Verisk Analytics (VRSK) investor relations material

Market environment and revenue growth

• Revenue growth has remained stable in the 6%-8% organic constant currency range since 2009, with only modest differences between hard and soft insurance markets.

• Recent years saw strong premium growth, but the environment is normalizing to low-to-mid single digits.

• Subscription revenues account for 83% of total, providing strong visibility and stability.

• Transactional revenues have declined due to product migration to subscriptions and benign weather, but $510 million is seen as a potential floor.

• Benign weather has reduced claims-driven revenues but improved customer profitability and investment in analytics.

Subscription and transactional business dynamics

• Subscription revenue growth remains robust, driven by product importance and data needs.

• Pricing contributes slightly more than half of growth, with new products and cross-sell/up-sell gaining importance as premium growth normalizes.

• Transactional revenue is variable, influenced by weather and usage, but subscription migration provides more predictable income.

• Weather-driven claims volume is a modest headwind for transactional products.

Product innovation and technology

• New product innovation remains a focus, with recent adjustments to growth drivers reflecting business divestitures and adoption rates.

• Core Lines Reimagine program is nearing completion, consolidating content on a unified platform by end of 2026.

• Auto, aerial imagery, and excess & surplus lines are key innovation areas, with aerial data enhancing risk analytics and excess & surplus coverage expanding rapidly.

• AI adoption is accelerating, with 7,000 licensees on the XactAI solution and strong contractor uptake.

• AI-enabled products improve workflow efficiency, with adoption slower among carriers due to governance and review processes.