Company Overview

Verisk Analytics is the indispensable data and analytics backbone for the US property and casualty insurance industry. The firm expertly leverages a vast contributory database and deep-seated industry relationships, originating from its inception as an insurance provider consortium, to develop sophisticated analytical solutions. These solutions are designed to significantly enhance underwriting and claims outcomes, boost operational efficiency, and empower clients to make well-informed decisions regarding global risks. Verisk stands as a premier strategic data analytics and technology partner to the global insurance sector. It equips clients to fortify their operational efficiency, refine underwriting and claims processes, combat fraud, and navigate complex global risks, including climate change, extreme events, sustainability initiatives, and geopolitical issues. Through its deployment of advanced data analytics, cutting-edge software, rigorous scientific research, and profound industry knowledge, Verisk plays a crucial role in building global resilience for individuals, communities, and businesses alike.

The company's comprehensive contributory database houses over 32 billion standardized records of insurance transactions. Furthermore, Verisk has cultivated proprietary datasets covering property and casualty (P&C) risks for over 16 million commercial properties and environmental hazards impacting every US postal address. It is also a recognized leader in catastrophe modeling, a critical tool utilized by insurers, financial institutions, and governmental bodies.

Business Segments and Solutions

Core Offerings

Verisk provides a comprehensive suite of solutions, including:

- Underwriting Solutions: Offers forms, rules, and loss costs services that provide essential policy language, prospective loss costs, policy writing and rating rules, and underwriting solutions crucial for risk selection, segmentation, pricing, and workflow optimization.

- Underwriting Data and Analytics Solutions: Delivers property and auto-specific rating information, as well as vital underwriting data and analytics solutions.

- Extreme Event Solutions: Specializes in advanced catastrophe modeling solutions.

- Life Insurance Solutions: Facilitates the transformation of current workflows in life insurance underwriting, provides claim insights, supports policy administration, manages unclaimed property/equity, and aids in compliance, fraud detection, and actuarial/portfolio modeling.

- Specialty Business Solutions: Manages the full end-to-end lifecycle of insurance and reinsurance business.

- Marketing Solutions: Enables compliant, real-time decisioning, profitability assessment, and risk evaluation for inbound consumer interactions.

- International Underwriting Solutions: Caters to the unique needs of underwriting in global markets.

Strategic Initiatives

Verisk is actively engaged in several strategic initiatives to drive innovation and client value:

- Core Lines Reimagine: This ongoing project focuses on introducing new features to Verisk's digital platform to continually enhance client value.

- Actuarial Hub: Provides insurers with essential tools and risk insights, leveraging ISO loss cost data to meet evolving pricing demands.

- Future of Forms: Assists underwriters in analyzing and responding effectively to changes in policy forms, thereby improving efficiency and accelerating time-to-market.

- New Releases (Q4 2024): The company launched Future of Forms and Filing Intelligence for the Businessowners line. It also introduced a replatformed ISO Forms Library featuring an improved search functionality and user experience.

- 2024 Progress: A total of 13 modules were launched in 2024, with further releases planned for 2025.

Recent Financial Performance

Q4 2024 Results (as of December 31, 2024)

Revenue Metrics:

- Consolidated revenues reached $736 million for the fourth quarter of 2024, an increase of 8.6% on a consolidated and OCC (Organically Calculated Compound) basis. This growth was supported by strong contributions from both the underwriting and claims segments within Insurance.

- For the full year 2024, consolidated revenues totaled $2,882 million, representing growth of 7.5% and 7.1% on an OCC basis. This performance reflects broad-based growth across the majority of Verisk's business units.

- Underwriting OCC Revenue Growth: 7.0% Year-over-Year.

- Claims OCC Revenue Growth: 12.7% Year-over-Year.

Profitability Metrics:

- For the full year 2024, income from continuing operations was $951 million, marking an increase of 23.7%.

- For 2024, adjusted EBITDA stood at $1,576 million, up 9.9% on a consolidated and OCC basis, primarily driven by robust revenue growth and effective cost discipline.

- For the full year 2024, diluted EPS attributable to Verisk shareholders was $6.66, up 27.6%. Diluted adjusted EPS was $6.64, up 16.3%.

- Adjusted EBITDA Margin: 54.1% in Q4 2024; 54.7% for the full-year 2024, indicating an increase of 120 basis points year-over-year.

Cash Flow Performance:

- For the full year 2024, net cash provided by operating activities was $1,144 million, an increase of 7.9%.

- Free cash flow for the year was $920 million, up 10.8%.

Market Position and Valuation

Valued at a market capitalization of $39.4 billion, Verisk Analytics offers essential products and services including policy language, prospective loss costs, policy writing and rating rules, and a wide array of underwriting solutions. The company is a publicly traded entity on the Nasdaq exchange and is a constituent of the prestigious S&P 500 Index and the Nasdaq-100 Index.

Capital Return Strategy

Dividend Policy

- On February 19, 2025, Verisk's Board of Directors approved a cash dividend of $0.45 per share of common stock.

- This dividend is payable on March 31, 2025, to shareholders of record as of March 14, 2025.

- This approval represents a 15% increase to the dividend, underscoring the company's confidence in its economic model and its commitment to shareholder returns.

Share Repurchase Program

- During the fourth quarter of 2024, Verisk initiated and fully funded an accelerated share repurchase (ASR) program totaling $300 million, receiving an initial delivery of 0.9 million shares.

- Upon final settlement of this ASR agreement in January 2025, an additional 0.2 million shares were received, based on the daily volume-weighted average share price of $278.92 during the ASR term.

- As of December 31, 2024, $592 million remained available under the existing share repurchase authorization.

- On February 19, 2025, the Board of Directors approved a new share repurchase authorization of up to $1.0 billion.

2025 Financial Outlook

Verisk provides the following financial projections for the fiscal year 2025:

- Consolidated Revenue: Expected to range between $3.03 billion and $3.08 billion.

- OCC Revenue Growth: Projected at 6% to 8%.

- Adjusted EBITDA: Forecasted to be between $1.67 billion and $1.72 billion.

- Adjusted EBITDA Margin: Expected to be 55% to 55.8%, an increase from 54.7% in 2024.

- Adjusted EPS: Projected to be between $6.80 and $7.10.

Verisk Analytics' strong strategic position as the essential data backbone for the insurance industry, coupled with its consistent revenue growth and disciplined capital allocation, solidifies its role as a key player in the insurance technology ecosystem. With teams operating in over 20 countries, Verisk consistently earns certification by Great Place to Work and cultivates an inclusive culture where all team members feel a strong sense of belonging.