Verisk Analytics

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Verisk Analytics
Public
Traded asNASDAQVRSK
NASDAQ-100 Component
S&P 500 Component
IndustryData analytics and risk assessment
Founded1971[1]
HeadquartersJersey City, New Jersey
Key people
Scott G. Stephenson (chairman, president and chief executive officer)[1]
RevenueUS$2.1 billion (2015)[1]
US$507.6 million (2015)[1]
SubsidiariesAIR Worldwide
Insurance Services Office
Maplecroft
Wood Mackenzie
WebsiteVerisk Analytics

Verisk Analytics, Inc. is an American data analytics and risk assessment firm based in Jersey City, New Jersey, United States, serving customers worldwide in insurance, natural resources, financial services, government, and risk management. The company uses proprietary data sets and industry expertise to provide predictive analytics and decision support solutions[buzzword] in fraud prevention, actuarial science, insurance coverages, fire protection, catastrophe and weather risk, data management, and other fields.

The company was privately held until its October 6, 2009, initial public offering, which raised $1.9 billion for several of the large insurance companies that were its primary shareholders, making it the largest IPO in the United States for the year 2009.[2] The firm did not raise any funds for itself in the IPO, which was designed to provide an opportunity for the firm's casualty and property insurer owners to sell some or all of their holdings and to provide a market price for those retaining their shares. The 2009 IPO was priced at $22 per share for 85.25 million shares owned by its shareholders, including American International Group, The Hartford and Travelers, making it the largest since the 2008 IPO for Visa Inc. In an action described by investment research company Morningstar as a "vote of confidence" in Verisk, Berkshire Hathaway was the only company among the firm's largest shareholders that did not sell any of its stock in the October 2009 IPO.[3]

History[edit]

The company’s Insurance Services Office (ISO) subsidiary was created in 1971 through the consolidation of various state, regional, and national rating bureaus for various lines of property/casualty insurance.[1] ISO helps insurers with product development, underwriting, and rating. In 2008, Verisk Analytics was established to serve as the parent holding company of ISO. In 2009, Verisk completed its IPO and became a publicly traded company.[4]

Since 2000, the company has acquired about 30 new businesses, which have helped broaden its product offerings. In 2002, it expanded its decision analytics business with the acquisition of AIR Worldwide, a catastrophe modeling firm.[5] In 2004, it entered the healthcare market by acquiring several businesses, through which it offers analytical and reporting systems for health insurers, provider organizations, and self-insured employers. In 2006, the company expanded in the insurance claims sector with the acquisition of Xactware, a provider of estimating software for building repair and construction.[6] In 2010, Verisk acquired 3E Company, a provider of services that help customers comply with government-mandated environmental health and safety requirements.[7]

In 2012, Verisk acquired Argus Information & Advisory Services, a provider of information, competitive benchmarking, scoring solutions[buzzword], analytics, and customized services to financial institutions and regulators in North America, Latin America, and Europe.[8] Also in 2012, Verisk acquired Aspect Loss Prevention, a provider of loss prevention software and analytic solutions[buzzword] to the retail, entertainment, and food industries;[9] and MediConnect Global, Inc., a provider of proprietary systems and services that facilitate the aggregation and analysis of medical records.[10]

In 2014, Verisk acquired Maplecroft.Net Limited, a provider of global risk analytics and advisory services,[11] and Dart, a provider of benchmarking and advisory solutions[buzzword] to financial services institutions in Australia, New Zealand, and other key Asia-Pacific markets.[citation needed]

In 2015, Verisk acquired Wood Mackenzie, a provider of data analytics and commercial intelligence for the energy, chemicals, metals, and mining verticals, in a deal valued at $2.8 billion.[12]

In 2017, Verisk acquired PowerAdvocate, a provider of technology, data analytics, and consulting services for the utilities and oil & gas industries in a deal valued up to $280M. [13]

Verisk also currently owns and operates Atmospheric and Environmental Research (AER), a research agency headquartered in Lexington, Massachusetts.[14] AER conducts environmental studies with a focus on weather and climate research, in order to provide risk assessment and analysis for various clients such as NOAA, NASA, and the United States Armed Forces.[15]

References[edit]

  1. ^ a b c d e 2015 Annual Report, Verisk Analytics. Accessed July 6, 2016. "For the year ended December 31, 2015, we had revenues of $2,068.0 million and net income of $507.6 million."
  2. ^ Todd, Susan (8 October 2009). "Verisk Analytics of Jersey City raises $1.9B in stock offering" (Business). United States: The Star-Ledger. New Jersey On-Line LLC. Retrieved 8 October 2009.
  3. ^ Wahba, Phil (6 October 2009). "UPDATE 2-Verisk IPO raises $1.88 bln, prices above range" (Fund News). New York, N.Y., United States: Reuters. Thompson Reuters. Retrieved 6 July 2016.
  4. ^ via Dow Jones Newswires "Verisk Analytics' 85.25M-Share IPO Priced At $22 Each", The Wall Street Journal, October 6, 2009. Accessed October 8, 2009.
  5. ^ "ISO ACQUIRES AIR TO DELIVER NEW DECISION-MAKING TOOLS AS INSURERS AND REINSURERS FACE INCREASING EXTREME-EVENT RISK", Verisk Analytics, May 14, 2002. Accessed July 30, 2015.
  6. ^ Staff. "ISO Acquires Xactware", Insurance Journal, August 14, 2006. Accessed September 2, 2013. "ISO has acquired the assets of Xactware, Inc., a provider of estimation software and services for the property insurance, remodeling and restoration industries."
  7. ^ Shankar, Archana; Kakkrakandy, Jarshad (7 December 2010). "Verisk to buy privately held 3E for $110 million" (Deals). Bangalore: Reuters. Thompson Reuters. Retrieved 30 July 2015.
  8. ^ Buhayar, Noah; Norton, Steven (8 August 2012). "Verisk Says Build It Once, Sell It Many Times After Deal" (Deals). United States: Bloomberg Businessweek. Bloomberg L.P. Retrieved 30 July 2015.
  9. ^ Staff. "Verisk Analytics acquires Aspect Loss Prevention for $8M", Yahoo! Finance, June 15, 2012. Accessed July 30, 2015.
  10. ^ Fitzgerald, Drew (24 March 2012). "Verisk Analytics to buy MediConnect for $348.6M" (Stocks). United States: MarketWatch. Dow Jones & Company Inc. Retrieved 30 July 2015.
  11. ^ Cao, Jing (8 December 2014). "Verisk Buys U.K.'s Maplecroft for Geopolitical Risk Analytics" (Technology). United States: Bloomberg Businessweek. Bloomberg L.P. Retrieved 30 July 2015.
  12. ^ Kent, Sarah. "Verisk Analytics to Buy Wood Mackenzie for $2.8 Billion; Acquisition of energy consultancy boosts U.S. company’s international exposure", The Wall Street Journal, March 10, 2015. Accessed July 30, 2015.
  13. ^ Zacks Equity Research. "Verisk Buys PowerAdvocate to Boost Energy Sector Presence", Nasdaq, December 01, 2017.
  14. ^ "Atmospheric and Environmental Research", Verisk Analytics. Accessed August 17, 2017.
  15. ^ "About Us", Atmospheric and Environmental Research'. Accessed August 17, 2017.

External links[edit]