Verisk Analytics, Inc. - VRSK STOCK NEWS

Verisk (Nasdaq: VRSK) estimates industry insured losses for Hurricane Helene in the U.S. will range between USD 6 billion to USD 11 billion, excluding NFIP losses. Helene made landfall on September 26 near Perry, Florida as a Category 4 hurricane with maximum sustained winds of 140 mph, becoming the strongest hurricane to hit the Big Bend region in recorded history.

The hurricane caused significant damage along Florida's Gulf coast and into Georgia, with record storm surge and rainfall in some areas. The impact was similar to 2023's Hurricane Idalia but with a larger storm surge footprint. Substantial flooding occurred in North and South Carolina due to hurricane-induced precipitation.

Florida's building codes and flood insurance coverage were highlighted, noting that many affected areas may have insufficient flood insurance. Verisk is also monitoring Hurricane Milton, forecast to make landfall in Florida on October 9.

Verisk (Nasdaq: VRSK) has announced the U.S. launch of Whitespace, an all-in-one digital platform for the global (re)insurance market. This expansion follows Whitespace's success in the London market, where nearly 170,000 lines have been written in 2024, more than triple the amount in 2022.

Whitespace connects brokers, underwriters, and MGAs in the excess and surplus (E&S) and specialty insurance markets, supporting the entire (re)insurance lifecycle. The platform addresses key business issues like slow processes and inefficiencies, enabling clients to focus on value-added tasks.

Benefits of Whitespace include:

• Operational efficiency and digital distribution
• Actionable insights through Verisk's predictive analytics
• Intuitive user experience with real-time communication

The U.S. E&S market reached over $115 billion in direct premiums written in 2023, highlighting the segment's growing significance and the need for digital solutions in the evolving insurance ecosystem.

Verisk's Extreme Event Solutions group estimates that insured industry losses from the September 2024 flooding in Czechia, Poland, and Austria will range from EUR 2 billion to EUR 3 billion. The event, caused by a Vb weather system, resulted in extensive property damage across several European nations. In Poland, over 11,500 residential buildings and 6,000 agricultural and commercial buildings were affected. The Czech Insurance Association reported over 60,000 claims totaling approximately EUR 770 million in insured losses. Austria's Lower Austria region experienced catastrophic impacts, with floodwaters reaching levels seen only once in 1,000 years on average.

The estimates include insured physical damage to property, additional living expenses, and business interruption claims. Insurance coverage varies by country, with Austria and Czechia having higher flood insurance take-up rates compared to Poland.

Guidewire (NYSE: GWRE) has announced the appointment of Mark Anquillare to its Board of Directors, effective September 23, 2024. Anquillare, a veteran P&C insurance analytics leader, brings deep industry expertise to Guidewire's board. He previously served as president and chief operating officer of Verisk Analytics (Nasdaq: VRSK) until January 2023, and was Verisk's CFO from 2007 to 2016, leading the company through its 2009 IPO.

Michael Keller, chairman of Guidewire's board, expressed enthusiasm about Anquillare's appointment, highlighting the company's position as a trusted platform for P&C insurers globally. Keller emphasized Guidewire's focus on embedding data, analytics, and AI throughout insurers' core operations to drive smarter risk and claims decisions. Anquillare's experience is expected to provide valuable insight as Guidewire pursues this mission.

Verisk's 2024 Global Modeled Catastrophe Losses Report reveals that the average annual loss (AAL) from global natural catastrophes has reached a new high of $151 billion, with non-crop losses accounting for $119 billion. The report, released by Verisk's Extreme Event Solutions business, highlights an average exposure growth of 7.2% over the past five years, driven by new construction and inflation.

Key factors contributing to the rise in global insured natural catastrophe losses include:

• Rapid urban expansion and exposure growth
• Impacts of climate change and variability
• Increasing frequency of events
• Economic and social inflation

The report emphasizes the need for the insurance industry to prepare for large loss years and manage risks effectively. Climate change is expected to play a more significant role in the coming decades, currently accounting for approximately 1% of the annual increase in losses.

Verisk and APCIA report that the U.S. insurance industry is showing signs of recovery in the first half of 2024. Key highlights include:

- Estimated gains of $95 billion, or $45 billion when adjusting for one insurer's capital gains
- Underwriting income improved from a $22.6 billion loss in 1H2023 to a $4.7 billion gain in 1H2024
- Premiums written increased to $463 billion, up from $420 billion in 1H2023
- Combined ratio improved to 97.6% from 104.2% in 1H2023
- Policyholders' surplus grew to $1,070 billion from $1,014 billion at the end of 2023

Despite these improvements, the industry faces ongoing challenges from inflation, natural catastrophes, and emerging risks like cyber threats. The recovery is still incomplete when adjusted for inflation, and the upcoming hurricane and wildfire seasons pose potential risks.

Verisk and APCIA report that the U.S. insurance industry is showing signs of recovery in the first half of 2024. Key highlights include:

1. Half-year 2024 gains estimated at $95 billion, with adjusted gains of $45 billion

2. Underwriting income improved from a $22.6 billion loss in 1H2023 to a $4.7 billion gain in 1H2024

3. Premiums written increased to $463 billion, up from $420 billion in 1H2023

4. Combined ratio improved to 97.6% from 104.2% in 1H2023

5. Policyholders' surplus increased to $1,070 billion from $1,014 billion at the end of 2023

However, challenges remain, including inflation impacts, natural catastrophes, and evolving risks like cyber threats. The industry's recovery is still ongoing, with surplus not yet reaching inflation-adjusted 2022 levels.

Motorola Solutions (NYSE: MSI) has appointed Elizabeth Mann to its board of directors, effective Aug. 26, 2024. Mann brings nearly 20 years of leadership experience in finance, strategy, data analytics, and technology. She is currently the EVP and CFO of Verisk Analytics, Inc. (NASDAQ: VRSK), a leading global data analytics and technology provider. Previously, Mann held key positions at S&P Global and Goldman Sachs.

Greg Brown, chairman and CEO of Motorola Solutions, praised Mann's proven leadership in finance, risk management, technology, and analytics. Mann expressed her enthusiasm for joining the board during a period of growth and momentum, aiming to support value creation through innovation. Her extensive global experience and capital management expertise are expected to be valuable additions to the board.

J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) has been awarded Verisk CargoNet's Best in Cargo Security recognition for 2023. This accolade acknowledges J.B. Hunt's exceptional preventive measures, program engagement, and response preparedness in addressing cargo theft. The company achieved a remarkable 99.99% theft-free rate for full loads in 2023.

J.B. Hunt has implemented advanced technology and analytics to detect carrier fraud and prevent cargo theft. The company has also established a 24/7 Security Operation Center for monitoring high-value and high-risk freight. Additionally, J.B. Hunt has enhanced its teams specializing in supply chain security, investigations, and asset protection.

This recognition comes at a time when organized cargo theft has become a major concern for shippers. According to CargoNet, there was a 59% increase in cargo theft events across the United States and Canada in 2023, with an estimated total loss of $331.9 million.