Verisk Analytics (NASDAQ:VRSK) CFO Elizabeth Mann said the company continues to target 6% to 8% annual organic constant-currency revenue growth despite recent pressure from unusually light weather-related claims activity and a normalization in insurance premium growth.
Speaking at an investor event hosted by JPMorgan, Mann said Verisk has historically delivered relatively consistent growth across both hard and soft property-and-casualty insurance markets. The company has averaged 7.3% organic constant-currency growth in hard-market years and 6.8% in soft-market years since going public in 2009, she said.
Subscription Revenue Remains Strong
Mann said Verisk’s subscription business remains as strong as it was several years ago, supported by insurers’ need for data and analytics to evaluate risk and set pricing. Subscription revenue accounted for about 83% of total revenue in the most recent quarter, according to the event discussion.
Pricing is expected to contribute slightly more than half of Verisk’s overall growth. Mann said the company is targeting 350 to 450 basis points of growth from pricing over the three-year cycle beginning in 2026. As insurance premium growth normalizes, she expects a somewhat smaller contribution from pricing and greater contributions from new products, cross-selling and upselling.
The company does not manage its operations by separating subscription and transactional businesses, Mann said. Rather, it seeks to use the commercial model that best fits each customer and product.
She used Verisk’s property claims-estimating products as an example. Carriers may purchase subscriptions that cover a defined number of claims assignments, then pay transactional overage charges above those levels. Verisk may subsequently encourage customers with recurring overages to increase their subscription tier, providing customers with greater volume certainty while increasing recurring revenue for Verisk.
Weather Remains a Near-Term Volume Factor
Mann said light weather in 2025 was the largest contributor to pressure on transactional revenue, and 2026 also appeared somewhat light relative to average weather activity at the time of the discussion. Fewer storms and claims reduce demand in businesses with revenue tied to claims-processing volumes.
She noted that lighter weather benefits policyholders, homeowners and insurance carriers, whose profitability can support investments in data and analytics. Still, it represents a modest headwind for Verisk products tied to claims volumes.
Verisk had reported four consecutive quarters of organic constant-currency growth below 6%. Mann said the company has sufficient visibility from its subscription base to reaffirm its 6% to 8% annual organic constant-currency revenue-growth target at its March investor day.
Product Development Includes Auto, Property and E&S Data
Mann highlighted opportunities in auto insurance, aerial imagery and excess-and-surplus, or E&S, insurance data. Verisk participates in auto insurance through its Forms, Rules and Loss Costs offerings, anti-fraud businesses and underwriting data and analytics solutions. She described Verisk as a challenger in an area where another competitor has historically been the incumbent, while pointing to products such as LightSpeed, which helps carriers quote and price auto policies in real time.
In property underwriting, Verisk is using aerial imagery alongside its other data sets to help insurers assess roof condition and remaining roof life. Rather than simply reporting when a roof was built, the company can use imagery and local environmental information to estimate how a roof is likely to perform relative to its age, Mann said.
Verisk is also expanding its presence in the E&S market, where it has increased the premium data covered by its offerings to about $18 billion from $10 billion earlier in the year, according to the discussion. Mann said property risks increasingly are moving into E&S markets, including high-value or high-weather-risk properties that may not fit traditional admitted insurance markets.
AI Adoption Has Been Faster Among Contractors
Mann said Verisk’s XactAI claims-estimating tool had about 7,000 licensees. The product incorporates generative AI features, including automated photo tagging that can help populate repair estimates based on images of damage, subject to contractor or carrier review.
Adoption has been particularly rapid among contractors, who can more quickly assess the tool’s potential return on investment and activate the product, she said. Carriers are also interested, but adoption can take longer because AI-enabled products often must pass governance, legal, contracting and data-use reviews.
Verisk has also launched model context protocol, or MCP, connectors for certain products, including Forms, Rules and Loss Costs data and Xactware offerings. Current connectors operate on Claude, though Mann said the company could introduce connectors for other large language model providers. Customers need subscriptions to both Verisk and Anthropic to use the existing connectors.
Mann said Verisk expects all of its core content to be available through core.verisk.com by the end of 2026, marking completion of the initially envisioned Core Lines Reimagine program. The company sees AI-enabled access as an addition to, rather than a replacement for, existing modernization efforts involving APIs, policy-administration system integrations and other distribution channels.
Capital Allocation and Acquisitions
On capital allocation, Mann reiterated Verisk’s plan to return more than 75% of free cash flow to shareholders on an ongoing basis through dividends and share repurchases, while maintaining capacity for acquisitions. She said the company’s debt-to-EBITDA ratio was about 2.5 times, within its targeted 2-times to 3-times range.
Mann said the previously announced AccuLynx acquisition was terminated at the end of 2025 and is now subject to active litigation and appeal. She said the company expects visibility on the outcome on the order of months. If the transaction ultimately proceeds, Verisk could fund it entirely with cash, though it could temporarily pause its 75%-plus free-cash-flow return framework before deleveraging and returning to that approach.
For future acquisitions, Mann said Verisk is focused solely on insurance-related opportunities, prioritizing proprietary data, expansion of its addressable insurance markets, and products that improve customer workflow or the use of Verisk data.
About Verisk Analytics (NASDAQ:VRSK)
Verisk Analytics, Inc (NASDAQ:VRSK), commonly known as Verisk, is a data analytics and technology company that helps organizations manage risk and make informed decisions. The company primarily serves the insurance industry, providing data, predictive analytics, software and decision-support tools for property and casualty insurers, life insurers and other risk-focused businesses.
Verisk’s products and services support insurance underwriting, pricing, claims management, catastrophe modeling, fraud detection, actuarial analysis and regulatory compliance.
