Verisk Analytics (VRSK) The 44th Annual William Blair Growth Stock Conference summary

Business overview and strategic focus

• Refocused exclusively on insurance after divesting non-insurance businesses, emphasizing predictable growth and strong financial performance with $2.7 billion in revenue and a 53.5% Adjusted EBITDA margin in 2023.

• Over 70% of revenue comes from underwriting solutions, 30% from claims, with 83% of business domestic and 17% international, the latter growing faster.

• Achieved a 15-year CAGR of 8.3%, consistently outpacing the broader insurance industry due to its role in enabling digital transformation and data sophistication.

• Positioned at the center of a massive $800 billion industry, providing mission-critical data, analytics, and technology platforms for underwriting, claims, and risk modeling.

• Maintains high client retention and recurring revenue due to the essential nature of its services.

Competitive advantages and market opportunity

• Originated as an industry utility, fostering trust and data sharing, which underpins its defensible and central market position.

• Leverages high operating leverage and low capital intensity to generate strong cash flow and returns on capital.

• Evolving from data and analytics provider to a data exchange/network, aiming to facilitate industry-wide communication and efficiency.

• Holds 12% and 15% market share in underwriting/rating and claims, respectively, with significant room for further penetration as industry needs grow.

• Clients seek expanded datasets, deeper insights, and greater industry connectivity, driving ongoing product and platform innovation.

Strategic initiatives and innovation

• Investing in a three-year initiative to modernize core datasets and forms, already yielding stronger client renewal rates.

• Expanding claims ecosystem and migrating extreme events modeling to a SaaS platform to enhance efficiency and client value.

• Acquired a low/no-code life insurance platform, enabling access to larger clients and supporting adjacent market growth.

• Specialty Business Solutions platform in London has gained major adoption, notably by Marsh McLennan, enhancing digital efficiency in the market.

• Integrating risk analytics across political, social, and environmental domains to provide comprehensive risk views for clients.