Verisk Analytics (VRSK) Barclays 24th Annual Global Financial Services Conference summary

Business performance and guidance

• First half revenue was impacted by short-term headwinds, mainly weather, affecting transactional revenue, while subscription growth remained strong at 83% of total revenue.

• Expectation for accelerating growth in the second half, targeting 6%-8% organic constant currency growth, with confidence to deliver within this range through 2026.

• Subscription growth is driven by customer engagement and value delivered across major business lines, supported by technology and AI investments.

• Transactional revenue, comprising 17% of total, is influenced by weather and claims volumes, but the business is increasingly shifting to a subscription model for stability.

• Premium growth in the insurance market is a key input for pricing, with 20%-25% of revenues tied to contracts influenced by premium growth, and a two-year lag in impact.

Product innovation and technology

• Core Lines Reimagined modernized delivery and infrastructure for forms, rules, and loss cost business, with full rollout expected by end of 2026.

• New delivery mechanisms, including APIs and integration with policy administration systems, enable more efficient and interactive use of data and forms.

• AI and machine learning have been integrated into products, enhancing capabilities such as legislative monitoring and policy form modifications.

• XactAI adds AI tools to property claims software, streamlining estimate creation and approval, and is monetized as a separate add-on.

• Catastrophe and risk solutions have launched new platforms like Synergy Studio, offering SaaS-based, scalable catastrophe modeling with potential for pricing uplift.

Monetization and pricing strategy

• Innovations in mature products are monetized through pricing uplifts in subscription renewals, while new add-ons like XactAI generate incremental revenue.

• Pricing growth component was raised by 50 basis points at the last Investor Day, reflecting confidence in monetizing innovation and strong premium environments.

• Historical organic growth averages 7%, with only moderate variation between soft and hard insurance markets.

• No current premium for new data delivery mechanisms like MCP, but future monetization is under consideration.