Verisk Analytics, Inc.
Analysis
Verisk is a subscription data business: recurring revenue is 84% of the total and growing high single digits, while the weather-driven slice shrinks and makes the headline number noisier. Management's bet is that AI turns its proprietary insurance data into richer renewals.How big is the weather-driven transactional slice?
- Subscriptions carry the company; transactions are the noise.
Subscription revenue is 84% of the total and grew high single digits in every call, while transactional revenue kept falling, mostly storm-driven claims work and personal-lines auto. The weak quarter in Q1 FY2026 was weather, not demand.How exposed is the transactional slice to storm seasons?
- AI has moved from demos to products that raise prices.
XactAI went from launch to almost 7,000 licensees, its Anthropic connectors put it inside Claude first, and Premium Audit AI is already showing up in renewals. Clients cannot rebuild this data, so AI pays off as higher renewal prices.How much of the renewal uplift comes from AI features?
- Verisk's capital plan reversed on it.
It walked away from the $2.35 billion AccuLynx purchase and redeemed the bonds raised for it, then spent the money on its own stock. That lifted earnings per share while net income fell. A Delaware court has since ordered it to proceed.
- Recurring subscription baseMost revenue is recurring subscription work tied to insurers' rating and claims processes, so growth depends on renewal value rather than storm counts.
- AI lifts renewal pricingAI features added to existing products support renewal pricing and open connectors with frontier model companies, adding to the paid data rather than replacing it.
- Contributory data positionVerisk assembles industry data carriers cannot build alone and files it with regulators, which keeps contributors engaged and makes the data hard to replicate.
- Soft property pricingCarriers are moving from rate increases to growth, which reduces transactional usage and puts spending on analytics under review.
- Weather-dependent claims volumeProperty estimating and claims volumes depend on storms, so a mild year leaves transactional revenue declining until catastrophe activity returns.
- Slow AI monetizationAI revenue is small, contract terms take longer to negotiate, and management declines to size the contribution, so the payoff is spread over several years.
| Politician | Transaction | Amount | Traded | Filed |
|---|---|---|---|---|
Donald Trump Republican · Executive | Sale | ≥$50K | Aug 21 | Oct 8 |
Donald Trump Republican · Executive | Purchase | ≥$50K | Jul 20 | Sep 22 |
Donald Trump Republican · Executive | Purchase | ≥$15K | Jun 23 | Aug 22 |
Donald Trump Republican · Executive | Purchase | ≥$1K | Jun 3 | Aug 22 |
Donald Trump Republican · Executive | Purchase | ≥$50K | May 22 | Jul 1 |
Congressional trading data provided by QuiverQuant
How Verisk Analytics turned $3.1B of revenue into $1.3B of operating income.
| Revenue | ||
|---|---|---|
| Insurance | $2.2B | ▼ 24.35% YoY |
| Total revenue | $3.1B | |
| Gross profit | $2.1B | 69.9% |
| Operating income | $1.3B | 43.7% |