Verisk’s fourth-quarter profit topped Wall Street expectations on Wednesday, with CEO Lee Shavel touting the quality of the firm’s proprietary data sets amid concerns around AI-driven disruption to the information services business model.
The data analytics firm, which also provided a “solid” full-year forecast according to analysts, saw its shares rise by 3%. The stock has fallen nearly 21% this year as of the last close.
“High-quality data is critical for accuracy and effectiveness, and Verisk is in a unique position as one of very few providers who currently aggregate data from multiple sources,” Shavel said.
He added the firm submits over 2000 regulatory product filings each year on behalf of its clients. “It is this data quality, breadth and organization that is essential to effective AI deployment.”
Verisk traces its history to 1971, when Insurance Services Office was formed to gather data from insurers and help them meet regulatory requirements.
Since Verisk’s business is underpinned by proprietary contributory datasets directly from insurers, analysts see a low risk of AI disruption due to these unique datasets and the company’s deeply integrated workflows with the insurance industry.
RESILIENT MODEL TO DRIVE GROWTH
The firm has benefited from insurers increasingly turning to its services to improve underwriting and claims processing, tackle fraud and strengthen efficiency.
The market-beating results came despite temporary headwinds, including low weather activity and reduced federal government contracts.
Verisk’s adjusted profit per share was $1.82 in the reported quarter, beating expectations of $1.61, according to data compiled by LSEG. Total revenue rose 5.9% to $778.8 million.
Adjusted profit per share is expected to be between $7.45 and $7.75 in 2026 and total revenue between $3.19 billion and $3.24 billion.
Analysts said the results and outlook were solid and offer a reminder to investors of the resiliency of the model across the cycle.
Verisk also boosted its buyback authorization to $2.5 billion and expects to implement a $1.5 billion accelerated share repurchase program in the near term.
Topics
InsurTech
Data Driven
Artificial Intelligence
Profit Loss
Tech
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