Verisk Analytics

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Verisk Analytics
Public
Traded as NASDAQVRSK
NASDAQ-100 Component
Industry Data analytics and risk assessment
Founded 1971
Headquarters Jersey City, New Jersey
Key people
Scott G. Stephenson (President and Chief Executive Officer)
Revenue Increase US$1.7 billion (2014)[1]
Increase US$803 million (2014)[1]
Website Verisk 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, energy, healthcare, financial services, government, and risk management. The company uses proprietary data sets and industry expertise to provide predictive analytics and decision support solutions 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. Among the firm's largest shareholders, Berkshire Hathaway was the only company not to sell any of its stock in the October IPO.

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. 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.[3]

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.[4] 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.[5] In 2010, Verisk acquired 3E Company, a provider of services that help customers comply with government-mandated environmental health and safety requirements.[6]

In 2012, Verisk acquired Argus Information & Advisory Services, a provider of information, competitive benchmarking, scoring solutions, analytics, and customized services to financial institutions and regulators in North America, Latin America, and Europe.[7][8] Also in 2012, Verisk acquired Aspect Loss Prevention, a provider of loss prevention software and analytic solutions to the retail, entertainment, and food industries;[9][10] and MediConnect Global, Inc., a provider of proprietary systems and services that facilitate the aggregation and analysis of medical records.[11]

In 2014, Verisk acquired Maplecroft.Net Limited, a provider of global risk analytics and advisory services,[12][13] and Dart, a provider of benchmarking and advisory solutions to financial services institutions in Australia, New Zealand, and other key Asia-Pacific markets.[14]

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.[15]

References[edit]

  1. ^ a b 2014 Annual Report, Verisk Analytics. Accessed July 30, 2015.
  2. ^ Todd, Susan. "Verisk Analytics of Jersey City raises $1.9B in stock offering", The Star-Ledger, October 8, 2009. Accessed October 8, 2009.
  3. ^ 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.
  4. ^ "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.
  5. ^ 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."
  6. ^ "Verisk to buy privately held 3E for $110 million", Reuters, December 7, 2010. Accessed July 30, 2015. "Verisk Analytics Inc (VRSK.O), part-owned by Warren Buffett's Berkshire Hathaway (BRKa.N), said it will buy environmental health and safety firm 3E for $110 million, its second acquisition this month."
  7. ^ Buhayar, Noah; and Norton, Steven. "Verisk Says Build It Once, Sell It Many Times After Deal", Bloomberg Businessweek, August 8, 2012. Accessed July 30, 2015. "Verisk Analytics Inc. said its $425 million deal to buy a credit-card data firm is another bet on a business that will gain from scale as clients increasingly rely on billions of records to improve underwriting. The insurance-data firm said yesterday that it would buy Argus Information & Advisory Services LLC, which has records on more than 1.3 billion card accounts and logs about 4.5 billion transactions a month."
  8. ^ Press release. "Verisk Analytics to Acquire Argus Information & Advisory Services", Reuters, August 7, 2012. Accessed July 30, 2015.
  9. ^ Staff. "Verisk Analytics to Acquire Aspect Loss Prevention to Enhance Retail Loss Prevention", Business Information Industry Association. Accessed July 30, 2015. "Verisk Analytics, Inc. announced it has signed an agreement to acquire Minneapolis-based Aspect Loss Prevention, a leading provider of loss prevention software and analytic solutions to the retail, entertainment, and food industries."
  10. ^ Staff. "Verisk Analytics acquires Aspect Loss Prevention for $8M", Yahoo! Finance, June 15, 2012. Accessed July 30, 2015.
  11. ^ "Verisk Analytics to buy MediConnect for $348.6M", MarketWatch, March 24, 2012. Accessed July 30, 2015.
  12. ^ Cao, Jing. "Verisk Buys U.K.’s Maplecroft for Geopolitical Risk Analytics", Bloomberg Businessweek, December 8, 2014. Accessed July 30, 2015. "Verisk Analytics Inc., the supplier of data to insurers and banks, bought Maplecroft.Net Ltd. to help clients assess geopolitical threats.... Verisk paid 20.3 million pounds ($31.7 million) for Bath, U.K.-based Maplecroft and said the deal isn’t expected to change next year’s earnings per share."
  13. ^ "Penningtons Manches advises Verisk Analytics on acquisition of Maplecroft.net", Penningtons Manches, October 12, 2014. Accessed July 31, 2015.
  14. ^ Staff. "Verisk Analytics, Inc., Acquires Dart Consulting Limited", MarketWatch, November 3, 2014. Accessed July 30, 2015. "Verisk Analytics, Inc. VRSK, +0.09% today announced the acquisition of Dart, a leading provider of benchmarking and advisory solutions to financial services institutions in Australia, New Zealand, and other key Asia-Pacific markets."
  15. ^ 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.