Verisk Analytics - VRSK STOCK NEWS

Verisk (VRSK) has released its U.S. Roofing Realities Trend Report, revealing that roof claims costs reached $31 billion in 2024, a 30% increase since 2022. The report highlights that roof-related items constituted over 25% of all residential claim value, with wind and hail being the primary drivers.

Key findings include:

• Non-catastrophic wind/hail roof claims increased from 17% to 25% since 2022
• 38% of U.S. residential homes have moderate to poor condition roofs
• Roofs with moderate to poor conditions show 60% higher loss costs
• 80% of U.S. roofs use asphalt shingles
• 29% of homes with asphalt shingles have less than 4 years of remaining roof life

The report emphasizes regional variations in roof conditions, with western states showing better conditions than eastern states. In hail-prone states, average roof lifespan is 15 years, compared to 22 years in western states with milder weather.

Verisk (VRSK) has nominated two new directors to its Board: Christopher J. Perry, president of Broadridge Financial Solutions, and Sabra R. Purtill, an advisor at American International Group. The nominees will stand for election at Verisk's Annual Meeting on May 20, 2025, following the retirement of Vincent Brooks and Wendy Lane from the Board.

Perry and Purtill bring extensive experience in insurance, financial, and information services industries. Bruce Hansen, Verisk's Board Chair, emphasized their deep operating expertise and insights into global industries, while CEO Lee M. Shavel highlighted their potential contributions to executing the company's strategy for the insurance ecosystem and growth trajectory.

Verisk (VRSK) and APCIA reported that the U.S. insurance industry achieved a net income of $170 billion in 2024, with $70 billion attributed to capital gains from one insurer. The industry recorded its first underwriting gain in four years at $24.8 billion, a significant improvement from the $21.8 billion loss in 2023.

Key financial metrics include:

• Written premiums increased to $926 billion (from $851 billion in 2023)
• Combined ratio improved to 96.4% (from 101.6% in 2023)
• Policyholders' surplus grew to $1,082 billion

Despite improvements in personal auto and premium adjustments, the industry faced significant challenges from natural catastrophes, particularly Hurricane Milton, which caused fourth-quarter catastrophe claims to surge 113% year-over-year. The second half of 2024 showed stronger performance with a $21.0 billion net underwriting gain, despite impacts from Hurricanes Helene and Milton.

Verisk (VRSK) reported strong Q4 2024 and full-year financial results. Q4 consolidated revenues reached $736 million, up 8.6% both on consolidated and organic constant currency basis. Full-year 2024 revenues were $2,882 million, up 7.5%.

Q4 income from continuing operations increased 11.6% to $204 million, while adjusted EBITDA grew 9.9% to $398 million. Full-year income from continuing operations rose 23.7% to $951 million.

The company increased its quarterly dividend by 15% to $0.45 per share, payable March 31, 2024. In Q4, Verisk initiated a $300 million accelerated share repurchase program and sold Atmospheric and Environmental Research (AER) for $7.1 million.

Hover, a 3D property data company, announced expanded collaboration with Verisk (VRSK) to enhance property claims management through its Xactimate platform. The integration includes new features: Hover Inspections and Guided Estimates, designed to streamline adjuster workflows and improve accuracy.

The expansion addresses critical industry challenges including labor shortages, increasing catastrophic events, and longer claim settlement times. According to recent data, global losses exceeded $300 billion for the eighth consecutive time in 2023, while claims take an average of 22 days to settle, extending to 34 days after catastrophic events.

The new features enable photo-driven checklists for loss documentation and automated generation of material line items and quantities, all integrated within Xactimate. This aims to improve efficiency in claims processing and enhance policyholder experience.

Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, has scheduled its fourth-quarter and full-year 2024 financial results announcement for Wednesday, February 26, 2025, before market open. The company will host a live audio webcast at 8:30 a.m. ET to discuss financial results and business highlights.

The press release and financial information will be available on the Verisk investor website. Interested parties can participate through the webcast or dial-in numbers: 1-800-715-9871 (U.S./Canada) or 1-646-307-1963 (international). A 30-day replay will be accessible via the investor website and through 1-800-770-2030 using Conference ID #8064444.

Verisk (VRSK) has launched CargoNet® RouteScore API, a new solution to combat rising cargo theft in the U.S., where 2024 losses are projected to be 25% higher than 2023's record levels. The solution generates risk scores from 1-100 for cargo routes across the U.S. and Canada, considering factors like cargo type, value, route details, and theft history at truck stops.

The RouteScore API uses proprietary algorithms and best-in-industry data to provide actionable insights for cargo security. High-risk scores can trigger enhanced security measures such as tracking devices, driver teams, or advanced parking arrangements. The solution is available in API format for integration with Transportation Management Systems and other platforms, including supply chain risk management, fintech, insurtech, and telematics systems.

Verisk (VRSK) estimates that insured industry losses from the Palisades and Eaton fires will total between USD 28 billion and USD 35 billion. The Palisades fire losses are estimated at USD 20-25 billion, while the Eaton fire losses range from USD 8-10 billion. Most losses affect residential properties.

The Palisades fire impacted areas with some of the highest property values nationally, including significant contents exposure like jewelry and fine art. The estimate includes losses to residential, commercial, and industrial properties and automobiles, accounting for demand surge, debris removal, and insured take-up rates.

Notably, Verisk's petition for its U.S. Wildfire Model review has been granted by the California Department of Insurance, marking a significant step in implementing catastrophe modeling for insurance availability across California.

Verisk's Wildfire Model has become the first catastrophe model to be reviewed for insurance ratemaking in California, as per the newly-announced regulation from the California Department of Insurance. This regulation aims to tackle property insurance availability issues by including catastrophe models in ratemaking processes. Verisk’s model, which assesses wildfire risks, is intended to help insurers better evaluate and price wildfire coverage, potentially leading to more accurate rates and improved availability of insurance in wildfire-prone areas. This move could significantly impact the insurance market in California, aiding both insurers and policyholders in managing wildfire risks more effectively.