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    Verisk Analytics Inc (VRSK)

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    Verisk is a leading data analytics and technology provider primarily serving the insurance industry, offering solutions that include predictive analytics and decision support for rating, underwriting, claims, catastrophe, and weather risk, among other fields . These solutions are integrated into client workflows to help them make better decisions about risk and improve operating efficiency . Verisk's business is structured around providing statistical, actuarial, and underwriting data, with a focus on the U.S. property and casualty (P&C) insurance industry, and also offers solutions for fraud detection, catastrophe modeling, and loss quantification . The company's revenue model is predominantly subscription-based, accounting for approximately 80% of its revenues, with the remaining 20% being transactional .

    1. Underwriting Solutions - Provides forms, rules, and loss costs to help insurers define coverages, issue policies, and ensure compliance with regulatory requirements across various lines of insurance .
    2. Predictive Analytics and Decision Support - Offers tools for rating, underwriting, claims, catastrophe, and weather risk to enhance decision-making and operational efficiency .
    3. Property Estimating Solutions - Delivers comprehensive tools for property assessment and valuation, aiding in accurate and efficient property claims processing .
    4. Extreme Events Modeling - Specializes in catastrophe modeling and loss quantification to help clients assess and manage risks associated with extreme events .
    5. Fraud Detection Solutions - Provides advanced analytics to identify and mitigate fraudulent activities within the insurance sector .
    6. International and New Market Solutions - Expands capabilities into international markets and new areas such as life insurance and annuities .
    NamePositionStart DateShort Bio
    Lee M. ShavelPresident and Chief Executive OfficerMay 2022Lee M. Shavel has been the Chief Executive Officer of Verisk Analytics, Inc. since May 2022 and assumed the title of President in January 2023. He previously served as Verisk's Group President and Chief Financial Officer .
    Elizabeth D. MannExecutive Vice President and Chief Financial OfficerSeptember 2022Elizabeth D. Mann has been the Executive Vice President and Chief Financial Officer at Verisk since September 2022. She was previously the CFO of the Ratings and Mobility divisions at S&P Global and held various positions at Goldman Sachs .
    Nick DaffanExecutive Vice President and Chief Information OfficerJuly 2015Nick Daffan has been the Chief Information Officer since July 2015 and Executive Vice President since December 2018. He is responsible for technology strategy, operations, and the delivery of data and analytics .
    Kathy Card BecklesExecutive Vice President and Chief Legal OfficerApril 2021Kathy Card Beckles has been the Executive Vice President and Chief Legal Officer at Verisk Analytics since April 2021. She provides leadership for all legal aspects of the business and oversees corporate governance, compliance, and internal audit functions .
    Sunita HolzerExecutive Vice President and Chief Human Relations OfficerAugust 2021Sunita Holzer has been the Chief Human Relations Officer at Verisk since August 2021. She leads all aspects of the company's human resources strategy and operations, bringing three decades of HR leadership experience .
    Greg HendrickIndependent DirectorApril 1, 2024Gregory Hendrick was appointed to the Board of Directors of Verisk Analytics, Inc. on April 1, 2024. He has over 35 years of experience in insurance and reinsurance leadership, including as CEO of Vantage Group and AXA XL .
    1. Given the decline in transactional revenues this quarter and the ongoing transition from transactional to subscription models, can you provide more clarity on how this shift is impacting overall revenue growth and what measures you're taking to mitigate any negative effects on future quarters?
    2. With indications that insurance pricing may peak in 2025 and considering that 20-25% of your revenue comes from contracts tied to net written premiums with a two-year lag, how do you plan to sustain revenue growth if the market enters a softer cycle?
    3. You mentioned being at the bottom of your target leverage range and actively pursuing M&A opportunities; can you elaborate on specific areas or businesses you're targeting for acquisitions, especially in niches like life insurance where you've seen double-digit growth, and how you assess integration risks?
    4. While you highlighted an 8% growth on a two-year stack exceeding historical rates, can you break down the specific contributions from pricing increases versus organic demand, and discuss the sustainability of this growth amid competitive pressures and potential market saturation in your core lines?
    5. With significant investments in new products like the Experience Index and the Core Lines Reimagine initiative, how are you measuring the return on these investments, and what confidence can you provide that these innovations will drive meaningful revenue growth given evolving client needs and technological advancements in the industry?
    Program DetailsProgram 1Program 2Program 3Program 4
    Approval DateDecember 2023 March 2024 June 2024 August 2024
    End Date/DurationFebruary 2024 April 2024 July 2024 October 2024
    Total additional amount$250.0 million $200.0 million $150.0 million $400.0 million
    Remaining authorization$0 million $0 million $0 million $891.5 million
    DetailsN/AN/AN/AOverall authorization available as of September 30, 2024
    YearAmount Due (in millions)Debt TypeInterest Rate% of Total Debt
    2025$500.0 4.000% Senior Notes 4.000% 16.3% = (500 / 3,063) * 100
    2029$600.0 4.125% Senior Notes 4.125% 19.6% = (600 / 3,063) * 100
    2033$500.0 5.750% Senior Notes 5.750% 16.3% = (500 / 3,063) * 100
    2034$600.0 5.250% Senior Notes 5.250% 19.6% = (600 / 3,063) * 100
    2045$350.0 5.500% Senior Notes 5.500% 11.4% = (350 / 3,063) * 100
    2050$500.0 3.625% Senior Notes 3.625% 16.3% = (500 / 3,063) * 100
    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLP2001 PresentCurrent auditor