Verisk Logo 40415

  • Total revenue grew 20.6% in the fourth quarter and 18.4% for fiscal year 2015; organic revenue growth was 3.9% in the fourth quarter and 7.4% for fiscal year 2015, excluding recent acquisitions and pass-through healthcare revenue.
  • Income from continuing operations grew 14.5% to $114 million and 36.9% to $508 million for fourth-quarter and fiscal year 2015, respectively; Adjusted EBITDA from continuing operations grew 22.5% to $263 million in the fourth quarter and 24.0% to $996 million for fiscal year 2015.

Scott Stephenson, president and chief executive officer, said, “High single-digit organic revenue growth, margin expansion, and excellent free cash flow generation in 2015 reflect the strength of our distinctive business model. The fourth quarter was in line with our expectations, and our initiatives during the year position us well to execute on our plans for 2016.”

Total revenue increased 20.6% in fourth-quarter 2015 and 18.4%for fiscal year2015 compared with the respective prior-year periods. Organic revenue growth was 5.4% in the quarter and 7.7% for the full year, excluding the healthcare analytics business and recent acquisitions. Insurance solutions led the organic revenue growth in the quarter, while financial services led the organic revenue growth for the full year.Verisk Analytics Q4 2015

Decision Analytics segment (above Chart) revenue grew 29.0% in the fourth quarter and 25.9% for the full year compared with the respective prior-year periods. This segment represented approximately 69.0% of total revenue in the quarter and 66.7%for fiscal year 2015. Decision Analytics organic revenue growth was 5.3% in the quarter and 9.3% for the full year, excluding the healthcare analytics business and recent acquisitions.

  • Insurance category revenue increased 7.0% in the quarter and 8.1% for the full year. Performance in the quarter was led by strong growth in loss quantification solutions, with good contributions from insurance antifraud claims solutions and underwriting solutions; catastrophe modeling solutions also contributed to growth.
  • Financial services category revenue declined 2.6% in the quarter but increased 20.5% for the full year; the decline in the quarter was due to project work in the prior-year period which did not recur in 2015.
  • Healthcare revenue, net of pass-through revenue in the current and prior-year periods, declined 2.4% in the quarter but increased 6.2% for the full year.
  • Energy and specialized markets category organic revenue grew 4.3% in the quarter and 5.1% for the full year. Including recent acquisitions, revenue grew 410% in the quarter and 264% for the full year. Wood Mackenzie revenue growth, in pounds and on a comparable basis to 2014, for the twelve months ended December 31, 2015, was approximately 5%.

The 30.8% increase in Decision Analytics Adjusted EBITDA to $161 millionin the quarter was the result of acquisitions, growth in the business, and improved operations. Decision Analytics Adjusted EBITDA in the quarter, excluding recent acquisitions, grew 3.7%. For the full year, Decision Analytics Adjusted EBITDA from continuing operations increased 35.7%. Excluding acquisitions, Decision Analytics Adjusted EBITDA from continuing operations grew 16.6% for the full year.

Risk Assessment segment revenue grew 5.4% in the quarter and 5.8% for the full year.

  • Revenue growth in industry-standard insurance programs was 5.5% in the fourth quarter and 6.0% for the full year, resulting primarily from the annual effect of growth in 2015 invoices effective from January 1 and growth from new solutions.
  • Property-specific rating and underwriting information revenue grew 4.9% in the fourth quarter and 5.1% for the full year. Growth was led by demand for commercial underwriting solutions.

Source: Verisk Analytics