Atlanta-based claims manager Crawford & Company reported a divergent second quarter for 2026, as a prolonged lull in US weather-related claims contrasted with stronger activity overseas and in Canada. The company’s international operations drove margin growth, underscoring how regional weather patterns are reshaping demand for outsourced claims services.
Recovery abroad, softness at home
For the three months ending June 30, Crawford posted revenues before reimbursements of US$321.4 million, essentially flat from US$323 million in Q2 2025. Net income attributable to shareholders climbed to US$13.4 million, up 73 per cent from US$7.8 million a year earlier.
The company’s international segment was the standout. Operating earnings for international operations rose to US$10.9 million in Q2, a 48.2 per cent increase from US$7.3 million in the same quarter last year, while the segment’s operating margin expanded from 5.5% to 7.9%. Crawford attributed the improvement largely to higher weather-related activity in Australia and Asia, together with stronger results in Canada.
US claims drought persists
By contrast, the US Property & Casualty segment saw revenues fall to US$74.1 million in Q2 — down 10.2 per cent from US$82.5 million a year earlier. Segment operating earnings dipped slightly to US$7.2 million from US$7.5 million, although the operating margin inched up to 9.7% from 9%.
Swain described an “extended period of benign weather” as a factor keeping outsourced claims activity below historical norms.
The firm said the US softness reflected fewer weather-related claims, a reduction in catastrophe services staffing and fewer contractor connection referrals. That pattern, the company noted, stretches back to the start of 2026: in the first quarter US P&C revenues were already down as benign conditions limited the volume of outsourced work.
Implications for brokers and services
Crawford also completed the sale of its Crawford Legal Services operations in the United Kingdom and Chile during the quarter and recorded a net loss on disposal of US$1.3 million. The divestitures mean that brokers who previously relied on Crawford’s litigation-support unit in those markets will need to source those services from other providers.
The results highlight how weather — or the lack of disruptive weather — can materially affect demand for claims management, adjusting staffing needs and revenue mix. For a company with a sizeable footprint across geographies, regional weather variability can create offsetting trends: weaker activity in one market can be balanced by higher demand elsewhere.
- Q2 revenue (before reimbursements): US$321.4 million (Q2 2025: US$323 million)
- Net income attributable to shareholders: US$13.4 million (Q2 2025: US$7.8 million)
- International operating margin: 7.9% (Q2 2025: 5.5%)
| Metric | Q2 2026 | Q2 2025 |
|---|---|---|
| Revenue (before reimbursements) | US$321.4M | US$323M |
| International operating earnings | US$10.9M | US$7.3M |
| International operating margin | 7.9% | 5.5% |
The shift in underwriting and claims activity has downstream effects for insurers, brokers and contractors who rely on stable volumes of work. In markets experiencing more severe or frequent weather events, demand for catastrophe response and restoration rises; where weather is unusually quiet, outsourced claims providers may reduce staffing and resources, as Crawford indicated for its US operations.
For Canadian stakeholders, the results are notable because Crawford flagged stronger outcomes in Canada as part of its international recovery. That suggests recent weather patterns have increased claims-related activity north of the border, helping to offset softer activity in the United States.
As climate variability continues to change the distribution of weather extremes, the insurance and claims-management sector will likely remain sensitive to where and when those extremes occur, shifting profitability and service requirements across regions.
