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What changed in Verisk Analytics's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Verisk Analytics's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+246 added−299 removedSource: 10-K (2025-02-26) vs 10-K (2024-02-21)

Top changes in Verisk Analytics's 2024 10-K

246 paragraphs added · 299 removed · 189 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeSalespeople participate in both sales and customer service activities. They provide direct support, interacting frequently with assigned customers to ensure a satisfactory experience using our services. Salespeople primarily seek out new sales opportunities and work with the various product teams to coordinate sales activities and ensure our solutions fit the customer's needs.
Biggest changeThey provide direct support to assigned customers, engaging frequently to ensure a positive experience with our services. While Account Executives primarily focus on identifying new sales opportunities, they collaborate closely with various teams to align our solutions with customer needs. We believe our deep solutions knowledge, ability to build trusted relationships, and local presence set us apart from the competition.
As a general practice, employees, contractors, and other parties with access to our proprietary information sign agreements that prohibit the unauthorized use or disclosure of our proprietary rights, information, and technology. 12 Table of Contents Human Capital Our global workforce is united by our mission to serve, add value, and innovate for our customers.
As a general practice, employees, contractors, and other parties with access to our proprietary information sign agreements that prohibit the unauthorized use or disclosure of our proprietary rights, information, and technology. 12 Table of Contents Human Capital Our global workforce is united by our mission to serve, add value, and innovate for customers.
Most of our highly credentialed team holds advanced degrees and professional certifications specializing in actuarial science, chemistry and physics, commercial banking and finance, commodity analytics, data science and artificial intelligence, economics, engineering, GIS mapping, meteorology, natural resources, predictive analytics, supply chain, and other fields.
Most of our highly credentialed team holds advanced degrees and professional certifications specializing in actuarial science, chemistry and physics, commercial banking, finance, commodity analytics, data science and artificial intelligence, economics, engineering, GIS mapping, meteorology, natural resources, predictive analytics, supply chain, and other fields.
Complementing this, we leveraged our partnerships with processors and credit bureaus not only to augment the richness of our data but also to provide expanded solutions across the broad span of consumer banking and retail solutions. 9 Table of Contents Our Customers The customers in our Insurance segment for the lines of P&C services we offer include the top 100 P&C insurance providers in the U.S., 18 of the top 25 global reinsurance companies, as well as domestic InsurTech companies and insurers in international markets.
Complementing this, we leveraged our partnerships with processors and credit bureaus not only to augment the richness of our data but also to provide expanded solutions across the broad span of consumer banking and retail solutions. 9 Table of Contents Our Customers The customers for the lines of P&C services we offer include the top 100 P&C insurance providers in the U .S., 18 of the top 25 global reinsurance companies, as well as domestic InsurTech companies and insurers in international markets.
We will continue to maintain other datacenters dedicated to other businesses we acquired recently. Disaster Recovery We are committed to a framework for business continuity management and carry out annual reviews of the state of preparedness of each business unit. As we migrate our application to public cloud, we also evaluate the level of redundancy required for each application.
We will continue to maintain other datacenters dedicated to other businesses we acquired recently. Disaster Recovery We are committed to a framework for business continuity management and carry out annual reviews of the state of preparedness of each business unit. As we migrate our applications to the public cloud, we also evaluate the level of redundancy required for each application.
We continue to invest in our people worldwide by encouraging all employees to reach their full potential through our focus on learning, providing competitive compensation and benefits, and our culture anchored on our purpose driven values of results, learning, and caring.
We continue to invest in our people worldwide by encouraging all employees to reach their full potential through a focus on learning, providing competitive compensation and benefits, and a culture anchored on our purpose driven values of results, learning, and caring.
With the client at the center of all we do, we are driving innovation across our portfolio and partnering with our clients to help solve the insurance industries greatest challenges with a focus on rapidly changing technology, growing regulatory focus, and value creation; • Drive Operating Efficiency and Profitability.
With the client at the center of all we do, we are driving innovation across our portfolio and partnering with our clients to help solve the insurance industry's greatest challenges with a focus on rapidly changing technology, growing regulatory focus, and value creation; • Drive Operating Efficiency and Profitability.
Our claims database serves thousands of customers, representing approximately 90% of the P&C insurance industry by premium volume, approximately 500 self-insurers, approximately 400 third party administrators, several state fraud bureaus, and many law enforcement agencies involved in the investigation and prosecution of insurance fraud.
Our claims database serves thousands of customers, representing approximately 90% of the P&C insurance industry by premium volume, approximately 500 self-insurers, approximately 450 third party administrators, several state fraud bureaus, and many law enforcement agencies involved in the investigation and prosecution of insurance fraud.
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.
In 2024, 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 also power ongoing enrichment of prospective and current customer insights for the highest probability of retention and increased share of wallet (policy bundling) as well as full coverage of US households and consumers to drive prospect marketing and advertising strategies. Verisk Marketing Solutions brings a unique insurance-focused, specialized offering that covers insurance carriers’ holistic marketing data needs.
We also power ongoing enrichment of prospective and current customer insights for the highest probability of retention and increased share of wallet (policy bundling) as well as full coverage of U.S. households and consumers to drive prospect marketing and advertising strategies. Verisk Marketing Solutions brings a unique insurance-focused, specialized offering that covers insurance carriers’ holistic marketing data needs.
To help our customers estimate repair costs, we provide a solution that assists contractors and insurance adjusters in estimating repairs using a patented plan-sketching program that automatically calculates material and labor quantities for all desired construction or repairs to a structure based on user inputs.
To help our customers estimate repair costs, we provide a solution that assists contractors and insurance adjusters in estimating repairs using a patented plan-sketching program that automatically calculates material and labor quantities for all desired construction or repairs to a structure based on use r inputs.
For example, in the homeowners line of insurance, we maintain policy language and rules for approximately seven basic coverages, 385 national endorsements, and 685 state-specific endorsements. 5 Table of Contents The P&C insurance industry is heavily regulated in the U.S.; P&C insurers are required to collect statistical data about their premiums and losses and to report that data to regulators in every state in which they operate.
For example, in the homeowners line of insurance, we maintain policy language and rules for approximately 6 basic coverages, 385 national endorsements, and 701 state-specific endorsements. 5 Table of Contents The P&C insurance industry is heavily regulated in the U.S.; P&C insurers are required to collect statistical data about their premiums and losses and to report that data to regulators in every state in which they operate.
This “reimagine” of our forms, rules, loss costs and related solutions is designed to deliver increased value to our customers. The Reimagine program will include significant enhancements to our existing solutions; new digital workflow tools, insights, and analytics; and an enhanced content delivery platform.
This “reimagine” of our forms, rules, loss costs and related solutions is designed to deliver increased value to our customers. The Reimagine program includes significant enhancements to our existing solutions; new digital workflow tools, insights, and analytics; and an enhanced content delivery platform.
With these policy programs, insurers also benefit from economies of scale. We have more than 240 insurance experts and specialized lawyers reviewing changes in each state’s insurance rules and regulations, including an average of approximately 14,800 legislative actions, 12,500 regulatory actions, and 2,000 court decisions per year, to make any required changes to our policy language and rating information.
With these policy programs, insurers also benefit from economies of scale. We have more than 240 insurance experts and specialized lawyers reviewing changes in each state’s insurance rules and regulations, including an average of approximately 12,300 legislative actions, 16,000 regulatory actions, and 2,000 court decisions per year, to make any required changes to our policy language and rating information.
Our business strategy is driven by the following priorities: • Drive Consistent & Predictable Growth. With our clear focus on insurance, integrated organization and our client-centric and results-oriented culture, we strive to deliver consistent and predictable growth. We are leveraging our strong client relationships to extend our reach within insurance.
Our business strategy is driven by the following priorities: • Drive Consistent & Predictable Growth. With our clear focus on insurance, integrated organization and our client-centric and results-oriented culture, we strive to deliver consistent and predictable growth. We are leveraging our strong client relationships to extend our reach within insurance and elevate the strategic dialogue with our clients.
We add to our offerings through an active acquisition program. Since 2021, we have a cquired 13 businesses, w hich have allowed us to enter new markets, offer new solutions, and enhance the value of existing services with additional proprietary sources of data.
We add to our offerings through an active acquisition program. Since 2022, we have a cquired 8 businesses, w hich have allowed us to enter new markets, offer new solutions, and enhance the value of existing services with additional proprietary sources of data.
Our Insurance segment operates primarily in the U.S. P&C insurance industry. We have a number of competitors in specific lines or services. We encounter competition from a number of sources, including insurers that develop internal technology and actuarial methods for proprietary insurance programs.
We operate primarily in the U.S. P&C insurance industry. We have a number of competitors in specific lines or services. We encounter competition from a number of sources, including insurers that develop internal technology and actuarial methods for proprietary insurance programs.
We support and implement a mix of technologies and focus on implementing the most efficient technology for any given business requirement or task. Data Centers In 2023, with our migration to cloud computing, we closed our Lehi, Utah Data Center. We have plans to close our Somerset, New Jersey facility in the first half of 2024.
We support and implement a mix of technologies and focus on implementing the most efficient technology for any given business requirement or task. Data Centers In 2023, with our migration to cloud computing, we closed our Lehi, Utah Data Center, and in 2024, we closed our Somerset, New Jersey facility.
Each year, our field staff visits more than 300,000 commercial properties to collect information on new buildings, verify building attributes, and provide specific loss costs.
Each year, our field staff visits approximately 300,000 commercial properties to collect information on new buildings, verify building attributes, and provide specific loss costs.
In recent years, we have expanded our offerings to serve certain non-U.S. markets and into the fields of life insurance and annuities, as well as insurance marketing. We offer our solutions and services primarily through annual subscriptions or long-term agreements, which are typically prepaid and represented approximately 80% of our revenues in 2023.
In recent years, we have expanded our offerings to serve certain non-U.S. markets and into the fields of life insurance and annuities, as well as insurance marketing. We offer our solutions and services primarily through annual subscriptions or long-term agreements, which are typically prepaid (annually and quarterly) and represented approximately 81% of our revenues in 2024.
Our models, which form the basis of our solutions, enable companies to identify, quantify, and plan for the financial consequences of catastrophes. We have developed models for hurricanes, earthquakes, winter storms, tornadoes, hailstorms, wildfires, and floods in more than 120 countries, as well as for pandemics worldwide.
Our models, which form the basis of our solutions, enable companies to identify, quantify, and plan for the financial consequences of catastrophes. We have developed models for hurricanes, earthquakes, winter storms, tornadoes, hailstorms, wildfires, and floods in more than 120 countries and territories.
Our statistical agent services have enabled P&C insurers to meet those regulatory requirements for more than 50 years. We aggregate the data, and as a licensed or appointed “statistical agent” in all 50 states, Puerto Rico, and the District of Columbia, we report those statistics to insurance regulators.
Our statistical agent services have enabled P&C insurers to meet those regulatory requirements for more than 50 years. We aggregate the data, and as a l icensed or appointed “statistical agent” in all 50 states, Puerto Rico, and the District of Columbia, we rep ort those statistics to insurance regulators.
Our property- and auto- specific rating and underwriting information allows our clients to understand, quantify, underwrite, mitigate, and avoid potential loss for these risks. Our database contains data and analytics on approximately 15.9 million commercial properties in the U.S.
Our property- and auto- specific rating and underwriting information allows our clients to understand, quantify, underwrite, mitigate, and avoid potential loss for these risks. Our database contains data and analytics on approximately 143 million residential properties and 16 million commercial properties in the U.S.
Approximately 62% of our employees are based in the United States, 12% in the United Kingdom, 8% in India, with the remainder serving in 18 other countries across the globe. Very few of our employees are represented by unions or subject to collective bargaining agreements, and only a small number of employees in Germany are represented by a works council.
Approximately 59% of our employees are based in the United States, 12% in the United Kingdom, 9% in India, with the remainder serving in 20 other countries across the globe. Very few of our employees are represented by unions or subject to collective bargaining agreements, and only a small number of employees in Germany are represented by a works council.
We collect unit transaction detail of each premium and loss record, which enhances the validity, reliability, and accuracy of our data sets and our actuarial analyses. Across all of our insurance lines, our proprietary quality process includes more than 2,900 separate checks to ensure that the data meets our high standards.
We collect unit transaction detail of each premium and loss record, which enhances the validity, reliability, and accuracy of our data sets and our actuarial analyses. Across all of our insurance lines, our proprietary quality process includes approximately 3,000 separate checks to ensure that the data meets our high standards.
We also offer health insurance plans, no-cost life insurance equivalent to annual salary (with the option to purchase more), a discounted stock purchase program, a variety of physical, mental, and financial well-being offerings and resources, and more. Terms vary by business unit and country.
We also offer health insurance plans, no-cost life insurance equivalent to annual salary (with the option to purchase more), a discounted stock purchase program, a variety of physical, mental, and financial well-being offerings and resources.
The database contains information from more than 1.7 billion claim records and is the world’s largest database of P&C claims information used for claims processing and fraud investigations. Insurers and other participants submit more than 184,000 new claims a day on average across all U.S. P&C insurance industry categories.
The database contains in formation from more than 1.8 billion claim records and is the world’s largest database of P&C claims information used for claims processing and fraud investigations. Insurers and other participants submit more than 187,917 new claims a day on average across all U.S. P&C insurance industry categories.
As a knowledge-based business, we carefully integrate the skills and talents of approximately 7,500 employees worldwide as of December 31, 2023.
As a knowledge-based business, we carefully integrate the skills and talents of approximately 7,800 employees worldwide as of December 31, 2024.
Our auto solutions are powered by a mix of third-party and proprietary data ranging from 2 billion traffic court records to 500 billion miles of connected car telematics data and we have characteristics on more than 270 million insured drivers and 280 million registered vehicles with access to expansive industry databases on loss costs and claims.
Our auto solutions are powered by a mix of third-party and proprietary data ranging from 2 billion traffic court records to characteristics on more than 275 million insured drivers and 280 million registered vehicles with access to expansive industry databases on loss costs and claims.
In 2023, Verisk was certified for the fourth time in the United Kingdom, Spain, and India, and was certified for the second time in Poland. Employees feel Verisk meets the benchmark for innovation, inclusivity, company values, and leaders' effectiveness.
In 2024, Verisk was certified for the fifth time in the United Kingdom, Spain, and India and was certified for the third time in Poland. Employees feel Verisk meets the benchmark for innovation, inclusivity, company values, and leaders’ effectiveness.
To achieve certification, Verisk employees are surveyed on the extent to which they reported a consistently great workplace experience. To create an outstanding employee experience, leaders understand and act on their results and insights, and continuously communicate with employees through town halls and local engagement events.
The Great Place to Work Institute is a global authority on high-trust, high-performance workplaces. To achieve certification, Verisk employees are surveyed on the extent to which they reported a consistently great workplace experience. To create an outstanding employee experience, leaders understand and act on their results and insights, and continuously communicate with employees through town halls and local engagement events.
In 2023, P&C insurers sent us approximately 2.8 billion detailed individual records of insurance transactions, such as insurance premiums collected or losses incurred. We maintain an underwriting database of more than 34.5 billion statistical records, including approximately 9.2 billion commercial lines records and approximately 25 billion personal lines records.
In 2024, P&C insurers sent us approximately 2.7 billion detailed individual records of insurance transactions, such as insurance premiums collected or losses incurred. We maintain an underwriting database of more than 36.3 billion statistical records, including approximately 9.7 billion commercial lines records and approximately 26 billion personal lines records.
The health and safety of our people working around the globe is a top priority, and our facilities worldwide follow rigorous, internally and externally audited, occupational health and safety policies. We also recognize that protecting the health, safety and wellbeing of our employees is crucial to our ability to continue to address the impact of the global COVID-19 pandemic.
The health and safety of our people working around the globe is a top priority, and our facilities worldwide follow rigorous, internally and externally audited, occupational health and safety policies. We also recognize that protecting the health, safety and wellbeing of our employees is crucial.
Our employee engagement score for 2023 is at 78%, a 1%-point increase since 2022. Verisk continues to be recognized for our outstanding workplace culture by Great Place to Work ® in the U.S., receiving certification for the eighth consecutive year.
Our employee engagement score for 2024 is 78%, remaining steady since 2023. Verisk continues to be recognized for our outstanding workplace culture by Great Place to Work® in the U.S., receiving certification for the ninth consecutive year.
Finally, we offer global risk intelligence providing insight into sustainability, resilience, and environmental, social, and governance (ESG) issues, underpinned by geospatial data and analytics. We provide intelligence on sustainability, resilience, human rights, sovereign and political risk, and ESG—stitching together these disparate issues into an interconnected global view built upon objective insight and data.
Our newest models offer risk quantification solutions for the casualty line of business. We offer global risk intelligence providing insight into sustainability and resilience issues, underpinned by geospatial data and analytics. We provide intelligence on sustainability, resilience, human rights, environmental, sovereign and political risk, stitching together these disparate issues into an interconnected global view built upon objective insight and data.
In 2023, over 800 Verisk employees across 23 locations and 7 countries registered volunteer hours during Verisk Volunteer Week. Efforts included a Rise Against Hunger event with over 50,000 meals packed, donation drives, and local community cleanup activities.
Terms vary by business unit and country. 13 Table of Contents In 2024, over 1,000 Verisk employees across 23 locations and 7 countries registered volunteer hours during Verisk Volunteer Week. Efforts included a Rise Against Hunger event with over 85,000 meals packed, donation drives, and local community cleanup activities.
In addition, our program includes paid time off (“PTO”), flextime and telecommuting options, and a 401(k) program with a 100% company cash match (up to 6%).
We offer competitive salaries, short and long-term incentives, and the opportunity for advancement. In addition, our Benefits program includes paid time off (“PTO”), flextime and telecommuting options, and a 401(k) program with a 100% company cash match (up to 6%).
We have developed a suite of solutions that apply advanced analytics, automation, and machine learning to existing and emerging data sources. Our solutions are designed to help transform current workflows in life insurance underwriting, claim insights, policy administration, unclaimed property/equity, compliance and fraud detection, and actuarial and portfolio modeling.
Our solutions are designed to help transform current workflows in life insurance underwriting, claim insights, policy administration, unclaimed property/equity, compliance and fraud detection, and actuarial and portfolio modeling.
Each quarter, employees and managers were provided customized training and were prompted to review and discuss goals, progress, and ways to grow and develop. We supported managers by offering targeted training around having productive career conversations.
Each quarter, employees and managers participate in quarterly check-ins and are prompted to review and discuss goals, progress, and ways to grow and develop. We supported managers by offering targeted training around having productive career conversations. In 2024, we saw 854 people leaders attend our Career Conversations education sessions.
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.
Item 1. Business Our Company Verisk is a leading data, analytics, and technology provider serving clients in the insurance ecosystem. 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.
This approach gives our customers the opportunity to obtain the information they need from a single source and more easily integrate the information into their workflows. 10 Table of Contents Sales, Marketing, and Customer Support We sell our solutions and services primarily through direct interaction with our customers.
This approach gives our customers the opportunity to obtain the information they need from a single source and more easily integrate the information into their workflows. 10 Table of Contents Client Strategy, Sales, and Support Our overall client strategy is driven by our extensive industry expertise and our unique position within the insurance ecosystem.
Life Insurance Solutions In recent years we have expanded our offerings to also serve the life insurance and annuities markets through our 2019 acquisition of FAST. Life Insurance Solutions enable new approaches across the policy life cycle through no-code technology, data analytics, and modeling.
We served our customers by providing advanced research, development, and analysis delivered in reports, data streams, and software solutions. Life Insurance Solutions In recent years we have expanded our offerings to also serve the life insurance and annuities markets through our 2019 acquisition of FAST.
Our newest models offer risk quantification solutions for the casualty line of business. We also help businesses and governments better anticipate and monitor risks in Earth’s natural environment. We prepare certain agencies and companies to anticipate, manage, react to, and profit from climate- and weather-related risk.
Up until the sale of Atmospheric and Environmental Research (“AER”) on December 2, 2024, we helped businesses and governments better anticipate and monitor risks in Earth’s natural environment. We prepared certain agencies and companies to anticipate, manage, react to, and profit from climate- and weather-related risk.
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 also divested our specialized markets and financial services businesses in March 2022 and April 2022, respectively. Our clients use our solutions to make better decisions about risk and improve operating efficiency.
Starting in 2021, we introduced a common global wellbeing day across the enterprise to recognize the importance of the total wellbeing of our workforce. In addition, in 2022, we introduced Juneteenth as a U.S. holiday to recognize this significant milestone in U.S. history. In 2023, career development across the Company was prioritized.
Starting in 2021, we introduced a common global wellbeing day across the enterprise to recognize the importance of the total wellbeing of our workforce. In 2024, we continued to prioritize career development across the company by utilizing an employee-centric strategy based on feedback from employees and managers.
In the Tier Three segment, we assign a sales generalist with overall account management responsibility. Our tiered approach has proven to be a successful sales model and approach to building customer relationships. Our senior executives regularly engage with the senior management of our customers to ensure customer satisfaction and strategic alignment and to support mutual partnership innovation opportunities.
Our tiered approach has proven to be an effective sales model for building strong customer relationships. Additionally, our senior leadership team, including the Senior Operating Committee, regularly engages with senior management at our client organizations to ensure strategic alignment, and to foster opportunities for mutual partnership and innovation.
We believe our salespeople’s product knowledge, skills to develop relationships of trust, and local presence differentiate us from our competition. Subject matter experts work with salespeople on specific opportunities for their assigned solutions and segments. Salespeople manage the overall sales process and subject matter experts manage the rigorous integration and functional fit discussions to ensure mutual success and satisfaction.
Subject Matter Experts partner with Account Executives on specific opportunities related to their assigned solutions and market segments. Account Executives manage the overall sales process, while Subject Matter Experts manage the detailed integration and functional discussions to ensure successful outcomes and customer satisfaction.
Both salespeople and technical consultants have responsibility for identifying new sales opportunities as well as handling renewals of existing business. A team approach and a common customer relationship management system allow for effective coordination among the groups.
Both Account Executives and Subject Matter Experts are responsible for identifying new sales opportunities as well as managing renewals of existing business. A team-based approach, supported by a unified customer relationship management system, ensures effective coordination across all groups. To optimize account management for our largest customers, we segment our client base into three distinct tiers.
The event fostered understanding of business strategy, visibility, and alignment on 2023 key priorities, and created momentum and engagement for the future. New for 2023, we introduced a targeted learning program for a small group of high potential talent, giving them access to meet members of our Board of Directors and network across business lines.
This represented a 185% increase in participation comparative to 2023. The 2024 Leadership Meeting brought together 114 senior leaders across Verisk’s businesses. The event fostered understanding of business strategy, visibility, and alignment on 2024 key priorities, and created momentum and engagement for the future.
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Item 1. 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.
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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. We completed the sale of our Energy business on February 1, 2023.
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We serve our customers by providing advanced research, development, and analysis delivered in reports, data streams, and software solutions. We are dedicated to the advancement of the atmospheric and remote sensing science disciplines and directly addressing problems regarding weather, climate, and air quality as well as oceanography and the planetary sciences.
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Life Insurance Solutions enable new approaches across the policy life cycle through no-code technology, data analytics, and modeling. We have developed a suite of solutions that apply advanced analytics, automation, and machine learning to existing and emerging data sources.
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Through research conducted by our in-house scientific staff, and often in collaboration with prominent scientists at academic and other research institutions, we have developed analytical tools to help measure and observe environmental properties and translate those measurements into actionable information.
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We endeavor to be the leading strategic data, analytics, and technology partner to the global insurance industry by delivering value to our clients through knowledge, expertise, and scale, and we focus on elevating the strategic dialogue with our clients. Our company primarily engages with clients through direct interaction, leveraging a structured, multi-tiered sales approach.
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We employ a three-tier sales structure that includes salespeople, technical consultants, and sales support. Within our Company, several areas have sales teams that specialize in specific solutions and services. Those specialized sales teams sell specific, highly technical solution sets to targeted markets in coordination with account management.
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This approach includes Managing Directors, Account Executives, Account Managers, Subject Matter Experts, Technical Consultants, and Sales Client Support specialists. Within our organization, we have dedicated sales teams that focus on specific solutions and services.
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To provide account management to our largest customers, we divide our customers into three groups. Tier One (“Client Engagement Accounts") comprises our largest customers. Tier Two (“Strategic Accounts") represents both large and middle-market customer groups.
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These specialized Account Executives are responsible for selling highly technical solution sets to targeted markets, working in close coordination with broader account management teams to ensure a holistic approach to customer engagement. Account Executives play a key role in both sales and customer service activities.
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Tier Three is composed of small and specialized companies that may represent one line of business, may be regionally focused, or are recent new entrants into the marketplace. In Tier One and Tier Two segments, we have sales teams organized by the following specialties: personal or commercial lines underwriting and pricing, claims, and catastrophe risk.
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Tier One consists of our most significant customers. To ensure strategic and executive-level engagement with these Tier One clients, a Managing Director within the Client Strategy organization is responsible for the overall and executive-level relationship between the client and all of Verisk, fostering alignment across our solutions and services. Tier Two clients encompass both large and middle-market customer groups.
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We listened to employee and manager feedback and implemented an employee-centric strategy. We took the first step towards providing clearer pathways for career progression with the new Career Framework. We started this journey to create a structure that organizes jobs and supports career growth.
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Tier Three consists of smaller, specialized companies that may focus on a single line of business, serve specific regions, or be recent entrants to the market.
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We believe the Career Framework will put Verisk in a better position to attract, retain, and engage talent to help us meet our current and future business needs. The framework will provide clarity on what it means to be in a certain role, so employees can leverage it to set goals and find different development opportunities within the Company.
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Within the Tier One and Tier Two segments, our US and global sales teams are organized by the following disciplines: personal lines underwriting and pricing, commercial lines underwriting and pricing, claims, catastrophe modeling and exposure management, and specialty. For Tier Three clients, a generalist Account Executive is assigned within each business unit, taking on overall account management responsibilities.
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We saw meaningful impact from this training. 63% of managers attended and 75% of managers who attended confirmed having career conversations with their direct reports. This year, we also introduced in-person, conference style career events in five major locations, globally "CareerCon".
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We further developed a Career Framework, to provide clarity on jobs across all of our businesses and functions. This enables employees to envision their next career steps and explore career pathways and development opportunities within the company.
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These events (attended by 755 employees globally) were structured around topics that included career pivots, career growth and career development tools. In addition, over 11,500 attendees were recorded at various targeted training sessions and "Learning Breaks" on topics that included leadership, motivation, feedback, creativity, and learning. Our leadership development programs are targeted at rising professionals and first-time managers.
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By actively listening to both employees and managers, we identified key enhancements including skills and proficiency levels aligned to each of our job functions (over 2,000 skill/job combinations), and new tools and training for employees to navigate. Our 2024 Career Framework education sessions were attended by 3,306 colleagues, providing them insights into how to navigate their careers at Verisk.
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Both programs were redesigned to align with our new corporate values and achieved global reach with the addition of APAC cohorts. Our rising professionals program participation increased by 20% in 2023. The 2023 Leadership Meeting brought together 107 thought leaders across our business.
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Also, during each of our quarterly check-ins, we asked employees to answer a question to track progress against a leadership goal assigned to all people managers.
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Throughout this year of change and steady improvement, we continued to have an engaged employee population. We continued to curate self-paced learning resources and create real-time opportunities for employees to take charge of their development and learn from each other. All employees have access to our world-class virtual learning platform, which features thousands of courses taught by industry experts.
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By tracking employee answers, we know over 76% of employees discussed goals by the end of Q1, over 93% of employees reported receiving feedback in Q2, and 75% reported having career conversations with their managers in Q3.
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Employees focused on building leadership, organizational, and technical skills on the platform. Course enrollments remained steady at approximately 49,000. Enrollment on our more specialized, long-form learning platform increased by 35%. Learners spent an average of 15 hours on the platform. We offer competitive salaries, short and long-term incentives, and the opportunity for advancement.
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This is a strong measure of employee perceptions of managers due to the high level of participation in quarterly reviews (90%+ of employees participate in quarterly reviews). Our leadership development programs are targeted at rising professionals, first-time managers, and new for 2024, experienced leaders.
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Employees can also take advantage of our employee networks, grassroots groups that help support diversity-related programs and events and promote an inclusive community.
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Our new Experienced Leader Program ran a pilot with 35 global leaders and had a successful fall 2024 cohort with 87 global leaders participating. In 2024, we saw a large increase in participation for our rising professionals leadership program, Accelerate Your Leadership, which saw 455 colleagues enroll for the program this year.
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We currently have eight networks: the Verisk Women's Network, the Verisk Pride Network, the Verisk Veterans and Military Service Members Network, the Verisk REACH Network (dedicated to empowering Black employees), the Verisk Parents Network, the Verisk Unidos Network (promoting awareness of Hispanic and Latinx culture), the Verisk Asian Network, the Verisk Accessibility Network, and the recently added Verisk Indigenous Network, launched to commemorate National Day for Truth and Reconciliation in September.
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In 2024, our high-potential development program gave 52 “rising stars” access to Verisk’s senior leaders and Board of Directors, opportunities to network across business lines, and access to an executive coaching experience.
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In 2023, our Employee Networks (ENs) increased in membership with almost one-third of Verisk employees worldwide in at least one employee network. A global mentoring program sponsored by our ENs is helping participants find an inclusive space in which to develop themselves, grow their careers, and build community.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIn addition, our tax positions are impacted by fluctuations in our earnings and financial results in the various countries in which we do business. Cybersecurity and Product/Technology Risks Related to Our Business Fraudulent or unpermitted data access and other cyber-security or privacy breaches may negatively impact our business and harm our reputation.
Biggest changeCybersecurity and Product/Technology Risks Related to Our Business Fraudulent or unpermitted data access and other cyber-security or privacy breaches may negatively impact our business and harm our reputation. Security breaches in our facilities, computer networks, and data repositories may cause harm to our business and reputation and result in a loss of customers.
If a substantial number of data sources, or certain key sources, were to withdraw or be unable to provide their data, or if we were to lose access to data due to government regulation, decline in reputation or if the collection of data became uneconomical, our ability to provide solutions to our customers could be impacted, which could materially adversely affect our business, reputation, financial condition, operating results, and cash flows.
If a substantial number of data sources, or certain key sources, were to withdraw, materially limit, be unable to provide their data, or if we were to lose access to data due to government regulation or policy, decline in reputation or if the collection of data became uneconomical, our ability to provide solutions to our customers could be impacted, which could materially adversely affect our business, reputation, financial condition, operating results, and cash flows.
We participate in businesses (particularly insurance-related businesses and services) that are subject to substantial litigation, including antitrust, consumer protection and intellectual property litigation. In addition, our insurance specialists are in the business of providing advice on standard contract terms, which if challenged could expose us to substantial reputational harm and possible liability.
We participate in businesses (particularly insurance-related businesses and services) that are subject to substantial litigation, including antitrust, consumer protection, intellectual property litigation, and data privacy. In addition, our insurance specialists are in the business of providing advice on standard contract terms, which if challenged could expose us to substantial reputational harm and possible liability.
We depend upon data from external sources, including data received from customers and various government and public record services, for information used in our data repositories. In general, we do not own the information in these data repositories, and the participating organizations could discontinue contributing information to the data repositories.
We depend upon data from external sources, including data received from customers and various government and public record services, for information used in our data repositories. In general, we do not own the information in these data repositories, and the participating organizations could discontinue or materially limit contributing information to the data repositories.
During the year ended December 31, 2023, approximately 69% of our re venue was derived from solutions provided to U.S. P&C primary insurers. Also, our invoices for certain of our solutions are linked in part to premiums in the U.S.
During the year ended December 31, 2024, approximately 70% of our re venue was derived from solutions provided to U.S. P&C primary insurers. Also, our invoices for certain of our solutions are linked in part to premiums in the U.S.
We and others with which we do business must comply with laws and regulations relating to the award, administration and performance of U.S. government contracts. Government contract laws and regulations affect how we do business with our customers and impose certain risks and costs on our business.
We and others with which we do business must comply with laws and regulations relating to the award, administration and performance of U.S. government contracts. Government contract laws and regulations as well as policy implementation affect how we do business with our customers and impose certain risks and costs on our business.
As of December 31, 2023 , our ten largest shareholders owned 40.3% of our common stock, including 2.5% of our common stock owned by our Employee Stock Ownership Plan or ESOP.
As of December 31, 2024 , our ten largest shareholders owned 40.3% of our common stock, including 2.1% of our common stock owned by our Employee Stock Ownership Plan or ESOP.
P&C insurance market, which may rise or fall in any given year due to loss experience and capital capacity and other factors in the insurance industry that are beyond our control. In addition, our revenues will decline if the insurance industry does not continue to accept our solutions.
P&C insurance market, which may rise or fall in any given year due to loss experience and capital capacity and other factors in the insurance industry such as responses to natural disasters and climate-related events that are beyond our control. In addition, our revenues will decline if the insurance industry does not continue to accept our solutions.
The following legal and regulatory developments also could have a material adverse effect on our business, financial position, results of operations or cash flows: • amendment, enactment, or interpretation of laws and regulations which restrict the access and use of personal information and reduce the supply of data available to customers; • changes in cultural and consumer attitudes to favor further restrictions on information collection and sharing, which may lead to regulations that prevent full utilization of our solutions; • failure of our solutions to comply with current and future laws and regulations; and • failure of our solutions to adapt to changes in the regulatory environment in an efficient, cost-effective manner. 20 Table of Contents We are subject to antitrust, consumer protection, intellectual property and other litigation, as well as governmental investigations, and may in the future become further subject to such litigation and investigations; an adverse outcome in such litigation or investigations could have a material adverse effect on our financial condition, revenues and profitability.
The following legal and regulatory developments also could have a material adverse effect on our business, financial position, results of operations or cash flows: • amendment, enactment, interpretation of laws and regulations or implementation of policy which restrict the access and use of personal information and reduce the supply of data available to customers; • changes in cultural and consumer attitudes to favor further restrictions on information collection and sharing, which may lead to regulations that prevent full utilization of our solutions; • failure of our solutions or business processes or policies to meet or comply with current and future laws and regulations and their interpretations; • failure of our solutions or business processes or policies to adapt to changes in the regulatory environment in an efficient, cost-effective manner; and • potential inquiries or investigations from government officials or others related to our policies and practices governing social issues. 20 Table of Contents We are subject to antitrust, consumer protection, intellectual property, data privacy, and other litigation, as well as governmental investigations, and may in the future become further subject to such litigation and investigations; an adverse outcome in such litigation or investigations could have a material adverse effect on our financial condition, revenues and profitability.
Under Delaware law, a corporation may opt out of the anti-takeover provisions, but we do not intend to do so. These provisions may prevent a stockholder from receiving the benefit from any premium over the market price of our common stock offered by a bidder in a potential takeover.
Under Delaware law, a corporation may opt out of the anti-takeover provisions. These provisions may prevent a stockholder from receiving the benefit from any premium over the market price of our common stock offered by a bidder in a potential takeover.
The decision to terminate programs or contracts for convenience or default could adversely affect our business and future financial performance. 21 Table of Contents General Risk Factors related to our Business Our operations are subject to additional risks inherent in international operations.
The decision to terminate programs or contracts for convenience or default could adversely affect our business and future financial performance. Similarly, a government funding pause, suspension, or shut down could adversely affect our business and future financial performance. 21 Table of Contents General Risk Factors Related to Our Business Our operations are subject to additional risks inherent in international operations.
A failure of these systems or the ERP implementation could disrupt our business and results of operations. We are highly dependent upon a variety of internal computer and telecommunication systems to operate our business, including our enterprise resource planning (“ERP”) systems. In order to continue support of our growth, we are making significant technological upgrades to our information systems.
A failure of these systems or the ERP implementation could disrupt our business and results of operations. We are highly dependent upon a variety of internal computer and telecommunication systems to operate our business, including our enterprise resource planning (“ERP”) systems.
Our failure to successfully defend or settle any litigation or resolve any governmental investigation could result in liability that, to the extent not covered by our insurance, could have a material adverse effect on our financial condition, revenues and profitability. Given the nature of our business, we may be subject to litigation or investigation in the future.
Our failure to successfully defend or settle any litigation or resolve any governmental investigation, inquiry or examination could result in liability that, to the extent not covered by our insurance, could have a material adverse effect on our financial condition, revenues and profitability.
Mergers or consolidations among our customers could reduce the number of our customers and potential customers. This could adversely affect our revenues even if these events do not reduce the aggregate number of customers or the activities of the consolidated entities.
There may be consolidation in our end customer market, which could reduce the use of our services. Mergers or consolidations among our customers could reduce the number of our customers and potential customers. This could adversely affect our revenues even if these events do not reduce the aggregate number of customers or the activities of the consolidated entities.
Tax audit examinations with an adverse outcome could have a negative effect in the jurisdictions in which we operate. Furthermore, the Organization for Economic Co-operation and Development (OECD) has issued Pillar Two model rules for a global minimum tax of 15% that has been agreed upon in principle by over 140 countries.
Furthermore, the Organization for Economic Co-operation and Development ("OECD") has issued Pillar Two model rules for a global minimum tax of 15% that has been agreed upon in principle by over 140 countries.
Pursuant to our equity incentive plans, options to purchase approximately 2,732,670 shares of common stock were outstanding as of February 16, 2024.
Pursuant to our equity incentive plans, options to purchase approximately 2,007,306 shares of common stock were outstanding as of February 21, 2025.
Continued execution of the project plan, or a divergence from it, may result in cost overruns, project delays or business interruptions. In addition, divergence from our project plan could impact the timing and/or extent of benefits we expect to achieve from the system and process efficiencies.
In addition, divergence from our project plan could impact the timing and/or extent of benefits we expect to achieve from the system and process efficiencies.
With a large number of inter-related systems, keeping the technology current and managing vulnerabilities is challenging. As with other global companies, our systems are regularly subject to cyber-attacks, cyber-threats, attempts at fraudulent access, physical break-ins, computer viruses, attacks by hackers and similar disruptive problems.
As with other global companies, our systems are regularly subject to cyber-attacks, cyber-threats, attempts at fraudulent access, physical break-ins, computer viruses, attacks by hackers and similar disruptive problems.
A significant additional decline in the value of assets for which risk is transferred in market transactions could have an adverse impact on the demand for our solutions. Our financial position may be impacted by audit examinations or changes in tax laws or tax rulings.
A significant additional decline in the value of assets for which risk is transferred in market transactions could have an adverse impact on the demand for our solutions.
We monitor third-party patents and patent applications that may be relevant to our technologies and solutions and we carry out freedom to operate analysis where we deem appropriate. However, such monitoring and analysis has not been, and is unlikely in the future to be, comprehensive, and it may not be possible to detect all potentially relevant patents and patent applications.
However, such monitoring and analysis has not been, and is unlikely in the future to be, comprehensive, and it may not be possible to detect all potentially relevant patents and patent applications.
Although we do not expect Pillar Two to materially increase our tax expense, the ultimate impact will depend on the implementation of specific rules in each jurisdiction. Accordingly, we will continue to monitor global legislative action for potential impacts.
We have assessed the effect of Pillar Two and do not expect it to materially increase our tax expense, the ultimate impact will depend on the implementation of specific rules in each jurisdiction.
Such litigation could result in substantial costs and diversion of resources and could harm our business, financial condition, results of operations, and cash flows. Regulatory developments could negatively impact our business. Because personal, public and non-public information is stored in some of our data repositories, we are vulnerable to government regulation and adverse publicity concerning the use of our data.
Such litigation could result in substantial costs and diversion of resources and could harm our business, financial condition, results of operations, and cash flows. Regulatory developments could negatively impact our business.
Our existing corporate structure and tax positions have been implemented in a manner which we believe is compliant with current prevailing tax laws. However, changes in existing tax laws or rulings, including Federal, State and International, could have a significant impact on our effective tax rate, cash tax positions and deferred tax assets and liabilities.
Changes in existing tax laws or rulings, or changes in interpretations of existing laws, could have a significant impact on our effective tax rate, cash tax positions, and deferred tax assets and liabilities.
We are in the process of implementing a company-wide, single ERP software system and related processes to perform various functions and improve on the efficiency of our global business. This is a lengthy and expensive process that will result in a diversion of resources from other operations.
In order to continue support of our growth, we have made and are continuing to make significant technological upgrades to our information systems. We are in various stages of implementing a company-wide, single ERP software system and related processes to perform various functions and improve on the efficiency of our global business.
Security breaches in our facilities, computer networks, and data repositories may cause harm to our business and reputation and result in a loss of customers. Many of our solutions involve the storage and transmission of proprietary information and sensitive or confidential data, which are significantly complex with various uses across businesses and locations.
Many of our solutions involve the storage and transmission of proprietary information and sensitive or confidential data, which are significantly complex with various uses across businesses and locations. With a large number of inter-related systems, keeping the technology current and managing vulnerabilities is challenging.
In particular, the increased leverage could increase our vulnerability to sustained, adverse macroeconomic weakness, limit our ability to obtain further financing and limit our ability to pursue other operational and strategic opportunities. Further, the Federal Reserve has increased its benchmark interest rate multiple times in 2023 in a bid to reduce rising inflation rates in the United States.
In particular, the increased leverage could increase our vulnerability to sustained, adverse macroeconomic weakness, limit our ability to obtain further financing and limit our ability to pursue other operational and strategic opportunities. The increased leverage, potential lack of access to financing and increased expenses could have a material adverse effect on our financial condition, results of operations and cash flows.
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These interest rate increases have resulted in higher short-term and long-term borrowing costs. The increased leverage, potential lack of access to financing and increased expenses could have a material adverse effect on our financial condition, results of operations and cash flows. There may be consolidation in our end customer market, which could reduce the use of our services.
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Our financial position may be impacted by tax audits or changes in tax laws or tax ruling We are subject to tax in the U.S., various state, and foreign jurisdictions, and are routinely under audit by various tax authorities.
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Our existing corporate structure and tax positions have been implemented in a manner which we believe is compliant with current tax laws, however it is possible that tax authorities may disagree with the positions we have taken due to differing interpretations of prevailing tax rules.
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Tax audits with an adverse outcome could have a material impact on our effective tax rate, cash tax positions, and deferred tax assets and liabilities. Existing tax laws in the jurisdictions in which we operate are subject to change given current political and economic conditions.
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Because personal, public and non-public information is stored in some of our data repositories, we are vulnerable to government regulation and policy, as well as adverse publicity concerning the use of our data.
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Given the nature of our business, we may be subject to litigation or investigation, inquiry or examination in the future.
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We monitor third-party patents and patent applications that may be relevant to our technologies and solutions and we carry out freedom to operate an analysis where we deem appropriate.
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This is a lengthy and expensive process that will result in a diversion of resources from other operations. Continued execution of the project plan, or a divergence from it, may result in cost overruns, project delays or business interruptions.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Item 1C. Cybersecurity We remain steadfast in our commitment to safeguarding the confidentiality, integrity, availability, and responsible use of data.
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Item 1C. Cybersecurity 24 Item 2. Properties 25 Item 3. 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 28 Item 7A.
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Our rigorous approach to cybersecurity is a comprehensive framework comprising cyber risk governance, risk identification and management, risk prevention and protection, monitoring and detection, and response and recovery planning, which is an integral part of our overall enterprise risk management ("Framework").
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Quantitative and Qualitative Disclosures About Market Risk 44 Item 8. Consolidated Financial Statements and Supplementary Data 44 Consolidated Balance Sheets 53 Consolidated Statements of Operations 54 Consolidated Statements of Comprehensive Income 55 Consolidated Statements of Changes in Stockholders' Equity 56 Consolidated Statements of Cash Flows 57 Notes to Consolidated Financial Statements 59 Item 9.
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Cyber risk governance is founded on direction and priorities established by our leadership, supported and overseen by the Board of Directors (Board), and deployed through our Framework. The Framework leverages proven standards such as those embedded in the National Institute of Standards and Technology ("NIST") Cybersecurity Framework ("CSF"), which are generally accepted by cybersecurity leaders across industries.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 44 Item 9A. Controls and Procedures 45
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The Board oversees our management of cybersecurity, including oversight of appropriate risk mitigation strategies. The Board receives regular reports from executives about our cybersecurity risks, management review processes, overall health and readiness to respond to an incident.
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As of February 2024, the Board established and convened the first meeting of the Risk Committee of the Board, which in coordination with other relevant Board Committees as appropriate, oversees risk assessment and risk management, including but not limited to the policies, procedures and strategic approach to cyber, technology and information security risks.
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The Risk Committee of the Board also reports material cybersecurity risks to our full Board. The Executive Risk Management Committee ("ERMC"), which includes the top corporate executives, is responsible for providing guidance and enforcing our Framework, including the strategies, policies, procedures, processes, and systems, established by management to identify, assess, measure, monitor, and manage risks.
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The ERMC also reinforces the corporate risk appetite, determines whether residual risk is acceptable, and confirms materiality of security incidents. The Enterprise Risk Management ("ERM") division oversees and advises on implementation of the Framework throughout our business units. In doing so, the ERM division aggregates and assesses risk across the enterprise.
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Within the ERM division is the Chief Information Security Officer ("CISO"), who leads our Cybersecurity and Information Risk Management functions.
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The CISO’s functions partner with the business units to help ensure that cybersecurity risk management strategies are implemented and dedicated liaisons from the business units report to the CISO with meaningful cybersecurity risks, threats, incidents and vulnerabilities in accordance with the CISO’s reporting framework.
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The ERM division hosts training and awareness sessions, sponsors working groups across the enterprise on critical security topics and provides centralized cybersecurity incident response. Also within the ERM division is our third-party risk program, which implements processes to identify cybersecurity risk associated with our third-party providers.
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Management, including the CISO and our cybersecurity team, regularly update the Risk committee on our cybersecurity programs, material cybersecurity risks and mitigation strategies and provide cybersecurity reports quarterly that cover, among other topics, third-party assessments of the company's cybersecurity programs, developments in cybersecurity and updates to the company's cybersecurity programs and mitigation strategies.
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Our business units have dedicated liaisons for risk management activities, who participate in a global security council designed to facilitate implementation of the Framework and associated policies.
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As custodians and/or processors of our stakeholders’ data, our business units also accept certain compliance responsibilities, including but not limited to, aspects of the General Data Protection Regulation ("GDPR"), the California Consumer Privacy Act (CCPA), the Gramm-Leach Bliley Act ("GLBA"), the Health Insurance Portability and Accountability Act ("HIPAA"), the Fair Credit Reporting Act ("FCRA"), and the Payment Card Industry ("PCI") standard, all to the extent applicable.
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For each of its business units, we seek to actively confirm that its risk management practices fulfill applicable compliance requirements. We have adopted a defense-in-depth strategy with a wide range of measures to secure our technology infrastructure and data as per our Framework.
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Security measures cover the following key areas as aligned with NIST CSF: risk identification and management, risk prevention and protection, monitoring and detection, and response and recovery planning.
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Key control functions that comprise the security measures include but are not limited to: risk assessment, asset management, supply chain risk management, identity and access management, customer credentialing, physical security, application and infrastructure security, perimeter and network security, secure development and change management, configuration management, endpoint security, security audit logging and monitoring, security operations center, incident response, business continuity and disaster recovery.
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Our cybersecurity strategy includes the engagement of strategic providers, consultants and independent assessors to inform us of cyber threats and assess the effectiveness of control design and implementation.
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Strategic providers include, but are not limited to, a Managed Security Service Provider for our security operations center, as well as service providers that supplement incident response processes related to threat intelligence and dark web monitoring.
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Independent assessors include, but are not limited to, our Internal Audit Department which provides reports to the Audit Committee, as well as assessors that are engaged directly to perform external audits and penetration tests.
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Through independent assessors, our commitment to security has earned ISO 27001:2013 Certification for our core ERM centrally provided cybersecurity services, which is an international standard for best practices associated with our Information Security Management System.
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To date, risks from cybersecurity threats have not materially affected, and we currently do not expect that such risks are reasonably likely to materially affect, our business strategy, results of operations, or financial condition.
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As discussed more fully under “Item 1A – Risk Factors,” although our processes are designed to help identify, protect, detect, respond to and mitigate potential cybersecurity incidents, cybersecurity threats are rapidly evolving and we may not be able to anticipate, prevent or detect all such attacks and there is no guarantee that a future cybersecurity incident would not materially affect our business strategy, results of operations, or financial condition. 24 Table of Contents

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeAs of December 31, 2023, our principal offices consisted of the following properties: Location Square Feet Lease Expiration Date Jersey City, New Jersey 352,765 December 31, 2033 Lehi, Utah 124,986 April 30, 2031 Boston, Massachusetts 115,271 November 30, 2030 Hyderabad, India 92,442 September 30, 2028 London, United Kingdom 50,677 November 29, 2030 Krakow, Poland 21,519 June 30, 2028 We also lease offices in 16 states in the U.S., and 18 offices outside the U.S. to support our international operations in Australia, Canada, China, Costa Rica, France, Germany, India, Ireland, Italy, Japan, Nepal, Poland, Republic of Korea, Singapore, Spain, Singapore, Sweden, and UK.
Biggest changeAs of December 31, 2024, our principal offices consisted of the following properties: Location Square Feet Lease Expiration Date Jersey City, New Jersey 276,443 December 31, 2033 Lehi, Utah 124,986 April 30, 2031 Boston, Massachusetts 115,271 November 30, 2030 Hyderabad, India 92,442 September 30, 2028 London, United Kingdom 50,677 November 29, 2030 Krakow, Poland 31,210 June 30, 2028 We also lease offices in 12 states in the U.S., and 34 offices outside the U.S. to support our international operations in Australia, Canada, China, Costa Rica, France, Germany, India, Ireland, Italy, Japan, Nepal, Poland, Republic of Korea, Singapore, Spain, Sweden, and UK.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeO ur share repurchases for the quarter ended December 31, 2023 are set forth below: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) October 1, 2023 through October 31, 2023 — — — $ 891.5 November 1, 2023 through November 30, 2023 — — — $ 891.5 December 1, 2023 through December 31, 2023 1,738,711 (1,2) $ 225.76 (1,2) 1,738,711 $ 641.5 1,738,711 (1,2) $ 225.76 (1,2) 1,738,711 _______________ (1) In March 2023, we entered into Accelerated Share Repurchase ("ASR") agreements to repurchase shares of our common stock for an aggregate purchase price of $2.5 billion with Citibank, N.A. and Goldman Sachs & Co.
Biggest changeO ur share repurchases for the quarter ended December 31, 2024 are set forth below: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) October 1, 2024 through October 31, 2024 212,635 (1) $ 263.92 (1) 212,635 $ 891.5 November 1, 2024 through November 30, 2024 885,663 (2) $ 287.92 (2) 885,663 $ 591.5 December 1, 2024 through December 31, 2024 — $ — — $ 591.5 1,098,298 1,098,298 _______________ ( 1) In August 2024, we entered into an additional Accelerated Share Repurchase ("ASR") agreement (the "August 2024 ASR Agreement") to repurchase shares of our common stock for an aggregate purchase price of $400.0 million with Goldman Sachs & Co.
The new peer issuers used for this graph are Black Knight, Inc., Nasdaq Inc., CoStar Group Inc., Equifax Inc., Fair Isaac Corp., Gartner, Inc., Global Payments, Inc., Clarivate PLC, Intercontinental Exchange, Inc., Jack Henry & Associates Inc., Moody’s Corporation, MSCI Inc., S&P Global, and TransUnion. The old peer issuers used for this graph are Black Knight, Inc., CoreLogic Inc.
The old peer issuers used for this graph are Black Knight, Inc., CoStar Group Inc., Equifax Inc., Fair Isaac Corp., Gartner, Inc., Global Payments, Inc., Clarivate PLC, Nasdaq Inc., Intercontinental Exchange, Inc., Jack Henry & Associates Inc., Moody’s Corporation, MSCI Inc., S&P Global, and TransUnion.
Performance Graph The graph below compares the cumulative total stockholder return on $100 invested in our common stock, with the cumulative total return on $100 invested in the S&P 500 index, an aggregate index of our proxy peers used in our Notice of Annual Meeting of Stockholders and Proxy Statement filed with the Securities and Exchange Commission on April 7, 2023 and an aggregate index of our proxy peer used in our Notice of Annual Meeting of Stockholders and Proxy Statement to be filed within 120 days of December 31, 2023 (the "Proxy Statement").
Performance Graph The graph below compares the cumulative total stockholder return on $100 invested in our common stock, with the cumulative total return on $100 invested in the S&P 500 index, an aggregate index of our proxy peers used in our Notice of Annual Meeting of Stockholders and Proxy Statement filed with the Securities and Exchange Commission on April 7, 2023 and an aggregate index of our proxy peer used in our Notice of Annual Meeting of Stockholders and Pro xy Statement to be filed within 120 days of December 31, 2024 (the "Proxy Statement").
COMPARISON OF CUMULATIVE TOTAL RETURN Assumes $100 Invested on December 31, 2018 Assumes Dividend Reinvested Fiscal Year Ended December 31, 2023 Recent Sales of Unregistered Securities We had no unregistered sales of equity securities during 2023. 26 Table of Contents Issuer Purchases of Equity Securities Under the Repurchase Program, we may repurchase stock in the market or as otherwise determined by us.
COMPARISON OF CUMULATIVE TOTAL RETURN Assumes $100 Invested on December 31, 2019 Assumes Dividend Reinvested Fiscal Year Ended December 31, 2024 Recent Sales of Unregistered Securities We had no unregistered sales of equity securities during 2024. 26 Table of Contents Issuer Purchases of Equity Securities Under t he share repurchase program ("Repurchase Program"), we may repurchase stock in the market or as otherwise determined by us.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Verisk trades under the ticker symbol “VRSK” on the NASDAQ Global Select Market. As of February 16, 2024, there were approximately 74 stockholders of record.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Verisk trades under the ticker symbol “VRSK” on the NASDAQ Global Select Market. As of February 21, 2025, there were approximately 78 stockholders of record.
On February 14, 2023, April 25, 2023, July 26, 2023, and October 25, 2023, our Board approved a cash dividend of $0.34 per share of common stock issued and outstanding to the holders of record as of March 15, 2023, June 15, 2023, September 15, 2023, and December 15, 2023, respectively.
On February 14, 2024, April 24, 2024, July 24, 2024, and October 23, 2024, our Board approved a cash dividend of $0.39 per share of common stock issued and outstanding to the holders of record as of March 15, 2024, June 15, 2024, September 15, 2024 and December 13, 2024, respectively.
Cash dividends of $196.8 million and $195.2 million were paid during the years ended December 31, 2023 and 2022 and recorded as a reduction to retained earnings, respectively. We have a publicly announced share repurchase plan and repurchased a total of 86,204,465 shares since our IPO through December 31, 2023.
Cash dividends of $221.3 million and $196.8 million were paid during the years ended December 31, 2024 and 2023 , respectively, and recorded as a reduction to retained earnings. We have a publicly announced share repurchase plan and repurchased a total of 90,198,709 shares since our IPO through December 31, 2024 .
(2) In December 2023, we entered into an additional ASR agreement to repurchase shares of our common stock for an aggregate purchase price of $250.0 million with Goldman Sachs & Co. LLC. The ASR agreement is accounted for as a treasury stock transactions and a forward sto ck purchase agreement indexed to our common stock.
(2) In November 2024, we entered into an additional ASR agreement (the "November 2024 ASR Agreement") to repurchase shares of our common stock for an aggregate purchase price of $300.0 million with Citibank, N.A. The November 2024 ASR Agreement is accounted for as a treasury stock transaction and a forward stock purchase agreement indexed to our common stock.
Upon the final settlement of this ASR agreement in February 2024, we received 178,227 additional shares as determined by the daily volume weighted average share price of our common stock of $237.71 during the term of this ASR agreement. 27 Table of Contents
Upon the final settlement of the November 2024 ASR Agreement in January 2025, we received 189,909 additional shares as determined by the daily volume weighted average share price of our common stock, less a discount, of $278.92 during the term of the November 2024 ASR Agreement. 27 Table of Contents
LLC, respectfully. The ASR agreements are accounted for as treasury stock transactions and forward stock purchase agreements indexed to our common stock.
LLC. The August 2024 ASR Agreement is accounted for as a treasury stock transaction and a forward stock purchase agreement indexed to our common stock.
Upon payment of the aggregate purchase price on March 7, 2023, we received an initial delivery of an aggregate of 10,655,301 shares of our common stock at an initial price of $187.70 per share, representing approximately 80 percent of the aggregate purchase price.
Upon payment of the aggregate purchase price on August 7, 2024, we received an initial delivery of 1,302,981 shares of our common stock at an initial price of $260.94 per share, representing an initial delivery of approximately 85 percent of the aggregate purchase price.
Upon payment of the aggregate purchase price on December 14, 2023, we received an initial delivery of 873,479 shares of our common stock at an initial price of $243.28 per share, representing approximately 85 percen t of the aggregate purchase price.
Upon the payment of the aggregate purchase price on November 12, 2024, we received an initial delivery of 885,663 shares of our common stock at an initial price of $287.92 per share, representing an initial delivery of approximately 85 percent of the aggregate purchase price.
These authorizations have no expiration dates and may be suspended or terminated at any time. As of December 31, 2023, we had $641.5 million available to re purchase shares, being the remaining unused portion of a $3.0 billion authorization, which became effective on February 1, 2023.
These authorizations have no expiration dates and may be suspended or terminated at any time. As of December 31, 2024 , we had $591.5 million a vailable to re purchase shares.
As of December 31, 2023, we had 400,694,309 shares of treasury stock.
As of December 31, 2024 , we had 403,588,401 shares of treasury stock.
Upon the final settlement of this ASR agreement in December of 2023, we received 865,232 additional shares, as determined by the daily volume weighted average share price of our common stock of $217.00 during the term of these ASR agreements.
Upon the final settlement of the August 2024 ASR Agreement in October 2024, we received 212,635 additional shares, as determined based on the volume weighted average share price of our common stock, less a discount, of $263.92 during the term of the August 2024 ASR Agreement.
(as of June 3, 2021, CoreLogic was no longer a publicly-traded company), CoStar Group Inc., Equifax Inc., Fair Isaac Corp., Gartner, Inc., Global Payments, Inc., IHS Markit (as of February 26, 2022, IHS Markit was no longer a publicly-traded company), Intercontinental Exchange, Inc., Jack Henry & Associates Inc., Moody’s Corporation, MSCI Inc., S&P Global, and TransUnion.
The new peer issuers used for this graph are Thomson Reuters Corporation, Nasdaq Inc., CoStar Group Inc., Equifax Inc., Fair Isaac Corp., Gartner, Inc., Global Payments, Inc., Clarivate PLC, Intercontinental Exchange, Inc., Jack Henry & Associates Inc., Moody’s Corporation, MSCI Inc., S&P Global, and TransUnion.
Removed
The graph assumes that the value of investment in our common stock and each index was $100 at December 31, 2018 and that all cash dividends were reinvested.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

91 edited+30 added−60 removed73 unchanged
Biggest changeThe Bilateral Credit Facilities have not been renewed. 41 Table of Contents Cash Flow The following table summarizes our cash flow data for the years ended December 31: 2023 2022 2021 (in millions) Net cash provided by operating activities $ 1,060.7 $ 1,059.0 $ 1,155.7 Net cash provided by (used in) investing activities $ 2,746.5 $ 301.4 $ (592.0 ) Net cash used in financing activities $ (3,786.5 ) $ (1,330.2 ) $ (498.9 ) Operating Activities Net cash provided by operating activities was $1,060.7 million for the year ended December 31, 2023 compared to $1,059.0 million for the year ended December 31, 2022 , an increase of $1.7 million, or 0.2%.The increase in net cash provided by operating activities reflects an increase in the operating profit of our Insurance segment and lower tax payments in the current year, offset by the disposition of our Energy business in February 2023.
Biggest changeAs of December 31, 2024 and December 31, 2023 , the available capacity under the Syndicated Revolving Credit Facility was $995.4 million, which takes into account outstanding letters of credit of $4.6 million. 39 Table of Contents Cash Flow The following table summarizes our cash flow data for the years ended December 31: 2024 2023 2022 (in millions) Net cash provided by operating activities $ 1,144.0 $ 1,060.7 $ 1,059.0 Net cash (used in) provided by investing activities $ (124.8 ) $ 2,746.5 $ 301.4 Net cash used in financing activities $ (1,028.5 ) $ (3,786.5 ) $ (1,330.2 ) Operating Activities Net cash provided by operating activities was $1,144.0 million for the year ended December 31, 2024 compared to $1,060.7 million for the year ended December 31, 2023 , an increase of $83.3 million, or 7.9% .
The remaining increase in SGA of $36.4 million or 10.0% was primarily due to a litigation reserve expense of $38.2 million associated with an indemnification of an ongoing inquiry related to our former Financial Services segment, increases in travel expenses of $3.9 million, professional consulting fees (mostly related to ERP costs) of $3.4 million, information technology expenses of $0.6 million, and other operating costs of $0.9 million, partially offset by a decrease in salaries and employee benefits of $10.6 million.
The remaining SGA increase of $36.4 million or 10.0% was primarily due to a litigation reserve expense of $38.2 million associated with an indemnification of an ongoing inquiry related to our former Financial Services segment, increases in travel expenses of $3.9 million, professional consulting fees (mostly related to ERP costs) of $3.4 million, information technology expenses of $0.6 million, and other operating costs of $0.9 million, partially offset by a decrease in salaries and employee benefits of $10.6 million.
When cash is received for prepayment of invoices, we record an asset (cash and cash equivalents) on our balance sheet with the offset recorded as a current liability (deferred revenues). This current liability is deferred revenue that does not require a direct cash outflow since our customers have prepaid and are obligated to purchase the services.
When cash is received for prepayment of invoices, we record an asset (cash and cash equivalents) on our balance sheet with the offset recorded as a liability (deferred revenues). This current liability is deferred revenue that does not require a direct cash outflow since our customers have prepaid and are obligated to purchase the services.
Investing Activities Net cash provided by investing activities of $2,746.5 million for the year ended December 31, 2023 was primarily related to proceeds from the sale of our Energy business of $3,066.4 million, partially offset by capital expenditures of $230.0 million, and acquisitions, including escrow funding of $87.1 million.
Net cash provided by investing activities of $2,746.5 million for the year ended December 31, 2023 was primarily related to proceeds from the sale of our Energy business of $3,066.4 million, partially offset by capital expenditures of $230.0 million, and acquisitions, including escrow funding of $87.1 million.
Financing Activities Net cash used in financing activities of $3,786.5 million for the year ended December 31, 2023 was primarily driven by the funding of $2,799.8 million in share repurchases, repayments of debt under our revolving credit and bilateral credit facilities of $1,265.0 million, and dividend payments of $196.8 million, partially offset by the proceeds from the issuance of our 2033 Senior Notes of $495.2 million, and proceeds from stock options exercised of $141.9 million.
Net cash used in financing activities of $3,786.5 million for the year ended December 31, 2023 was primarily driven by the funding of $2,799.8 million in share repurchases, repayments of debt under our revolving credit and bilateral credit facilities of $1,265.0 million, and dividend payments of $196.8 million, partially offset by the proceeds from the issuance of our 2033 Senior Notes of $495.2 million, and proceeds from stock options exercised of $141.9 million.
We have no obligation to update any forward-looking statements after the date hereof, except as required by applicable federal securities law. This discussion includes a comparison of our results of operations, liquidity and capital resources, financing and financing capacity and cash flow for the years ended December 31, 2023 and 2022 .
We have no obligation to update any forward-looking statements after the date hereof, except as required by applicable federal securities law. This discussion includes a comparison of our results of operations, liquidity and capital resources, financing and financing capacity and cash flow for the years ended December 31, 2024, 2023, and 2022 .
Net cash used in investing activities of $301.4 million for the year ended December 31, 2022 was primarily related to the $1,073.3 million in proceeds from the sale of 3E and our Financial Services segment, partially offset by acquisitions and purchase of non-controlling interest, including escrow funding associated with these acquisitions, of $451.2 million, capital expenditures of $274.7 million, and investments in nonpublic companies of $46.0 million.
Net cash provided by investing activities of $301.4 million for the year ended December 31, 2022 was primarily related to the $1,073.3 million in proceeds from the sale of 3E and our Financial Services segment, partially offset by acquisitions and purchase of non-controlling interest, including escrow funding associated with these acquisitions, of $451.2 million, capital expenditures of $274.7 million, and investments in nonpublic companies of $46.0 million.
These solutions take various forms, including data, statistical models, or tailored analytics, all designed to allow our clients to make more logical decisions. We believe our solutions for analyzing risk positively impact our clients’ revenues and help them better manage their costs. 29 Table of Contents Executive Summary Key Performance Metrics Revenue growth .
These solutions take various forms, including data, statistical models, or tailored analytics, all designed to allow our clients to make more logical decisions. We believe our solutions for analyzing risk positively impact our clients’ revenues and help them better manage their costs. 28 Table of Contents Executive Summary Key Performance Metrics Revenue growth .
If the carrying amount of a reporting unit’s goodwill exceeds the fair value of that goodwill, an impairment loss is recognized. As of June 30, 2023, we completed our Step Zero impairment test at the reporting unit level and determined it was not more likely than not that the carrying values of our reporting units exceeded their fair values.
If the carrying amount of a reporting unit’s goodwill exceeds the fair value of that goodwill, an impairment loss is recognized. As of June 30, 2024, we completed our Step Zero impairment test at the reporting unit level and determined it was not more likely than not that the carrying values of our reporting units exceeded their fair values.
We use EBITDA margin as a performance measure to assess segment performance and scalability of our business. We assess EBITDA margin based on our ability to increase revenues while controlling expense growth. 30 Table of Contents Revenues We earn revenues through agreements for hosted subscriptions, advisory/consulting services, and for transactional solutions, recurring and non-recurring.
We use EBITDA margin as a performance measure to assess segment performance and scalability of our business. We assess EBITDA margin based on our ability to increase revenues while controlling expense growth. 29 Table of Contents Revenues We earn revenues through agreements for hosted subscriptions, advisory/consulting services, and for transactional solutions, recurring and non-recurring.
The decrease in net income margin was primarily driven by the net gain from dispositions in the prior year, as well as the current year litigation reserve expense described above. EBITDA Margin [1] The EBITDA margin for our consolidated results was 53.1% for the year ended December 31, 2023 compared to 65.7% for the ye ar ended December 31, 2022.
The decrease in net income margin was primarily driven by the net gain from dispositions in the prior year, as well as the current year litigation reserve expense described above. EBITDA Margin [1] The EBITDA margin for our consolidated results was 53.1% for the year ended December 31, 2023 compared to 65.7% for the year ended December 31, 2022.
For the years ended December 31, 2023 and 2022 , approximately 20% and 19% of our consolidated revenues were derived from providing transactional and advisory/consulting solutions, respectively. Principal Operating Costs and Expenses Personnel expenses are a major component of both our cost of revenues and selling, general and administrative expenses.
For the years ended December 31, 2024 and 2023 , approximately 19% and 20% of our consolidated revenues, respectively, were derived from providing transactional and advisory/consulting solutions, respectively. Principal Operating Costs and Expenses Personnel expenses are a major component of both our cost of revenues and selling, general and administrative expenses.
We did not recognize any additional impairment charges related to our goodwill and indefinite-lived intangible assets. Subsequent to the test performed on June 30, 2023, we continued to monitor these reporting units for events that would trigger an interim impairment test; we did not identify any such events.
We did not recognize any additional impairment charges related to our goodwill and indefinite-lived intangible assets. Subsequent to the test performed on June 30, 2024, we continued to monitor these reporting units for events that would trigger an interim impairment test; we did not identify any such events.
The Syndicated Credit Facility may be used for general corporate purposes, including working capital needs and capital expenditures, acquisitions, dividend payments, and the Repurchase Program. As of December 31, 2023, we were in compliance with all financial and other debt covenants under the Syndicated Credit Facility.
The Syndicated Credit Facility may be used for general corporate purposes, including working capital needs and capital expenditures, acquisitions, dividend payments, and the Repurchase Program. As of December 31, 2024 , we were in compliance with all financial and other debt covenants under the Syndicated Credit Facility.
We use year-over-year revenue growth as a key performance metric. We assess revenue growth based on our ability to generate increased revenue through increased sales to existing customers, sales to new customers, sales of new or expanded solutions to existing and new customers, and strategic acquisitions of new businesses. We use year-over-year EBITDA growth as metrics to measure our performance.
We use year-over-year revenue growth as a key performance metric. We assess revenue growth based on our ability to generate increased revenue through increased sales to existing customers, sales to new customers, sales of new or expanded solutions to existing and new customers, and strategic acquisitions of new businesses. EBITDA. We use year-over-year EBITDA growth as a key performance metric.
We did not classify this transaction as a discontinued operation. As a result of these sale transactions, we have excluded the Energy and Specialized Markets and Financial Services segments from our management's discussion and analysis of the results of operations by segment.
We did not classify this transaction as a discontinued operation. As a result of these sale transactions, we have excluded the Energy and Specialized Markets and Financial Services segments from our management's discussion and analysis of the results of operations.
If we do not perform a qualitative assessment, or if we determine that it is more likely than not that the carrying amounts of our reporting units exceeds their fair value, we perform a quantitative assessment and calculate the estimated fair value of the respective reporting unit.
If we do not perform a qualitative assessment, or if we determine that it is more likely than not that the carrying amount of our reporting units exceeds their fair value, we perform a quantitative assessment and calculate the estimated fair value of the respective reporting unit.
Investment Income (Loss) and Others, Net Investment income (loss) and others, net was a gain of $11.0 million for the year ended December 31, 2023 compared to a loss of $5.3 million for the year ended December 31, 2022 . The increase was primarily due to impact of foreign currencies.
Investment Income (Loss) and Others, Net Investment income (loss) and others, net was a gain of $11.0 million for the year ended December 31, 2023 compared to a loss of $5.3 million f or the year ended December 31, 2022. The increase was primarily due to impact of foreign currencies.
As part of our evaluation, we calculate the approximate average yields on securities that were selected to match our separate projected cash flows for both the pension and postretirement plans. Our separate benefit plan cash flows are input into actuarial models that include data for corporate bonds rated AA or better at the measurement date.
As part of our ev aluation, we calculate the approximate average yields on securities that were selected to match our separate projected cash flows for both the pension and postretirement plans. Our separate benefit plan cash flows are input into actuarial models that include data for corporate bonds rated AA or better at the measurement date.
We have made, and may from time to time in the future make, optional repayments on our debt obligations, which may include repurchases or exchanges of our outstanding notes, depending on various factors, such as market conditions. Any such repurchases may be effected through privately negotiated transactions, market transactions, tender offers, redemptions or otherwise.
We have made, and may from time to time in the future make, optional repayments on our debt obligations, which may include repurchases or exchanges of our outstanding notes, depending on various factors, such as market conditions. Any such repurchases may be effected through privately negotiated transactions, market transactions, tender offers, redemptions or otherwise. See Note 15 .
(2) Unrecognized tax benefits of approximately $2.0 million have been recorded as liabilities in accordance with ASC 740 , Income Taxes which have been omitted from the table above, and we are uncertain as to if or when such amounts may be settled, with the exception of those amounts subject to a statute of limitation.
(2) Unrecognized tax benefits of approximately $4.1 million have been recorded as liabilities in accordance with ASC 740 , Income Taxes which have been omitted from the table above, and we are uncertain as to if or when such amounts may be settled, with the exception of those amounts subject to a statute of limitation.
Our capital expenditures for the years ended December 31, 2023 and 2022 were $230.0 million and $274.7 million, respectively. Expenditures related to developing and enhancing our solutions are predominately related to internal-use software and are capitalized in accordance with ASC 350-40, Accounting for Costs of Computer Software Developed or Obtained for Internal Use.
Our capital expenditures for the years ended December 31, 2024, 2023, and 2022 were $223.9 million, $230.0 million, and $274.7 million, respectively. Expenditures related to developing and enhancing our solutions are predominately related to internal-use software and are capitalized in accordance with ASC 350-40, Accounting for Costs of Computer Software Developed or Obtained for Internal Use.
Our selling, general and administrative expenses exclude depreciation and amortization. 31 Table of Contents Trends Affecting Our Business A significant change in P&C insurers’ profitability could affect the demand for our solutions. For insurers, the keys to profitability include increasing investment income, premium growth and disciplined and accurate underwriting of risks.
Our selling, general and administrative expenses exclude depreciation and amortization. 30 Table of Contents Trends Affecting Our Business A significant change in the profitability of P&C insurers could affect the demand for our solutions. The keys to profitability for insurers include premium growth, increasing investment income, and disciplined and accurate underwriting of risks.
Related to the unrecognized tax benefits, we also have recorded a liability for potential penalties and interest of $0.2 million. Off-Balance Sheet Arrangements We have no off-balance sheet arrangements.
Related to the unrecognized tax benefits, we also have recorded a liability for potential penalties and interest of $0.7 million. Off-Balance Sheet Arrangements We have no off-balance sheet arrangements.
Refer to the Results of Operations by Segment within this section for more information regarding our revenues. Our Specialized Market business was sold in March 2022; and our Energy business, which qualified for discontinued operations in the fourth quarter of 2022, was subsequently sold in February 2023. Our Financial Services segment was sold in April 2022.
Refer to the Results of Operations by Segment within this section for more information regarding our revenues. Our Specialized Market business was sold in March 2022; and our Energy business, which qualified for discontinued operations in the fourth quarter of 2022, was subsequently sold in Februar y 2023. Our Financial Services segment was sold in April 2022.
These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined. We estimate unrecognized tax positions o f $0.7 million that may be recognized by December 31, 2024, due to expiration of statutes of limitations and resolution of audits with taxing authorities, net of additional uncertain tax positions.
These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined. We estimate unrecognized tax positions o f $0.9 million that may be recognized by December 31, 2025, due to expiration of statutes of limitations and resolution of audits with taxing authorities, net of additional uncertain tax positions.
Quarterly Results of Operations The following table set forth our quarterly unaudited consolidated statement of operations data for each of the eight quarters in the period ended December 31, 2023.
Quarterly Results of Operations The following table set forth our quarterly unaudited consolidated statement of operations data for each of the eight quarters in the period ended December 31, 2024.
Personnel expenses, which represented approximately 57% and 59% of our total operating expenses (excluding gains/losses related to dispositions) for each of the years ended December 31, 2023 and 2022, respectively, include salaries, benefits, incentive compensation, equity compensation costs, sales commissions, employment taxes, recruiting costs, and outsourced temporary agency costs.
Personnel expenses, which represented approximately 56% and 57% of our total operating expenses (excluding gains/losses related to dispositions) for each of the years ended December 31, 2024 and 2023 , respectively, include salaries, benefits, incentive compensation, equity compensation costs , sales commissions, employment taxes, recruiting costs, and outsourced temporary agency costs.
Subscriptions for our solutions are generally paid in advance of rendering services either quarterly or in full upon commencement of the subscription period, which is usually for one year and automatically renewed each year.
Subscriptions for our solutions are generally paid in advance of rendering services either quarterly or in full upon commencement of the subscription period, which is usually for one to five years and automatically renewed each year.
A one percent change in discount rate and future rate of return on plan assets would have the following effects: Pension Postretirement 1% Decrease 1% Increase 1% Decrease 1% Increase Benefit (Credit) Cost Projected Benefit Obligation Benefit (Credit) Cost Projected Benefit Obligation Benefit (Credit) Cost Projected Benefit Obligation Benefit (Credit) Cost Projected Benefit Obligation Discount Rate $ (0.5 ) $ 26.3 $ 0.4 $ (22.8 ) $ - $ 0.2 $ - $ (0.2 ) Expected Rate of Return on Assets $ 3.8 $ - $ (3.8 ) $ - $ 0.1 $ - $ (0.1 ) $ - Income Taxes In projecting future taxable income, we develop assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies.
A one percent change in discount rate and future rate of return on plan assets would have the following effects: Pension Postretirement 1% Decrease 1% Increase 1% Decrease 1% Increase Benefit (Credit) Cost Projected Benefit Obligation Benefit (Credit) Cost Projected Benefit Obligation Benefit (Credit) Cost Projected Benefit Obligation Benefit (Credit) Cost Projected Benefit Obligation Discount Rate $ (0.5 ) $ 23.8 $ 0.4 $ (20.7 ) $ - $ 0.2 $ - $ (0.2 ) Expected Rate of Return on Assets $ 4.1 $ - $ (4.1 ) $ - $ 0.1 $ - $ (0.1 ) $ - Income Taxes In projecting future taxable income, we develop assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies.
These estimates are based on historical experience and on other assumptions that are believed to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, goodwill and intangible assets, pension and other postretirement benefits, stock-based compensation, and income taxes. Actual results may differ from these assumptions or conditions.
These estimates are based on historical experience and on other assumptions that are believed to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, goodwill and intangible assets, pension and other postretirement benefits, stock-based compensation, and income taxes.
For our pension and postretirement plans, the total actuarial losses as of December 31, 2023 that have not been recognized in annual expense are $118.3 million and $3.6 million, respectively, and we expect to recognize a net periodic pension and postretirement expenses of $3.6 million and $0.3 million, respectively, in 2024 related to the amortization of actuarial losses.
For our pension and postretirement plans, the total actuarial losses as of December 31, 2024 that have not been recognized in annual expense are $122.6 million and $3.1 million, respectively, and we expect to recognize a net periodic pension and postretirement expenses of $4.2 million and $0.3 million, respectively, in 2025 related to the amortization of actuarial losses.
Our Energy and Specialized Markets and Financial Services segments did not have revenues from continuing operations in 2023. 2023 2022 Percentage change Percentage change excluding recent acquisitions, businesses held for sale and disposition (in millions) Insurance $ 2,681.4 $ 2,437.0 10.0 % 8.7 % Specialized Markets — 22.4 N/A N/A Financial Services — 37.6 N/A N/A Total revenues $ 2,681.4 $ 2,497.0 7.4 % 8.7 % Cost of Revenues Cost of revenues was $876.5 million for the year ended December 31, 2023 compared to $824.6 million for the year ended December 31, 2022 , an increas e of $51.9 million or 6.3% .
Our Energy and Specialized Markets and Financial Services segments did not have revenues from continuing oper ations in 2023. 2023 2022 Percentage change Percentage change excluding recent acquisitions, businesses held for sale and disposition (in millions) Insurance $ 2,681.4 $ 2,437.0 10.0 % 8.7 % Specialized Markets — 22.4 (100.0 )% — % Financial Services — 37.6 (100.0 )% — % Total revenues $ 2,681.4 $ 2,497.0 7.4 % 8.7 % Cost of Revenue Cost of rev enues was $876.5 million for the year ended December 31, 2023 compared to $824.6 million for the year ended December 31, 2022 , an increase of $51.9 million or 6.3%.
Trends in catastrophe and non-catastrophe losses (such as from weather, climate, casualty, terrorism, pandemics, and tsunamis) can have an effect on our customers’ profitability, and therefore on their appetite for buying analytics to help them manage their risks.
These trends in catastrophe and non-catastrophe losses (such as from weather, climate, casualty, terrorism, pandemics, and tsunamis) can influence our customers’ profitability, and therefore their appetite for buying analytics to help them manage their risks.
As of December 31, 2023, we have gross federal, state, and foreign income tax net operating loss carryforw ards of $69.0 milli on, which will expire at various dates from 2024 through 2043.
As of December 31, 2024, we have gross federal, state, and foreign income tax net operating loss carryforw ards of $53.0 milli on, which will expire at various dates from 2025 through 2044.
We follow the substantive vesting period approach for awards granted after January 1, 2005, which requires that stock-based compensation expense be recognized over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service.
We follow the substantive vesting period approach which requires that stock-based compensation expense be recognized over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service.
Interest on the senior notes is payable semi-annually each year. The unamortized discount and debt issuance costs were recorded as "Long-term debt" in the accompanying consolidated balance sheets, and will be amortized to "Interest expense" in the accompanying consolidated statements of operations within this Form 10-K over the life of the respective senior note.
The unamortized discount and debt issuance costs were recorded as "Long-term debt" in the accompanying consolidated balance sheets, and will be amortized to "Interest expense" in the accompanying consolidated statements of operations within this Form 10-K over the life of the respective senior note.
Approxi mately 80% and 81% of the revenues in our Insurance segment for the years ended December 31, 2023 and 2022 were derived from hosted subscriptions through agreements (generally one to five years) for our solutions, respectively. We also provide advisory/consulting services, which help our customers get more value out of our analytics and their subscriptions.
Approximately 81% and 80% of the revenues in our Insurance segment for the years ended December 31, 2024 and 2023 , respectively, were derived from hosted subscriptions through agreements for our solutions, respectively. We also provide advisory/consulting services, which help our customers get more value out of our analytics and their subscriptions.
As a result of this factor, as well as the availability of funds under our Syndicated Credit Facility (as defined below), we believe we will have sufficient cash to meet our working capital, human capital and capital expenditure needs, and to fuel our future growth plans.
As a result of this factor, as well as the availability of funds under our Credit Facility, we expect that we will have sufficient cash to meet our working capital and capital expenditure needs and to fuel our future growth plans.
We have a $1,000.0 million Syndicated Credit Facility with Bank of America N.A., HSBC Bank USA, N.A., JP Morgan Chase Bank, N.A., Wells Fargo Bank, National Association, Citibank, N.A., Morgan Stanley Bank, N.A., TD Bank, N.A., Goldman Sachs Bank USA, and the Northern Trust Company that was amended on April 5, 2023.
We have a $1,000 million Syndicated Credit Facility with Bank of America N.A., HSBC Bank USA, N.A., JP Morgan Chase Bank, N.A., Wells Fargo Bank, National Association, Citibank, N.A., Morgan Stanley Bank, N.A., TD Bank, N.A., Goldman Sachs Bank USA, and the Northern Trust Company with a maturity date of April 5, 2028.
The outputs from the actuarial models are assessed against the prior year’s discount rate and quoted rates for long-term bond indices. For our pension plans at December 31, 2023, we determined this rate to be 5.37% and 5.49% at December 31, 2023 and 2022, respectively. Our postretirement rate was 4.75% and 5.25% at December 31, 2023 and 2022, respectively.
The outputs from the actuarial models are assessed against the prior year’s discount rate and quoted rates for long-term bond indices. For our pension plans at December 31, 2024 , we determined this rate to be 5.64% and 5.37% at December 31, 2024 and 2023 , respectively.
As a result of these sale transactions, we have excluded the Energy and Specialized Markets and Financial Services segments from our management's discussion and analysis of the results of operations by segment. 36 Table of Contents Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 Consolidated Results of Continuing Operations Revenues Revenues we re $2,497.0 million for the year ended December 31, 2022 compared to $2,462.5 million for the year ended December 31, 2021 , an increase of $34.5 million or 1.4% .
As a result of these sale transactions, we have excluded the Energy and Specialized Markets and Financial Services segments from our management's discussion and analysis of the results of operations. 35 Table of Contents Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Consolidated Results of Continuing Operations Revenues Revenues we re $2,681.4 million for the year ended December 31, 2023 compared to $2,497.0 million for the year ended December 31, 2022 , an increase of $184.4 million or 7.4% .
During the measurement period, which is not to exceed one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill.
During the measurement period, which is not to exceed one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings.
Growth in P&C insurers’ direct written premiums has been cyclical, with total industry premium growth receding from a peak of 14.8% in 2002 to a trough of negative 3.1% in 2009 and subsequently recovering to 5.1% in 2019. In 2020, industry premium growth declined to 2.3% due to the COVID-19 pandemic.
The growth of direct written premiums for P&C insurers has exhibited cyclical patterns, with total industry premium growth declining from a peak of 14.8% in 2002 to a trough of (3.1)% in 2009 and subsequently recovering to 5.1% in 2019. In 2020, industry premium growth declined to 2.3% due to the impact of the pandemic.
Description of Discontinued Operations See a description of our 2023 disposition below and within Note 11 . Dispositions and Discontinued Operations to our consolidated financial statements included in this annual report on Form 10-K for further discussions.
See a description of our 2024 acquisition below and Note 10 . Acquisitions to our consolidated financial statements included in this annual report on Form 10-K for further discussions.
Investment Income (Loss) and Others, Net Investment income (loss) and others, net was a gain of $11.0 million for the year ended December 31, 2023 compared to a loss of $4.7 million for the year ended December 31, 2022 . The increase was primarily due to impact of foreign currencies.
Investment Income (Loss) and Others, Net Investment income (loss) and others, net was a gain of $95.7 million for the year ended December 31, 2024 compared to a gain of $11.0 million for the year ended December 31, 2023 .
A reconciliation from net income to EBITDA is in the table below: Year Ended December 31, 2023 2022 Net Income $ 614.4 $ 954.3 Less: Loss from discontinued operations, net of tax (benefit) expense of $(12.6) and $131.5, respectively (154.0 ) (87.8 ) Income from continuing operations 768.4 1,042.1 Depreciation and amortization of fixed assets 206.8 164.2 Amortization of intangible assets 74.6 74.4 Interest expense 115.5 138.8 Provision for income taxes 258.8 220.3 EBITDA $ 1,424.1 $ 1,639.8 Revenue $ 2,681.4 $ 2,497.0 EBITDA Margin 53.1 % 65.7 % 35 Table of Contents Results of Continuing Operations by Segment Insurance Revenues Revenues were $2,681.4 million for the year ended December 31, 2023 compared to $2,437.0 million for the year ended December 31, 2022 , an increase of $244.4 million or 10.0% .
A reconciliation from net income to EBITDA is in the table below: Year Ended December 31, 2023 2022 Net Income $ 614.4 $ 954.3 Less: (Loss) from discontinued operations, net of tax (expense) benefit of $(12.6) and $131.5, respectively (154.0 ) (87.8 ) Income from continuing operations 768.4 1,042.1 Depreciation and amortization of fixed assets 206.8 164.2 Amortization of intangible assets 74.6 74.4 Interest expense 115.5 138.8 Provision for income taxes 258.8 220.3 EBITDA 1,424.1 1,639.8 Revenue $ 2,681.4 $ 2,497.0 EBITDA Margin 53.1 % 65.7 % 37 Table of Contents Energy and Specialized Markets and Financial Segments On March 11, 2022, we completed the sale of 3E, which made up the Specialized Markets within this segment.
Our recent acquisitions and dispositions accounted for a net decrease of $54.9 million in cost of revenues, which was primarily related to salaries and employee benefits.
Our recent acquisitions and dispositions accounted for an increase of $6.1 million in cost of revenues, which was primarily related to salaries and employee benefits.
Our underwriting revenues increased $146.6 million or 8.5% primarily due to an annual increase in prices derived from continued enhancements to the content of the solutions within our forms, rules and loss cost services as well as selling expanded solutions to new and existing customers within underwriting solutions.
Our underwriting revenue increased $131.9 million or 7.0%, primarily due to an annual increase in prices derived from continued enhancements to the models and content of the solutions within our forms, rules and loss cost services, as well as selling expanded solutions to new and existing customers within extreme event solutions, underwriting data and analytic solutions, and specialty business solutions.
See a description of our 2023 dispositions and businesses held for sale below and Note 11 . Dispositions and Discontinued Operations to our consolidated financial statements included in this annual report on Form 10-K for further discussions.
Dispositions and Discontinued Operations to our consolidated financial statements included in this annual report on Form 10-K for further discussions.
Amortization of Intangible Assets Amortization of intangible assets was $74.6 million for the year ended December 31, 2023 compared to $74.4 million for the year ended December 31, 2022 , an increase of $0.2 million or 0.3% . The increase was primarily driven by recent acquisitions of $3.7 million, partially offset by our recent dispositions of $3.5 million.
The increase was primarily driven by recent acquisitions of $3.7 million, partially offset by our recent dispositions of $3.5 million. 36 Table of Contents Other Operating Income Other operating income was $0.0 million for the year ended December 31, 2023 compared to $354.2 million for the year ended December 31, 2022 .
The principal assumptions concern the discount rate used to measure the projected benefit obligation and the expected return on plan assets. We revise these assumptions based on an annual evaluation of long-term trends and market conditions that may have an impact on the cost of providing retirement benefits.
We revise these assumptions based on an annual evaluation of long-term trends and market conditions that may have an impact on the cost of providing retirement benefits.
See Note 15 for additional information on our financing activities.
Debt for additional information on our financing activities.
Amortization of Intangible Assets Amortization of intangible assets was $74.4 million for the year ended December 31, 2022 compared to $79.9 million for the year ended December 31, 2021, a decrease of $5.5 million or 6.9%.
Amortization of Intangible Assets Amortization of intangible assets was $72.3 million for the year ended December 31, 2024 compared to $74.6 million for the year ended December 31, 2023 , a decrease of $2.3 million or 3.1% .
Direct premium growth accelerated to 9.5% in 2021 and 9.7% in 2022 indicating a recovery from the pandemic. Based on the most recent results available, direct written premiums continued to grow in 2023 on comparable level. In 2023, the main economic indicators stabilized, inflation began to fall, and the federal interest rate increases stopped mid-year.
Direct premium growth accelerated to 9.5% in 2021, 9.7% in 2022, and further increased to 10.4% in 2023, indicating a continued recovery from the pandemic. Based on the most recent results available, written premiums continued to grow in 2024 at a comparable level.
Net cash used in financing activities of $498.9 million for the year ended December 31, 2021 was primarily related to repurchases of common stock of $475.0 million, repayment of our $450.0 million 5.800% senior notes on May 3, 2021, and dividend payments of $188.2 million, partially offset by proceeds, net of repayments, from our Syndicated Credit Facility, of $560.0 million and proceeds from stock options exercised of $84.3 million. 42 Table of Contents Contractual Obligations The following table summarizes our contractual obligations at December 31, 2023 and the future periods in which such obligations are expected to be settled in cash: Payments Due by Period Total Less than 1 year 2-3 years 4-5 years More than 5 years (in millions) Contractual obligations Long-term debt, current portion of long-term debt, and interest $ 4,191.0 $ 126.9 $ 1,098.3 $ 181.8 $ 2,784.0 Operating leases 268.4 33.3 66.7 64.1 104.3 Pension and postretirement plans (1) 12.4 1.7 2.9 2.6 5.2 Finance lease obligations 37.1 15.6 17.2 4.3 — Total (2) $ 4,508.9 $ 177.5 $ 1,185.1 $ 252.8 $ 2,893.5 (1) Our funding policy is to contribute at least equal to the minimum legal funding requirement.
Net cash used in financing activities of $1,330.2 million for the year ended December 31, 2022 was primarily related to repurchases of common stock of $1,662.5 million, repayment of our $350.0 million 4.125% senior notes on September 12, 2022, and dividend payments of $195.2 million, partially offset by proceeds under our Bilateral Term Loan Credit Facility of $125.0 million, proceeds from our Bilateral Revolving Credit Facility of $275.0 million, proceeds, net of repayments of debt under our Syndicated Credit Facility of $380.0 million, and proceeds from stock options exercised of $132.5 million. 40 Table of Contents Contractual Obligations The following table summarizes our contractual obligations at December 31, 2024 and the future periods in which such obligations are expected to be settled in cash: Payments Due by Period Total Less than 1 year 2-3 years 4-5 years More than 5 years (in millions) Contractual obligations Long-term debt, current portion of long-term debt, and interest $ 4,633.1 $ 632.4 $ 244.8 $ 844.8 $ 2,911.1 Operating leases 213.2 32.8 61.6 57.3 61.5 Pension and postretirement plans (1) 11.0 1.3 2.5 2.9 4.3 Finance lease obligations 46.6 22.1 19.7 4.8 — Total (2) $ 4,903.9 $ 688.6 $ 328.6 $ 909.8 $ 2,976.9 (1) Our funding policy is to contribute at least equal to the minimum legal funding requirement.
As of December 31, 2023, the pension plan assets were allocated 53.5% debt securities, 40.0% equity securities, 5.3% real estate and 1.2% other. The VEBA Plan target allocation is 100% debt securities.
Our pension asset investment guidelines target an investment portfolio allocation of 60% debt securities and 40% equity securities. As of December 31, 2024, the pension plan assets were allocated 57.5% debt securities, 36.5% equity securities, 4.9% real estate and 1.1% other. The VEBA Plan target allocation is 100% debt securities.
Our claims revenues increased $86.2 million or 12.3%. 2023 2022 Percentage change Percentage change excluding recent acquisitions, businesses held for sale and disposition (in millions) Underwriting $ 1,892.7 $ 1,734.5 9.1 % 8.5 % Claims 788.7 702.5 12.3 % 9.3 % Total Insurance $ 2,681.4 $ 2,437.0 10.0 % 8.7 % Our recent acquisitions (Morning Data within the underwriting category of our Insurance segment; and Mavera and Krug within the claims category of the Insurance segment) contributed net revenues of $32.4 million, while the remaining Insurance revenues increased $212.0 million or 8.7%.
Our revenue by category for the periods presented is set forth below: 2024 2023 Percentage change Percentage change excluding recent acquisitions and disposition (in millions) Underwriting $ 2,024.3 $ 1,892.7 7.0 % 7.0 % Claims 857.4 788.7 8.7 % 7.8 % Total Insurance $ 2,881.7 $ 2,681.4 7.5 % 7.2 % Our recent acquisitions (M orning Data within the underwriting category of our Insurance segment; Rocket, Mavera and Krug within the claims category of the Insurance segment) and dispositions (AER) within the underwriting category of our Insurance segment) contributed net revenues of $7.4 million, while the remaining Insurance revenues increased $192.9 million or 7.2%.
The financial covenants require that, at the end of any fiscal quarter, we have a consolidated funded debt leverage ratio of less than 3.75 to 1.0 .
Borrowing under the facility is payable at an interest rate of SOFR plus 100.0 to 162.5 basis points, depending on the public debt rating. The financial covenants require that, at the end of any fiscal quarter, we have a consolidated funded debt leverage ratio of less than 3.75 to 1.0 .
Net Income Margin The net income margin for our consolidated results was 41.7% for the year ended December 31, 2022 compared to 24.7% for the year ended December 31, 2021.
Net Income Margin The net income margin for our consolidated results was 33.2% for the year ended December 31, 2024 compared to 22.9% for the year ended December 31, 2023 .
The effective tax rate was 17.5% for the year ended December 31, 2022 compared to 22.8% for the year ended December 31, 2021.
The effective tax rate was 22.6 % for the year ended December 31, 2024 compared to 25.2 % for the year ended December 31, 2023 .
March 31, June 30, September 30, December 31, 2023 (in millions, except for per share data) Statement of operations data: Revenues $ 651.6 $ 675.0 $ 677.6 $ 677.2 Cost of revenue 216.2 216.9 217.2 226.2 Operating income 294.1 306.0 281.1 250.5 Income from continuing operations 194.4 204.3 187.4 182.3 Net Income attributable to Verisk 56.3 196.9 187.4 174.0 Basic earnings per share: Income from continuing operations $ 1.28 $ 1.41 $ 1.29 $ 1.26 Net income attributable to Verisk $ 0.37 $ 1.36 $ 1.29 $ 1.20 Diluted earnings per share: Income from continuing operations $ 1.27 $ 1.41 $ 1.29 $ 1.25 Net income attributable to Verisk $ 0.37 $ 1.35 $ 1.29 $ 1.20 March 31, June 30, September 30, December 31, 2022 (in millions, except for per share data) Statement of operations data: Revenues $ 643.6 $ 612.9 $ 610.1 $ 630.4 Cost of revenue 228.7 195.5 195.2 205.2 Operating income 622.8 247.6 253.6 282.5 Income from continuing operations 487.0 173.5 165.8 215.8 Net income attributable to Verisk 505.7 197.6 189.4 61.2 Basic earnings per share: Income from continuing operations $ 3.03 $ 1.10 $ 1.06 $ 1.38 Net income attributable to Verisk $ 3.15 $ 1.25 $ 1.21 $ 0.39 Diluted earnings per share: Income from continuing operations $ 3.01 $ 1.09 $ 1.05 $ 1.37 Net income attributable to Verisk $ 3.13 $ 1.24 $ 1.20 $ 0.39 40 Table of Contents Liquidity and Capital Resources As of December 31, 2023 and 2022, we had cash and cash equ ivalents and available-for-sale securities totaling $303.9 million and $296.7 million, respectively, inclusive of cash included within assets held for sale.
March 31, June 30, September 30, December 31, 2024 (in millions, except for per share data) Statement of operations data: Revenues $ 704.0 $ 716.8 $ 725.3 $ 735.6 Cost of revenue 227.8 219.4 223.4 230.5 Operating income 307.4 318.7 311.5 316.3 Income from continuing operations 219.4 307.8 220.0 203.5 Net income attributable to Verisk 219.6 308.1 220.1 210.4 Basic earnings per share: Income from continuing operations $ 1.53 $ 2.16 $ 1.55 $ 1.45 Net income attributable to Verisk $ 1.53 $ 2.16 $ 1.55 $ 1.50 Diluted earnings per share: Income from continuing operations $ 1.52 $ 2.15 $ 1.54 $ 1.44 Net income attributable to Verisk $ 1.52 $ 2.15 $ 1.54 $ 1.49 March 31, June 30, September 30, December 31, 2023 (in millions, except for per share data) Statement of operations data: Revenues $ 651.6 $ 675.0 $ 677.6 $ 677.2 Cost of revenue 216.2 216.9 217.2 226.2 Operating income 294.1 306.0 281.1 250.5 Income from continuing operations 194.4 204.3 187.4 182.3 Net income attributable to Verisk 56.3 196.9 187.4 174.0 Basic earnings per share: Income from continuing operations $ 1.28 $ 1.41 $ 1.29 $ 1.26 Net income attributable to Verisk $ 0.37 $ 1.36 $ 1.29 $ 1.20 Diluted earnings per share: Income from continuing operations $ 1.27 $ 1.41 $ 1.29 $ 1.25 Net income attributable to Verisk $ 0.37 $ 1.35 $ 1.29 $ 1.20 38 Table of Contents Liquidity and Capital Resources As of December 31, 2024 and 2023 , we had cash and cash equivalents and available-for-sale securities totaling $292.5 million and $303.9 million, respectively.
The expected return on plan assets is determined by taking into consideration our analysis of our actual historical investment returns to a broader long-term forecast adjusted based on our target investment allocation, and the current economic environment. Our pension asset investment guidelines target an investment portfolio allocation of 60.0% debt securities and 40.0% equity securities.
Our postretirement rate was 5.17% and 4.75% at December 31, 2024 and 2023 , respectively. 42 Table of Contents The expected return on plan assets is determined by taking into consideration our analysis of our actual historical investment returns to a broader long-term forecast adjusted based on our target investment allocation, and the current economic environment.
For the years ended December 31, 2023, 2022, and 2021 , we repurchased $2,762.3 million, $1,662.5 million, and $475.0 million, respectively, of our common stock. For the years ended December 31, 2023, 2022, and 2021 , we also paid dividends of $196.8 million, $195.2 million, and $188.2 million, respectively.
We have historically used a portion of our cash for repurchases of our common stock from our stockholders. For the years ended December 31, 2024, 2023, and 2022 , we repurchased $1,005.0 million, $2,762.3 million, and $1,662.5 million, respectively, of our common stock.
Until premium pricing adjustments take effect and profitability improves, carriers are refraining from spending to drive new policy volume, creating short term impacts on demand and volume for our Marketing Solutions offerings and auto underwriting solutions.
Until premium pricing adjustments are fully implemented, and profitability improves, some carriers are not yet spending as much as they have in the past to drive new policy volume, which could have a short-term impact on demand and volume for our Marketing Solutions offerings and auto underwriting solutions.
EBITDA EBITDA for our Insurance segment was $1,424.1 million for the year ended December 31, 2023 compared to $1,303.0 million for the year ended December 31, 2022. The EBITDA margin for our Insurance segment was 53.1% for the year ended December 31, 2023 compared to 53.5% for the year ended December 31, 2022 .
The EBITDA margin for our consolidated results was 57.6 % for the year ended December 31, 2024 compared to 53.1% for the year ended December 31, 2023 .
Other Operating Income Other operating income was $0.0 million for the year ended December 31, 2023 compared to $354.2 million for the year ended December 31, 2022 . The gain in the prior year was primarily driven by the sale of 3E and Financial Services segment recognized in the prior year.
The gain in the prior year was primarily driven by the sale of 3E and Financial Services segment recognized in the prior year.
Selling, General and Administrative Expenses SGA expenses for our Insurance segment were $391.8 million for the year ended December 31, 2023 compared to $347.4 million for the year ended December 31, 2022 , an increase of $44.4 million or 12.8% .
Selling, General and Administrative Expenses Selling, general and administrative expenses ("SGA") w ere $408.7 m illion for the year ended December 31, 2024 compared to $391.8 million for the year ended December 31, 2023 , an increase of $16.9 million or 4.3% . Our recent acquisitions and dispositions accounted for an increase of $22.7 million in SGA.
Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. 44 Table of Contents Pension and Postretirement Certain assumptions are used in the determination of our annual net period benefit (credit) cost and the disclosure of the funded status of these plans.
Pension and Postretirement Certain assumptions are used in the determination of our annual net period benefit (credit) cost and the disclosure of the funded status of these plans. The principal assumptions concern the discount rate used to measure the projected benefit obligation and the expected return on plan assets.
Financing and Financing Capacity We had total debt, e xcluding finance lease obligations, unamortized discounts and premium, and debt issuance costs, of $2,850.0 million and $3,740.0 million at December 31, 2023 and 2022, respectively. The debt at December 31, 2023 primarily consists of senior notes issued in 2023, 2020, 2019, and 2015.
For the years ended December 31, 2024, 2023, and 2022 , we also paid dividends of $221.3 million, $196.8 million, and $195.2 million, respectively. Financing and Financing Capacity We had total deb t, excluding finance lease obligations, unamortized discounts and premium, and debt issuance costs, of $3,050.0 million and $2,850.0 million at December 31, 2024 and 2023 , respectively.
Recent Accounting Pronouncements For a discussion of recent accounting pronouncements, refer to Note 2(s) to the audited consolidated financial statements included in this annual report on Form 10-K. 45 Table of Contents
Such net operating loss carryforwards expire as follows: Years Ending (in millions) 2025 - 2032 $ 16.1 2033 - 2037 4.6 2038 - 2044 32.3 Total $ 53.0 Recent Accounting Pronouncements For a discussion of recent accounting pronouncements, refer to Note 2(s) to the audited consolidated financial statements included in this annual report on Form 10-K. 43 Table of Contents
We also have a portion of our revenue related to the number of claims processed due to losses, which can be impacted by seasonal storm activity. The need by our customers to fight insurance fraud - both in claims and at policy inception - could lead to increased demand for our underwriting and claims solutions.
A portion of our revenue is also related to the number of claims processed due to losses, which can be impacted by seasonal storm or wildfire activity.
The remaining increase in cost of revenues of $68.4 million or 8.7% was primarily due to increases in salaries and employee benefits of $51.0 million, which was primarily driven by increase in rent expenses of $6.6 million, bad debt expenses of $3.8 million, travel expenses of $3.6 million, data costs of $1.8 million, and other operating costs of $3.9.
The remaining cost of revenues increase of $18.5 million or 2.1% was primarily due to increases in salaries and employee benefits of $8.3 million, information technology expense of $6.9 million, data costs of $ 6.3 million, bad debt expense of $ 5.6 million, and fees and membership costs of $0.7 million, partially offset by a decrease in rent expense of $3.3 million, a decrease of $2.2 million on the disposal of fixed assets, $1.5 million gain primarily related to our Jersey City lease modification, decreases in office expense of $ 0.8 million, insurance expense of $0.7 million, professional consulting fees of $0.5 million, and other operating costs of $0.3 million.
Despite high interest rates in 2023, the annualized yield on investments (not attributable to cash transfers from outside the P/C industry) was 3.0% as of nine-months 2023, down from the 3.3% yield for year-end 2022. Both recent results are lower than the historical 15-year average of 3.4%, showing that yields have yet to follow the trend in interest rates.
Insurers’ annualized yield on investments (not attributable to cash transfers from outside the P&C industry) was 2.5% as of the first nine months of 2024, down from the 3.2% yield at year-end 2023 despite still moderately high interest rates (compared to the pre-pandemic period) in 2024.
The decrease was primarily driven by recent dispositions of $20.1 million, and intangible assets that were fully amortized of $8.6 million, partially offset by additional amortization of intangible assets incurred in connection with our recent acquisitions of $23.2 million. 37 Table of Contents Other Operating (Income) Loss Other operating (income) loss was a gain of $354.2 million for the year ended December 31, 2022 compared to a loss of $134.0 million for the year ended December 31, 2021 .
The decrease was primarily due to intangible assets that were fully amortized, partially offset by an increase due to our recent acquisition of $0.3 million. Other operating loss (income) Other operating loss (income) was $12.1 million for the year ended December 31, 2024 compared to $0.0 million for the year ended December 31, 2023 .
Cash taxes paid in the prior year were higher primarily due to the gain on the sale of 3E. Net cash provided by operating activities was $1,059.0 million for the year ended December 31, 2022 compared to $1,155.7 million for the year ended December 31, 2021, a decrease of $96.7 million, or 8.4% .
The increase in operating cash flow was due to an increase in operating profit, offset by an increase in interest payments. Net cash provided by operating activities was $1,060.7 million for the year ended December 31, 2023 compared to $1,059.0 million for the year ended December 31, 2022 , an increase of $1.7 million, or 0.2% .
The remaining SGA increase of $36.4 million or 10.0% was primarily due to a litigation reserve expense of $38.2 million associated with an indemnification of an ongoing inquiry related to our former Financial Services segment, increases in travel expenses of $3.9 million, professional consulting fees (mostly related to ERP costs) of $3.4 million, information technology expenses of $0.6 million, and other operating costs of $0.9 million, partially offset by a decrease in salaries and employee benefits of $10.6 million. 34 Table of Contents Depreciation and Amortization of Fixed Assets Depreciation and amortization of fixed assets was $206.8 million for the year ended December 31, 2023 compared to $164.2 million for the year ended December 31, 2022 , an increase of $42.6 million or 25.9% .
The offsetting decrease of $ 5.8 million or 1.4 % was primarily due to a prior year litigation reserve expense of $38.2 million related to our former Financial Services segment, decreases in fees and membership costs of $3.2 million, bad debt expense of $1.1 million, and other operating costs of $1.2 million, partially offset by an increase in professional consulting fees of $15.8 million , salaries and employee benefits of $12.3 million, a $6.5 million loss on the disposal of assets primarily due to a write-off of leasehold improvements related to our lease modification, increases in insurance expense of $2.0 million, and information technology expense of $1.3 million.
We estimate expected forfeitures of equity awards at the date of grant and recognize compensation expense only for those awards expected to vest. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. Goodwill and Intangibles As of December 31, 2023, we had goodwill associated with continuing operations of $1,760.8 million, which represents 40.3% of our total assets.
We estimate expected forfeitures of equity awards at the date of grant and recognize compensation expense only for those awards expected to vest. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. Internally Developed Software We capitalize certain development costs incurred in connection with internally developed software.
Insurance Revenues Revenues were $2,437.0 million for the year ended December 31, 2022 compared to $2,206.9 million for the year ended December 31, 2021, an increase of $230.1 million or 10.4%. Our underwriting revenues increased $179.4 million or 11.5%.
Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Consolidated Results of Continuing Operations Revenues Revenues were $2,881.7 million for the year ended December 31, 2024 compared to $2,681.4 million for the year ended December 31, 2023 , an increase of $200.3 million or 7.5% . Our underwriting revenue increased $131.6 million or 7.0%.
As a result of closing adjustments in the second and fourth quarter of 2023, we incurred an additional net loss of $2.7 million. 33 Table of Contents Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Consolidated Results of Continuing Operations Revenues Revenu es were $2,681.4 million for the year ended December 31, 2023 compared to $2,497.0 million for the year ended December 31, 2022 , an increase of $184.4 million or 7.4% .
As a result of closing adjustments in the second and fourth quarter of 2023, we incurred an additional net loss of $2.7 million.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

6 edited+0 added−4 removed0 unchanged
Biggest changeMovements in the U.S. dollar to British pounds and other foreign currency exchange rates did not have a material effect on our revenue for the year ended December 31, 2023. A hypothetical ten percent change in average exchange rates versus the U.S. dollar would not have resulted in a material change to our earnings. Item 8.
Biggest changeIf British pounds and other foreign currencies strengthen, costs reported in U.S. dollars will increase. Movements in the U.S. dollar to British pounds and other foreign currency exchange rates did not have a material effect on our revenue for the year ended December 31, 2024.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Interest Rate Risk We are exposed to market risk from fluctuations in interest rates. As of December 31, 2023, we had no borrowings outstanding under our Credit Facility.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Interest Rate Risk We are exposed to market risk from fluctuations in interest rates. As of December 31, 2024, we had no borrowings outstanding under our Credit Facility.
Interest on borrowings under the Amendment is payable at an interest rate of SOFR plus 100.0 to 162.5 basis points, depending upon our public debt rating. A commitment fee on any unused commitment is payable periodically and may range from 8.0 to 17.5 basis points based upon our public debt rating.
Interest on borrowings under the Credit Facility is payable at an interest rate of SOFR plus 100.0 to 162.5 basis points, depending upon our public debt rating. A commitment fee on any unused commitment is payable periodically and may range from 8.0 to 17.5 basis points based upon our public debt rating.
If the U.S. dollar strengthens against British pounds and other foreign currencies, our revenues reported in U.S. dollars would decline. With regard to operating expense, our primary exposure to foreign currency exchange risk relates to operating expense incurred in British pounds and other foreign currencies. If British pounds and other foreign currencies strengthen, costs reported in U.S. dollars will increase.
A portion of our revenue is denominated in British pounds and other foreign currencies. If the U.S. dollar strengthens against British pounds and other foreign currencies, our revenues reported in U.S. dollars would decline. With regard to operating expense, our primary exposure to foreign currency exchange risk relates to operating expense incurred in British pounds and other foreign currencies.
A change in interest rates on variable rate debt impacts our pre-tax income and cash flows but does not impact the fair value of the instruments.
A change in interest rates on variable rate debt impacts our pre-tax income and cash flows but does not impact the fair value of the instruments. Foreign Currency Risk Our foreign-based businesses and results of operations are exposed to movements in the U.S. dollar to British pounds and other foreign currency exchange rates.
Consolidated Financial Statements and Supplementary Data The information required by this Item is set forth on pages 53 through 99 of this annual report on Form 10-K.
A hypothetical ten percent change in average exchange rates versus the U.S. dollar would not have resulted in a material change to our earnings. Item 8. Consolidated Financial Statements and Supplementary Data The information required by this Item is set forth on pages 53 through 96 of this annual report on Form 10-K.
Removed
On April 5, 2023 , we entered into the Fifth Amendment (the "Amendment") to the committed senior unsecured Syndicated Revolving Credit Facility with Bank of America, N.A. as administrative agent. The Amendment does not change the current borrowing capacity of $1,000.0 million, but does extend the maturity date to April 5, 2028 .
Removed
We also maintained a $125.0 million Bilateral Term Loan Facility and a $275.0 million Bilateral Revolving Credit Facility (together the "Bilateral Credit Facilities") that matured on September 9, 2023 and October 2, 2023 , respectively.
Removed
The Bilateral Credit Facilities carried an interest rate of 135 basis points plus the one-month BSBY and was used for general corporate purposes, including working capital needs and capital expenditures, acquisitions, dividend payments, and the Repurchase Program. We have had no outstanding borrowings under our Bilateral Credit Facilities during 2023 through the maturity dates.
Removed
The Bilateral Credit Facilities have not been renewed. Foreign Currency Risk Our foreign-based businesses and results of operations are exposed to movements in the U.S. dollar to British pounds and other foreign currency exchange rates. A portion of our revenue is denominated in British pounds and other foreign currencies.

Other VRSK 10-K year-over-year comparisons