Verisk beats quarterly profit estimates on strong demand for analytics products
July 31 (Reuters) -Data analytics firm Verisk VRSK.O beat second-quarter profit estimates on Wednesday, driven by strong demand for its products that are primarily used by property and casualty (P&C) insurers to assess underwriting risks.
WHY IT'S IMPORTANT
P&C insurers have been seeing higher catastrophe losses in recent years due to extreme weather events around the world, prompting them to spend more on analytics that help them determine policy risks.
Global insured losses from natural catastrophes in the first half of 2024 were at least $61 billion, 25% above the 10-year average for the period, heavily driven by storm activity in the United States, according to a report by reinsurance broker Gallagher Re.
Moreover, growing optimism around rate cuts has also been encouraging clients to spend more on such products.
CONTEXT
The company now primarily caters to U.S. P&C insurers across personal and commercial lines of business after it divested from specialized markets and financial services businesses in March 2022 and April 2022, respectively.
BY THE NUMBERS
On an adjusted basis, Verisk earned $1.74 per share in the second quarter, beating analysts' estimates of $1.64 per share, according to LSEG data.
The company's consolidated revenue rose 6.2% to $717 million compared with the previous year.
Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Vijay Kishore
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
