low beta (0.76) suggests lower volatility relative to the market, appealing to risk-averse investors. However, its modest market cap (~$502M) and thin margins (net margin ~2%) limit scalability. Debt levels ($309M) are manageable but warrant monitoring given the capital-intensive nature of claims processing. The dividend yield (~1.8% at current prices) offers income, but growth prospects hinge on expanding high-margin TPA services and tech-driven platforms. Competitive pressures from larger brokers and cyclical exposure to catastrophe claims (e.g., natural disasters) pose risks. Investors should weigh its niche expertise against slower sector growth trends.
Crawford & Company carves out a competitive niche through its specialized claims management and TPA services, differentiating itself from broader insurance brokers. Its Contractor Connection platform provides a unique edge in contractor outsourcing, a segment less saturated than core adjusting services. The company’s global adjuster network and catastrophe response capabilities (e.g., handling hurricanes, floods) bolster its value proposition for insurers needing scalable solutions. However, Crawford lacks the scale of giants like Marsh McLennan (MMC) or Aon (AON), limiting its ability to compete on pricing or cross-selling opportunities. Its focus on middle-market and self-insured clients mitigates direct competition with larger peers but exposes it to margin pressures from regional players. Technology investments, such as digital claims tools, are critical to maintaining efficiency, though lagging behind insurtech disruptors like Lemonade (LMND) in customer-facing innovation. Crawford’s strengths lie in its deep claims expertise and multi-line capabilities, but its mid-tier size requires strategic partnerships or M&A to sustain growth in a consolidating industry.