Verisk Reports Strong Fourth-Quarter and Full-Year 2024 Financial Results

Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, recently announced its financial results for the fourth quarter and full year 2024. The company delivered robust revenue growth, margin expansion, and strong cash flow generation, capping off another year of solid performance. Here's a breakdown of Verisk's key financial highlights and the drivers behind its success.

Fourth Quarter 2024 Results:

* Consolidated revenues: $736 million, up 8.6% on a consolidated and organic constant currency (OCC) basis
* Income from continuing operations: $204 million, up 11.6%
* Adjusted EBITDA: $398 million, up 9.9% and up 13.5% on an OCC basis
* Diluted EPS attributable to Verisk: $1.44, up 15.2%
* Diluted adjusted EPS: $1.61, up 15.0%
* Net cash provided by operating activities: $255 million, up 1.2%
* Free cash flow: $200 million, up 2.0%

Full Year 2024 Results:

* Consolidated revenues: $2,882 million, up 7.5% and up 7.1% on an OCC basis
* Income from continuing operations: $951 million, up 23.7%
* Adjusted EBITDA: $1,576 million, up 9.9% on a consolidated and OCC basis
* Diluted EPS attributable to Verisk: $6.66, up 27.6%
* Diluted adjusted EPS: $6.64, up 16.3%
* Net cash provided by operating activities: $1,144 million, up 7.9%
* Free cash flow: $920 million, up 10.8%

Verisk's strong performance can be attributed to several key drivers:

1. Organic Revenue Growth: The company experienced solid growth contributions from both underwriting and claims within its Insurance segment. In the fourth quarter, insurance revenues grew 8.6% on a consolidated and OCC basis, while for the full year, they grew 7.5% and 7.1% on an OCC basis. This broad-based growth across most of its businesses drove top-line growth and, in turn, adjusted EBITDA.
2. Operational Leverage and Margin Expansion: Verisk's operational efficiency and cost management led to substantial margin expansion. The company's net profit margin was reported at 23% in the fourth quarter, reflecting efficient cost management and robust revenue growth. This margin improvement demonstrates Verisk's ability to scale its technology platform and generate operational leverage.
3. Investment in New Innovations and Technologies: Verisk's CEO, Lee Shavel, emphasized the company's commitment to investing in new innovations and technologies that deliver value to the insurance ecosystem. This strategic focus on technology development and acquisition has likely contributed to Verisk's strong financial performance.
4. Growth in Claims Solutions: The 13.0% revenue growth in the Claims division suggests accelerating adoption of Verisk's property estimating and anti-fraud solutions. This outperformance reflects increased insurance industry investment in claims automation and fraud detection technologies as carriers seek efficiency gains amid rising loss costs.

Verisk's strong financial performance and commitment to shareholder returns are evident in its capital allocation strategy. The company increased its quarterly dividend by 15% to $0.45 per share, payable on March 31, 2024. Additionally, Verisk initiated a $300 million accelerated share repurchase program in Q4 2024, further indicating its strong free cash flow generation capacity and commitment to returning capital to shareholders.



In conclusion, Verisk's strong fourth quarter and full-year 2024 financial results reflect the company's robust revenue growth, margin expansion, and commitment to shareholder returns. The company's strategic focus on investing in new innovations and technologies, coupled with its operational efficiency and growth in claims solutions, positions Verisk well for continued success in the insurance data analytics market. As Verisk enters 2025, investors can expect the company to build on its momentum and capitalize on emerging opportunities in the insurance ecosystem.