Verisk Analytics (VRSK) U.S. All Stars Conference summary

Revenue growth and market dynamics

• Organic constant currency revenue growth has consistently ranged from 6%-8% since 2009, with a slight premium-driven tailwind in hard markets and modest headwind in soft markets, averaging about 7% growth overall.

• Subscription revenues account for 83% of total revenues, maintaining strong growth due to the critical role of data and analytics in customer operations.

• Pricing contributes slightly more than half of growth, with new products and cross-sell/up-sell expected to play a larger role as premium growth normalizes.

• Transactional revenues have declined due to product migration to subscriptions and lighter weather years, but the focus remains on maximizing total revenue per customer.

• Benign weather has reduced claims-related transactional revenue but improved customer profitability, enabling further investment in data and analytics.

Product innovation and technology

• New product innovation remains a priority, with recent focus areas including auto insurance, aerial imagery, and excess and surplus lines.

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

• AI-enabled products, such as XactAI, have seen rapid adoption among contractors, with automated photo tagging and workflow efficiency as key drivers.

• Data distribution is evolving from PDFs to APIs and AI-enabled connectors, with ongoing trials for agent-based access.

• Token costs for AI products are generally borne by clients, with license pricing structured to cover any associated costs.

Capital allocation and financial strategy

• Commitment to return over 75% of free cash flow to shareholders, supported by a strong balance sheet and 2x-3x debt-to-EBITDA range.

• AccuLynx acquisition remains in litigation; if completed, it would be funded with cash and may temporarily pause capital returns, but deleveraging would follow.

• ROIC is now measured on an absolute basis for simplicity and comparability, with a target of 25%.

• Acquisition priorities include proprietary data, expanding addressable markets within insurance, and enhancing workflow efficiency.

• Early-stage acquisitions are considered if they fit the platform and can be scaled rapidly across the customer base.