Verisk Analytics Seen As Attractive After 21% Year-To-Date Selloff

According to CNBC, Verisk Analytics is being viewed as a stronger business than its recent stock performance suggests, with the shares down about 21% this year and 34% over the past 12 months. The Jersey City-based company generated about $3.1 billion in revenue last year, more than 80% of it recurring, and has EBITDA margins above 50% and client retention above 95%. The article says Verisk serves the top 100 U.S. property and casualty insurers and 18 of the top 25 global reinsurers, and that its products are central to underwriting and claims work. It also notes that growth slowed to roughly 5% to 6% over the past year from a historical pace of about 8% annually, while investors have worried that AI could disrupt the business. Verisk, which named Lee Shavel CEO in 2022 after shedding non-insurance businesses, is developing its own AI tools for customers.