Bruce Celebrezze, Sedgwick executive committee member (Hillary Jones-Mixon)
SAN FRANCISCO — Sedgwick saw net income slide 4.2 percent as gross revenue dipped 1.7 percent to $208.5 million in 2013. Revenue per lawyer was flat at $610,000. Profits per partner edged down less than 1 percent to $755,000.
Sedgwick’s Chief Financial Officer Carrie Knudsen attributed the drop in net income to the firm’s investment in new technology, such as electronic billing applications, that she said would improve long term efficiency.”We’re always spending on technology, but it just so happens that we’re spending quite a bit now to lower our overhead in the future,” she said, adding, “Our partnership is 100 percent behind it because they see the benefit over the long haul.
Bruce Celebrezze, chair of Sedgwick’s insurance division and an executive committee member, said the firm met its financial targets despite taking fewer cases to trial in 2013.
“Our end result practically hit the budget on the head. In fact, I think we came in a tiny bit over our budget on the revenue side,” said Celebrezze.
The firm continued drawing revenue from its primary sources: insurance industry, conflict litigation and commercial clients, he said.
In 2012, Sedgwick’s gross revenue was up 3 percent. Attorney headcount dropped 1.4 percent to 342.
Knudsen said the firm is projecting 3 percent revenue growth in 2014.
“We don’t expect a huge change this year,” she said. “We just want to remain cutting edge and efficient with an eye towards lowering overhead in the coming years.”
This report is part of ALM’s early coverage of 2013 financial results for The Am Law 100 and 200. Final rankings and full results for The Am Law 100 and 200 will be published later this year.
Contact the reporter at email@example.com.