Core Points - Verisk will report its financial results for Q4 and fiscal year 2024 on February 26, 2025, before market open [1] - A live audio webcast will be held on February 26 at 8:30 a.m. ET to discuss the financial results and business highlights [2] - A replay of the webcast will be available for 30 days following the event [3] Company Overview - Verisk is a leading strategic data analytics and technology partner to the global insurance industry, focusing on improving operational efficiency, underwriting, claims outcomes, and combating fraud [4] - The company utilizes advanced data analytics, software, scientific research, and deep industry knowledge to help clients make informed decisions regarding global risks [4] - Verisk operates in over 20 countries and has been recognized for its inclusive workplace culture [4]

Core Insights - Cargo theft losses in the U.S. are projected to increase by 25 percent in 2024 compared to 2023, which already saw record-high incidents [1] - Verisk has launched the CargoNet RouteScore API to help minimize cargo theft risk through advanced data-driven risk scoring [1][2] CargoNet RouteScore API - The RouteScore API generates a cargo theft route risk score ranging from 1 to 100, with 1 indicating the lowest likelihood of theft [3] - The scoring model considers factors such as cargo type, value, length of haul, origin, destination, day of the week, and theft history of truck stops [3] - The API also identifies the riskiest truck stops along a route, providing actionable insights for risk management [3][4] Industry Impact - The RouteScore API empowers companies to proactively protect their cargo, with high-risk scores prompting additional security measures [4] - Users can align high-risk lanes with top-tier carriers to ensure optimal security practices are in place [5] - The solution is available in an API format, allowing integration with third-party Transportation Management Systems and other platforms [5]

Background Information - Robert F Abbott has been managing his family's investment accounts since 1995 and incorporated options trading, primarily covered calls and collars with long stocks, starting in 2010 [1] - He holds a Bachelor of Arts and a Master of Business Administration (MBA) degree [1] - Robert is a freelance writer and operates a website aimed at providing information for new and intermediate-level mutual fund investors [1] Disclosure Information - The analyst has no stock, option, or derivative positions in any mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by compensation or business relationships with any mentioned companies [2] - Seeking Alpha emphasizes that past performance does not guarantee future results and does not provide specific investment recommendations or advice [3] - Seeking Alpha analysts are third-party authors, including both professional and individual investors, who may not be licensed or certified by any regulatory body [3]

Core Insights - Verisk estimates that insured industry losses from the Palisades and Eaton fires will range between USD 28 billion and USD 35 billion, including losses to the California Fair Plan [1][2] - The Palisades fire is expected to account for losses between USD 20 billion and USD 25 billion, while the Eaton fire is estimated to cause losses between USD 8 billion and USD 10 billion, primarily affecting residential properties [2][3] Company and Industry Analysis - Verisk is advancing science and risk management to enhance community resilience against catastrophic wildfires, with a focus on data and insights to support mitigation efforts [3] - The areas impacted by the Palisades fire include high-value properties, with policyholders facing significant exposure to luxury goods [3] - The demand surge analysis utilized historical construction cost data for Los Angeles and Santa Barbara counties, indicating that rebuilding efforts will incur substantial costs due to the number of destroyed structures [4] - The loss estimates encompass residential, commercial, and industrial properties, as well as automobiles, factoring in demand surge, debris removal, and insured take-up rates [5] - Verisk has initiated a review of its U.S. Wildfire Model as part of California's Sustainable Insurance Strategy, aiming to enhance insights into natural disaster risks and improve insurance availability [5][6] - The use of catastrophe models in California is expected to provide better risk insights for consumers, insurers, and regulators [6] - Verisk is recognized as a leading data analytics and technology partner for the global insurance industry, focusing on improving operational efficiency and risk management [7]

Core Insights - The California Department of Insurance has introduced regulations allowing the use of forward-looking catastrophe models to enhance property insurance availability, with Verisk being the first to submit a wildfire catastrophe model for review [1][2] Group 1: Regulatory Changes - The new regulation is part of California Insurance Commissioner Ricardo Lara's Sustainable Insurance Strategy, aimed at improving the resilience of the property insurance market [1] - The regulation went into effect on January 2, 2025, enabling insurers to utilize catastrophe models for assessing catastrophic risks [1] Group 2: Verisk's Role - Verisk, a leader in catastrophe modeling since 1987, has submitted its wildfire model, which incorporates extensive knowledge of wildfire hazards and vulnerabilities, particularly relevant to California, which experienced over 391,000 acres burned in wildfires in 2023 [2] - The submission by Verisk is expected to enhance insights into natural disaster risks, thereby increasing insurance availability and supporting the stability of California's property insurance market [2] Group 3: Market Impact - The initiative aims to create a more stable, competitive, and resilient property insurance market by fostering collaboration between insurers, modeling firms, and the California Department of Insurance [2] - The use of catastrophe models in rate filings will allow insurers to accurately assess and reflect wildfire risks faced by homeowners and businesses in California [2] Group 4: Model Integrity and Compliance - The newly established pre-application required information determination (PRID) process will enable the California Department of Insurance to examine model integrity and ensure compliance with Proposition 103 [2] - Verisk's modeling has a strong history of regulatory acceptance across the United States, reinforcing its credibility in the market [2]

Group 1 - Verisk Analytics, Inc. (VRSK) has experienced a 21% stock gain year to date, outperforming the industry average of 17% [1] - The company's strong earnings performance over the past three quarters has been driven by growth in underwriting & rating and claims [2] - Transitioning to a subscription-based business model is expected to enhance recurring revenues and provide long-term benefits to shareholders [3] Group 2 - Acquisitions are a key component of Verisk's growth strategy, with recent acquisitions like Krug and Mavera enhancing its data and analytics capabilities in Europe [4] - Verisk has consistently rewarded shareholders through dividends and share repurchases, with $196.8 million in dividends and $2.8 billion in share repurchases in 2023 [5] - The company’s steady increase in shareholder returns is likely to boost share prices, especially in uncertain market conditions [5] Group 3 - Verisk currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [6] - Other stocks in the Zacks Business Services sector include AppLovin (APP) and Parsons (PSN), both of which have higher rankings and growth expectations [6][8]

Verisk Analytics Inc. (VRSK) has reported impressive third-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. See Zacks Earnings Calendar to stay ahead of market-making news. VRSK's adjusted earnings (excluding 13 cents from non-recurring items) were $1.7 per share, surpassing the Zacks Consensus Estimate by 4.4% and growing 9.9% from the year-ago quarter. Total revenues of $725.3 million beat the consensus estimate marginally and increased 7% on a year-over-year bas ...

Verisk Analytics (VRSK) came out with quarterly earnings of $1.67 per share, beating the Zacks Consensus Estimate of $1.60 per share. This compares to earnings of $1.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4.37%. A quarter ago, it was expected that this insurance data provider would post earnings of $1.63 per share when it actually produced earnings of $1.74, delivering a surprise of 6.75%. Over the last four quart ...

Exhibit 99.1 Verisk Reports Third-Quarter 2024 Financial Results • Consolidated revenues were $725 million, up 7.0%, and up 6.8% on an organic constant currency (OCC) basis for the third quarter of 2024. • Income from continuing operations was $220 million, up 17.4% for the third quarter of 2024. Adjusted EBITDA, a nonGAAP measure, was $401 million, up 9.4%, and up 7.2% on an OCC basis. • Diluted GAAP earnings per share from continuing operations (diluted EPS) were $1.54 for the third quarter of 2024, up 19 ...

Financial Performance - Consolidated revenues for Q3 2024 were $725 million, up 7.0% YoY, with organic constant currency (OCC) growth of 6.8% [1] - Income from continuing operations increased by 17.4% to $220 million in Q3 2024 [1] - Adjusted EBITDA rose by 9.4% to $401 million, with OCC growth of 7.2% [1] - Diluted GAAP EPS from continuing operations grew 19.4% to $1.54, while diluted adjusted EPS increased 9.9% to $1.67 [1] - Net cash provided by operating activities increased by 18.4% to $296 million, and free cash flow grew 22.9% to $241 million [1] Revenue Breakdown - Insurance revenues grew 7.0% in Q3 2024, driven by underwriting (6.7% growth) and claims (7.9% growth) [6][7][10] - Underwriting growth was primarily due to forms, rules, loss cost services, and extreme event solutions, while claims growth was driven by anti-fraud and property estimating solutions [10] - For the nine months ended September 30, 2024, insurance revenues increased 7.1% to $2.146 billion [9] Profitability and Margins - Adjusted EBITDA margin for the trailing twelve months was 54.6%, reflecting strong margin expansion [3] - Insurance segment EBITDA margin improved to 54.3% in Q3 2024, up from 51.2% in Q3 2023 [13] - The increase in income from continuing operations was driven by strong revenue growth, cost discipline, and a lower effective tax rate [11] Shareholder Returns - The company paid a cash dividend of 39 cents per share on September 30, 2024, and announced a 15% increase in the dividend for December 31, 2024 [1][16] - $400 million of common shares were repurchased in Q3 2024, with an additional $892 million remaining under the share repurchase authorization [17] Industry and Strategic Focus - The company continues to innovate and invest at scale to enhance efficiency, effectiveness, and profitability in the insurance industry [3] - The subscription-based business model has demonstrated strong performance, with sequential improvements in underwriting and claims [3][6] Financial Guidance - The company reaffirmed its 2024 financial guidance, with revenue expected between $2.84 billion and $2.90 billion, and adjusted EBITDA between $1.54 billion and $1.60 billion [18] - Diluted adjusted EPS is projected to be in the range of $6.30 to $6.60 for 2024 [18]