Verisk Analytics (VRSK) Goldman Sachs Communacopia + Technology Conference summary

Strategic focus and portfolio evolution

• Portfolio now focused exclusively on insurance, following divestitures in financial services and energy.

• Continues to evaluate acquisition opportunities but is satisfied with current positioning.

• Historical strength in U.S. P&C insurance, with ISO businesses forming about 40% of revenues.

• Recent expansion into life insurance SaaS and international markets.

• M&A targets are data or technology businesses with unique value in insurance.

Industry trends and market health

• Insurance industry faced profitability challenges in 2022 and 2023 due to high losses, especially in auto and property.

• Premium growth has been strong, averaging 8%-10% from 2022 through 2024, creating a "hard market."

• Carriers are achieving better rate adequacy in 2024 but remain concerned about social inflation and litigation costs.

Revenue and growth drivers

• Organic revenue growth guidance remains at 6%-8%, consistent with long-term performance.

• Subscription revenue growth benefits from premium growth, with about 20%-25% of revenue contractually linked to net written premiums two years prior.

• Core Lines Reimagine program is a five-year investment to enhance data delivery and customer efficiency, now two years in.