Verisk (VRSK) announced it has agreed to acquire Rulebook for $87 million in an all-cash deal. Rulebook has developed a proprietary pricing engine to assist firms in specialty insurance underwriting and broking transaction markets.
VRSK management continues to acquire the technologies and businesses needed to take advantage of numerous analytics and information-centric decision support opportunities across its industry verticals. London-based Rulebook was founded in 2002 and has developed software that increases pricing visibility for insurance and broking companies primarily operating in the London Insurance Market. Management is headed by Managing Director Andy Galli, who was previously co-founder of Moore Stephens Consulting which developed RuleBook and at Lloyd’s of London.
RuleBook’s primary offerings enable users to access information from any device. They can configure pricing rules and distribute the results to underwriters and brokers in real-time. In addition, the system suggests selling opportunities and provides a range of reporting capabilities.
According to a 2017 QYResearch Group market research report, the global insurance rating software market is expected to reach $574 million by 2022. This represents a CAGR (Compound Annual Growth Rate) of 9.27% between 2016 and 2022. The Asia-Pacific region will account for the greatest growth rate during the forecast period, while the U.S. and Europe will continue to contribute growth potential. Free cash flow during the nine months ended September 30, 2018, was $606.5 million.
Verisk is acquiring RuleBook to enhance its offerings in specialty insurance markets and will combine RuleBook with its Sequel business unit, which it acquired in 2017 for $323 million.