Reinsurance News

Verisk tells D.E. Shaw actions taken are contributing to significant progress

18th March 2022 - Author: Luke Gallin

In response to demands from activist investors, Verisk Analytics has said that actions it has already taken are contributing to significant progress in its continued efforts to generate a robust performance for its shareholders.

Yesterday, a letter was sent to Verisk’s Board of Directors on behalf of certain investment funds advised by D. E. Shaw & Co., L.P., a member of the D. E. Shaw Group, calling on the firm to make a number of changes to improve its performance.

This includes a commitment to becoming a pure-play insurance data company, the formation of an operations review committee of the board to conduct a review of Verisk’s insurance businesses, and enhance the board with shareholder input.

The letter from D. E. Shaw does acknowledge that some steps have been taken, but argues that further change is needed at Verisk if the firm is serious about addressing the underperformance gap.

In response to the letter, Verisk says that its board has engaged in a constructive private dialogue with D. E. Shaw since October of last year.

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“During those discussions, there has been broad alignment between D.E. Shaw’s recommendations and initiatives already underway or under consideration by Verisk. The company has valued D.E. Shaw’s input and intends to continue this interaction,” says Verisk.

The company explains that it is engaged in an extensive shareholder outreach program, which is led by independent members of the board and management, and which has provided a host of perspectives from different investors, including D.E. Shaw.

Following these discussions, Verisk says that it has undertaken several actions that aim to advance corporate governance and enhance long-term shareholder value.

“These actions are contributing to significant progress in the company’s ongoing efforts to generate strong performance for shareholders, deliver mission-critical solutions to customers, and position the company for sustainable growth and success,” says Verisk.

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