Core Viewpoint - Verisk Analytics, Inc. is offering $750 million of 4.500% Senior Notes due 2030 and $750 million of 5.125% Senior Notes due 2036 to finance the acquisition of AccuLynx for approximately $2.35 billion [1][2]. Group 1: Offering Details - The offering consists of two sets of Senior Notes: $750 million of 4.500% Senior Notes due 2030 and $750 million of 5.125% Senior Notes due 2036 [1]. - The closing of the offering is expected on August 21, 2025, pending customary closing conditions [1]. - Goldman Sachs & Co. LLC, BofA Securities, Inc., and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering [3]. Group 2: Use of Proceeds - The net proceeds from the offering, along with borrowings from a senior unsecured three-year delayed draw term loan facility and cash on hand, will be used to finance the acquisition of AccuLynx [2]. - The total purchase price for the acquisition is approximately $2.35 billion [2]. Group 3: Company Overview - Verisk is a leading global data analytics and technology provider, primarily serving the insurance industry [6]. - The company focuses on enhancing operational efficiency, improving underwriting and claims outcomes, and addressing global risks such as climate change and sustainability [6]. - Verisk operates in over 20 countries and is recognized for fostering an inclusive workplace culture [6].

Core Insights - HCI Group, Inc. reported strong financial performance for Q2 2025, with pre-tax income of $94.4 million and net income of $70.3 million, reflecting a significant increase from the previous year [1][6] - The company achieved a 14.8% increase in consolidated gross premiums earned, totaling $302.6 million, driven by a higher volume of policies in force [2][7] - The gross loss ratio improved to 21.3% in Q2 2025, down from 29.7% in Q2 2024, indicating better claims management [3][8] Financial Performance - For Q2 2025, diluted earnings per share rose to $5.18, compared to $4.24 in Q2 2024 [1][25] - Year-to-date results for 2025 showed pre-tax income of $194.7 million and net income of $144.5 million, up from $101.7 million in the same period of 2024 [6][7] - The company’s book value per share increased to $58.55 at the end of Q2 2025, compared to $42.72 a year earlier [19] Expense Management - Losses and loss adjustment expenses decreased to $64.5 million in Q2 2025 from $78.3 million in Q2 2024, attributed to a decline in claims and litigation frequency [3][8] - Policy acquisition and underwriting expenses rose to $30.6 million in Q2 2025, up from $23.5 million in Q2 2024, driven by higher gross premiums [4][9] - General and administrative expenses increased to $20.0 million in Q2 2025 from $17.5 million in Q2 2024, primarily due to higher stock-based compensation and employee benefits [4][10] Reinsurance and Premiums - Premiums ceded for reinsurance in Q2 2025 were $102.5 million, slightly higher than $99.6 million in Q1 2025 [3] - For the six months ended June 30, 2025, consolidated gross premiums earned reached $603.0 million, up from $520.2 million in the same period of 2024 [7][8] - The company reported a decrease in reinsurance premiums ceded for the six months of 2025, totaling $202.2 million compared to $144.8 million in 2024 [7] Future Outlook - HCI Group is focused on initiatives to unlock shareholder value and plans to establish Exzeo as an independent, publicly traded entity [2] - The company will hold a conference call to discuss these financial results, indicating ongoing communication with investors [12]

Core Viewpoint - Verisk reported strong financial results for Q2 2025, with revenue growth prompting an increase in full-year revenue and adjusted EBITDA guidance [2][3][17]. Financial Performance - Q2 2025 revenues reached $773 million, a 7.8% increase from $717 million in Q2 2024, and a 7.9% increase on an organic constant currency (OCC) basis [5][7]. - Net income for Q2 2025 was $253 million, down 17.7% from $308 million in Q2 2024, primarily due to prior year gains [7][9]. - Adjusted EBITDA for Q2 2025 was $445 million, up 11.9% from $397 million in Q2 2024, with a 9.7% increase on an OCC basis [7][10]. - Diluted GAAP EPS was $1.81, down 15.8%, while diluted adjusted EPS increased by 8.0% to $1.88 [7][14]. Revenue Breakdown - Underwriting revenues increased by 8.3% to $550 million in Q2 2025, while claims revenues grew by 6.6% to $223 million [8][13]. - For the first half of 2025, total revenues were $1,526 million, a 7.4% increase from $1,421 million in the same period of 2024 [5][8]. Cash Flow and Capital Return - Net cash provided by operating activities increased by 15.5% to $245 million in Q2 2025, with free cash flow rising by 22.6% to $189 million [20][15]. - The company paid a cash dividend of $0.45 per share in Q2 2025, reflecting a 15.4% increase from the previous year [20][15]. Strategic Acquisitions - Verisk completed the acquisition of SuranceBay for $163 million on July 17, 2025, enhancing its capabilities in the life and annuity sector [21]. - A definitive agreement was signed to acquire AccuLynx for $2.35 billion, aimed at strengthening its position in the insurance claims and restoration ecosystem [22]. Updated Guidance - The updated full-year 2025 guidance includes total revenue expectations of $3,090 to $3,130 million and adjusted EBITDA of $1,700 to $1,740 million [17].

Group 1 - Verisk has elected Christopher J. Perry and Sabra R. Purtill to its Board of Directors, effective immediately [1][2] - Perry is the president of Broadridge Financial Solutions, while Purtill is an experienced executive in insurance and financial services, currently advising at American International Group [1][2] - The addition of Perry and Purtill is expected to enhance Verisk's strategic direction in data analytics and technology for the global insurance industry [2] Group 2 - Verisk is recognized as a leading strategic data analytics and technology partner for the global insurance industry, focusing on improving operational efficiency and underwriting outcomes [3] - The company utilizes advanced data analytics, software, and scientific research to address global risks, including climate change and sustainability [3] - Verisk operates in over 20 countries and promotes an inclusive culture, consistently earning certification as a Great Place to Work [3]

Financial Data and Key Metrics Changes - In Q4 2024, HCI Group reported a pretax income of $5.9 million and diluted earnings per share of $0.23, despite the impact of Hurricane Milton [14] - For the full year 2024, pretax income was $173 million and diluted earnings per share were $8.89, demonstrating strong underlying earnings [15] - Book value increased by almost $9 per share from $33.36 at the start of the year to $42.10 at the end of the year [20] - The debt-to-cap ratio improved from 50% at the beginning of the year to 34% by year-end [21] Business Line Data and Key Metrics Changes - HCI handled over 22,600 claims in 2024, with significant claims from Hurricanes Debby, Helen, and Milton, expecting to pay over $0.5 billion for these events [9] - The company increased its policies in-force from 247,000 to more than 272,000, and in-force premium grew by 22% to over $1.2 billion [11] - The underlying net combined ratio improved by 10 percentage points, with a normalized combined ratio now around 75% [18] Market Data and Key Metrics Changes - HCI's retention rate of existing customers remains strong at approximately 90% [10] - The company offered over 68,000 Citizens policyholders a private market option, with nearly 53,000 moving to HCI, resulting in a blended success rate of 77% [10] Company Strategy and Development Direction - HCI Group plans to continue holding rates steady in Florida and aims to leverage its technology to improve underwriting results across the broader market [9][26] - The company has established a new structure with two distinct operating units: one focusing on CAT insurance and claims management, and the other on technology and insurance management operations [26][28] - Exzeo Group, the technology platform, is expected to grow significantly, with a pretax income of approximately $35 million in 2024 and plans for expansion into other states [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite the challenges posed by hurricanes, highlighting the strength of their business model and technology [8][12] - The company anticipates continued growth in gross premiums earned and profitability, with a focus on expanding its market presence beyond Florida [23][24] - Management noted the importance of regulatory stability in Florida, which has allowed the private insurance market to thrive even after significant storm events [90] Other Important Information - HCI Group paid a dividend of $0.40 per share, marking its 57th consecutive quarterly dividend [12] - The company has reduced consolidated debt by $80 million during the year [21] Q&A Session Summary Question: Opportunities outside Florida and Exzeo Group's role - Management acknowledged California's need for viable insurance solutions and indicated flexibility in market entry strategies, potentially leveraging Exzeo Group's technology [34][36] Question: Takeout activity and Citizens policies - Management confirmed ongoing opportunities within Citizens, noting the potential for additional takeouts and the effectiveness of their technology in attracting policyholders [39][42] Question: Favorable development impact on loss numbers - Management confirmed a favorable development impact of approximately $24.5 million in Q4, with a normalized loss ratio of 23.7% for the full year [46] Question: Total Addressable Market (TAM) for Exzeo Group - Management estimated the annual homeowners insurance premium market at around $140 billion, with HCI Group currently holding less than 1% market share, indicating significant growth potential [57][61] Question: Reinsurance market outlook - Management expressed confidence in their operations and stability in Florida, contrasting it with the challenges faced in California, indicating a positive outlook for their business model [92][94]