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Verisk Analytics, Inc.

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Business Summary

Verisk Analytics, Inc. is a leading data, analytics, and technology provider serving clients in the insurance ecosystem, operating in one segment, Insurance, which primarily serves property and casualty (P&C) insurance customers across most personal and commercial lines of business. The company uses advanced technologies to collect and analyze billions of records, drawing on unique data assets, insurance industry knowledge, and technological expertise to provide solutions integrated into client workflows. In 2025, Verisk's clients included all of the top 100 P&C insurance providers in the U.S. for the lines of P&C services offered . The company's competitive differentiators include proprietary data assets, deep insurance industry expertise and focus, long-standing industry relationships, and scale to drive broad distribution of innovation. Verisk traces its history to 1971 when Insurance Services Office, Inc. (ISO) started operations as a not-for-profit advisory and rating organization.

Verisk's competitive positioning is built on several moats: its proprietary and contributory data assets, deep insurance industry expertise, long-standing industry relationships established over more than 50 years, and scale to drive broad distribution of innovation. The company encounters competition from a broad array of sources, including insurers that develop internal technology and actuarial methods for proprietary insurance programs, other statistical agents and advisory organizations, regional providers of commercial property inspections and surveys, emerging providers in the InsurTech space, specialty technology and consulting firms, and in the life insurance sector, numerous independent vendors and in-house technology departments of life insurers. In the P&C insurance claims and catastrophe modeling markets, products are offered by a number of companies. Verisk believes its P&C insurance industry expertise and ability to offer multiple applications, services, and integrated solutions to individual customers are competitive strengths.

Verisk generates revenue through agreements for hosted subscriptions, advisory/consulting services, and transactional solutions, both recurring and non-recurring. Subscriptions for solutions are generally paid in advance of rendering services either quarterly or in full upon commencement of the subscription period, which is usually for one to five years and automatically renewed each year. Approximately 83% and 81% of consolidated revenues for the years ended December 31, 2025 and 2024, respectively, were derived from hosted subscriptions through agreements for solutions . For the years ended December 31, 2025 and 2024, approximately 17% and 19% of consolidated revenues, respectively, were derived from providing transactional and advisory/consulting solutions . The company's customers include most of the P&C insurance providers in the U.S., many of the top global reinsurance companies, domestic InsurTech companies, and insurers in international markets.

The Insurance segment primarily serves P&C insurance customers across most personal and commercial lines of business, focusing on the fundamental building blocks of insurance programs, the prediction of loss, the selection and pricing of risk, and compliance with reporting requirements in each U.S. state. Underwriting solutions include forms, rules, and loss costs across 32 lines of insurance ; underwriting data and analytics solutions covering approximately 143 million residential properties and 16.3 million commercial properties in the U.S. ; catastrophe and risk solutions with models for more than 120 countries and territories ; life insurance solutions through the FAST platform; and specialty business solutions for the global specialty insurance market. Claims solutions include property estimating solutions with structural repair and cleaning database containing approximately 22,000 unit-cost line items ; anti-fraud solutions analyzing more than 1.9 billion claim records with more than 193,000 new claims submitted a day on average ; casualty solutions focusing on compliance, claims decision support, and workflow automation; and international claims solutions across the United Kingdom and Europe. Underwriting revenue was $2,179.9 million for 2025 compared to $2,024.3 million for 2024 . Claims revenue was $892.8 million for 2025 compared to $857.4 million for 2024 .

The company's solutions take various forms, including proprietary data assets, expert industry insight, statistical models, tailored analytic objects, and robust software platforms. Verisk maintains an underwriting database of more than 38.9 billion statistical records, including approximately 10.2 billion commercial lines records and approximately 28.7 billion personal lines records . The company processes approximately 2,000 regulatory filings and interfaces with state regulators in all 50 states plus the District of Columbia, Guam, Puerto Rico, and the Virgin Islands each year . Verisk has more than 250 insurance experts and specialized lawyers reviewing changes in each state's insurance rules and regulations, including an average of approximately 17,600 legislative actions, 22,000 regulatory actions, and 2,000 court decisions per year . In the homeowners line, the company maintains policy language and rules for approximately 6 basic coverages, 383 national endorsements, and 714 state-specific endorsements . The company has a staff of approximately 500 field representatives who visit approximately 300,000 commercial properties each year . Auto solutions are powered by data ranging from 2 billion traffic court records to characteristics on more than 280 million insured drivers and 288 million registered vehicles . Verisk provides evaluations of community firefighting capabilities for approximately 36,000 fire response jurisdictions .

During 2025, Verisk completed the acquisition of SuranceBay, LLC on July 17, 2025 for $163.1 million in cash, of which $2.7 million represents indemnity escrows . On April 2, 2025, the company completed the acquisition of 100 percent of the stock of Nasdaq subsidiary Simplitium Limited for a cash purchase price of $19.7 million . On December 31, 2025, Verisk sold its Verisk Marketing Solutions business to ActiveProspect, Inc. for a net cash sale price of $80.0 million, resulting in a loss of $18.4 million . The company repurchased $624.0 million of its common stock during 2025 . On February 19, 2025, the Board of Directors approved an additional share repurchase authorization of up to $1.0 billion . As of December 31, 2025, after giving effect to share repurchases, the company had $967.5 million available to repurchase shares . Cash dividends of $251.1 million were paid during 2025 . The company issued $750.0 million aggregate principal amount of 5.250% Senior Notes due 2035 on March 11, 2025 . On April 21, 2025, the company repaid the $500.0 million aggregate principal of the 4.000% Senior Notes due 2025 . On August 8, 2025, the company issued $500.0 million aggregate principal amount of 4.500% Senior Notes due 2030 and $500.0 million aggregate principal amount of 5.125% Senior Notes due 2036 . On August 15, 2025, the company entered into a $750.0 million Term Loan Facility, which was terminated in full on December 26, 2025 . The company also entered into the Third Amended and Restated Credit Agreement on August 15, 2025, increasing borrowing capacity to $1,250.0 million and extending the maturity date to August 15, 2030 .

Revenues were $3,072.7 million for the year ended December 31, 2025 compared to $2,881.7 million for the year ended December 31, 2024, an increase of $191.0 million or 6.6% . Net income attributable to Verisk was $908.3 million for 2025 compared to $958.2 million for 2024 . Diluted net income per share attributable to Verisk was $6.48 for 2025 compared to $6.71 for 2024 . EBITDA was $1,668.9 million for 2025 compared to $1,659.1 million for 2024 . EBITDA margin was 54.3% for 2025 compared to 57.6% for 2024 . Net cash provided by operating activities was $1,436.0 million for 2025 compared to $1,144.0 million for 2024 .

Business Outlook

Verisk's growth strategy includes extending its reach within insurance and elevating the strategic dialogue with clients, modernizing and advancing the capabilities of core solutions using cloud technology and advanced analytical methods including machine learning and artificial intelligence, and augmenting solutions through the addition of new data assets and sources. The company is working on building leadership positions in adjacent spaces, including life insurance, specialty business solutions, and resilience and sustainability. The company continues to expand its footprint of data and solutions to include international markets, serving insurers in Canada, the United Kingdom, Ireland, Continental Europe, Singapore, China, Australia, and New Zealand. The acquisition of SuranceBay underscores the commitment to streamlining and automating the process of buying and selling insurance and supporting a robust life and annuity ecosystem. The acquisition of Simplitium provides Verisk clients with access to over 300 third-party models, furthering expansion in Europe .

Verisk's business strategy includes driving operating efficiency and profitability through its subscription business model and ability to build solutions that serve the insurance industry at large, which helps drive core operating leverage. The company strives to deliver productivity enhancements and operating efficiency through the use of advanced technology and a global talent workforce. Management seeks to balance this with high return on capital investment in the business to continue to drive growth and profitability. Historically, Verisk's EBITDA margin has improved because the company has been able to increase revenues without a proportionate corresponding increase in expenses, though part of the corporate strategy is to invest in new solutions and new businesses, which may offset margin expansion.

Verisk's information technology systems and adoption of cloud computing are fundamental to its success. In 2023, with migration to cloud computing, the company closed its Lehi, Utah Data Center, and in 2024, closed its Somerset, New Jersey facility. The company will continue to maintain other data centers dedicated to other businesses acquired recently. As of December 31, 2025, Verisk had approximately 8,000 employees worldwide . Approximately 57% of employees are based in the United States, 11% in the United Kingdom, 11% in India, with the remainder serving in 18 other countries across the globe . The company's employee engagement score for 2025 is 80%, improving by 2% points since 2024 .

Verisk's capital allocation priorities are focused on generating strong cash flow and disciplined allocation. First, the company prioritizes organic reinvestment in the business, which can produce high internal returns. Second, the company looks for selective, strategic acquisitions that can expand data assets, augment capabilities, and expand reach within the insurance industry. Finally, the company expects to return excess capital to shareholders while maintaining a strong balance sheet. Capital expenditures for the years ended December 31, 2025, 2024, and 2023 were $244.1 million, $223.9 million, and $230.0 million, respectively . Expenditures related to developing and enhancing solutions are predominately related to internal-use software and are capitalized in accordance with ASC 350-40. On February 19, 2025, the Board of Directors approved an additional share repurchase authorization of up to $1.0 billion . As of December 31, 2025, the company had $967.5 million available to repurchase shares . Cash dividends of $0.45 per share were declared on February 19, 2025, April 30, 2025, July 23, 2025, and October 22, 2025 . Subsequent to December 31, 2025, the Board of Directors approved an increase to the share repurchase authorization to $2.5 billion in total, inclusive of the remaining authorization amount .

A significant change in the profitability of P&C insurers could affect the demand for Verisk's solutions. Per AM Best, growth of direct written premiums for P&C insurers in the U.S. has exhibited cyclical patterns, with direct premium growth slowing to 5.1% growth rate through the first nine-months of 2025 . Inflation remained above pre-pandemic levels in 2025, with the annual Consumer Price Index growth of 2.7% in December 2025, remaining above the Federal Reserve's target of 2% . Until premium pricing adjustments are fully implemented and profitability improves, some carriers are not yet spending as much as they have in the past to drive new policy volume, which could have a short-term impact on demand and volume for underwriting solutions. The trend of high catastrophe losses for insurers that began in 2020 continued in 2025, with insurance losses in those six years being more than double those of the prior six years ($483.1 billion for 2020-2025 compared to $235.1 billion for 2014-2019) . The year 2025 began with devastating wildfires in California, causing damages estimated at $38 billion .

Verisk faces structural headwinds from the cyclical nature of the U.S. P&C insurance industry, where a downturn could reduce demand for solutions. Approximately 70% of Verisk's revenue was derived from solutions provided to U.S. P&C primary insurers during the year ended December 31, 2025 . Invoices for certain solutions are linked in part to premiums in the U.S. P&C insurance market, which may rise or fall due to loss experience, capital capacity, and other factors beyond the company's control. Macroeconomic factors including inflation, interest rates, and catastrophe losses influence insurer profitability and their appetite for buying analytics. The company also faces risks from consolidation in the end customer market, which could reduce the use of services, and from the potential for insurers to insource services or analytics currently provided by Verisk.

Risk Factors

Verisk derives approximately 70% of its revenue from U.S. P&C primary insurers, making it highly vulnerable to a downturn in that industry or reduced acceptance of its solutions . The company depends on data from external sources, including customers and government agencies, and if a substantial number of data sources withdraw or materially limit data, or if the company loses access due to government regulation, its ability to provide solutions could be materially adversely affected. The company faces significant competition from various sources, including insurers developing internal methods, other statistical agents, InsurTech providers, and consulting firms, and may be unable to maintain its competitive position. Acquisitions, which are an important part of the long-term growth strategy, involve risks including failing to integrate operations, paying more than fair market value, and incurring expenses associated with amortization of intangible assets or impairment of goodwill. As of December 31, 2025, goodwill was $1,878.2 million, representing 30.3% of total assets . The company's systems are regularly subject to cyber-attacks and attempts at fraudulent access, and a security or privacy breach could deter customers, harm reputation, expose the company to liability, and increase operating expenses.

Management Priorities

Management's message emphasizes Verisk's vision to be the leading strategic data, analytics, and technology partner to the global insurance industry by delivering value to clients through knowledge, expertise, and scale. The business strategy is driven by three priorities: driving consistent and predictable growth, driving operating efficiency and profitability, and ensuring disciplined capital allocation. Management highlights that in 2025, clients included all of the top 100 P&C insurance providers in the U.S. for the lines of P&C services offered . The company's subscription business model, as well as its ability to build solutions that serve the insurance industry at large, helps drive core operating leverage. Management notes that approximately 83% of consolidated revenues for the year ended December 31, 2025 were derived from hosted subscriptions . The company is focused on modernizing and advancing the capabilities of core solutions using cloud technology and advanced analytical methods including machine learning and AI, while also augmenting solutions through the addition of new data assets and sources. Management emphasizes the company's long-standing industry relationships, with customers acquired over more than 50 years, and the embedded nature of its solutions that serve to strengthen and extend relationships.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Our Company
  2. [2] Item 7, MD&A — Revenues
  3. [3] Item 7, MD&A — Revenues
  4. [4] Item 7, MD&A — Revenues
  5. [5] Item 7, MD&A — Revenues
  6. [6] Item 1, Business — Forms, Rules, and Loss Costs
  7. [7] Item 1, Business — Underwriting Data and Analytics Solutions
  8. [8] Item 1, Business — Underwriting Data and Analytics Solutions
  9. [9] Item 1, Business — Catastrophe and Risk Solutions
  10. [10] Item 1, Business — Property Estimating Solutions
  11. [11] Item 1, Business — Anti-Fraud Solutions
  12. [12] Item 1, Business — Anti-Fraud Solutions
  13. [13] Item 7, MD&A — Consolidated Results of Continuing Operations
  14. [14] Item 7, MD&A — Consolidated Results of Continuing Operations
  15. [15] Item 7, MD&A — Consolidated Results of Continuing Operations
  16. [16] Item 7, MD&A — Consolidated Results of Continuing Operations
  17. [17] Item 1, Business — Forms, Rules, and Loss Costs
  18. [18] Item 1, Business — Forms, Rules, and Loss Costs
  19. [19] Item 1, Business — Forms, Rules, and Loss Costs
  20. [20] Item 1, Business — Forms, Rules, and Loss Costs
  21. [21] Item 1, Business — Forms, Rules, and Loss Costs
  22. [22] Item 1, Business — Forms, Rules, and Loss Costs
  23. [23] Item 1, Business — Forms, Rules, and Loss Costs
  24. [24] Item 1, Business — Forms, Rules, and Loss Costs
  25. [25] Item 1, Business — Forms, Rules, and Loss Costs
  26. [26] Item 1, Business — Forms, Rules, and Loss Costs
  27. [27] Item 1, Business — Underwriting Data and Analytics Solutions
  28. [28] Item 1, Business — Underwriting Data and Analytics Solutions
  29. [29] Item 1, Business — Underwriting Data and Analytics Solutions
  30. [30] Item 1, Business — Underwriting Data and Analytics Solutions
  31. [31] Item 1, Business — Underwriting Data and Analytics Solutions
  32. [32] Item 1, Business — Underwriting Data and Analytics Solutions
  33. [33] Item 7, MD&A — Description of Acquisitions
  34. [34] Item 7, MD&A — Description of Acquisitions
  35. [35] Item 7, MD&A — Description of Acquisitions
  36. [36] Item 7, MD&A — Description of Dispositions
  37. [37] Item 7, MD&A — Description of Dispositions
  38. [38] Item 7, MD&A — Liquidity and Capital Resources
  39. [39] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
  40. [40] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
  41. [41] Item 5, Market for Registrant's Common Equity
  42. [42] Item 8, Note 15 — Debt
  43. [43] Item 8, Note 15 — Debt
  44. [44] Item 8, Note 15 — Debt
  45. [45] Item 8, Note 15 — Debt
  46. [46] Item 7, MD&A — Financing and Financing Capacity
  47. [47] Item 7, MD&A — Financing and Financing Capacity
  48. [48] Item 7, MD&A — Consolidated Results of Continuing Operations
  49. [49] Item 7, MD&A — Consolidated Results of Continuing Operations
  50. [50] Item 7, MD&A — Consolidated Results of Continuing Operations
  51. [51] Item 8, Consolidated Statements of Operations
  52. [52] Item 8, Consolidated Statements of Operations
  53. [53] Item 8, Consolidated Statements of Operations
  54. [54] Item 8, Consolidated Statements of Operations
  55. [55] Item 7, MD&A — EBITDA Margin
  56. [56] Item 7, MD&A — EBITDA Margin
  57. [57] Item 7, MD&A — EBITDA Margin
  58. [58] Item 7, MD&A — EBITDA Margin
  59. [59] Item 7, MD&A — Cash Flow
  60. [60] Item 7, MD&A — Cash Flow
  61. [61] Item 7, MD&A — Description of Acquisitions
  62. [62] Item 1, Business — Human Capital
  63. [63] Item 1, Business — Human Capital
  64. [64] Item 1, Business — Human Capital
  65. [65] Item 1, Business — Human Capital
  66. [66] Item 1, Business — Human Capital
  67. [67] Item 7, MD&A — Liquidity and Capital Resources
  68. [68] Item 7, MD&A — Liquidity and Capital Resources
  69. [69] Item 7, MD&A — Liquidity and Capital Resources
  70. [70] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
  71. [71] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
  72. [72] Item 5, Market for Registrant's Common Equity
  73. [73] Item 5, Market for Registrant's Common Equity
  74. [74] Item 5, Market for Registrant's Common Equity
  75. [75] Item 5, Market for Registrant's Common Equity
  76. [76] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
  77. [77] Item 7, MD&A — Trends Affecting Our Business
  78. [78] Item 7, MD&A — Trends Affecting Our Business
  79. [79] Item 7, MD&A — Trends in Catastrophe and non-Catastrophe Losses
  80. [80] Item 7, MD&A — Trends in Catastrophe and non-Catastrophe Losses
  81. [81] Item 7, MD&A — Trends in Catastrophe and non-Catastrophe Losses
  82. [82] Item 1A, Risk Factors
  83. [83] Item 1A, Risk Factors
  84. [84] Item 8, Consolidated Balance Sheets
  85. [85] Item 7, MD&A — Goodwill and Intangibles
  86. [86] Item 1, Business — Our Company
  87. [87] Item 7, MD&A — Revenues
  88. [88] Item 8, Consolidated Statements of Operations
  89. [89] Item 8, Consolidated Statements of Operations
  90. [90] Item 8, Consolidated Statements of Operations
  91. [91] Item 8, Consolidated Statements of Operations
  92. [92] Item 8, Consolidated Statements of Operations
  93. [93] Item 8, Consolidated Statements of Operations
  94. [94] Item 8, Consolidated Statements of Operations
  95. [95] Item 8, Consolidated Statements of Operations
  96. [96] Item 7, MD&A — Net Income Margin
  97. [97] Item 7, MD&A — Net Income Margin
  98. [98] Item 7, MD&A — EBITDA Margin
  99. [99] Item 7, MD&A — EBITDA Margin
  100. [100] Item 7, MD&A — EBITDA Margin
  101. [101] Item 7, MD&A — EBITDA Margin
  102. [102] Item 7, MD&A — Cash Flow
  103. [103] Item 7, MD&A — Cash Flow
  104. [104] Item 7, MD&A — Cash Flow
  105. [105] Item 7, MD&A — Liquidity and Capital Resources
  106. [106] Item 8, Consolidated Balance Sheets
  107. [107] Item 8, Consolidated Balance Sheets
  108. [108] Item 7, MD&A — Financing and Financing Capacity
  109. [109] Item 7, MD&A — Financing and Financing Capacity
  110. [110] Item 8, Consolidated Statements of Operations
  111. [111] Item 8, Consolidated Statements of Operations
  112. [112] Item 7, MD&A — Provision for Income Taxes
  113. [113] Item 7, MD&A — Provision for Income Taxes
  114. [114] Item 7, MD&A — Loss on Sale of Assets, Net
  115. [115] Item 7, MD&A — Net (loss) gain on Early Extinguishment of Debt
  116. [116] Item 7, MD&A — Investment Income and Others, Net
  117. [117] Item 7, MD&A — Investment Income and Others, Net
  118. [118] Item 7, MD&A — Consolidated Results of Continuing Operations
  119. [119] Item 7, MD&A — Consolidated Results of Continuing Operations
  120. [120] Item 7, MD&A — Consolidated Results of Continuing Operations
  121. [121] Item 7, MD&A — Consolidated Results of Continuing Operations

Analysis on 6/9/2026