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## CRAWFORD TPA SOLUTIONS SEGMENT 

## Operating Earnings 

Our Crawford TPA Solutions s egment, which operates under the Broadspire brand globally, reported operating earnings of $27 .2 million , or 6.9% of revenues before reimbursements in 2 019 , as compared to $36.9 million, or 9.1%  of revenues before reimbursements in 2 018 . The decrease in operating earnings for the 2019 period resulted from lower revenues, which were not fully offset by lower direct expenses. 

Excluding centralized indirect support costs, gross profit decreased from $109.2 million, or 26.9% of revenues before reimbursements in 2018, to $99.7 million, or 25.3% of revenues before reimbursements in 2019, as the decrease in direct costs did not offset the reduction in revenues. 

## Revenues before Reimbursements 

Crawford TPA Solutions revenues are from the global casualty and disability insurance and self-insured markets in the U.S., U.K., Canada, and Europe and Rest of World. Revenues before reimbursements by major region, based on actual exchange rates and using a constant exchange rate were as follows: 

<img src='content_image/1049429.jpg'>

Revenues before reimbursements from our Crawford TPA Solutions totaled $393.9 million in 2019, compared to $405.3 million in 2018. Changes in foreign exchange rates decreased our Crawford TPA Solutions segment revenues by $3.7 million, or approximately 0.9%, for 2019. Absent foreign exchange rate fluctuations, Crawford TPA Solutions segment revenues would have been $397.6 million in 2019. Revenues were negatively impacted by a decrease in unit volumes, measured principally by cases received, of 2.6% in 2019 compared with 2018. Changes in product mix and in the rates charged for those services accounted for a 0.7% revenue increase for 2019 compared with the 2018 period. 

The decrease in revenues in the U.S. for 2019 as compared with the 2018 period was primarily due to a delayed ramp up of new Claims Management and Medical Management clients and isolated client losses, partially offset by an increase in high-frequency, low-complexity disability cases. Based on constant foreign exchange rates, the decrease in revenues in the U.K. for 2019 was due to client case volume decreases and a change in the mix of services provided. Revenues in Canada decreased due to a change in the mix of services provided and a reduction in case volumes. Revenues increased in Europe and Rest of World due to growth from both new and existing clients. 

## Reimbursed Expenses Included in Total Revenues 

Reimbursements for out-of-pocket expenses incurred in our Crawford TPA Solutions segment which are included in total Company revenues increased to $11.6 million in 2019 from $10.5 million in 2018. This was due an increased use of third parties in Europe in the 2019 period. 

