P&C Industry Outlook
Q: How is the P&C insurance industry's health impacting Verisk?
A: The property and casualty insurance industry is showing strong premium growth and improved profitability, resulting in stronger combined ratios. This positive outlook benefits Verisk, as they participate in clients' premium growth and see insurers more engaged in investing to improve their business.

Subscription Revenue Growth
Q: Is current subscription growth sustainable this year?
A: Subscription growth is strong and broad-based, driven by forms, rules, and loss cost, antifraud solutions, and extreme events. Verisk expects no significant changes and sees no major quarterly variations ahead.

Pricing Environment
Q: How do you view the pricing environment this year?
A: Verisk sees positive tailwinds in pricing tied to net written premium growth, in line with last year. The industry's financial strength makes clients more receptive, aiding in good pricing outcomes.

New Solutions and GenAI Adoption
Q: Which new solutions are gaining traction?
A: Verisk is seeing strong adoption of new products like Discovery Navigator in claims, image forensics in antifraud, Core Lines Reimagine, and Next Generation Models in extreme events. These innovations are contributing to incremental revenue growth incorporated into their guidance.

Auto Telematics Discontinuation
Q: Why discontinue the auto telematics offering?
A: Data providers ceased collecting data, leaving insufficient analytical value. The financial impact is small, and Verisk continues to serve auto insurers significantly with other products like LightSpeed auto, coverage verifier, and damage assessment.

Catastrophe Bond Business
Q: What's driving growth in the catastrophe bond market?
A: Increased catastrophe risk and the need for diversifying investors are driving the strong cat bond market. Verisk benefits by providing models and risk assessments through their extreme event business.

Transactional Revenue Outlook
Q: Are transactional revenues facing headwinds?
A: Yes, due to tough comparisons from last year's strong growth in areas like auto shopping activity, elevated weather patterns, and securitization activity. These create headwinds for transactional revenue in coming quarters.

Investment Levels in AI and Platforms
Q: How are internal investments affecting CapEx?
A: Investments in AI and replatforming are within expectations and embedded in guidance. Some projects are finite, so investment levels may reduce after completion. Verisk is integrating generative AI into existing products using current financial models.

Capital Allocation and M&A
Q: What's the outlook for small-to-medium M&A?
A: Valuations remain high, making attractive returns challenging. Verisk focuses on opportunities where they can add value and accelerate adoption but remains disciplined in capital allocation.

Next-Generation Nat Peril Model
Q: What's the impact of the new nat peril model?
A: The Next Generation Models are major enhancements, allowing clients to better estimate and quantify uncertainty of losses. It's a substantial opportunity to deliver more value, and expectations are reflected in guidance.