Verisk first-quarter profit beats estimates
(Reuters) — Data analytics firm Verisk beat estimates for first-quarter profit on Wednesday, driven by strong demand for its products used by property/casualty insurers to assess underwriting risks.
Insurers’ earnings have been hit by higher catastrophe losses in recent years due to extreme weather events around the world, prompting them to spend more on analytics that help determine policy risks.
Global insured losses from natural catastrophes in the first quarter were estimated to be $20 billion, heavily driven by storm activity in the United States, according to a report by reinsurance broker Gallagher Re.
Verisk now caters primarily to the insurance industry after divesting its specialized markets and financial services businesses in March 2022 and April 2022, respectively.
Catastrophe risk modeling offered by the company assesses the likelihood and severity of loss from both natural catastrophes such as earthquakes, hurricanes and floods, as well as man-made disasters globally.
On an adjusted basis, Verisk earned $1.63 per share in the first quarter, beating analysts' estimates of $1.53, according to LSEG data.
The company's consolidated revenue rose 8% to $704 million.
Underwriting revenue increased 8.2%, while claims revenue climbed 7.6% on a reported basis.
