On this page of StockholderLetter.com we present the latest annual shareholder letter from Verisk Analytics, Inc. — ticker symbol VRSK. Reading current and past VRSK letters to shareholders can bring important insights into the investment thesis.

 •  4/4/2025 Letter Continued (Full PDF)
 •  4/7/2023 VRSK Stockholder Letter
 •  4/5/2024 VRSK Stockholder Letter
 •  More "Business Services & Equipment" Category Stockholder Letters
 •  VRSK Benford's Law Stock Score = 84

VRSK Shareholder/Stockholder Letter Transcript:

A Message to Our Shareholders
Verisk delivered another year of strong growth, margin
expansion, and progress on our mission to be the
lead ing strategic data, analytics, and technology
partner to the global insurance industry. In another year
marked by severe weather events and their devastating
impact on people, communities, and businesses,
our work played a meaningful role in mitigation and
reconstruction efforts-contributing to stronger global
resilience. We have a unique opportunity through our
expertise, scale, and centrality to invest in and deliver
data, analytics, and technology that provide value
through improved efficiency and accuracy to our
clients and the insurance industry.
This year's financial results compounded on top of
strong growth in 2023 and are further demonstration
of our predictable growth trajectory. On an organic
constant currency (OCC) basis, our 2024 revenue grew
7.1 % and adjusted EBITDA grew 9.9%, producing a
120-basis-point increase in our adjusted EBITDA margin
to 54.7%. Our diluted adjusted EPS f rom continuing
operations of $6.64 in 2024 was up 16.3% f rom $5.71
in the prior year, benefitiing from our revenue growth,
operat ing leverage, a reduced share count, and a
lower tax rate.
Our performance was c-onsistent with our guidance
for 2024, and we met or exceeded the longer-term
expect ations we set at Investor Day in 2023. We achieved
these strong financial results by focusing on our three key
priorities: delivering consistent and predictable top-line
growth, driving operating efficiency and profitability, and
ensuring disciplined capital allocation. This success has
been driven by several factors, including elevating and
intensifying our strategic engagement with clients,
continuing to invest in innovation at scale on behalf of
the industry, and enhancing our go-to-ma1rket approach
to be more client-centric.
With strong returns and capital generation, we continued
to invest in improving the value of our existing solutions,
inventing new solutions to address industry needs, and
returning capital to shareholders. Investments in our Core
Lines Reimagine initiative and Extreme Event catastrophe
lee M . Shavel
President and Chief Executive Officer
models, for example, delivered attractive returns as
clients recognized the value of these improvements
through strong contract renewals. We continue to invest
in new technologies and applications, including Generativ e
AI and c loud-based platforms, to invent new solutions and
con11ectivity for the industry. In addition to this investment,
we a Iso returned $1.3 billion to s hareholders in 2024
through dividends and share repurchases.
Delivering consistent and predictable
growth through strategic engagement
Our focus on heightened strategic engagement with
C-su ite executives at client organizations has accelerated
growth with our largest clients. By engaging directly with
senior leadership, we have gained deeper insights into our
clients' enterprise needs, broadened and strengthened our
relationships, and open ed new doors of opportunity with
insurers, reinsurers, and other parties in the insurance
ecosystem. As a result, we achieved stronger renewals
and better sales outcomes while also improving customer
satisfaction. In fact, for ZOZ4 our NPS score was 52, a
two-point improveme11t from the prior year. As we begin
2025, we are expanding this approach to more clients,
reinforcing our trusted partnerships.
Our Reimagine Core Liines initiative is a prime example
of the greater value we're driving for our clients. As we
continue to roll out new features for this digital platform,
Shaping Tomorrow I 1

clients are realizing increased efficiency and faster speed
to market through our Future of Forms t ools, which help
them rapidly ingest, analyze. and react t o form changes
that impact their f ilings. Additiornally, the new Actuarial Hub
provides tools .and risk insights ito help insurers leverage
ISO loss cost dat a quickly and confidently to address
evolving pricing needs.
Another aspect of our broader industry engagement is our
work with st at e departments of insurance to identify and
root out fraud, increase efficiency, and deliver savings that
can ultimately b enefit the consumer. Taken togeth er, these
ef forts have creat ed broader, more scalable business
opportunities across t he global insurance ecosystem.
Driving growth by connecting the industry
We're fortunat e t o be a trusted partner to the global
insurance ecosystem. From that position, we invest in data
and technology at scale, on behalf of the industry, and
creat e value for our c lients at a lower cost of investment
and ownership than any individual insurer could achieve
on their own.
Our role as a trust ed partner-an d t he fact that we're deeply
embedded in the functions and processes of the insurance
industry- enab les us to create great er efficiencies for the
entire ecosystem. It's a net work effect t hat benef it s every
connection point. including insurance carriers. brokers.
contract ors, regulators, and, ultimately, policyholders.
One example of this is our Xactware platform. which
connect s insurers and restoration contractor companies
and independent adjust ers in t he property estimating
space. We're enhancing APis and seamlessly connecting
an expanding ecosyst em of part ners to improve efficiency.
Ultimately, we're helping property claims professionals
restore policyholders faster after a loss. whether from
individual event s or catastrophes such as hurricanes.
We're also expanding our Whitespace digital tradi ng
platform. This API-first platform connect s brokers,
underwriters. and managing general agents. enabling them
to offer, negotiate, place, and bind (re)insurance contracts
with accuracy and speed. The platform is experiencing
tremendous growth. and in 2024. we expanded it beyond
the London specialty insurance market into Continental
Europe, Asia, and the Middle East.
2/ Verisk 2024 Annual Report
Driving operating efficiency and allocating
capital with discipline
In 2024, we delivered a 54.7% adjusted EBITDA margin,
toward the higher end of our full-year guidance. This
represented 120 bps of margin expansion from 2023.
We expect further improvement in 2025 through strong
operating leverage and active expense management.
We continue to optimize the cost of our global talent by
expanding our presence in Poland and India, markets
that offer world-class data science and technology talent .
Additionally, we recently modernized our internal f inancial
and human capital ERP syst ems.
Our focus on disciplined capital allocation remains
constant. In 2024, our return on invest ed capital was
approximately 25%, with incremental returns on capital of
approximately 20%, as we continue to invest at high internal
rates of return. Disciplined capital allocation is central to
our decision-making process at Verisk as we endeavor t o
invest our strong free cash flow into value-creating
opportunities, both organically and ino rganically, that
support growth w ith attractive returns.
We have a strong track record of returning excess capital
to shareholders through dividends and share repurchases.
In fact, we initiated our dividend in 2019 and have increased
it annually, demonstrating our confidence in our business's
strong cash flow and our commitment to returning cash to
shareholders. In 2024, we increased our dividend by 15%
and I am pleased to share that our board of directors has
approved another 1 5% increase for 2025. Since initiation,
we have grown the dividend at a CAGR of 10.3%. The dividend
is our promise to share our strong cash flow generation with
all shareholders, including our employees. We continue to
balance our strong dividend growth w ith share repurchases
to maximize our return of capital to shareholders. Over the
past five years, we have returned over $7 billion in capital to
shareholders through dividends and share repu rchases.
The opportunity to innovate for the industry
continues to expand
Overall, the insurance industry experienced a positive
turnaround after experiencing a three  year stretch of
record losses and deteriorating combined ratios.
The primary drivers were inflation, exposure gmwth,

and increased frequency and severity of catastrophic
events. Overall, t he industry saw improved financial
performance in 2024, helped by continued premium
growth. But challenges remain.
Our annual study of insured losses from global natural
catastrophes estimates insurers should be prepared for
$151 billion in losses, up nearly 14% from the prior year.
Insurers must also keep up with evolving regulations,
customer expectations, and emerging technology. To
address these headwinds, the industry will require more
dat a, technology, and insights t o better segment and price
risks and improve efficiency.
The need presents a tremendous opportunity for Verisk to
leverage our unique posit ion in the insurance ecosystem,
unmatched dat a sets, and advanced analytics to deliver
value throughout the insurance lifecycle. Whether it's our
40 generative AI initiatives in development, connecting data
across our businesses t o enhance product offerings, or
deve~oping emerging tech talent through our Data Science
Excellence Program, we're well-positioned to meet the
industry's needs and d eliver innovations
that shape its future.
Shaping the future of insurance
Look~ ng ahead to 2025 and beyond, we're incredibly
excited about building on our success and continuing
our traject ory as a consistent and predictable growth
company. The opportunity ahead to drive the industry
forward is massive. Our strategic approach allows us to
leverage data and technological innovations at a global
scale and provide incredible value to the industry by
reducing investment C  osts while simultaneously
enhancing the industry's efficiency and capacity
to respond to emerging challenges.
One of those challenges arose in early 2025, when
destructive wildfires spread through much of Southern
California. The impact on people and communities was
horrific. We've been assisting in several ways. Our property
estimating solutions are supporting claims adjusters
and restoration contract ors in the rebuilding process,
and we enabled AI features so clients can deliver faster
assistance to policyholders. Our PCS business, which
serves as an indust ry benchmark, provided catastrophe
loss information to clients, and our extreme events
business provided lloss estimat es for the fires (between
$28 billion and $35 billion). These loss estimates help the
industry in the near term by creating a clearer understanding
of a disaster's impact, and over the long term they can help
inform resilience an d mitigation efforts and refine
catastrophe models.
We expect to play a vital role in helping improve the
insurance market in California. Verisk was the first
organization to submit a wildfire model as part of the
California Department of Insurance's initiative to stabi lize
the insurance market. These models provide insights into
natural disaster risks and can support increased insurance
availability across t he state.
Our focus remains clear: to be a strategic partner who
rei magines insurance through technological innovation.
We are committed t o building global resilience by providing
insurers with the data, insights, and technologies they
need to navigate an unpredictable future. The trust our
clients place in us is a testament to our mission. Together,
we are not just adapting to change-we are actively shaping
the future of insurance, making it more efficient, data-driven,
and capable of supporting individuals, communities, and
businesses when they need it most.
Lee M. ShaveI
President and Chief Executive Officer



 4/4/2025 Letter Continued (Full PDF)