Verisk Analytics, Inc. - VRSK STOCK NEWS

Verisk (VRSK) has strengthened its partnership with Medallia to enhance customer experience through advanced analytics. This collaboration allows Verisk access to Medallia's customer and employee engagement solutions, enabling faster insights into customer trends. CEO Scott Stephenson emphasized the 'customer first' approach, aiming for continual product innovation driven by user feedback. This strategy aims to improve customer value and loyalty, which is crucial in today's market.

AIR Worldwide has released its 2020 Global Modeled Catastrophe Losses report, estimating that global modeled insured average annual losses from catastrophes are nearly USD 100 billion. The report highlights a 301 billion USD expected loss for a 100-year return period event. Enhanced risk assessments and models, including updates for earthquake and hurricane metrics, inform a broader understanding of the protection gap. This gap presents growth opportunities for the insurance sector and underscores the need for robust risk management strategies.

Verisk (Nasdaq: VRSK) has partnered with WOMBA to develop an EHR Triage Engine utilizing consumer-authorized electronic health record data. This innovation aims to enhance life insurance underwriting by reducing decision time from weeks to one minute through advanced predictive analytics. The EHR Triage Engine can evaluate 95,000 impairments in under five minutes, potentially qualifying up to 85% of applicants with minimal underwriter review. This initiative responds to the growing demand for quick, secure, and convenient digital solutions in underwriting, particularly in the post-pandemic landscape.

Verisk (Nasdaq:VRSK) reported a 7.6% increase in consolidated revenues to $703 million for Q3 2020, with a 466% surge in net income reaching $186 million. Adjusted EBITDA rose 18.4% to $366 million, while diluted EPS skyrocketed to $1.12, a 460% increase. However, net cash from operations declined 3.0% to $207 million, and free cash flow fell 6.9% to $142 million. A cash dividend of 27 cents was declared for December 31, 2020, and share repurchases totaled $50 million in Q3.

Hurricane Zeta, which made landfall on October 28, is estimated to cause insured losses between USD 1.5 billion to USD 3.5 billion, according to AIR Worldwide, a Verisk business. Zeta, a high-end Category 2 storm with sustained winds of 110 mph, ties the record for the number of named storms this season. The hurricane hit southeastern Louisiana, affecting areas from eastern Texas to the western Florida Panhandle. Despite impacts, levees protected New Orleans from storm surge. AIR's estimates cover onshore property, including residential and commercial losses.

Net income for the U.S. property/casualty insurance industry fell 26% in the first half of 2020, driven by COVID-19 impacts. Net income after taxes decreased to $24.3 billion from $32.8 billion year-over-year. Significant capital losses of $1.4 billion contrasted with $4.3 billion in gains in 2019. Net underwriting gains dipped to $4.6 billion. Premium relief efforts could exceed $10 billion. The combined ratio surpassed 100% in Q2 as underwriting results worsened, with net income falling to $6.4 billion from $14.9 billion in Q2 2019.

Verisk (Nasdaq:VRSK) announced that Lincoln Heritage Life Insurance Company is now using FAST’s electronic Application (eApp) as part of a legacy transformation program. This eApp enhances efficiency for agents by allowing digital signatures and pre-filling of data, enabling them to focus on customer needs. FAST’s managing director noted that Lincoln Heritage will begin to see significant benefits from this implementation. This transformation aligns with Verisk's commitment to providing integrated solutions for life insurance, including analytics and automation.

On October 14, 2020, AIR Worldwide, a Verisk business, estimated that Hurricane Delta caused insured losses to onshore property ranging from USD 1 billion to USD 3 billion. The hurricane made landfall on October 9, impacting Louisiana with sustained winds of 100 mph and significant rainfall. Many properties were already damaged from Hurricane Laura, which made landfall just six weeks earlier. AIR noted that the cumulative effects of back-to-back hurricanes could exacerbate damage, particularly in already affected areas. The estimates include losses to residential, commercial, and industrial properties, as well as automobiles.