April 29 : Verisk Analytics reported better-than-expected results for the first quarter on Wednesday, driven by strong demand for its data analytics products used by insurers to assess policy risks.
Resilient insurance demand, driven by the essential need for coverage despite inflationary pressures from the U.S.-Israeli war on Iran, is boosting demand for data and analytics tools for underwriting, claims processing and fraud detection.
Founded in 1971, Verisk is a New Jersey-based analytics company that primarily serves the P&C insurers, providing catastrophe modeling and predictive analysis to help them assess risk and optimize policy pricing.
The company’s underwriting revenue increased 3.8 per cent in the quarter, while claims revenue climbed 4.3 per cent, primarily due to stronger pricing for its anti-fraud analytics products.
Investor concerns about artificial intelligence are continuing to impact the stock, which has fallen 21 per cent this year.
Analysts, however, see limited risk as the company’s proprietary data, contributed by insurers themselves, cannot be easily accessed or replicated.
Verisk’s adjusted profit per share was $1.82 in the reported quarter, beating expectations of $1.74, according to data compiled by LSEG.
Its first-quarter revenue rose 3.9 per cent to $783 million from a year earlier, versus estimates of $771.4 million.
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