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VRSK · Verisk Analytics

17 filings

10-K

VRSK 10-K Annual Reports

Verisk Analytics - 17 annual reports

Filing record · 2016–202610-K1110-Q328-K115

2025
Verisk Analytics Annual Report, Year Ended Dec 31, 2025
Verisk Analytics, Inc. reported revenues of $3,072.7 million for 2025, up from $2,881.7 million in 2024, an increase of $191.0 million or 6.6%. Underwriting revenue rose $155.6 million or 7.7%, and claims revenue rose $35.4 million or 4.1%. Operating income was $1,343.9 million versus $1,253.9 million in 2024, and net income was $908.3 million compared with $957.5 million, reflecting a loss on the sale of Verisk Marketing Solutions, a $15.0 million early-extinguishment loss, and lower investment income. EBITDA was $1,668.9 million, with an EBITDA margin of 54.3% compared with 57.6% a year earlier. Net cash provided by operating activities rose to $1,436.0 million from $1,144.0 million, a 25.5% increase. The company's balance sheet changed materially in 2025. Total debt, excluding finance leases and issuance costs, increased to $4,750.0 million from $3,050.0 million, and cash and cash equivalents reached $2,178.2 million, largely from senior note issuances that were earmarked for the terminated AccuLynx acquisition. The $1,500.0 million of 2030 and 2036 Senior Notes were redeemed in full on January 6, 2026. Share repurchases totaled $624.0 million in 2025, and dividends paid were $251.1 million. Following year-end, the Board approved a $0.50 quarterly dividend per share and raised the repurchase authorization to $2.5 billion in total. The filing also discloses significant legal exposure. Telematics-related class actions are consolidated in a multidistrict litigation, and AccuLynx has filed counterclaims after Verisk terminated its merger agreement, seeking specific performance or monetary damages. The company states it cannot reasonably estimate liability for these matters, which are at early stages. Approximately 70% of 2025 revenue came from U.S. P&C primary insurers, a concentration the filing identifies as a key risk.
Feb 18, 2026
2024
Verisk Analytics Annual Report, Year Ended Dec 31, 2024
Verisk Analytics, Inc. reported full-year 2024 revenues of $2,881.7 million, up from $2,681.4 million in 2023, an increase of $200.3 million or 7.5%. Underwriting revenue rose 7.0% to $2,024.3 million and claims revenue rose 8.7% to $857.4 million. Net income attributable to Verisk was $958.2 million, compared with $614.6 million in 2023, and EBITDA was $1,659.1 million, a 57.6% EBITDA margin versus 53.1% a year earlier. The 2023 result was weighed down by a $154.0 million loss from discontinued operations, tied to the sale of the Energy business, and by a $38.2 million litigation reserve; the 2024 results also include a $95.7 million investment gain. Capital deployment was significant in 2024. The company repurchased $1,005.0 million of common stock, paid dividends of $221.3 million, and issued $600.0 million of 5.25% senior notes due 2034 to partly fund a tender for $400.0 million of its 2025 notes. Total debt was $3,050.0 million in senior notes at year-end, against cash and cash equivalents of $291.2 million. Management reports $591.5 million remaining under its repurchase program, and in February 2025 the Board approved a $0.45 quarterly dividend and an additional $1.0 billion repurchase authorization. The filing describes the company as a data, analytics and technology provider serving the insurance industry, with about 70% of 2024 revenue from U.S. P&C primary insurers. Management highlights the trend of elevated catastrophe losses, the 2024 hurricane season, and the ongoing modernization of its core solutions, including the "Reimagine" program and cloud migration. Risk disclosures include a telematics-related putative class action litigation that is still at an early stage and cannot be reasonably estimated.
Feb 26, 2025
2023
Verisk Analytics Annual Report, Year Ended Dec 31, 2023
Verisk Analytics, Inc. (NASDAQ: VRSK) reported 2023 revenues of $2,681.4 million, up from $2,497.0 million in 2022, an increase of $184.4 million or 7.4%. Revenue growth came from the Insurance segment, which the company now reports as its only segment following the February 1, 2023 sale of its Energy business to Veritas Capital for a net cash sale price of $3,066.4 million. Net income attributable to Verisk was $614.6 million in 2023 compared with $953.9 million in 2022, a decline driven mainly by the prior-year gains on dispositions and a $38.2 million litigation reserve expense tied to an indemnification of an inquiry related to the former Financial Services segment. EBITDA margin was 53.1% in 2023 versus 65.7% in 2022. Cash flow remained strong, with net cash provided by operating activities of $1,060.7 million. The company returned substantial capital to shareholders: it repurchased $2,762.3 million of common stock and paid $196.8 million in dividends during 2023. Total debt, excluding finance leases, fell to $2,850.0 million from $3,740.0 million at year-end 2022, as the company repaid revolving and bilateral credit facility borrowings and issued $500.0 million of 5.75% senior notes due 2033. As of December 31, 2023, $641.5 million remained available under the repurchase authorization. Subsequent to year-end, the Board approved a $0.39 per share quarterly dividend and an additional $1,000.0 million share repurchase authorization. The company also noted several risks, including a large share of revenue from U.S. P&C primary insurers (approximately 69% of 2023 revenue), exposure to generative AI and cybersecurity threats, and pending litigation, including a Daniel's Law claim and a data privacy suit. Management reported that its internal control over financial reporting was effective as of December 31, 2023, with Deloitte & Touche LLP providing an unqualified opinion.
Feb 21, 2024
2022
Verisk Analytics Annual Report, Year Ended Dec 31, 2022
Verisk Analytics, Inc. (NASDAQ: VRSK) reported 2022 revenues of $2,497.0 million, up from $2,462.5 million in 2021, and an increase of $34.5 million or 1.4%. Growth in the Insurance segment was driven by underwriting & rating and claims, with Insurance revenues rising $230.1 million or 10.4% to $2,437.0 million. Net income was $954.3 million, compared with $666.3 million in 2021, and was boosted by gains on the sales of its environmental health and safety business and Financial Services segment. Income from continuing operations was $1,042.1 million, and EBITDA was $1,639.8 million, a 65.7% margin, which the company notes was positively affected by those gains. The company agreed to sell its Energy business to Veritas Capital for $3,100.0 million, plus up to $200 million of contingent consideration, and the sale closed on February 1, 2023. Energy results are presented as discontinued operations, and the company recorded a $303.7 million impairment on that business in 2022. Cash from operations was $1,059.0 million, and the company repurchased $1,662.5 million of common stock during 2022. Total debt was $3,740.0 million at December 31, 2022, against a cash balance of $112.5 million on the balance sheet. The filing also highlights ongoing legal matters, including an ERISA class action and privacy-related lawsuits involving Jornaya, and an inquiry by the DOJ and SEC related to the former Financial Services segment. The company reports that it cannot reasonably estimate liability for these matters at this stage. Post-period, it agreed to acquire Mavera for $29.3 million net cash.
Feb 28, 2023
2021
Verisk Analytics Annual Report, Year Ended Dec 31, 2021
Verisk Analytics, Inc. reported 2021 revenues of $2,998.6 million, up from $2,784.6 million in 2020, and net income of $666.3 million, compared with $712.7 million in 2020. Operating income was $1,000.5 million, and cash provided by operating activities was $1,155.7 million. Results were weighed down by a $134.0 million long-lived asset impairment in the Financial Services reporting unit, which pushed the Financial Services segment to an EBITDA loss of $111.0 million. The Insurance segment remained the largest contributor, with revenues of $2,206.9 million, up from $2,008.7 million, and EBITDA of $1,265.7 million. Energy and Specialized Markets revenues rose to $648.9 million from $619.2 million. The company disclosed a series of portfolio moves after year-end. On January 21, 2022, it agreed to sell its environmental health and safety business, 3E Company, for up to $950.0 million, including $630.0 million in cash at closing. On February 21, 2022, it agreed to sell its financial services business to TransUnion for $515.0 million in cash. It also completed the $223.5 million cash acquisition of Infutor Data Solutions on February 11, 2022, and its board approved an additional $1.0 billion share repurchase authorization. The balance sheet shows total debt of $3,314.1 million, with senior notes of $2,700.0 million in aggregate principal, and goodwill of $4,331.2 million representing 55.5% of total assets. Capital returns in 2021 included $475.0 million of share repurchases and $188.2 million of dividends. Management reported that COVID-19 had not caused a material impact on approximately 85% of revenues, which are largely subscription-based.
Feb 22, 2022
2020
Verisk Analytics Annual Report, Year Ended Dec 31, 2020
Verisk Analytics, Inc. reported revenues of $2,784.6 million and net income of $712.7 million for the year ended December 31, 2020, up from $2,607.1 million in revenues and $449.9 million in net income in 2019. Revenues grew 6.8% for the year, or 3.4% excluding recent acquisitions, businesses held for sale and dispositions. Operating income rose to $1,038.1 million from $696.9 million, and EBITDA reached $1,393.8 million, with an EBITDA margin of 50.1% versus 39.1% in 2019. The prior-year results included a $125.0 million litigation reserve for the Xactware patent case, and management attributes the margin improvement mainly to the absence of that reserve, lower acquisition-related earn-out costs, gains on dispositions, reduced travel expenses during COVID-19 and cost discipline. The Insurance segment generated $1,986.3 million of revenue (approximately 71% of the total), with underwriting & rating up 10.9% and claims down 2.5%. Energy and Specialized Markets revenue rose 13.8% to $641.6 million, largely due to recent acquisitions, while Financial Services declined 12.0% to $156.7 million. Operating cash flow was $1,068.2 million, and capital expenditures were $246.8 million. Total debt was $3,213.9 million at year-end, and the company returned capital through $348.8 million of share repurchases and $175.8 million of dividends paid. The filing discloses material legal exposure. In the Xactware patent litigation, the court on February 16, 2021 trebled a $125.0 million jury award to $375.0 million plus interest and partial attorneys' fees. The company has recorded a $125.0 million reserve and its appeal to the Federal Circuit remains pending, so the ultimate outcome is not determinable. Several other class actions were also disclosed, for which the company states it cannot reasonably estimate liability.
Feb 23, 2021
2019
Verisk Analytics Annual Report, Year Ended Dec 31, 2019
Verisk Analytics, Inc. (VRSK) reported 2019 revenues of $2,607.1 million, up from $2,395.1 million in 2018, an increase of $212.0 million or 8.9%. Net income declined to $449.9 million from $598.7 million, reflecting a $125.0 million litigation reserve tied to the Xactware Solutions patent litigation, higher acquisition-related earn-out costs ($71.1 million increase in SG&A), and a higher effective tax rate of 20.9% versus 16.8%. Diluted EPS was $2.70 versus $3.56. EBITDA was $1,018.9 million versus $1,145.5 million, with EBITDA margin of 39.1% versus 47.8%. The company operates three segments: Insurance (71% of revenues), Energy and Specialized Markets (22%), and Financial Services (7%). Insurance revenues rose 8.8% to $1,855.5 million, Energy and Specialized Markets rose 11.7% to $573.6 million, and Financial Services rose 1.2% to $178.0 million. Roughly 81% of 2019 revenues came from annual subscriptions or long-term agreements, typically prepaid. Net cash provided by operating activities was $956.3 million, while capital expenditures were $216.8 million and acquisitions totaled $703.7 million. Total debt rose to $3,151.0 million from $2,723.3 million. The filing also highlights ongoing legal exposure: the $125.0 million Eagle View patent verdict is under appeal, with a permanent injunction on certain Geomni and Xactimate products, and a 360Value antitrust class action remains pending. Management also announced a $500.0 million additional share repurchase authorization and a quarterly dividend of $0.27 per share, both approved February 12, 2020.
Feb 18, 2020
2018
Verisk Analytics Annual Report, Year Ended Dec 31, 2018
Verisk Analytics, Inc. (VRSK) reported full-year 2018 revenues of $2,395.1 million, up from $2,145.2 million in 2017, an increase of $249.9 million or 11.6%. Net income was $598.7 million, compared with $555.1 million in 2017, and diluted EPS was $3.56 versus $3.29. Operating income rose to $834.1 million from $801.2 million. Excluding recent acquisitions, revenue grew 6.5%. The company describes its business as a data analytics provider serving insurance (71% of 2018 revenue), energy and specialized markets (22%), and financial services (7%). Over 80% of revenues came from annual subscriptions or long-term agreements that are typically prepaid. Cash flow strengthened, with net cash provided by operating activities of $934.4 million, up from $743.5 million. Capital expenditures were $231.0 million, and the company repurchased $438.6 million of common stock during 2018. Total debt declined to $2,723.3 million from $3,008.8 million, and stockholders' equity rose to $2,070.6 million. EBITDA was $1,145.5 million, a 47.8% consolidated margin. In January 2019 the company repaid $250.0 million of 4.875% senior notes, and its board declared a $0.25 per share cash dividend on February 13, 2019. The filing also highlights ongoing risks, including the dependence of about 47% of revenue on U.S. P&C primary insurers, exposure to Wood Mackenzie's energy-sector demand and pound sterling, and pending litigation including the Eagle View/Pictometry patent case and the 360Value antitrust suit, for which the company states it cannot estimate the outcome.
Feb 19, 2019
2017
Verisk Analytics Annual Report, Year Ended Dec 31, 2017
Verisk Analytics, Inc. (NASDAQ: VRSK) reported 2017 revenues of $2,145.2 million, up from $1,995.2 million in 2016, and net income of $555.1 million, compared with $591.2 million in 2016 (which included discontinued operations). Continuing-operations income was $555.1 million versus $451.5 million in 2016. Growth was driven by both organic gains and acquisitions: excluding recent acquisitions, revenue grew $88.7 million or 4.5%. The company operates two segments, Decision Analytics (revenues of $1,374.9 million) and Risk Assessment ($770.3 million). EBITDA was $1,047.8 million in 2017 versus $1,251.3 million in 2016, a decline that the filing attributes largely to the 2016 gain on the sale of the healthcare business, Verisk Health. Cash generation strengthened, with net cash from operating activities of $743.5 million versus $577.5 million in 2016. The company spent $914.9 million on acquisitions in 2017, including PowerAdvocate, Sequel, G2 and LCI. Total debt rose to $3,008.8 million from $2,387.0 million, and the 2017 Tax Act reduced the effective tax rate to 19.7% from 30.9%. Management's 2018 capital expenditure estimate is approximately $230.0 million. The filing also flags risks including reliance on external data sources, cybersecurity and privacy exposure, dependence on U.S. P&C insurers (48.9% of 2017 revenue), acquisition integration, Brexit and currency exposure tied to Wood Mackenzie, and ongoing antitrust class actions related to insurer claims payment practices, for which the company cannot estimate a range of loss.
Feb 20, 2018
2016
Verisk Analytics Annual Report, Year Ended Dec 31, 2016
Verisk Analytics, Inc. (VRSK) reported 2016 revenues of $1,995.2 million, up from $1,760.7 million in 2015, and net income of $591.2 million, compared with $507.6 million in 2015. The company describes itself as a leading data analytics provider serving insurance, natural resources and financial services, with two segments: Risk Assessment ($724.3 million of 2016 revenue) and Decision Analytics ($1,270.9 million). Subscriptions and long-term agreements represented over 80% of 2016 revenues, and the company cites a five-year revenue CAGR of 13.9%. Growth was helped by acquisitions, most notably Wood Mackenzie, which contributed $151.0 million of 2016 revenue alongside other recent acquisitions. Excluding recent acquisitions, revenue growth was $83.5 million, or 4.9%. The balance sheet shows total assets of $4,631.2 million, down from $5,593.7 million, after the June 2016 sale of the healthcare business, Verisk Health, for $714.6 million in cash plus a $100.0 million subordinated note. Total debt fell to $2,387.0 million from $3,145.7 million, and stockholders' equity was $1,332.4 million. The company repurchased $326.8 million of stock in 2016 and had $636.0 million remaining under its repurchase authorization at year-end. Net cash from operating activities was $546.1 million, down from $623.7 million, mainly due to $99.9 million of additional income tax payments tied to the healthcare sale. The filing also discloses multiple pending class actions and patent litigation, including FCRA claims against Intellicorp Records, the Eagle View/Pictometry patent suit, and antitrust suits against ISO. The company states it cannot currently estimate potential liability for the ongoing matters. Management also expects 2017 capital expenditures of approximately $160.0 million.
Feb 21, 2017
2015
Verisk Analytics Annual Report, Year Ended Dec 31, 2015
Verisk Analytics, Inc. (NASDAQ: VRSK) reported revenues of $2,068.0 million and net income of $507.6 million for the year ended December 31, 2015, up from $1,746.7 million of revenues and $400.0 million of net income in 2014. Revenue growth was driven largely by the May 2015 acquisition of Wood Mackenzie; the company stated that recent acquisitions added $219.6 million of revenue in 2015, and that excluding them revenues increased $101.7 million, or 5.8%. The company operates two segments: Risk Assessment (33.3% of 2015 revenues, serving U.S. P&C insurers with industry-standard insurance programs and property-specific rating information) and Decision Analytics (66.7% of revenues, spanning insurance, financial services, healthcare, and energy and specialized markets). Approximately 75% of 2015 revenues came from annual subscriptions or long-term agreements, which are typically prepaid. The Wood Mackenzie acquisition, net cash purchase price of $2,889.6 million, was financed largely with debt and equity. Total debt rose to $3,168.0 million at December 31, 2015, from $1,436.9 million a year earlier, and the filing states the leverage ratio (debt to EBITDA) increased from 1.57x at March 31, 2015 to 2.89x. Operating cash flow was $623.7 million, capital expenditures were $166.1 million, and the company repurchased $20.5 million of stock in 2015 versus $778.5 million in 2014. The company said it had no dividends and does not intend to pay them. The filing also discloses several pending lawsuits, including Fair Credit Reporting Act class actions against subsidiary Intellicorp Records, a patent infringement suit by Eagle View and Pictometry, and antitrust and consumer class actions involving Insurance Services Office, Inc. For these, the company states it cannot determine the ultimate resolution or estimate the liability. For investors, the key points are the step-up in scale from the Wood Mackenzie acquisition, the higher leverage it created, and the litigation exposure. The filing also notes that the company is exploring strategic alternatives for its Healthcare business, with no assurance of any transaction.
Feb 24, 2016
2014
Verisk Analytics Annual Report, Year Ended Dec 31, 2014
Verisk Analytics, Inc. reported 2014 revenues of $1,746.7 million, up from $1,595.7 million in 2013, and net income of $400.0 million, compared with $348.4 million in 2013. Revenues grew 9.5% year over year, with Decision Analytics revenue rising 12.1% to $1,096.1 million and Risk Assessment revenue rising 5.2% to $650.7 million. Annual subscriptions and long-term agreements, typically prepaid, represented approximately 72.3% of 2014 revenues. Diluted EPS was $2.37 versus $2.02 in 2013. EBITDA reached $858.6 million, and the consolidated EBITDA margin was 48.8%, versus 44.6% in 2013. The company sold its mortgage services business, Interthinx, on March 11, 2014 for $151.2 million, and that sale is reported as a discontinued operation. Capital allocation was a major focus in 2014. Verisk repurchased $675.4 million of treasury stock during the year, and an additional $500.0 million accelerated share repurchase (ASR) was announced in December 2014, with about $400.0 million paid and delivered at settlement. Total stockholders' equity fell to $211.0 million at year-end 2014 from $547.6 million, reflecting repurchases and a higher accumulated pension-related comprehensive loss. Total debt, including capital leases, rose to $1,436.9 million, and the company drew $160.0 million on its revolving credit facility. The company also ended its pursuit of Eagleview Technology Corporation (EVT) in December 2014 after the FTC voted to challenge the transaction. The filing identifies several risks: dependence on U.S. P&C primary insurers, which accounted for approximately 49.1% of 2014 revenue; reliance on data from external suppliers and customers; and pending litigation, including Mariah Re, MediConnect, ISO pension and Snyder antitrust matters, for which the company states it cannot determine the outcome or estimate liability. The Shaw, Dehdashtian and Nagl wage matters were settled for $6.0 million, mostly covered by insurance.
Feb 24, 2015
2013
Verisk Analytics Annual Report, Year Ended Dec 31, 2013
Verisk Analytics, Inc. (VRSK) reported 2013 revenues of $1,595.7 million, up from $1,407.8 million in 2012, and net income of $348.4 million, compared with $329.1 million in 2012. Operating income was $614.3 million. The company describes itself as a provider of information about risk to professionals in insurance, healthcare, financial services, government, supply chain and risk management. Approximately 73.6% of 2013 revenues came from annual subscriptions or long-term agreements, and the company reports a five-year revenue CAGR of 15.1%. Its two segments are Risk Assessment, with revenues of $618.3 million, and Decision Analytics, with revenues of $977.4 million. Decision Analytics accounted for approximately 61.3% of revenues. The filing describes two pending transactions. In January 2014 Verisk agreed to acquire Eagleview Technology Corporation for a net cash price of $650 million, expected to close by July 2014 and funded from operating cash and credit facility borrowings. In February 2014 it agreed to sell its mortgage services business, Interthinx, for $155.0 million, expected to close by March 31, 2014. Interthinx is reported as a discontinued operation. Management states that the EVT acquisition would raise total debt to approximately $1,756 million and leverage from 1.60 to approximately 2.15. Cash flow from operations was $506.9 million in 2013. The company repurchased $278.9 million of stock during 2013, and $165.3 million remained available under its $1.2 billion repurchase program at year-end. Total debt was $1,275.9 million at December 31, 2013, and stockholders' equity was $547.6 million. Several putative class actions and other suits are pending, including Fair Credit Reporting Act litigation settled for $18.6 million, all to be funded by insurance. The company states it cannot currently determine the outcome or estimate the liability for the other matters.
Feb 25, 2014
2012
Verisk Analytics Annual Report, Year Ended Dec 31, 2012
Verisk Analytics, Inc. (NASDAQ: VRSK) reported revenues of $1,534.3 million for 2012, up from $1,331.8 million in 2011, and net income of $329.1 million, compared with $282.8 million in 2011. Revenue growth was driven by the Decision Analytics segment, which grew to $954.8 million (62.2% of revenues), while the Risk Assessment segment rose to $579.5 million (37.8% of revenues). Recent acquisitions contributed $105.1 million of the revenue increase. Subscriptions and long-term agreements made up approximately 67.2% of 2012 revenues, and the company describes a business that generates strong recurring revenue and cash flow, with operating cash flow of $468.2 million. The balance sheet shows total debt rising to $1,461.4 million at December 31, 2012, from $1,105.886 million a year earlier, largely to fund acquisitions including Argus (approximately $405.0 million net cash price) and MediConnect (approximately $331.4 million). Stockholders' equity turned positive at $255.6 million from a deficit of $98.5 million in 2011. The company leverage ratio was 2.11x at year end, and it repurchased $162.6 million of stock in 2012 with $144.2 million remaining under its $900.0 million repurchase program. The company does not pay cash dividends. Investors should weigh the company's strong margins and growth against its higher leverage and litigation exposure. The filing notes pending Fair Credit Reporting Act class actions involving Intellicorp and iiX, for which the company states it cannot currently determine the ultimate resolution or estimate liability. Dependence on U.S. P&C insurers (about 48.3% of revenue) and on a small number of mortgage customers are also highlighted as risks.
Feb 26, 2013
2011
Verisk Analytics Annual Report, Year Ended Dec 31, 2011
Verisk Analytics, Inc. (NASDAQ: VRSK) reported revenues of $1,331.8 million and net income of $282.8 million for the year ended December 31, 2011, compared with revenues of $1,138.3 million and net income of $242.6 million in 2010. Revenue grew 17.0% year over year, with Decision Analytics revenues rising 28.9% to $768.5 million (including $106.9 million from recent acquisitions) and Risk Assessment revenues rising 3.9% to $563.4 million. EBITDA reached $592.0 million, with an EBITDA margin of 44.4% versus 44.7% in 2010. Diluted EPS was $1.63 compared with $1.30 in 2010. The company's balance sheet shows total assets of $1,541.1 million, total debt of $1,105.9 million, and a stockholders' deficit of $98.5 million, which reflects $380.7 million of share repurchases in 2011. Cash and cash equivalents rose to $191.6 million from $55.0 million. Operating cash flow was $375.7 million. In 2011 the company issued $450.0 million of 5.800% senior notes due 2021 and $250.0 million of 4.875% senior notes due 2019, and repaid $295.0 million and $145.0 million of its revolving credit facility borrowings. The revolver had $725.0 million of capacity and no outstanding borrowings at year-end. Management highlighted a planned hard freeze of the pension plans effective February 29, 2012, and a possible voluntary pension prefunding of $70.0 million to $90.0 million in 2012. The board also authorized an additional $300.0 million of share repurchases on January 11, 2012, raising total repurchase capacity to $900.0 million. Key risks disclosed include dependence on U.S. P&C insurers (about 52.0% of 2011 revenue), antitrust-related litigation tied to the insurer relationships, and the mortgage market's effect on the mortgage vertical (about 10.0% of revenue).
Feb 28, 2012
2010
Verisk Analytics Annual Report, Year Ended Dec 31, 2010
Verisk Analytics, Inc. enables risk-bearing businesses to better understand and manage their risks by supplying proprietary data combined with analytic methods. For the year ended December 31, 2010, revenues were $1,138.3 million, up from $1,027.1 million in 2009, and net income was $242.6 million, compared with $126.6 million in 2009. Operating income was $440.9 million versus $302.0 million a year earlier, and EBITDA was $508.5 million versus $373.2 million. The filing states that approximately 70.0% of 2010 revenues came from annual subscriptions or long-term agreements, which are typically pre-paid, and that the company operates in two segments: Risk Assessment ($542.1 million in revenue) and Decision Analytics ($596.2 million in revenue). The company's Decision Analytics segment drove much of the growth. Its fraud identification and detection solutions revenue rose 17.5%, loss prediction solutions rose 15.4%, and loss quantification solutions rose 26.2%. Cash flow from operations was $336.0 million in 2010. The company repurchased $422.3 million of treasury stock during 2010, funded in part by $839.5 million of total debt, and it ended the year with a stockholders' deficit of $114.4 million. Total debt increased from $594.2 million at December 31, 2009. The filing also discloses material legal matters, including the Hensley Claims Outcome Advisor litigation, Xactware class actions in Louisiana, DPPA class actions involving subsidiary iiX, and a wage-and-hour class action at Interthinx. Management states it cannot determine the ultimate outcome or estimate the liability for these matters. Class B common stock held by insurer customers carries the right to elect up to three of eleven directors, and Class B-1 and B-2 shares convert to Class A on April 6, 2011 and October 6, 2011, respectively.
Feb 28, 2011
2009
Verisk Analytics Annual Report, Year Ended Dec 31, 2009
Verisk Analytics, Inc. (NASDAQ: VRSK) reported 2009 revenues of $1,027.1 million, up from $893.6 million in 2008, and net income of $126.6 million, down from $158.2 million. The results include a one-time, non-cash charge of $57.7 million for the accelerated Employee Stock Ownership Plan (ESOP) allocation made in connection with the company's initial public offering, which was completed on October 9, 2009 at $22.00 per share. Verisk describes itself as the largest aggregator and provider of detailed actuarial and underwriting data for U.S. property and casualty insurance risks, and it reports two segments: Risk Assessment (revenues of $524.0 million, up 3.9%) and Decision Analytics (revenues of $503.1 million, up 29.3%), with the latter driven largely by fraud detection and forensic audit services for the mortgage industry. Revenue from subscriptions and long-term agreements was a substantial share of the business, with 71.0% of 2009 revenues described as pre-paid. Operating income was $302.0 million and EBITDA was $373.2 million, or a 36.3% EBITDA margin, compared with 42.0% in 2008. Balance sheet and capital structure changed materially with the reorganization. Stockholders' deficit improved to $(34.9) million from $(1,009.8) million, after the reversal of $1,064.9 million of redeemable common stock. Total debt was $594.2 million at year-end 2009, down from $669.8 million, and cash and cash equivalents rose to $71.5 million. The company states it has no plans to pay dividends and has no public share repurchase program. Litigation includes several putative class actions tied to Xactware and iiX, as well as a Hanover indemnification demand of $2.5 million, and management states it cannot yet determine ultimate outcomes for most of these matters. For investors, the key drivers are the strength of recurring subscription revenue, growth in the Decision Analytics segment, the margin pressure from the IPO-related ESOP charge and higher pension costs, and the rise in interest expense to $35.3 million. The filing also notes a $420.0 million committed syndicated revolving credit facility and a 52.2% effective tax rate for 2009, which was elevated by non-deductible IPO-related costs.
Mar 9, 2010