10q10k10q10k.net

What changed in Verisk Analytics's 10-K — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of Verisk Analytics's 2024 and 2025 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 2025 report.

+283 added−304 removedSource: 10-K (2026-02-18) vs 10-K (2025-02-26)

Top changes in Verisk Analytics's 2025 10-K

283 paragraphs added · 304 removed · 229 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

90 edited+16 added−34 removed82 unchanged
Biggest changeWe are also earning recognition from several Best Workplaces™ lists including Fortune’s Best Workplaces in New York™, UK's Best Workplaces™, UK’s Best Workplaces for Wellbeing™, UK’s Best Workplaces for Development™, UK’s Best Workplaces in Tech™, Spain’s Best Workplaces™, Best Workplaces in Málaga™, Poland’s Best Workplaces™, and India’s Great Mid-size Workplaces™.
Biggest changeWe are also earning recognition from several Best Workplaces™ lists including Forbes' America’s Best Employers for Company Culture™, Fortune’s Best Workplaces in New York™, Fortune’s Best Workplaces in Technology™, Fortune’s 100 Best Companies to Work for™ in Europe, UK's Best Workplaces™, UK’s Best Workplaces for Women™, UK’s Best Workplaces for Wellbeing™, UK’s Best Workplaces for Development™, UK’s Best Workplaces in Tech™, Spain’s Best Workplaces™, Spain’s Best Workplaces in Tech™, Best Workplaces in Málaga™, Poland’s Best Workplaces™, Poland’s Best Workplaces for Women™, India’s Great Mid-size Workplaces™, India’s Best Workplaces for Millennials™, and India’s Best Workplaces in IT & IT-BPM™.
We use our proprietary and contributory data assets to develop predictive analytics and transformative models for our clients; • Deep Insurance Industry Expertise and Focus – We have specialized and in-depth knowledge in insurance and risk management that drives our engagement with our clients; • Long-standing Industry Relationships – Our early beginnings as an insurance rating bureau have established us as a trusted partner for the industry as well as a source of insights for our clients; and • Scale to Drive Broad Distribution of Innovation – Our scale advantage enables us to innovate on behalf of the insurance industry and deliver solutions that strive to solve our clients’ biggest challenges.
We use our proprietary and contributory data assets to develop predictive analytics and transformative models for our clients; • Deep Insurance Industry Expertise and Focus – We have specialized and in-depth knowledge in insurance and risk management that drives our engagement with our clients; • Long-standing Industry Relationships – Our early beginnings as an insurance rating bureau have established us as a trusted partner for the industry, as well as a source of insights for our clients; and • Scale to Drive Broad Distribution of Innovation – Our scale enables us to innovate on behalf of the insurance industry and deliver solutions that strive to solve our clients’ biggest challenges.
Additionally, our international market provides services to much of the Lloyd's of London market, while also serving clients in Continental Europe, Singapore, China, Australia, and New Zealand. The international enhanced commercial and residential property models and enriched data sets help insurers with triage, reconstruction value, risk selection, pricing, benchmarking, and portfolio management across multiple insured segments.
Additionally, our international expansion provides services to much of the Lloyd's of London market, while also serving clients in Continental Europe, Singapore, China, Australia, and New Zealand. The international enhanced commercial and residential property models and enriched data sets help insurers with triage, reconstruction value, risk selection, pricing, benchmarking, and portfolio management across multiple insured segments.
Many of our solutions can be integrated with one another and with capabilities across the organization to meet evolving client needs and offer a compelling digital ecosystem for the London and global insurance market. To that end, our global marketplace solution offers seamless real-time quote-to-bind electronic placing and distribution for the specialty insurance market.
Many of our solutions can be integrated with one another and with capabilities across the organization to meet evolving client needs and offer a compelling digital ecosystem for the London and global insurance markets. To that end, our global marketplace solution offers seamless real-time quote-to-bind electronic placing and distribution for the specialty insurance market.
Insurance Segment We now operate in one segment, Insurance, which primarily serves our P&C insurance customers across most personal and commercial lines of business, focusing on the fundamental building blocks of insurance programs, the prediction of loss, the selection and pricing of risk, and compliance with their reporting requirements in each U.S. state in which they operate.
Insurance Segment We operate in one segment, Insurance, which primarily serves our P&C insurance customers across most personal and commercial lines of business, focusing on the fundamental building blocks of insurance programs, the prediction of loss, the selection and pricing of risk, and compliance with their reporting requirements in each U.S. state in which they operate.
Underwriting Powered by proprietary and contributory data and advanced analytics and technologies, we offer a full suite of solutions to support our P&C clients across the insurance policy lifecycle. This support spans their product development, marketing, new and renewal underwriting, risk selection and segmentation, pricing, and straight through to policy binding and issuance.
Underwriting Powered by proprietary and contributory data and advanced analytics and technologies, we offer a full suite of solutions to support our P&C clients across the insurance policy lifecycle. This support spans their product development, new and renewal underwriting, risk selection and segmentation, pricing, and straight through to policy binding and issuance.
As part of our product development process, we continually solicit feedback from our customers on the value of our solutions and services and the market’s needs. We have established an extensive system of customer advisory panels that meet regularly throughout the year to help us respond effectively to the needs of our markets.
As part of our product development process, we continually solicit feedback from our customers on the value of our solutions and services and the industry market’s needs. We have established an extensive system of customer advisory panels that meet regularly throughout the year to help us respond effectively to the needs of our markets.
Our compliance division offers Medicare Secondary Payer solutions and services to comply with the federal statute, including Section 111 Centers for Medicare & Medicaid Services (CMS) reporting, lien resolution/conditional payments, liabilities repayment, and ongoing protection of the Medicare Trust Fund via Medicare Set Aside (MSA) services.
Our compliance division offers Medicare Secondary Payer solutions and services to comply with the federal statute, including Section 111 Centers for Medicare & Medicaid Services reporting, lien resolution/conditional payments, liabilities repayment, and ongoing protection of the Medicare Trust Fund via Medicare Set Aside (MSA) services.
We seek to balance this with high return on capital investment into the business to continue to drive growth and profitability; and • Ensure Disciplined Capital Allocation. We are focused on generating strong cash flow and ensuring that we are disciplined in how we allocate that capital with a focus on directing capital to the highest return investments.
We seek to balance this with high return on capital investment in the business to continue to drive growth and profitability; and • Ensure Disciplined Capital Allocation. We are focused on generating strong cash flow and ensuring that we are disciplined in how we allocate that capital with a focus on directing capital to the highest return investments.
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.
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 16.3 million commercial properties in the U.S.
Insurers also use our solutions to help fine-tune the accuracy of their rating models and to enhance underwriting results through a set of analytical solutions that predict the relative risk and variation of major insurance perils, including theft, flood, storm, fire, freeze, etc.
Insurers also use our solutions to help fine-tune the accuracy of their rating models and to enhance underwriting results through a set of analytical solutions that predict the relative risk and variation of major insurance perils, including theft, flood, storm, fire, and freeze.
Information from match reports speeds payment of meritorious claims while providing a defense against fraud and can lead to denial of a claim, negotiation of a reduced award, or further investigation by the insurer or law enforcement.
Information from match reports speeds up payment of meritorious claims while providing a defense against fraud and can lead to denial of a claim, negotiation of a reduced award, or further investigation by the insurer or law enforcement.
Our industry-leading FAST platform can reduce time to market, enables faster policy conversion, and can reduce information technology costs for our customers, uniquely positioning us to help support the modernization of the life insurance industry.
Our FAST platform can reduce time to market, enables faster policy conversion, and can reduce information technology costs for our customers, uniquely positioning us to help support the modernization of the life insurance industry.
Insurers used and continue to use our offerings primarily in their product development, underwriting, and rating functions. On May 23, 2008, in contemplation of our initial public offering ("IPO"), ISO formed Verisk Analytics, Inc. ("Verisk"), a Delaware corporation, to be the holding company for our business. Verisk was initially formed as a wholly owned subsidiary of ISO.
Insurers used and continue to use our offerings primarily in their product development, underwriting, and rating functions. On May 23, 2008, in contemplation of our initial public offering ("IPO"), ISO formed Verisk, a Delaware corporation, to be the holding company for our business. Verisk was initially formed as a wholly owned subsidiary of ISO.
Our actuarial solutions and services are also used to create the analytics underlying our industry-standard insurance programs described above. In response to the challenges faced by our clients to reduce operating complexity and improve their speed to market, we are undertaking an extensive modernization of our core lines product.
Our actuarial solutions and services are also used to create the analytics underlying our industry-standard insurance programs described above. In response to the challenges faced by our clients to reduce operating complexity and improve their speed to market, we undertook an extensive modernization of our core lines product.
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.
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 280 million insured drivers and 288 million registered vehicles with access to expansive industry databases on loss costs and claims.
Property Estimating Solutions We also provide data, analytics, and networking solutions for professionals involved in estimating all phases of building repair and reconstruction.
Property Estimating Solutions We provide data, analytics, and networking solutions for professionals involved in estimating all phases of building repair and reconstruction.
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.
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 2025, we continued to prioritize career development across the Company by utilizing an employee-centric strategy based on feedback from employees and managers.
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.
We add to our offerings through an active acquisition program. Since 2022, we have a cquired 10 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 provide policy language, prospective loss costs, policy writing and rating rules, and a variety of underwriting solutions for risk selection and segmentation, pricing, and workflow optimization across 31 lines of insurance. Our policy language, prospective loss cost information, and policy writing rules can serve as integrated, turnkey insurance programs for our clients.
We provide policy language, prospective loss costs, policy writing and rating rules, and a variety of underwriting solutions for risk selection and segmentation, pricing, and workflow optimization across 32 lines of insurance. Our policy language, prospective loss cost information, and policy writing rules can serve as integrated, turnkey insurance programs for our clients.
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.
These specialized Account Executives are responsible for selling highly technical solution sets to targeted sectors, 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.
We also make our data and analytics available to commercial real estate lenders to allow them to better understand risks associated with people to whom they lend. 6 Table of Contents Extreme Event Solutions We are a leader in and pioneered the field of probabilistic catastrophe modeling used by insurers, reinsurers, intermediaries, financial institutions, and governments to manage their risk from extreme events.
We also make our data and analytics available to commercial real estate lenders to allow them to better understand risks associated with people to whom they lend. 6 Table of Contents Catastrophe and Risk Solutions We are a leader in and pioneered the field of probabilistic catastrophe modeling used by insurers, reinsurers, intermediaries, financial institutions, and governments to manage their risk from catastrophic events.
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.
In 2025, 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.
Our comprehensive workers’ compensation state reporting helps customers meet the very complex compliance requirements for reporting to states and other government related agencies and entities through an automated process driving efficiency and productivity for the U.S. P&C insurance industry.
Our comprehensive workers’ compensation state reporting helps customers meet the very complex compliance requirements for reporting to states and other government related agencies and entities through an automated process, driving efficiency and productivity for the P&C insurance industry.
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.
Within the Tier One and Tier Two segments, our U.S. 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.
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.
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. We primarily engage with clients through direct interaction, leveraging a structured, multi-tiered sales approach.
We are the owners of the derivative solutions we create using the data we collect. 11 Table of Contents Information Technology Technology Our information technology systems and the more recent adoption of cloud computing are fundamental to our success.
We are the owners of the derivative solutions we create using the data we collect. 11 Table of Contents Information Technology Technology Our information technology systems and adoption of cloud computing are fundamental to our success.
These solutions span a range of applications—from using precise home reconstruction costs to help policyholders have the right amount of coverage, to providing auto insurers with the data that supports offering consumers a bindable quote in minutes through modern API’s. We also provide proprietary analytic measures of the ability of individual communities to mitigate losses from important perils.
These solutions span a range of applications—from using precise home reconstruction costs to help policyholders have the right amount of coverage, to providing auto insurers with the data that supports offering consumers a bindable quote in minutes through modern application programming interfaces. We also provide proprietary analytic measures of the ability of individual communities to mitigate losses from important perils.
As the largest provider of Medicare compliance services in the industry, we play a critical role in assisting and protecting all stakeholders, including Medicare and its beneficiaries.
As a leading provider of Medicare compliance services in the industry, we play a critical role in assisting and protecting all stakeholders, including Medicare and its beneficiaries.
We believe that Verisk is uniquely positioned with a series of competitive advantages including: • Proprietary Data Assets – Data is at the core of what we do.
We believe that Verisk is uniquely positioned with a series of competitive differentiators including: • Proprietary Data Assets – Data is at the core of what we do.
The benefits of an industrywide claims database include improved efficiency in reporting data and searching for information, enhanced capabilities for detecting suspicious claims, and superior information for investigating fraudulent claims, suspicious individuals, and possible fraud rings.
The benefits of an industry-wide claims database include improved efficiency in reporting data and searching for information, enhanced capabilities for detecting suspicious claims, and superior information for investigating fraudulent claims, suspicious individuals, and possible fraud rings.
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.
Our tiered approach has proven to be an effective sales model for building strong customer relationships. Additionally, our senior leadership team regularly engages with senior management at our client organizations to ensure strategic alignment, and to foster opportunities for mutual partnership and innovation.
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.
Many of our highly credentialed team hold 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.
A substantial majority of P&C insurance providers in the U.S. use our statistical agent services to report to regulators, and the majority of insurers and reinsurers in the U.S. use our actuarial services and industry-standard insurance programs.
A substantial number of P&C insurance providers in the U.S. use our statistical agent services to report to regulators, and a large number of insurers and reinsurers in the U.S. use our actuarial services and industry-standard insurance programs.
To maintain control of our intellectual property, we enter into contractual agreements with our customers, granting each customer permission to use our solutions and services, including our software and databases. This helps maintain the integrity of our proprietary intellectual property and to protect the embedded information and technology contained in our solutions.
To maintain control of our intellectual property, we enter into contractual agreements with our customers, granting each customer limited licenses to our solutions and services, including our software and databases. This helps maintain the integrity of our proprietary intellectual property and to protect the embedded information and technology contained in our solutions.
We are a leading provider of innovative solutions for the personal underwriting markets, including homeowners and auto lines.
We are a leading provider of innovative solutions for personal underwriting, including homeowners and auto lines.
In addition, certain agencies of the federal government as well as county and state governmental agencies and organizations use our solutions to help satisfy government needs for risk assessment and emergency response information. Within Extreme Events, we serve reinsurers, insurers, brokers, governments, and corporates helping them identify, quantify and plan for the financial consequences of catastrophes.
In addition, certain agencies of the federal government as well as county and state governmental agencies and organizations use our solutions to help satisfy government needs for risk assessment and emergency response information. Within Catastrophe and Risk Solutions, we serve reinsurers, insurers, brokers, governments, and corporations by helping them identify, quantify and plan for the financial consequences of catastrophes.
Nearly every property insurer in the U.S. uses our evaluations of community firefighting capabilities to help determine premiums for fire insurance throughout the country. We provide field-verified and validated data on fire protection services for approximately 36,000 fire response jurisdictions.
Property insurers throughout the U.S. uses our evaluations of community firefighting capabilities to help determine premiums for fire insurance throughout the country. We provide field-verified and validated data on fire protection services for approximately 36,000 fire response jurisdictions.
International Underwriting Solutions We continue to expand our footprint of data and solutions to include international markets. Our international insurance markets grew through acquisitions and today serve a large number of insurers operating in the Canadian, United Kingdom (U.K.) and Irish property and casualty markets, and travel market.
International Underwriting Solutions We continue to expand our footprint of data and solutions to include international markets. Our access to international insurance markets grew through acquisitions and today serve a large number of insurers operating in the Canadian, United Kingdom (U.K.) and Irish P&C markets, and travel market.
Our solutions serve insurers, (re)insurers, brokers, cover holders, and managing general agents (MGAs) in London and across the globe. We help drive the success of many of the fastest growing insurance and reinsurance specialists by providing full end-to-end management of insurance and reinsurance business.
Our solutions serve insurers, reinsurers, brokers, cover holders, and managing general agents in London and across the globe. We help drive the success of many of the fastest growing insurance and reinsurance specialists by providing full end-to-end management of insurance and reinsurance businesses.
In addition, we are working on building leadership positions in adjacent markets including life insurance, marketing, specialty business solutions, and resilience and sustainability.
In addition, we are working on building leadership positions in adjacent spaces, including life insurance, specialty business solutions, and resilience and sustainability.
We continued to grow our presence internationally and expand our capabilities into new markets, such as life insurance and annuities, and into new workflows, such as marketing and customer acquisition. Forms, Rules, and Loss Costs We are the recognized leader in the U.S. for industry-standard insurance programs that help P&C insurers define coverages and issue policies.
We continue to grow our presence internationally and expand our capabilities into new spaces, such as life insurance and annuities, and into new workflows, including customer acquisition. Forms, Rules, and Loss Costs We are a recognized leader in the U.S. for industry-standard insurance programs that help P&C insurers define coverages and issue policies.
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.
With these policy programs, insurers also benefit from economies of scale. We have more than 250 insurance experts and specialized lawyers reviewing changes in each state’s insurance rules and regulations, including an average of approximately 17,600 legislative actions, 22,000 regulatory actions, and 2,000 court decisions per year, to make any required changes to our policy language and rating information.
It is very rare that contributors elect not to continue providing us data. Second, we have agreements with data contributors in which we specify the particular uses of their data and provide their required levels of privacy, protection of data, and where necessary, de-identification of data.
It is rare that contributors elect not to continue providing us with all or a substantial portion of their data. Second, we have agreements with data contributors in which we specify the particular uses of their data and provide their required levels of privacy, protection of data, and where necessary, de-identification of data.
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.
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, and a variety of physical, mental, and financial well-being offerings and resources. Terms vary by business unit and country.
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.
Approximately 57% of our employees are based in the United States, 11% in the United Kingdom, 11% 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 a small number of employees in Germany are represented by a works council.
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.
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.
Security measures generally cover the following key areas: security policies and governance committees, physical security, logical security of the perimeter, network security such as firewalls, logical access to applications and operating systems, deployment of endpoint anti-malware software, email security, and appropriate procedures relating to removable media such as laptops.
Security measures generally cover the following key areas: security policies and governance committees, physical security, logical security of the perimeter, network security, logical access to applications and operating systems, deployment of endpoint security software, email security, cloud security, data security, and appropriate procedures relating to removable media such as laptops, which are also encrypted.
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.
In recent years, we have expanded our offerings into certain non-U.S. markets and the fields of life insurance and annuities. We offer our solutions and services primarily through annual subscriptions or long-term agreements, which are typically prepaid (annually and quarterly) and represented over 80% of our revenues in 2025.
A claims adjuster or investigation professional can use our comprehensive case management system to manage claim investigations. We continually pursue new solutions that help our customers keep abreast of changing markets and technology. For example, we developed a digital media database that allows customers to view prior-loss images on claim matches so they can detect pre-existing damage on new claims.
We continually pursue new solutions that help our customers keep abreast of changing markets and technology. For example, we developed a digital media database that allows customers to view prior-loss images on claim matches so they can detect pre-existing damage on new claims.
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.
The database analyzes more than 1.9 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 193,000 new claims a day on average across all U.S. P&C insurance industry categories.
We make a number of actuarial adjustments before the data is used to estimate future costs. Our clients can use our estimates of future costs in making independent decisions about the prices charged for their policies. For most P&C insurers in most lines of business, we believe that our estimates of future costs are an essential input to rating decisions.
Our clients can use our estimates of future costs in making independent decisions about the prices charged for their policies. For most P&C insurers in most lines of business, we believe that our estimates of future costs are an essential input to rating decisions.
As a knowledge-based business, we carefully integrate the skills and talents of approximately 7,800 employees worldwide as of December 31, 2024.
As a knowledge-based business, we carefully integrate the skills and talents of approximately 8,000 employees worldwide as of December 31, 2025.
On October 6, 2009, in connection with our IPO, we effected a reorganization whereby ISO became a wholly owned subsidiary of Verisk. Verisk common stock began trading on the NASDAQ Global Select Market on October 7, 2009, under the ticker symbol “VRSK.” Segments Our operating segments have historically been Insurance, Energy and Specialized Markets, and Financial Services.
On October 6, 2009, in connection with our IPO, we effected a reorganization whereby ISO became a wholly owned subsidiary of Verisk. Verisk common stock began trading on the NASDAQ Global Select Market on October 7, 2009, under the ticker symbol “VRSK.” Segments We operate in one segment, Insurance.
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%).
Participants in the program leveraged one-on-one coaching sessions to drive performance and build lasting leadership capabilities. 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 match (up to 6%).
Anti-Fraud Solutions We are a leading provider of fraud-detection tools for the P&C insurance industry. Our anti-fraud solutions can improve our customers’ profitability by predicting the likelihood that fraud may be occurring and by detecting suspicious activity after it has occurred. Our claims database lends significant support to the fight against insurance fraud.
Our anti-fraud solutions can improve our customers’ profitability by predicting the likelihood that fraud may be occurring and by detecting suspicious activity after it has occurred. Our claims database lends significant support to the fight against insurance fraud.
We refer to these products and services as solutions due to the integration among our services and the flexibility that enables our clients to purchase components or a comprehensive package.
Our clients use our solutions to make better decisions about risk and improve operating efficiency. We refer to these products and services as solutions due to the integration among our services and the flexibility that enables our clients to purchase components or a comprehensive package.
Customers access our ecosystem for enhanced claims handling and analysis. For example, they can use our weather API for near-real-time updates and valuable insights for responding to weather perils that can impact their policyholders and their business. They can also use our data insights to analyze and benchmark their performance against peers in the industry and to manage claims assignments.
Customers access our ecosystem for enhanced claims handling and analysis. For example, they can use our weather API for near real-time updates and valuable insights for responding to weather perils that can impact their policyholders and their business.
Cybersecurity." Intellectual Property We own a significant number of intellectual property rights, including copyrights, trademarks, trade secrets, and patents. Specifically, our policy language, insurance manuals, software, and databases are protected by both registered and common law copyrights. and the licensing of those materials to our customers for their use represents a large portion of our revenue.
Specifically, our policy language, insurance manuals, software, and databases are protected by both registered and common law copyrights, and the related proprietary processes are protected by trade secrets. The licensing of those materials to our customers for their use represents a large portion of our revenue.
We estimate that more than 80% of insurance repair contractors and service providers in the U.S. and Canada with computerized estimating systems use our building and repair cost estimation pricing data. Our Competitors The breadth of markets we serve exposes us to a broad range of competitors as described below. Businesses that we acquire may introduce us to additional competitors.
Insurance repair contractors and service providers in the U.S. and Canada with computerized estimating systems commonly use our building and repair cost estimation pricing data. Our Competitors The breadth of markets we serve exposes us to a broad range of competitors as described below. We operate primarily in the U.S. P&C insurance industry.
When we find it advantageous, we augment our proprietary data sources and systems by forming alliances with other leading information providers and technology companies and integrating their product offerings into our offerings.
At times, we augment our proprietary data sources and systems by forming alliances with other leading information providers and technology companies and integrating their product offerings into our offerings to better serve our customers.
We distribute a number of actuarial solutions and offer flexible services to meet our clients’ needs. In addition, our actuarial consultants provide customized services for our clients that include assisting them with the development of independent insurance programs, analysis of their own underwriting experience, development of classification systems and rating plans, and a wide variety of other business decisions.
In addition, our actuarial consultants provide customized services for our clients that include assisting them with the development of independent insurance programs, analysis of their own underwriting experience, development of classification systems and rating plans, and a wide variety of other business decisions. We also supply information to various clients in other markets, including reinsurance and government agencies.
Our structural repair and cleaning database contains approximately 21,000 unit-cost line items. We estimate that more than 80% of insurance repair contractors and service providers in the U.S. and Canada with computerized estimating systems use our building and repair pricing data. This large percentage leads to accurate reporting of pricing information, which we believe is unmatched in the industry.
Our structural repair and cleaning database contains approximately 22,000 unit-cost line items. Our building and repair pricing data is commonly used by insurance repair contractors and service providers in the U.S. and Canada with computerized estimating systems. This usage leads to accurate reporting of pricing information, which we believe outperforms other tools in the industry.
Our business continuity program adheres to ISO 22301:2019, which is an international standard for business continuity. All business impact analysis and business continuity plans are reviewed and updated, at a minimum, annually or when significant business changes occur. Security We have adopted a wide range of measures to secure our IT infrastructure and data.
All business impact analyses and business continuity plans are reviewed and updated, at a minimum, annually or when significant business changes occur. Security We have adopted a wide range of measures to secure our information technology ("IT") infrastructure and data.
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 will continue to maintain other data centers 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.
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.
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 well-being of our employees is crucial. Our employee engagement score for 2025 is 80%, improving by 2% points since 2024.
Regulation Because our business involves the distribution of certain personal, public, and nonpublic data to businesses and governmental entities that make eligibility, service, and marketing decisions based on such data, certain of our solutions and services are subject to regulation under federal, state, and local laws in the U.S. and, to a lesser extent, in foreign countries.
To create an outstanding employee experience, leaders understand and act on results and insights, and continuously communicate with employees through town halls and local engagement events. 13 Table of Contents Regulation Because our business involves the distribution of certain personal, public, and nonpublic data to businesses and governmental entities that make eligibility, service, and marketing decisions based on such data, certain of our solutions and services are subject to regulation under federal, state, and local laws in the U.S. and, to a lesser extent, in foreign countries.
We also compete with a variety of organizations that offer consulting services, primarily specialty technology and consulting firms. In addition, a customer may use its own internal resources rather than engage an outside firm for these services. Our underwriting solutions compete with a variety of companies in the marketplace.
In addition, a customer may use its own internal resources rather than engage an outside firm for these services. Our underwriting solutions compete with a variety of companies in the marketplace. Such competitors include information technology product and services vendors; management and strategy consulting firms; and specialized information technology and analytical services firms.
In the P&C insurance claims and catastrophe modeling markets, certain products are offered by a number of companies in the areas of catastrophe modeling, repair cost estimating, claims investigative reports, claims fraud analytics, and injury claims analytics.
In the life insurance sector, our solutions compete against numerous independent vendors, as well as the in-house technology departments of life insurers. In the P&C insurance claims and catastrophe modeling markets, products are offered by a number of companies in the areas of catastrophe modeling, repair cost estimating, claims investigative reports, claims fraud analytics, and injury claims analytics.
Our Business Strategy Our vision is 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. Our business aims to build upon our competitive advantages and capitalizing on our scale and position within the industry.
Our Business Strategy Our vision is 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. Our business strategy is driven by the following priorities: • Drive Consistent & Predictable Growth.
Using our large database of premium and loss data, we provide actuarial services to help our clients analyze and price their risks. Our actuaries are able to perform sophisticated analyses using our predictive models and analytic methods to help our P&C insurance clients with pricing, loss reserving, and market analysis.
Our actuaries are able to perform sophisticated analyses using our predictive models and analytic methods to help our P&C insurance clients with pricing, loss reserving, and market analysis. We distribute a number of actuarial solutions and offer flexible services to meet our clients’ needs.
We also supply information to various clients in other markets, including reinsurance and government agencies. We project clients' future losses and loss expenses using a broad set of data. Those projections tend to be more reliable than if our clients used their own data exclusively.
We project clients' future losses and loss expenses using a broad set of data. Those projections tend to be more reliable than if our clients used their own data exclusively. We make a number of actuarial adjustments before the data is used to estimate future costs.
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.
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.
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 2025, over 650 Verisk employees across 20 locations and 8 countries registered volunteer hours during Verisk Volunteer Week. Efforts included a Rise Against Hunger event with over 91,830 meals packed, donation drives, and local community cleanup activities.
Over the past five decades, we have developed core expertise in acquiring, processing, managing, protecting, and operating large and comprehensive databases that are the foundation of our insurance offerings. We use our proprietary technology to assemble, organize, and update vast amounts of detailed information submitted by our clients. We supplement this data with publicly available information.
To provide our clients and the regulators with the information they require, we maintain one of the largest private databases in the world. Over the past five decades, we have developed core expertise in acquiring, processing, managing, protecting, and operating large and comprehensive databases that are the foundation of our insurance offerings.
Competitors also include other statistical agents and other advisory organizations, that provide underwriting rules, prospective loss costs, and coverage language. Competitors for our property-specific rating and underwriting information are primarily regional providers of commercial property inspections and surveys as well as emerging providers in the InsurTech space.
Competitors for our property-specific rating and underwriting information include regional providers of commercial property inspections and surveys, as well as emerging providers in the InsurTech space. We also compete with a variety of organizations that offer consulting services, primarily specialty technology and consulting firms.
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.
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. Using our large database of premium and loss data, we provide actuarial services to help our clients analyze and price their risks.
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.
Employees feel Verisk meets the benchmark for innovation, inclusivity, company values, and leaders’ effectiveness.
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.
To cover the wide variety of risks in the marketplace, we offer a broad range of policy programs. For example, in the homeowners line of insurance, we maintain policy language and rules for approximately 6 basic coverages, 383 national endorsements, and 714 state-specific endorsements. 5 Table of Contents The P&C insurance industry is heavily regulated in the U.S.
We also provide accurate person and vehicle coverage details at first notice of loss (FNOL), including verified registered owner information through DMV data, contact information for the individual, and brief claims history. 8 Table of Contents Casualty Solutions We offer a full suite of casualty/bodily injury solutions to serve the P&C industry, third-party administrators, and self-insured employers.
We also provide accurate person and vehicle coverage details at first notice of loss, including verified registered owner information through a state's department of motor vehicles data, contact information for the individual, and brief claims history.

… 60 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

34 edited+1 added−0 removed115 unchanged
Biggest changeFor a subset of our products we rely on proprietary or copyrighted material which could be fed into generative AI large language models without our knowledge. This could result in duplication of our products or solutions by generative AI tools and reduce the relevance or value proposition of such products or solutions.
Biggest changeMany of our products rely on proprietary or copyrighted material which could be fed into AI models without our knowledge. Evolved AI-based ecosystems and workflow automation developed by our customers or generic datasets enhanced by AI could compete more effectively with our products or solutions.
If there is a downturn in the U.S. insurance industry or that industry does not continue to accept our solutions, our revenues will decline. Revenues derived from solutions we provide to U.S. P&C primary insurers account for a substantial portion of our total revenues.
P&C primary insurers. If there is a downturn in the U.S. insurance industry or that industry does not continue to accept our solutions, our revenues will decline. Revenues derived from solutions we provide to U.S. P&C primary insurers account for a substantial portion of our total revenues.
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.
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, among other topics, 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.
These suppliers could also be subject to regulatory actions, or conflicts of interest which could force us to seek alternative suppliers in a short time period, at an economic disadvantage. Generative AI use by our customers or other third parties could result in the replacement of our existing products and/or solutions or the reduction of their relevance.
These suppliers could also be subject to regulatory actions, or conflicts of interest which could force us to seek alternative suppliers in a short time period, at an economic disadvantage. AI use by our customers or other third parties could result in the replacement of our existing products and/or solutions or the reduction of their relevance.
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 participate in businesses (particularly insurance-related businesses and services) that are subject to substantial litigation, including antitrust, consumer protection, intellectual property litigation, and data use and 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.
Because the generative AI landscape is developing and inherently risky, no assurance can be given that such strategies and offerings will be successful or will not harm our reputation, financial condition, and operating results. Product features that rely on generative AI may be susceptible to unanticipated security threats from sophisticated adversaries.
Because the AI landscape is developing and inherently risky, no assurance can be given that such strategies and offerings will be successful or will not harm our reputation, financial condition, and operating results. Product features that rely on AI may be susceptible to unanticipated security threats from sophisticated adversaries.
Strategic and Operational Risks Related to Our Business We are subject to competition in many of the markets in which we operate and we may not be able to compete effectively. Some markets in which we operate or which we believe may provide growth opportunities for us are highly competitive, and are expected to remain highly competitive.
Strategic and Operational Risks Related to Our Business We are subject to competition in many of the markets in which we operate and we may not be able to compete effectively. Markets in which we operate or which we believe may provide growth opportunities for us are highly competitive, and are expected to remain highly competitive.
Our business policies and internal security controls may not keep pace with these changes as new threats emerge, or the emerging cybersecurity regulations in jurisdictions worldwide. Additionally, we are actively adding new generative AI features to our services.
Our business policies and internal security controls may not keep pace with these changes as new threats emerge, or the emerging cybersecurity regulations in jurisdictions worldwide. Additionally, we are actively adding new AI features to our services.
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.
While 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.
In addition, media or other reports of perceived security vulnerabilities to our systems or those of our third-party suppliers, even if no breach has been attempted or occurred, could also adversely impact our reputation and materially impact our business. 18 Table of Contents We may lose key business assets, through the loss of data center capacity or the interruption of telecommunications links, the internet, or power sources, which could significantly impede our ability to do business.
In addition, media or other reports of perceived security vulnerabilities to our systems or those of our third-party suppliers, even if no breach has been attempted or occurred, could also adversely impact our reputation and materially impact our business. 18 Table of Contents We may lose key business assets, through the loss of data center capacity or the interruption of cloud computing, telecommunications links, the internet, or power sources, which could significantly impede our ability to do business.
Our certificate of incorporation and bylaws: • authorize the issuance of “blank check” preferred stock that could be issued by our Board of Directors to increase the number of outstanding shares to thwart a takeover attempt; • prohibit cumulative voting in the election of directors, which would otherwise allow holders of less than a majority of the stock to elect some directors; • require that vacancies on the Board of Directors, including newly created directorships, be filled only by a majority vote of directors then in office; • limit who may call special meetings of stockholders; • prohibit stockholder action by written consent, requiring all stockholder actions to be taken at a meeting of the stockholders; and • establish advance notice requirements for nominating candidates for election to the Board of Directors or for proposing matters that can be acted upon by stockholders at stockholder meetings.
Our certificate of incorporation and bylaws: • authorize the issuance of “blank check” preferred stock that could be issued by our Board of Directors to increase the number of outstanding shares to thwart a takeover attempt; • prohibit cumulative voting in the election of directors, which would otherwise allow holders of less than a majority of the stock to elect some directors; • require that vacancies on the Board of Directors, including newly created directorships, be filled only by a majority vote of directors then in office; • limit who may call special meetings of stockholders to holders of at least 25% of our common stock; • prohibit stockholder action by written consent, requiring all stockholder actions to be taken at a meeting of the stockholders; and • establish advance notice requirements for nominating candidates for election to the Board of Directors or for proposing matters that can be acted upon by stockholders at stockholder meetings.
Transition risks associated with achieving a lower-carbon global economy encompassing policy and legal risk such as potential costs associated with the introduction of mandatory global carbon pricing and potential regulatory mandates involving climate-related reporting obligations, technology risk such as the potential increase in costs associated with a mandated transition to low-emissions technologies, market risk such as the potential impacts of a market shift in customer demand toward low-carbon solutions, and reputation risk such as potential impacts on our business from increasing stakeholder expectations related to real or perceived deficiencies associated with our climate leadership, strategy, performance, or disclosures could negatively impact our financial performance. 22 Table of Contents We are transitioning to a new Enterprise Resource Planning system and our ability to manage our business and monitor results is highly dependent upon information and communication systems.
Transition risks associated with achieving a lower-carbon global economy encompassing policy and legal risk such as potential costs associated with the introduction of mandatory global carbon pricing and regulatory mandates involving climate-related reporting obligations, technology risk such as the potential increase in costs associated with a mandated transition to low-emissions technologies, market risk such as the potential impacts of a market shift in customer demand toward low-carbon solutions, and reputation risk such as potential impacts on our business from increasing stakeholder expectations related to real or perceived deficiencies associated with our climate leadership, strategy, performance, or disclosures could negatively impact our financial performance. 22 Table of Contents We have transitioned to a new Enterprise Resource Planning system and our ability to manage our business and monitor results is highly dependent upon information and communication systems.
In addition, we generate a significant amount of our revenues through telesales centers and websites that we utilize in the acquisition of new customers, fulfillment of solutions and services and responding to customer inquiries. We may not have sufficient redundant operations to cover a loss or failure in all of these areas in a timely manner.
In addition, we generate a significant amount of our revenues through websites and call centers that we utilize in the acquisition of new customers, fulfillment of solutions and services and responding to customer inquiries. We may not have sufficient redundant operations to cover a loss or failure in all of these areas in a timely manner.
Any damage to our or our third-party service provider’s data centers, failure of our telecommunications links or inability to access these telesales centers or websites could cause interruptions in operations that materially adversely affect our ability to meet customers’ requirements, resulting in decreased revenue, operating income and earnings per share.
Any damage to our or our third-party service provider’s data centers, failure of our telecommunications links or inability to access these websites or call centers could cause interruptions in operations that materially adversely affect our ability to meet customers’ requirements, resulting in decreased revenue, operating income and earnings per share.
Increasing use of AI, including but not limited to generative AI models, in our internal systems may create new attack methods for adversaries and raise ethical, technological, legal, regulatory, and other challenges, which may negatively impact our brands and demand for our products and services.
Increasing use of AI, including but not limited to generative AI models and agentic AI processes, in our internal systems may create new attack methods for adversaries and raise ethical, technological, legal, regulatory, and other challenges, which may negatively impact our brands and demand for our products and services.
To the extent that customers choose not to obtain solutions from us and instead rely on information obtained at little or no cost from these public sources, our business and results of operations may be adversely affected.
To the extent that customers choose not to obtain solutions from us and instead rely on information obtained at little or no cost from these public or less expensive sources, our business and results of operations may be adversely affected.
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.
During the year ended December 31, 2025, 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.
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.
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 states, and foreign jurisdictions, and are routinely under audit by various tax authorities.
Public sources of free or relatively inexpensive information have become increasingly available recently, particularly through the Internet, and this trend is expected to continue. Governmental agencies in particular have increased the amount of information to which they provide free public access. Public sources of free or relatively inexpensive information may reduce the demand for our solutions.
Public sources of free or relatively inexpensive information have become increasingly available and this trend is expected to continue. Governmental agencies in particular have increased the amount of information to which they provide free public access. Public sources of free or relatively inexpensive information may reduce the demand for our solutions.
With operations in 19 countries, we provide servi ces to the insurance industry worldwide, including operations in various developing nations.
With operations in 15 countries, we provide servi ces to the insurance industry worldwide, including operations in various developing nations.
Factors that might affect the acceptance of these solutions by P&C primary insurers include the following: • changes in the business analytics industry; • changes in technology; • our inability to obtain or use state fee schedule or claims data in our insurance solutions; • saturation of market demand; • loss of key customers; • industry consolidation; and • failure to execute our customer-focused selling approach.
Factors that might affect the acceptance of these solutions by P&C primary insurers include the following: • changes in the business analytics industry; • changes in technology; • our inability to obtain or use state fee schedule or claims data in our insurance solutions; • changes in regulation • saturation of market demand; • loss of key customers; • industry consolidation; • failure to execute our customer-focused selling approach; and • insourcing by insurers of the services or analytics we currently provide.
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.
In order to continue support of our growth, we have made and are continuing to make significant technological upgrades to our information systems. We have substantially completed the implementation of a company-wide, single ERP software system and related processes to perform various functions and improve on the efficiency of our global business.
Any disruptions, delays or deficiencies in the design and/or implementation of the new ERP system, or in the performance of our legacy systems, particularly any disruptions, delays or deficiencies that impact our operations, could adversely affect our ability to effectively run and manage our business and adversely affect our reputation, competitive position, business, results of operations and financial condition.
Any disruptions or deficiencies in the design and/or final implementation of the new ERP system, or in the transition off our legacy systems, particularly any disruptions or deficiencies that impact our operations, could adversely affect our ability to effectively run and manage our business and adversely affect our reputation, competitive position, business, results of operations and financial condition.
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.
This was and continues to be a lengthy and expensive process that has and will continue to 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.
The demand for our solutions may be impacted by domestic and international factors that are beyond our control, including macroeconomic, political and market conditions, the energy transition driven by climate change and decarbonization, the availability of short-term and long-term funding and capital, the level and volatility of interest rates, currency exchange rates, and inflation.
The demand for our solutions may be impacted by domestic and international factors that are beyond our control, including macroeconomic, political and market conditions, global supply chain disruption, the availability of short-term and long-term funding and capital, the level and volatility of interest rates, currency exchange rates, and inflation.
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.
As of December 31, 2025 , our ten largest shareholders owned 39.3% of our common stock, including 1.8% of our common stock owned by our Employee Stock Ownership Plan or ESOP.
We compete on the basis of quality, customer service, product and service selection, and pricing. Our competitive position in various market segments depends upon the relative strength of competitors in the segment and the resources devoted to competing in that segment.
We compete on the basis of quality, customer service, product and service selection, and pricing. Our competitive position in various market segments depends upon the relative strength of competitors in the segment and the resources devoted to competing in that segment. Certain competitors may be able to allocate greater resources to a particular market segment than we can.
Even if we succeed in developing a relationship with a potential new customer, we may not be successful in obtaining contractual commitments after the selling cycle or in maintaining contractual commitments after the implementation cycle, which may have a material adverse effect on our business, results of operations and financial condition. 15 Table of Contents We could lose our access to data from external sources, which could prevent us from providing our solutions.
Even if we succeed in developing a relationship with a potential new customer, we may not be successful in obtaining contractual commitments after the selling cycle or in maintaining contractual commitments after the implementation cycle, which may have a material adverse effect on our business, results of operations and financial condition. 15 Table of Contents We derive a substantial portion of our revenues from U.S.
One of the significant differences is that the U.S. government may terminate any of our government contracts, not only for default based on our performance, but also at its convenience. Generally, prime contractors have a similar right under subcontracts related to government contracts.
One of the significant differences is that the U.S. government may terminate any of our government contracts, not only for default based on our performance, but also at its convenience.
Pursuant to our equity incentive plans, options to purchase approximately 2,007,306 shares of common stock were outstanding as of February 21, 2025.
Pursuant to our equity incentive plans, options to purchase approximately 137,941,888 shares of common stock were outstanding as of February 13, 2026.
Due to their size, certain competitors may be able to allocate greater resources to a particular market segment than we can. As a result, these competitors may be in a better position to anticipate and respond to changing customer preferences, emerging technologies and market trends.
As a result, these competitors may be in a better position to anticipate and respond to changing customer preferences, emerging technologies and market trends.
Our own use of AI, including but not limited to generative AI, to enhance our products could lead to unanticipated consequences such as ethical, compliance, privacy-observing, bias-reducing, and/or intellectual property issues.
This could result in duplication of our products or solutions by AI tools and reduce the relevance or value proposition of such products or solutions. Our own use of AI to enhance our products could lead to unanticipated consequences such as ethical, compliance, privacy-observing, bias-reducing, and/or intellectual property issues.
Such a termination or exclusive contracts could have a material adverse effect on our business, financial position, and operating results if we were unable to arrange for substitute data sources. We derive a substantial portion of our revenues from U.S. P&C primary insurers.
Such a termination or exclusive contracts could have a material adverse effect on our business, financial position, and operating results if we were unable to arrange for substitute data sources. To the extent the availability of free or relatively inexpensive information increases, the demand for some of our solutions may decrease.
We may also invest further to upgrade our systems in order to compete. If we fail to successfully compete, our business, financial position and results of operations may be adversely affected. To the extent the availability of free or relatively inexpensive information increases, the demand for some of our solutions may decrease.
We may also invest further to upgrade our systems in order to compete. If we fail to successfully compete, our business, financial position and results of operations may be adversely affected. We could lose our access to data from external sources, which could prevent us from providing our solutions.
Added
Contracts with governments are also subject to a number of issues, such as shutdowns, funding changes, policy and other government concerns that may impact the terms or performance of a contract. Generally, prime contractors have a similar right under subcontracts related to government contracts.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

2 edited+0 added−0 removed1 unchanged
Biggest changeQuantitative 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.
Biggest changeQuantitative and Qualitative Disclosures About Market Risk 42 Item 8. Consolidated Financial Statements and Supplementary Data 42 Consolidated Balance Sheets 51 Consolidated Statements of Operations 52 Consolidated Statements of Comprehensive Income 53 Consolidated Statements of Changes in Stockholders' Equity 54 Consolidated Statements of Cash Flows 55 Notes to Consolidated Financial Statements 57 Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 44 Item 9A. Controls and Procedures 45
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 42 Item 9A. Controls and Procedures 43

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed2 unchanged
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.
Biggest changeAs of December 31, 2025, 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 31,900 June 30, 2028 We also lease offices in 11 states in the U.S., and 34 offices outside the U.S. to support our international operations in Australia, Canada, China, Costa Rica, Germany, India, Ireland, Japan, Nepal, Poland, Singapore, Spain, Sweden, and UK.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

10 edited+1 added−6 removed2 unchanged
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.
Biggest changeO ur share repurchases for the quarter ended December 31, 2025 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, 2025 through October 31, 2025 — $ — — $ 1,191.5 November 1, 2025 through November 30, 2025 463,920 $ 218.10 463,920 $ 1,090.3 December 1, 2025 through December 31, 2025 558,704 $ 219.72 558,704 $ 967.5 1,022,624 (1) $ 218.99 (1) 1,022,624 _______________ ( 1) In fourth quarter 2025, we repurchased $223.8 million of our common stock through an enhanced open market repurchase program, and received 1,022,624 shares at an average price per share of $218.99 (2 ) Subsequent to December 31, 2025, o ur Board of Directors also approved an increase to the share repurchase authorization to $2.5 billion in total, inclusive of the remaining authorization amount. 27 Table of Contents
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.
The prior 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.
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").
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 Shareholders 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 Shareholders and Pro xy Statement to be filed within 120 days of December 31, 2025 (the "Proxy Statement").
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.
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 13, 2026, there were approximately 102 stockholders of record.
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.
On February 19, 2025, April 30, 2025, July 23, 2025, and October 22, 2025, our Board approved a cash dividend of $0.45 per share of common stock issued and outstanding to the holders of record as of March 14, 2025, June 13, 2025, September 15, 2025, and December 15, 2025, respectively.
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 .
Cash dividends of $251.1 million and $221.3 million were paid during the years ended December 31, 2025 and 2024 , respectively, and recorded as a reduction to retained earnings. We have a publicly announced share repurchase plan and repurchased a total of 92,798,595 shares since our IPO through December 31, 2025 .
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.
The new peer issuers used for this graph are FactSet Research Systems Inc., Guidewire Software, Inc., 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.
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.
COMPARISON OF CUMULATIVE TOTAL RETURN Assumes $100 Invested on December 31, 2020 Assumes Dividend Reinvested Fiscal Year Ended December 31, 2025 26 Table of Contents Recent Sales of Unregistered Securities We had no unregistered sales of equity securities during 2025.
As of December 31, 2024 , we had 403,588,401 shares of treasury stock.
As of December 31, 2025 , we had 405,605,329 shares of treasury stock.
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, 2025 , after giving effect to share repurchases made under both current and prior authorizations, we had $967.5 million a vailable to re purchase shares.
Removed
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.
Added
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. These authorizations have no expiration dates and may be suspended or terminated at any time. On February 19, 2025, our Board of Directors approved an additional share repurchase authorization of up to $1.0 billion.
Removed
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.
Removed
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.
Removed
(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.
Removed
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.
Removed
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

Item 7. Management's Discussion & Analysis

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

88 edited+35 added−35 removed71 unchanged
Biggest changeMarch 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.
Biggest changeMarch 31, June 30, September 30, December 31, 2025 (in millions, except for per share data) Statement of operations data: Revenues $ 753.0 $ 772.6 $ 768.3 $ 778.8 Cost of revenue 230.8 229.5 229.5 235.7 Operating income 330.1 354.3 345.9 313.6 Net income attributable to Verisk 232.3 253.3 225.5 197.2 Basic earnings per share: Net income attributable to Verisk $ 1.66 $ 1.81 $ 1.62 $ 1.42 Diluted earnings per share: Net income attributable to Verisk $ 1.65 $ 1.81 $ 1.61 $ 1.42 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 36 Table of Contents Liquidity and Capital Resources As of December 31, 2025 and 2024 , we had cash and cash equivalents and available-for-sale securities totaling $2,178.9 million and $292.5 million, respectively.
Management uses EBITDA and EBITDA margin in conjunction with traditional GAAP operating performance measures as part of its overall assessment company performance. We believe these measures are useful and meaningful because they help us allocate resources, make business decisions, allow for greater transparency regarding our operating performance, and facilitate period-to-period comparisons.
Management uses EBITDA and EBITDA margin in conjunction with traditional GAAP operating performance measures as part of its overall assessment of company performance. We believe these measures are useful and meaningful because they help us allocate resources, make business decisions, allow for greater transparency regarding our operating performance, and facilitate period-to-period comparisons.
Investing Activities Net cash used in investing activities of $124.8 million for the year ended December 31, 2024 was primarily related to capital expenditures of $223.9 million and acquisitions, including a purchase of an additional controlling interest totaling $23.4 million, and investments in nonpublic companies of $1.0 million, partially offset by proceeds received upon settlement of our retained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022 of $113.3 million, proceeds from sale of the AER Company of $6.4 million, and an escrow release associated with acquisitions of $3.8 million.
Net cash used in investing activities of $124.8 million for the year ended December 31, 2024 was primarily related to capital expenditures of $223.9 million and acquisitions, including a purchase of an additional controlling interest totaling $23.4 million, and investments in nonpublic companies of $1.0 million, partially offset by proceeds received upon settlement of our retained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022 of $113.3 million, proceeds from sale of the AER Company of $6.4 million, and an escrow release associated with acquisitions of $3.8 million.
Financing Activities Net cash used in financing activities of $1,028.5 million for the year ended December 31, 2024 was primarily driven by the funding of $1,050.0 million of accelerated share repurchase programs, the payment on the early extinguishment of debt of $396.4 million, dividends paid of $221.3 million, and a payment of excise tax of $25.2 million, partially offset by the proceeds from the issuance of long-term debt, $590.2 million from the proceeds of loan-term debt net of original issuance discount, and proceeds from stock options exercised of $124.8 million.
Net cash used in financing activities of $1,028.5 million for the year ended December 31, 2024 was primarily driven by the funding of $1,050.0 million of accelerated share repurchase programs, the payment on the early extinguishment of debt of $396.4 million, dividends paid of $221.3 million, and a payment of excise tax of $25.2 million, partially offset by the proceeds from the issuance of long-term debt, $590.2 million from the proceeds of loan-term debt net of original issuance discount, and proceeds from stock options exercised of $124.8 million.
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, net" in the accompanying consolidated statements of operations within this Form 10-K over the life of the respective senior note.
EBITDA and EBITDA margin are non-GAAP financial measures. EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization of fixed and intangible assets. We calculate EBITDA margin as EBITDA divided by revenues. The respective nearest applicable GAAP financial measures are net income and net income margin.
EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization of fixed and intangible assets. We calculate EBITDA margin as EBITDA divided by revenues. The respective nearest applicable GAAP financial measures are net income and net income margin.
Actual results may differ from these assumptions or conditions. 41 Table of Contents Stock-Based Compensation Stock-based compensation cost, including nonqualified stock options, restricted stock, performance share units tied to the achievement of certain market performance conditions, namely relative total shareholder return as compared to the S&P 500 index ("TSR-based PSU's"), and performance share units tied to the achievement of certain financial performance conditions, namely incremental return on invested capital ("ROIC-based PSUs"), is measured at the grant date, based on the fair value of the awards granted, and is recognized as expense over the requisite service period.
Actual results may differ from these assumptions or conditions. 39 Table of Contents Stock-Based Compensation Stock-based compensation cost, including nonqualified stock options, restricted stock, performance share units tied to the achievement of certain market performance conditions, namely relative total shareholder return as compared to the S&P 500 index ("TSR-based PSU's"), and performance share units tied to the achievement of certain financial performance conditions, namely incremental return on invested capital ("ROIC-based PSUs"), is measured at the grant date, based on the fair value of the awards granted, and is recognized as expense over the requisite service period.
The debt at December 31, 2024 primarily consists of senior notes issued in 2024, 2023, 2020, 2019, and 2015. Interest on the senior notes is payable semi-annually each year.
The debt at December 31, 2025 primarily consists of senior notes issued in 2025, 2024, 2023, 2020, 2019, and 2015. Interest on the senior notes is payable semi-annually each year.
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 .
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, 2025, 2024, and 2023 .
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.
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, 2025, 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.
The fair value of ROIC-based PSUs is determined on the closing price of our common stock on the grant date and their ultimate achievement is tied to incremental return on invested capital based on net operating profit. Each of the TSR-based PSUs and ROIC-based PSUs has a three-year performance period, subject to the recipients continued service.
The fair value of ROIC-based PSUs is determined on the closing price of our common stock on the grant date and their ultimate achievement is tied to incremental return on invested capital based on net operating profit. Each of the TSR-based PSUs and ROIC-based PSUs has a three-year performance period, subject to the recipient's continued service.
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.
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, 2025, we continued to monitor these reporting units for events that would trigger an interim impairment test; we did not identify any such events.
Each PSU represents the right to receive one share of our common stock and the ultimate realization is based on our achievement of certain market and financial performance criteria and may range from 0% to 200% of the recipients target levels of 100% established on the grant date.
Each PSU represents the right to receive one share of our common stock and the ultimate realization is based on our achievement of certain market and financial performance criteria and may range from 0% to 200% of the recipient's target levels of 100% established on the grant date.
We maintain our cash and cash equivalents in higher credit quality financial institutions in order to limit the amount of credit exposure. As of December 31, 2024 and December 31, 2023 , a vast majority of our domestic cash and cash equivalents is with TD Bank, N.A., and JPMorgan Chase N.A.
We maintain our cash and cash equivalents in higher credit quality financial institutions in order to limit the amount of credit exposure. As of December 31, 2025 and December 31, 2024 , a vast majority of our domestic cash and cash equivalents is with TD Bank, N.A., and JPMorgan Chase N.A.
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.
As a result of this factor, as well as the availability of funds under our Syndicated Revolving 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.
At our election, the maximum consolidated funded debt leverage ratio could be permitted to increase to 4.50 to 1.0 (no more than once) and to 4.25 to 1.0 (no more than once) in connection with the closing of a permitted acquisition.
At our election, the maximum consolidated funded debt leverage ratio could be permitted to increase to 4.50 to 1.00 (no more than once) and to 4.25 to 1.00 (no more than once) in connection with the closing of a permitted acquisition.
The preparation of these financial statements require management to make estimates and judgments that affect reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the dates of the financial statements and revenue and expenses during the reporting periods.
The preparation of these financial statements requires management to make estimates and judgments that affect reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the dates of the financial statements and revenue and expenses during the reporting periods.
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.
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 underwriting solutions.
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 .
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. 34 Table of Contents 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 .
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 .
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 loss of $11.0 million f or the year ended December 31, 2023.
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.
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 ) $ 23.4 $ 0.4 $ (20.4 ) $ - $ 0.1 $ - $ (0.1 ) Expected Rate of Return on Assets $ 3.9 $ - $ (3.9 ) $ - $ 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.
EBITDA growth . We use EBITDA growth as a measure of our ability to balance the size of revenue growth with cost management and investing for future growth. EBITDA growth allows for greater transparency regarding our operating performance and facilitate period-to-period comparison. EBITDA margin.
EBITDA growth . We use EBITDA growth as a measure of our ability to balance the size of revenue growth with cost management and investing for future growth. EBITDA growth allows for greater transparency regarding our operating performance and facilitate period-to-period comparison. EBITDA margin. We use EBITDA margin as a measure to assess performance and scalability of our business.
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%.
Our revenue by category for the periods presented is set forth below: 2024 2023 Percentage change Percentage change excluding recent acquisitions, businesses held for sale 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 (Morning 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%.
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.
For the years ended December 31, 2025 and 2024 , approximately 17% and 19% of our consolidated revenues, respectively, were derived from providing transactional and advisory/consulting solutions. Principal Operating Costs and Expenses Personnel expenses are a major component of both our cost of revenues and selling, general and administrative expenses.
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.
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, 2025 , we determined this rate to be 5.42% and 5.64% at December 31, 2025 and 2024 , respectively.
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.
Per AM Best, growth of direct written premiums for P&C insurers in the U.S. 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.
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.
See a description of our 2025 acquisitions below and Note 10 . Acquisitions to our consolidated financial statements included in this annual report on Form 10-K for further discussions.
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.
For our pension and postretirement plans, the total actuarial losses as of December 31, 2025 that have not been recognized in annual expense are $111.0 million and $2.4 million, respectively, and we expect to recognize a net periodic pension and postretirement expenses of $3.6 million and $0.3 million, respectively, in 2026 related to the amortization of actuarial losses.
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% .
Amortization of Intangible Assets Amortization of intangible assets w as $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%.
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.
Our postretirement rate was 4.64% and 5.17% at December 31, 2025 and 2024 , respectively. 40 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.
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.
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 stock-based compensation, internally developed software, goodwill and intangible assets, pension and other postretirement benefits, and income taxes.
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.
Selling, General and Administrative Expenses Selling, general and administrative expenses ("SGA") were $408.7 million 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.
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.
We have historically used a portion of our cash for repurchases of our common stock from our stockholders. For the years ended December 31, 2025, 2024, and 2023 , we repurchased $624.0 million, $1,005.0 million, and $2,762.3 million, respectively, of our common stock.
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.
We had a syndicated revolving credit facility ("Syndicated Revolving Credit Facility") with a borrowing capacity of $1,000.0 million 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 need by our customers to fight insurance fraud - both in claims and at policy inception - could also lead to increased demand for our underwriting and claims solutions. 31 Table of Contents Description of Acquisitions We acquired 8 businesses since January 1, 2022. These acquisitions affect the comparability of our consolidated results of operations between periods.
The need by our customers to fight insurance fraud - both in claims and at policy inception - could also lead to increased demand for our underwriting and claims solutions. 30 Table of Contents Description of Acquisitions We have acquired 6 businesses since January 1, 2023. These acquisitions affect the comparability of our consolidated results of operations between periods.
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 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. EBITDA and EBITDA margin are non-GAAP financial measures.
Critical Accounting Policies and Estimates Our management’s discussion and analysis of financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.
Off-Balance Sheet Arrangements We have no off-balance sheet arrangements. Critical Accounting Policies and Estimates Our management’s discussion and analysis of financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.
Any impairment, as identified, is calculated as the difference between the asset’s carrying amount and its estimated fair value, using acceptable valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as circumstances require. Goodwill and Intangibles As of December 31, 2024, we had goodwill of $1,726.6 million, which represents 40.5% of our total assets.
Any impairment, as identified, is calculated as the difference between the asset’s carrying amount and its estimated fair value, using acceptable valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as circumstances require. Goodwill and Intangibles As of December 31, 2025, we had goodwill of $1,878.2 million, which represents 30.3% of our total assets.
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.
Approximately 83% and 81% of our consolidated revenues for the years ended December 31, 2025 and 2024 , respectively, were derived from hosted subscriptions through agreements for our solutions. We also provide advisory/consulting services, which help our customers get more value out of our analytics and their subscriptions.
The Energy business, which was part of our Energy and Specialized Markets segment, was classified as discontinued operations per ASC 205-20 as we determined, qualitatively and quantitatively, that this transaction represented a strategic shift that had a major effect on our operations and financial results.
We recognized a loss of $131.1 million on the sale in 2023. The Energy business, which was part of our Energy and Specialized Markets segment, was classified as discontinued operations per ASC 205-20 as we determined, qualitatively and quantitatively, that this transaction represented a strategic shift that had a major effect on our operations and financial results.
Our claims revenue increased $61.0 million or 7.8%, primarily due to growth in anti-fraud solutions and property estimating solutions. 32 Table of Contents Cost of Revenues Cost of revenues was $901.1 million for the year ended December 31, 2024 compared to $876.5 million for the year ended December 31, 2023 , an increas e of $24.6 million or 2.8% .
Our claims revenue increased $61.0 million or 7.8%, primarily due to growth in anti-fraud solutions and property estimating solutions. Cost of Revenue Cost of rev enues was $901.1 million for the year ended December 31, 2024 compared to $876.5 million for the year ended December 31, 2023 , an increase of $24.6 million or 2.8%.
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 .
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. Executive Summary Key Performance Metrics Revenue growth . We use year-over-year revenue growth as a key performance metric.
(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.
(2) Unrecognized tax benefits of approximately $8.6 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, related to the unrecognized tax benefits, we also have recorded a liability for potential penalties and interest of $1.2 million.
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.
For the years ended December 31, 2025, 2024, and 2023 , we also paid dividends of $251.1 million, $221.3 million, and $196.8 million, respectively. Financing and Financing Capacity We had total deb t, excluding finance lease obligations, unamortized discounts and premium, and debt issuance costs, of $4,750.0 million and $3,050.0 million at December 31, 2025 and 2024 , respectively.
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% .
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 increase in operating cash flow was due to an increase in operating profit, offset by an increase in interest payments.
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.
Personnel expenses, which represented approximately 55% and 56% of our total operating expenses for each of the years ended December 31, 2025 and 2024 , respectively, include salaries, benefits, incentive compensation, equity compensation costs , sales commissions, employment taxes, recruiting costs, and outsourced temporary agency costs.
These recent investment results are lower than the historical 15-year average of 3.3%, showing that yields on investments, a major component of insurers’ balance sheets, have yet to follow the trend in interest rates. The trend of high catastrophe losses for insurers that began in 2020 continued through 2024.
These recent investment results are higher than the historical 15-year average of 3.3%, showing that yields on investments, a major component of insurers’ balance sheets, are beginning to follow the trend in interest rates. Trends in Catastrophe and non-Catastrophe Losses The trend of high catastrophe losses for insurers that began in 2020 continued in 2025.
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.
We assess EBITDA margin based on our ability to increase revenues while controlling expense growth. 28 Table of Contents Revenues We earn revenues through agreements for hosted subscriptions, advisory/consulting services, and for transactional solutions, recurring and non-recurring.
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 pension asset investment guidelines target an investment portfolio allocation of 60% debt securities and 40% equity securities. As of December 31, 2025, the pension plan assets were allocated 58.8% debt securities, 35.9% equity securities, 4.9% real estate and 0.4% other. The VEBA Plan target allocation is 100% debt securities.
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.
Based on the first nine months of 2025, insurers’ expected annualized yield on investments (not attributable to cash transfers from outside the P&C industry) was 4.0%, up from the 3.6% yield at year-end 2024 despite still moderately high interest rates in 2025 (compared to the pre-pandemic period).
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%.
Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Consolidated Results of Continuing Operations Revenues Revenues were $3,072.7 million for the year ended December 31, 2025 compared to $2,881.7 million for the year ended December 31, 2024 , an increase of $191.0 million or 6.6% . Our underwriting revenue increased $155.6 million or 7.7%.
In management's opinion, the quarterly data has been prepared on the same basis as the audited consolidated financial statements and includes all adjustments necessary to state fairly the information for the periods presented. Our Energy business is classified as discontinued operations.
In management's opinion, the quarterly data has been prepared on the same basis as the audited consolidated financial statements and includes all adjustments necessary to fairly state the periods presented.
Dispositions and Discontinued Operations for more information Net gain on Early Extinguishment of Debt Net gain on early extinguishment of debt was $3.6 million for the year ended December 31, 2024 due to a cash tender offer of $400.0 million aggregate principal of our 2025 Senior Notes that was completed on June 7, 2024.
The loss in the current year was driven by the sale of AER. Net gain on Early Extinguishment of Debt Net gain on early extinguishment of debt was $3.6 million for the year ended December 31, 2024 due to a cash tender offer of $400.0 million aggregate principal of our 2025 Senior Notes that was completed on June 7, 2024.
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 capital expenditures for the years ended December 31, 2025, 2024, and 2023 were $244.1 million, $223.9 million, and $230.0 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, Internal-use Software ("ASC 350-40").
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
Such net operating loss carryforwards expire as follows: Years Ending (in millions) 2026 - 2033 $ 15.4 2034 - 2038 2.2 2039 - 2045 31.0 Total $ 48.6 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. 41 Table of Contents
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.
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, direct written premiums slowed to 9.6% growth in 2024 and 5.1% growth rate through the first nine-months of 2025.
Our claims revenue increased $68.7 million or 8.7%.
Our underwriting revenue increased $131.6 million or 7.0%. Our claims revenue increased $68.7 million or 8.7%.
The increase in assets placed into service in 2023 primarily resulted from the timing of certain large internally developed software projects that were completed and placed into service during the year.
The increase was primarily due to the timing of certain large internally developed software projects that were completed and placed into service in the prior year .
Dispositions and Discontinued Operations to our consolidated financial statements included in this annual report on Form 10-K for further discussions.
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.
A portion of the other operating costs such as facilities, insurance, and communications are allocated to selling, general and administrative costs based on the nature of the work being performed by the employee.
A portion of the other operating costs such as facilities, insurance, and communications are allocated to selling, general and administrative costs based on the nature of the work being performed by the employee. Our selling, general and administrative expenses exclude depreciation and amortization. 29 Table of Contents Trends Affecting Our Business U.S.
The increase was primarily driven by net gains associated with the settlement of retained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022, partially offset by the impact of foreign currencies. 33 Table of Contents Interest Expense, net Interest expense, net was $124.6 million for the year ended December 31, 2024 compared to $115.5 million for the year ended December 31, 2023 , an increase of $9.1 million or 7.9% .
The decrease was primarily driven by net gains recognized in the prior year related to the settlement of retained interests from the sales of our healthcare business in 2016 and specialized markets business in 2022, partially offset by foreign currency effects associated with transactions conducted in the normal course of business. 32 Table of Contents Interest Expense, Net Interest expense, net was $170.9 million for the year ended December 31, 2025 compared to $124.6 million for the year ended December 31, 2024 , an increase of $46.3 million or 37.2% .
A reconciliation from net income to EBITDA is in the table below: Year Ended December 31, 2024 2023 Net Income $ 957.5 $ 614.4 Less: Gain (loss) from discontinued operations, net of tax benefit (expense) of $6.8 and $(12.6), respectively 6.8 (154.0 ) Income from continuing operations 950.7 768.4 Depreciation and amortization of fixed assets 233.6 206.8 Amortization of intangible assets 72.3 74.6 Interest expense 124.6 115.5 Provision for income taxes 277.9 258.8 EBITDA 1,659.1 1,424.1 Revenue $ 2,881.7 $ 2,681.4 EBITDA Margin 57.6 % 53.1 % 34 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.
A reconciliation from net income to EBITDA is in the table below: Year Ended December 31, 2024 2023 Net income $ 957.5 $ 614.4 Less: Gain (loss) from discontinued operations, net of tax benefit (expense) of $6.8 and $(12.6), respectively 6.8 (154.0 ) Income from continuing operations 950.7 768.4 Depreciation and amortization of fixed assets 233.6 206.8 Amortization of intangible assets 72.3 74.6 Interest expense, net 124.6 115.5 Provision for income taxes 277.9 258.8 EBITDA 1,659.1 1,424.1 Revenue $ 2,881.7 $ 2,681.4 EBITDA margin 57.6 % 53.1 % 35 Table of Contents Quarterly Results of Operations The following tables set forth our quarterly unaudited consolidated statement of operations data for each of the eight quarters in the period ended December 31, 2025.
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.
P&C Insurance Industry Premium Growth 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.
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.
In contrast, 2024 included the second most expensive Atlantic hurricane season on record, surpassed only by the losses experienced during the 2017 hurricane season. 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.
Accordingly, all results of the Energy business have been removed from continuing operations and presented as discontinued operations in our consolidated statements of operations for all periods presented. Additionally, all assets and liabilities of the Energy business were classified as assets and liabilities held for sale within our consolidated balance sheet as of December 31, 2022.
Accordingly, all results of the Energy business have been removed from continuing operations and presented as discontinued operations in our consolidated statements of operations for all periods presented.
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%.
Depreciation and Amortization of Fixed Assets Depreciation and amortization of fixed assets was $259.2 million for the year ended December 31, 2025 compared to $233.6 million for the year ended December 31, 2024 , an increase of $25.6 million or 11.0% .
Net Income Margin The net income margin for our consolidated results was 22.9% for the year ended December 31, 2023 compared to 38.2% for the year ended December 31, 2022 .
Net Income Margin The net income margin for our consolidated results was 29.6% for the year ended December 31, 2025 compared to 33.2% for the year ended December 31, 2024 .
The cost of revenues increase of $68.4 million or 8.7% was primarily due to increases in salaries and employee benefits of $51.0 million, rent expense of $6.6 million, bad debt expense of $3.8 million, travel expenses of $3.6 million, data costs of $1.8 million, and other operating costs of $3.9 million.
The remaining cost of revenues increase of $32.7 million or 3.7% was primarily due to increases in salaries and employee benefits of $ 21.3 million, information technology expense of $12.8 million, bad debt expense of $4.9 million, professional consulting fees of $1.1 million, rent expense of $0.2 million, and other operating costs of $0.1 million, partially offset by decreases in data costs of $5.4 million, office expense of $1.6 million, and insurance expense of $0.7 million.
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.
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. 38 Table of Contents Contractual Obligations The following table summarizes our contractual obligations at December 31, 2025 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 $ 6,201.7 $ 1,623.4 $ 244.8 $ 820.0 $ 3,513.5 Operating leases 185.4 32.4 62.4 56.2 34.4 Pension and postretirement plans (1) 10.3 1.3 2.9 2.1 4.0 Finance lease obligations 27.1 12.7 14.4 — — Total (2) $ 6,424.5 $ 1,669.8 $ 324.5 $ 878.3 $ 3,551.9 (1) Our funding policy is to contribute at least equal to the minimum legal funding requirement.
As 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% .
Debt for more information. 37 Table of Contents Cash Flow The following table summarizes our cash flow data for the years ended December 31: 2025 2024 2023 (in millions) Net cash provided by operating activities $ 1,436.0 $ 1,144.0 $ 1,060.7 Net cash (used in) provided by investing activities $ (358.1 ) $ (124.8 ) $ 2,746.5 Net cash provided by (used in) financing activities $ 795.2 $ (1,028.5 ) $ (3,786.5 ) Operating Activities Net cash provided by operating activities was $1,436.0 million for the year ended December 31, 2025 compared to $1,144.0 million for the year ended December 31, 2024 , an increase of $292.0 million, or 25.5% .
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.
These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined. As of December 31, 2025, we have gross federal, state, and foreign income tax net operating loss carryforw ards of $48.6 milli on, which will expire at various dates from 2026 through 2045.
Our recent acquisitions and dispositions accounted for a net decrease of $16.5 million in cost of revenues, which was primarily related to salaries and employee benefits.
Our recent acquisitions and dispositions accounted for a net decrease of $8.3 million in cost of revenues.
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.
The Syndicated Revolving Credit Facility may be used for general corporate purposes, including working capital needs and capital expenditures, acquisitions, dividend payments, and the share repurchase program (the "Repurchase Program").
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.
Investing Activities Net cash used in investing activities of $358.1 million for the year ended December 31, 2025 was primarily related to capital expenditures of $244.1 million, acquisitions of $184.8 million, investments in non-public companies of $6.5 million, and escrow funding associated with acquisitions of $2.7 million, partially offset by proceeds from sale of our Verisk Marketing Solutions business of $80.0 million.
Selling, General and Administrative Expenses Selling, general and administrative expenses ("SGA") were $391.8 million for the year ended December 31, 2023 compared to $381.5 million for the year ended December 31, 2022 , an increase of $10.3 million or 2.7%.
Selling, General and Administrative Expenses Selling, general and administrative expenses ("SGA") w ere $458.2 m illion for the year ended December 31, 2025 compared to $408.7 million for the year ended December 31, 2024 , an increase of $49.5 million or 12.1% .
Interest Expense, net Interest expense was $115.5 million for the year ended December 31, 2023 compared to $138.8 million for the year ended December 31, 2022 , a decrease of $23.3 million or 16.8%.
Interest Expense, net Interest expense was $124.6 million for the year ended December 31, 2024 compared to $115.5 million for the year ended December 31, 2023 , an increase of $9.1 million or 7.9%.
The sale resulted in a loss of $12.1 million that was included within "Other operating (loss) income" in the accompanying consolidated statements of operations for the year ended December 31, 2024. Description of Discontinued Operations See a description of our 2023 disposition below and within Note 11 .
The sale resulted in a loss of $18.4 million that was included within "Loss on sale of assets, net" in the accompanying consolidated statements of operations for the year ended December 31, 2025. Refer to Note 11 . Dispositions and Discontinued Operations for further discussion.
Provision for Income Taxes The provision for income taxes was $258.8 million for the year ended December 31, 2023 compared to $220.3 million for the year ended December 31, 2022 . The effective tax rate was 25.2% for the year ended December 31, 2023 compared to 17.5% for the year ended December 31, 2022.
Provision for Income Taxes The provision for income taxes was $263.0 million for the year ended December 31, 2025 compared to $277.9 million for the year ended December 31, 2024 . The effective tax rate was 22.5 % for the year ended December 31, 2025 compared to 22.6 % for the year ended December 31, 2024 .
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 .
The financial covenants require that, at the end of any fiscal quarter, we have a consolidated interest coverage ratio of at least 3.00 to 1.00, we have a consolidated funded debt leverage ratio of no more than 3.75 to 1.00.
Amortization of Intangible Assets Amortization of intangible assets w as $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%.
Amortization of Intangible Assets Amortization of intangible assets was $67.5 million for the year ended December 31, 2025 compared to $72.3 million for the year ended December 31, 2024 , a decrease of $4.8 million or 6.6% .

… 78 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

4 edited+1 added−0 removed2 unchanged
Biggest changeInterest 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.
Biggest changeInterest on borrowings under the Amendment and Restatement 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 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.
If 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, 2025.
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.
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 51 through 93 of this annual report on Form 10-K.
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.
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, 2025, we had no borrowings outstanding under our Syndicated Revolving Credit Facility.
Added
On August 15, 2025, we entered into the Third Amended and Restated Credit Agreement (the "Amendment and Restatement") to the Syndicated Revolving Credit Facility with Bank of America, N.A. as administrative agent. The Amendment and Restatement increased our borrowing capacity to $1,250.0 million and extended the maturity date of the Syndicated Revolving Credit Facility to August 15, 2030.

Other VRSK 10-K year-over-year comparisons