Insurance and analytics provider Verisk, has reported an increase in its consolidated and organic constant currency (OCC) revenues, primarily due to strong growth in underwriting and claims within its insurance segment.
Consolidated revenues grew 10.1%, to $675.0 million. This includes $478.1 million from underwriting and $196.9 million from claims which compare to $437.8 and $172.2, respectively, reported in Q2 2022. OCC revenues increased 9.8%,
Underwriting growth resulted primarily from solid growth across its forms, rules & loss cost services, underwriting data solutions, life insurance, and extreme events solutions.
While claims revenue growth was broad-based with strong results recorded in property estimating, anti-fraud, and international solutions.
There was no Energy and Specialized Markets segment revenue in the quarter, Verisk stated, saying: “We closed on the sale of the Energy business on February 1, 2023, and accounted for it as discontinued operations. We closed on the sale of 3E on March 11, 2022, Verisk noted.
“There was no Financial Services segment revenue in the quarter as we closed on its sale on April 8, 2022.
Verisk also reported a net income from continuing operations of $204.3 million in Q2 2023, an increase of 17.7%. While adjusted EBITDA was $365.2 million, up 13.5%, and up 12.6% on an OCC basis.
According to the company, the increase in income from continuing operations was primarily due to growth in insurance and the sale of the Financial Services segment in the prior year.
Lee Shavel, president and CEO, Verisk, commented: “I am pleased to share that Verisk delivered strong second-quarter financial results, which illustrate the power of our integrated organisation, focus on the insurance industry, and results-oriented culture.
“We are focused on our mission to be the leading strategic data analytics and technology partner to the global insurance industry by delivering value to our clients through knowledge and expertise. With our deep customer relationships and scale in the industry, we are uniquely positioned to solve our clients’ biggest challenges and create long-term value for shareholders.”
Elizabeth Mann, CFO, Verisk, added: “Verisk delivered continued strong operating momentum in the second quarter underscored by 9.8% OCC revenue growth and solid operating leverage, leading to 12.6% OCC adjusted EBITDA growth.
“Given the strong performance in the first half of the year, we are raising our outlook for 2023. We are excited about the opportunity ahead and have confidence in our ability to deliver on our growth strategy and margin expansion commitments.”
Given the company is increasing its financial outlook for 2023, it now expects consolidated revenue to be in the range of $2.63 billion to $2.66 billion, adjusted EBITDA to be in the range of $1.39 billion to $1.43 billion, and diluted adjusted EPS to be between $5.50 and $5.70.
