Verisk reports solid revenue and income growth in Q3’24

Verisk, the global data analytics and technology provider has reported its financial results for the third quarter of 2024, which includes an increase in its consolidated and organic constant currency (OCC) revenues, with growth contributions from both underwriting and claims within insurance.

The organisation’s consolidated revenues were $725 million, up 7.0%, and up 6.8% on an organic constant currency (OCC) basis for Q3’24, compared to the prior year quarter.

At the same time, Verisk’s underwriting revenues increased 6.7% in the third quarter of 2024, and 6.5% on an OCC basis. According to the firm, this growth was primarily due to Verisk’s forms, rules and loss cost services and extreme event solutions.

Verisk also noted that its Specialty business and life solutions also contributed to the growth too.

In addition, claims revenues also saw a notable increase, climbing 7.9% in the quarter and 7.4% on an OCC basis, primarily due to growth within the company’s anti-fraud solutions and property estimating solutions.

Moving forward, Verisk’s income from continuing operations was $220 million for Q3’24, representing an increase of 17.4%.

The firm explained that the increase was mostly driven by strong revenue growth and cost discipline, a litigation reserve expense of $19.2 million in the prior year associated with the company’s former Financial Services segment, and a lower effective tax rate.

Adjusted EBITDA also saw a notable increase, climbing 9.4%, and 7.2% on an OCC basis, primarily due to strong revenue growth and cost discipline.

Lee Shavel, president and CEO, Verisk, commented: “We are pleased with this quarter’s strong financial results, which demonstrate the power of our subscription-based business model and the value we create for our clients. We continue to elevate and intensify our strategic dialogue with clients, generating new opportunities and stronger relationships. In the face of growing operating and technological challenges for the insurance industry, we are innovating and investing at scale to enhance its efficiency, effectiveness, and profitability.”

Elizabeth Mann, CFO, Verisk, said: “Verisk delivered another strong quarter of top line growth, led by strength in our subscription businesses. OCC revenue grew 6.8%, driven by a sequential improvement in both underwriting and claims. Our focus on delivering on our margin commitments while balancing investment in our growth initiatives translated into strong margin expansion and adjusted EBITDA margins of 54.6% for the trailing twelve months.

“We also continued our commitment to return cash to shareholders through dividends and our share repurchase activity with the completion of our $400 million accelerated share repurchase in October 2024.”

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