Verisk has reported an increase in its consolidated and organic constant currency (OCC) revenues in Q4’2023, primarily due to solid growth in underwriting and more moderate growth in claims.
Consolidated revenues were $677 mn, up 7.4% and up 6% on an OCC basis for the fourth quarter.
Prior year results included storm-related revenue associated with Hurricane Ian, which negatively impacted OCC growth by 90 basis points.
For the full year 2023, consolidated revenues were $2,681 mn, up 7.4% and up 8.7% on an OCC basis.
Underwriting revenues increased 7.8% in the quarter and 7.3% on an OCC basis, as it reached $1,893 mn, primarily resulting from solid growth across forms, rules, and loss costs, underwriting data and analytic solutions, extreme event solutions, and life insurance solutions.
Verisk’s 2023 performance exceeded the expectations we set at Investor Day and demonstrated our potential as an insurance-focused organisation. We achieved these results while implementing strategic, organisational, and cultural change
Lee Shavel, president and CEO, Verisk
“As we look ahead, our improved engagement with clients and ability to act on a more coordinated basis has expanded opportunities to invest in new innovations and technologies that deliver value to the industry and support growth and returns for Verisk shareholders.”
Claims revenues grew 6.6% in the quarter and 2.8% on an OCC basis. The year-over-year increase in revenues was driven by growth in anti-fraud, casualty, and international. Storm-related revenue from the prior year negatively impacted OCC revenue growth by 320 basis points.
During Q4 2023, income from continuing operations was $182 mn, a decrease of 15.5%.
Verisk noted that the decrease in income was primarily due to a $19 mn litigation reserve expense in the fourth quarter of 2023 associated with an indemnification for an ongoing inquiry related to our former Financial Services segment, a one-time tax benefit of approximately $30 mn, and higher depreciation expense in the fourth quarter of 2023 associated with the timing of certain large internally developed projects that were completed and placed into service during the year.
Adjusted EBITDA increased 9%, and 6.5% on an OCC basis, primarily due to strong revenue growth and cost discipline.
For 2023, income from continuing operations was $768 mn, down 26.3%, while adjusted EBITDA was $1,434 mn, up 11.6%, and up 11.5% on an OCC basis, reflecting strong revenue growth and cost discipline.
“Verisk delivered solid fourth quarter 2023 results marked by 6% OCC revenue growth, 6.5% OCC adjusted EBITDA growth and continued margin expansion. This capped off an excellent 2023 where revenue and adjusted EBITDA growth exceeded our long-term targets”, said Elizabeth Mann, CFO, Verisk.
“We will continue to allocate our free cash flow toward investments in order to deliver on our growth strategy while leaning into our cost discipline to achieve our efficiency commitments.”
