Data analytics provider Verisk has reported overall revenue growth of 5.3% to $726.1 million during the first quarter of 2021, boosted by revenue growth of 8.1% in its insurance segment.
Underwriting and rating revenues increased 7.7% in the quarter, resulting primarily from annual increases in prices derived from enhancements to solutions within insurance programs.
Growth was also fuelled by selling expanded solutions to existing customers in commercial and personal lines and by catastrophe modeling services and its international software solutions.
These increases were partially offset by a decrease in certain transactional revenues.
Verisk’s overall net income for the Q1 period was $168.6 million, representing a decrease of 1.8% when compared with the same period in the previous year.
The company did not identify any material impact stemming from COVID-19 on 85% of its revenues as many are subscription-based and subject to long-term contracts.
On the remaining 15%, Verisk has identified specific solutions and services, largely transactional in nature, that are being negatively impacted by COVID-19. These revenues declined approximately 5.9% on an OCC basis in first-quarter 2021 compared to the prior-year period.
“I am very pleased with our start to 2021. Our first quarter results demonstrate solid financial performance and continued operating excellence despite the ongoing challenges from the pandemic,” said Scott Stephenson, Chairman, President, and CEO of Verisk.
“As we mark our 50th anniversary, our mission remains the same as it was at the start – to serve as a trusted partner to our customers by transforming data into insights and operational efficiencies and to solve their most complex problems. We have strong conviction in our long-term growth strategy and our plans to create durable shareholder value.”
Lee Shavel, CFO and Group President, also commented: “Verisk delivered organic constant currency revenue growth of 3.4% and organic constant currency adjusted EBITDA growth of 5.2% in the first quarter, led by continued strength in our insurance business.”
“We generated solid free cash flow to invest in future growth opportunities while also returning capital to shareholders. We remain focused on maximizing value creation for all our stakeholders.”
