Core Insights - Verisk estimates insured industry losses from Winter Storm Fern could reach USD 4 billion, primarily driven by freeze impacts, with additional losses from wind and snow [1] - The storm affected multiple regions, including the Midwest, Northeast, South, Tennessee Valley, and Mid-Atlantic, from January 23 to 26, bringing freezing rain, heavy snow, and severe thunderstorms [2] Loss Modeling - Early results from Verisk's updated U.S. Winter Storm Model indicate that 14 states may each exceed USD 50 million in insured losses, potentially making Fern the third costliest U.S. winter storm on record [3] - The storm's intensity was attributed to the collision of warm, moist subtropical air with extremely cold Arctic air, complicating loss estimation due to varied regional impacts and ongoing power outages [4] Model Enhancements - The updated U.S. Winter Storm Model, scheduled for release in June 2026, includes enhancements that improve the simulation of storms like Fern and better capture primary loss drivers [4][8] - The model explicitly accounts for the impacts of freezing rain and the vulnerability of U.S. power interconnections, which can lead to outages and subsequent damage [8] Ongoing Monitoring - Verisk continues to monitor the impacts of Winter Storm Fern and may provide additional information as it becomes available [5]

Core Viewpoint - Verisk will report its financial results for Q4 and the fiscal year ending December 31, 2025, on February 18, 2026, before market opening [1] Group 1: Financial Reporting - The financial results will be available on Verisk's investor website [1] - A live audio webcast to discuss the financial results and business highlights will take place on February 18 at 8:30 a.m. ET [2] - A replay of the webcast will be accessible for 30 days on the investor website [3] Group 2: Company Overview - Verisk is a leading strategic data analytics and technology partner for the global insurance industry [4] - The company focuses on enhancing operating efficiency, improving underwriting and claims outcomes, and addressing global risks [4] - Verisk operates in over 20 countries and is recognized for its inclusive workplace culture [4]

Company Overview - Verisk Analytics, Inc. (VRSK) is based in Jersey City, New Jersey, and specializes in data analytics and technology solutions for the insurance markets, with a market cap of $30.7 billion [1] - The company provides a range of services including data, statistical, and actuarial services, as well as standardized insurance policy programs and underwriting information [1] Earnings Expectations - Analysts anticipate VRSK will report a profit of $1.58 per share on a diluted basis for the fiscal fourth quarter of 2025, reflecting a decrease of 1.9% from $1.61 per share in the same quarter last year [2] - For the full fiscal year, analysts expect VRSK to report an EPS of $6.92, which is an increase of 4.2% from $6.64 in fiscal 2024, and a further rise to $7.65 in fiscal 2026, representing a year-over-year increase of 10.6% [3] Stock Performance - VRSK stock has underperformed the S&P 500 Index, which gained 13.3% over the past 52 weeks, with VRSK shares down 21.6% during the same period [4] - The stock also lagged behind the Industrial Select Sector SPDR Fund, which saw an 18.7% increase [4] Revenue Guidance and Market Conditions - The company's underperformance is attributed to low severe weather and the absence of U.S. landfalling hurricanes, which have reduced claims activity and demand for property claims estimating tools [5] - VRSK has lowered its 2025 revenue guidance due to mild weather conditions and a reduction in government contracts, alongside challenges in the Personal Lines Auto segment due to competition [5] Recent Financial Results - On October 29, 2025, VRSK shares fell over 10% after reporting Q3 results, with an adjusted EPS of $1.72, which exceeded Wall Street expectations of $1.69, but revenue of $768.3 million fell short of forecasts of $774.7 million [6] - The company expects full-year revenue to be in the range of $3.05 billion to $3.08 billion [6] Analyst Ratings - The consensus opinion on VRSK stock is moderately bullish, with a "Moderate Buy" rating overall; among 19 analysts, seven recommend a "Strong Buy," two suggest a "Moderate Buy," nine give a "Hold," and one recommends a "Strong Sell" [7] - The average analyst price target for VRSK is $256.35, indicating a potential upside of 17.3% from current levels [7]

Core Insights - Many survivors of the Los Angeles wildfires are facing inadequate insurance payouts for rebuilding, highlighting a systemic issue of underinsurance in American homes since the 1990s [1][4] - Climate change is exacerbating the problem of underinsurance, as it leads to more frequent and severe wildfires, revealing the inadequacies of existing insurance policies [2][3] Insurance Coverage Issues - A significant number of homeowners are underinsured, with studies indicating that two-thirds of American homeowners lack sufficient coverage for wildfires, typically by about 20% to 60% [5][6] - The shift from guaranteed replacement cost coverage to replacement-cost-value coverage has left many homeowners vulnerable, as the latter sets an upper limit on payouts [7][8] Rising Costs and Market Dynamics - Rising construction costs and natural disasters have made it challenging for insurers to align dwelling coverage with actual replacement costs, particularly after catastrophic events [6][8] - The use of third-party estimator tools by insurers has been criticized for often underestimating rebuilding costs, which helps keep premiums low but may leave homeowners inadequately covered [8][10] Legislative and Regulatory Responses - Advocacy groups are pushing for reforms, including the introduction of guaranteed replacement cost policies, to ensure homeowners are fully covered for rebuilding after disasters [11][12] - Some state regulators express concerns that mandating guaranteed replacement cost coverage could destabilize the insurance market and exacerbate affordability issues [13][14] Economic Factors Influencing Insurance - Home insurance prices are rising due to inflation, increased development, and climate change-related disasters, leading homeowners to either reduce coverage or accept higher deductibles [14][15] - There are suggestions for insurers to provide credits for homeowners who take steps to mitigate wildfire risks as a way to help reduce insurance costs [15]

Core Insights - Verisk Analytics, Inc. (VRSK) recently experienced a significant share price decline of one-third, prompting a detailed examination of the underlying reasons for this drop [1]. Company Overview - The company is focused on maintaining a long-term investment horizon, typically ranging from 5 to 10 years, and emphasizes a portfolio strategy that includes a mix of growth, value, and dividend-paying stocks, with a particular focus on value investments [1].

Core Insights - Verisk Analytics (VRSK) shares have increased by 3.1% over the past month, outperforming the industry's growth of 1.9% [1][8] - The company has a Growth Score of B, with earnings expected to rise by 4.2% in 2025 and 10.1% in 2026, while revenues are projected to grow by 6.4% in 2025 and 8.1% in 2026 [1] Revenue Growth Drivers - VRSK's revenue growth is primarily driven by its Underwriting & Rating division, with the Claims division as a secondary contributor [2] - The transition from a transaction-based model to a subscription-based model is enhancing overall business growth, supported by rising demand for Software-as-a-Service (SaaS) products [2] Technological Innovations - The introduction of the Claims Coverage Identifier tool is improving data accuracy and decision-making, attracting new customers and encouraging existing customers to adopt subscription-based solutions [3] - The launch of the Commercial GenAI Underwriting Assistant and XactA, both AI-powered tools, is modernizing underwriting and claims handling processes, thereby supporting innovative growth and market share expansion [5] Strategic Acquisitions - VRSK's growth strategy includes significant investments in global companies to enhance data and analytical capabilities, exemplified by the recent agreement to acquire SuranceBay, which will expand its Life & Annuity offerings [4][8]

Core Insights - Verisk has sold Verisk Marketing Solutions (VMS) to ActiveProspect, reinforcing its focus on the global insurance industry and capital allocation discipline [1][3][4] Group 1: Transaction Overview - The sale of VMS aligns with Verisk's strategic focus on serving the global insurance industry and positions VMS for long-term growth and product development [3] - ActiveProspect acquired VMS to enhance its software platform with advanced data capabilities, particularly in Identity Resolution and Marketing Intelligence [4][5] Group 2: Company Profiles - Verisk is a leading strategic data analytics and technology partner for the global insurance industry, helping clients improve operational efficiency and make informed decisions on global risks [6] - ActiveProspect specializes in consent-based marketing, providing a platform that streamlines lead buying and selling while ensuring compliance with TCPA regulations [7]

Group 1 - Verisk has terminated its planned $2.35 billion acquisition of AccuLynx due to a delay in regulatory review by the U.S. Federal Trade Commission [1][2] - The acquisition was initially announced in July, with expectations for closure by the third quarter of 2025, but the deal was called off after the extended termination date of December 26 was not met [2] - AccuLynx claims that Verisk's termination of the merger agreement is invalid, while Verisk intends to defend against this assertion [3] Group 2 - Following the termination of the deal, Verisk plans to redeem $1.5 billion of debt that was issued in connection with the acquisition [3]

Core Viewpoint - Data analytics firm Verisk has canceled its planned acquisition of AccuLynx, a software provider for roofing contractors, which was valued at $2.35 billion [1] Company Summary - Verisk, a data analytics company, was set to acquire AccuLynx, which specializes in software solutions for the roofing industry [1] - The acquisition was significant, with a valuation of $2.35 billion, indicating the strategic importance of the roofing software market [1]

Core Viewpoint - Verisk has terminated its agreement to acquire AccuLynx due to the Federal Trade Commission's (FTC) incomplete review of the transaction by the specified deadline [1] Group 1: Acquisition and Debt Redemption - The company will redeem $1.50 billion of senior notes related to the planned acquisition at a price of 101% of their principal amount plus accrued interest [2] - Following the redemption, Verisk's leverage would have been 1.9 times LTM adjusted EBITDA as of September 30, 2025 [2] Group 2: Management Statements and Future Outlook - Lee Shavel, president and CEO, emphasized the company's commitment to capital allocation discipline, balancing organic investments and returning capital to shareholders [3] - The company remains confident in achieving its long-term growth targets for 2026 and beyond [3] Group 3: Company Profile - Verisk is a leading data analytics and technology provider for the global insurance industry, focusing on improving operational efficiency and risk management [4] - The company operates in over 20 countries and is recognized for fostering an inclusive workplace culture [4]