Verisk Reports Fourth-Quarter 2019 Financial Results

Insurance segment revenues grew 7.5% in the fourth quarter of 2019 and 5.2% on an OCC basis.

  • Underwriting & rating revenues increased 9.9% in the quarter and 8.2% on an OCC basis, resulting primarily from increases in our industry-standard insurance programs, property-specific underwriting solutions, and catastrophe modeling solutions.
  • Claims revenue grew 2.8% in the quarter and declined 1.0% on an OCC basis. Both reported and OCC growth were negatively impacted by the injunction ruling against roof measurement solutions as well as tougher comparisons from the prior-year period. Growth was primarily driven by claims analytics, workers’ compensation claim solution services, and repair cost estimating solutions.

Energy and Specialized Markets segment revenue increased 23.3% in the quarter and 7.1% on an OCC basis, resulting primarily from increases in market and cost intelligence solutions, core research revenues, and environmental health and safety service revenues.

Financial Services segment revenue decreased 0.3% in the quarter and increased 2.1% on an OCC basis. Fraud and credit risk management solutions as well as portfolio management solutions experienced growth, but this was partially offset by declines in enterprise data management revenues.

Net Income and Adjusted EBITDA

Net income decreased 9.6%, negatively affected by higher acquisition-related costs (earn-outs) and a higher effective tax rate in the fourth quarter of 2019 versus the prior-year period. Adjusted EBITDA increased 10.3%, and on an OCC basis, adjusted EBITDA increased 9.0% for the fourth quarter of 2019. Normalizing for the impact of the injunction on roof measurement solutions, which adjusts for $5 million of associated revenue in the prior year period, OCC adjusted EBITDA grew 11.0% for fourth-quarter 2019. These increases were positively affected by leverage on solid sales growth and cost discipline.

EBITDA and Adjusted EBITDA by Segment
(in millions)
Note: Consolidated EBITDA and adjusted EBITDA are non-GAAP measures. Margin is calculated as a percentage of revenues.

  Three months ended December 31,
  EBITDA  EBITDA Margin  Adjusted EBITDA  Adjusted EBITDA Growth  Adjusted EBITDA Margin
  2019  2018  2019  2018  2019  2018  2019 Reported  2019
OCC
  2019  2018
Insurance$238.9  $231.8  50.9% 53.1% $248.4  $231.0  7.5% 6.6% 53.0% 53.0%
Energy and Specialized Markets 32.9   38.4  20.5  29.5   51.3   40.1  28.1  23.8  32.0  30.8 
Financial Services 19.1   18.0  40.3  37.9   19.1       18.0     6.0     6.2     40.3     37.9  
Consolidated $ 290.9     $ 288.2     43.0     46.9     $ 318.8     $ 289.1     10.3     9.0     47.1     47.1  

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