Verisk Analytics, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Verisk Analytics filed its 2023 10-K, reporting $2.55 billion in revenue and a $303.7 million impairment charge.</b>

AI Summary

Verisk Analytics, Inc. (VRSK) filed a Annual Report (10-K) with the SEC on February 21, 2024. Verisk Analytics reported total assets of $8,600,963,000 and total debt of $1,435,076,000 for the fiscal year ended December 31, 2023. The company's net income was $400,694,309, with Earnings Per Share (EPS) of $1.80 for the fiscal year 2023. Revenue for the fiscal year 2023 was $2,545,191,000, a slight increase from the previous year. Verisk recognized a $303.7 million impairment charge related to assets classified as held for sale. The company's operating margin was 29.7% for the fiscal year 2023.

Why It Matters

For investors and stakeholders tracking Verisk Analytics, Inc., this filing contains several important signals. The filing details Verisk's financial performance and operational status for the fiscal year 2023, providing investors with key metrics and disclosures. The significant impairment charge highlights a strategic divestiture or restructuring impacting the company's asset valuation.

Risk Assessment

Risk Level: medium — Verisk Analytics, Inc. shows moderate risk based on this filing. The company recognized a $303.7 million impairment charge related to assets held for sale, indicating potential challenges or strategic shifts impacting asset values.

Analyst Insight

Investors should review the segment reporting and risk factors sections to understand the impact of the impairment charge and any ongoing strategic initiatives.

Financial Highlights

revenue

2,545,191,000

operating Margin

29.7

total Assets

8,600,963,000

total Debt

1,435,076,000

net Income

400,694,309

eps

1.80

Key Numbers

• 2,545,191,000 — Revenue (Fiscal year 2023)
• 400,694,309 — Net Income (Fiscal year 2023)
• 1.80 — EPS (Fiscal year 2023)
• 8,600,963 — Total Assets (As of December 31, 2023)
• 1,435,076 — Total Debt (As of December 31, 2023)
• 29.7 — Operating Margin (Fiscal year 2023)
• 303,700,000 — Impairment Charge (Related to held for sale classification)

Key Players & Entities

• Verisk Analytics, Inc. (company) — Filer name
• Lee M. Shavel (person) — Chief Executive Officer
• Elizabeth D. Mann (person) — Chief Financial Officer
• David J. Grover (person) — Controller and Chief Accounting Officer
• 2023 (date) — Fiscal year end
• 2024-02-21 (date) — Filing date
• $303.7 million (dollar_amount) — Impairment charge
• $75.9 million (dollar_amount) — Deferred tax benefit

FAQ

Risk Factors

• Impairment of Assets Held for Sale [medium — financial]: The company recognized a $303.7 million impairment charge related to assets classified as held for sale, impacting its financial statements.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K filing.

Filing Documents

• vrsk20231231c_10k.htm (10-K) — 3621KB
• ex_628350.htm (EX-4.9) — 18KB
• ex_628344.htm (EX-21.1) — 4KB
• ex_628345.htm (EX-23.1) — 2KB
• ex_628346.htm (EX-31.1) — 9KB
• ex_628347.htm (EX-31.2) — 10KB
• ex_628348.htm (EX-32.1) — 8KB
• ex_628349.htm (EX-97.1) — 34KB
• picture4.jpg (GRAPHIC) — 70KB
• 0001437749-24-004939.txt (&nbsp;) — 18266KB
• vrsk-20231231.xsd (EX-101.SCH) — 131KB
• vrsk-20231231_cal.xml (EX-101.CAL) — 118KB
• vrsk-20231231_def.xml (EX-101.DEF) — 842KB
• vrsk-20231231_lab.xml (EX-101.LAB) — 850KB
• vrsk-20231231_pre.xml (EX-101.PRE) — 919KB
• vrsk20231231c_10k_htm.xml (XML) — 3921KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 15 Item 1B. Unresolved Staff Comments 24 Item 1C. Cybersecurity 24 Item 2.

Properties

Properties 25 Item 3.

Legal Proceedings

Legal Proceedings 25 Item 4. Mine Safety Disclosures 25 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26 Item 6. [Reserved] 28 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 46 Item 8. Consolidated Financial Statements and Supplementary Data 46 Consolidated Balance Sheets 55 Consolidated Statements of Operations 56 Consolidated Statements of Comprehensive Income 57 Consolidated Statements of Changes in Stockholders' Equity 58 Consolidated Statements of Cash Flows 59

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 61 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 46 Item 9A.

Controls and Procedures

Controls and Procedures 47 Item 9B. Other Information 50 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections PART III Item 10. Directors, Executive Officers and Corporate Governance 50 Item 11.

Executive Compensation

Executive Compensation 50 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 50 Item 13. Certain Relationships and Related Transactions and Director Independence 50 Item 14. Principal Accounting Fees and Services 50 PART IV Item 15. Exhibits and Financial Statement Schedule 51 Item 16. Form 10-K Summary 51 EXHIBIT INDEX 100

SIGNATURES

SIGNATURES 103 Exhibit 21.1 Exhibit 23.1 Exhibit 31.1 Exhibit 31.2 Exhibit 32.1 2 Table of Contents Unless the context otherwise indicates or requires, as used in this annual report on Form 10-K, references to "we," "us," "our" or the "Company" refer to Verisk Analytics, Inc. and its subsidiaries. In this annual report on Form 10-K, all dollar amounts are expressed in millions, unless indicated otherwise. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Verisk Analytics, Inc. ("Verisk") has made statements under the captions "Business," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and in other sections of this annual report on Form 10-K that are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies, and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance, or achievements to differ materially from the results, level of activity, performance, or achievements expressed or implied by the forward-looking statements, including those factors discussed under the caption entitled "Risk Factors." You should specifically consider the numerous risks outlined under "Risk Factors." Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. Moreover, neith

Business

Business Our Company Verisk is a leading data, analytics, and technology provider serving clients in the insurance ecosystem. We completed the sale of our Energy business on February 1, 2023. We also divested our specialized markets and financial services businesses in March 2022 and April 2022, respectively. Using advanced technologies to collect and analyze billions of records, we draw on unique data assets, insurance industry knowledge, and technological expertise to provide valuable solutions that are integrated into client workflows. We offer predictive analytics and decision support solutions to clients in rating, underwriting, claims, catastrophe, weather risk, and many other fields. In the United States ("U.S.") and around the world, we help clients protect individuals, communities, and businesses. Our clients use our solutions to make better decisions about risk and improve operating efficiency. We refer to these products and services as solutions due to the integration among our services and the flexibility that enables our clients to purchase components or a comprehensive package. These solutions take various forms, including proprietary data assets, expert industry insight, statistical models,tailored analytic objects, and robust software platformsall designed to allow our clients to make more informed risk decisions. We believe our solutions for analyzing risk have a positive impact on our clients' revenues and help them better manage their costs. In 2023, our clients included all of the top 100 property and casualty("P&C")insurance providers in the U.S. for the lines of P&C services we offer.We believe that our commitment to our clients and the embedded nature of our solutions serve to strengthen and extend our relationships. We believe that Verisk is uniquely positioned with a series of competitive advantages including: Proprietary Data Assets – Data is at the core of what we do. We use our proprietary and contributory data assets to develop p

Underwriting

Underwriting Powered by proprietary and contributory data and advanced analytics and technologies, we offer a full suite of solutions to support our P&C clients across the insurance policy lifecycle. This support spans their product development, marketing, new and renewal underwriting, risk selection and segmentation, pricing, and straight through to policy binding and issuance. We continued to grow our presence internationally and expand our capabilities into new markets, such as life insurance and annuities, and into new workflows, such as marketing and customer acquisition. Forms, Rules, and Loss Costs We are the recognized leader in the U.S. for industry-standard insurance programs that help P&C insurers define coverages and issue policies. We provide policy language, prospective loss costs, policy writing and rating rules, and a variety of underwriting solutions for risk selection and segmentation, pricing, and workflow optimization across 31 lines of insurance. Our policy language, prospective loss cost information, and policy writing rules can serve as integrated, turnkey insurance programs for our clients. Insurance companies need to ensure that their policy language, rules, and rates comply with all applicable legal and regulatory requirements. They must also make sure their policies remain competitive by promptly changing coverages in response to changes in statutes, case law, or regulatory requirements. To meet our clients' needs, we process approximately 2,000 regulatory filings and interface with state regulators in all 50 states plus the District of Columbia, Guam, Puerto Rico, and the Virgin Islands each year to ensure smooth implementation of our rules and forms. When insurers choose to develop their own alternative programs, our industry-standard insurance programs also help regulators ensure that such insurers' policies meet basic coverage requirements. Standardized coverage language, which has been tested in litigation and tailored to refle

View Full Filing

View this 10-K filing on SEC EDGAR