Against a total Q2 consolidated revenue backdrop of US$ 412 million and growth of 14.6%, Verisk’s Decision Analytics segment, revenue (US$ 267 million) grew 16.6% for second-quarter 2013, and growth excluding recent acquisitions was 8.3%.
Growth in the quarter was driven by strong increases in healthcare revenue. Accelerated growth from the insurance revenue category also contributed to second-quarter growth, as did the revenue from the acquisition of Argus, which is reported in the financial services category.
Within the insurance category, revenue growth was 9.5% for the second-quarter of 2013 and 8.9% excluding the recent acquisition of Aspect. This growth was driven by strong growth in underwriting solutions and continued good growth in catastrophe modeling solutions. Insurance fraud claims solutions and loss quantification solutions also added to revenue growth. Overall growth was driven by increased adoption of existing and new solutions and annual invoice increases for certain solutions.
In the financial services category, revenue increased 43.1% in second-quarter 2013 but declined 8.9% after adjusting for the acquisition of Argus. The decline in mortgage revenue within the financial services category reflected continued lower volumes in forensic audit solutions but was partially offset by growth in underwriting and appraisal solutions.
In the healthcare category, revenue in the second-quarter grew 21.3%, all organic. Revenue growth reflected continued expansion of solutions sold to existing customers as well as the addition of new customers. Beginning this quarter, MediConnect Global, acquired in March 2012 and part of revenue and quality intelligence solutions, is included in organic growth.
In the specialized markets category, revenue grew 2.4% in second-quarter 2013. Growth in weather and climate analytics was affected by lower growth in government contracts. Growth in environmental health and safety solutions was driven by ongoing customer agreements moderated by lower volumes of customer implementation projects.
Scott Stephenson, president and chief executive officer, said, “Second-quarter results were solid and reflected increased organic growth. This strength is a result of the commitment and hard work of our leadership and their teams. Our focus on analytic solutions allows our customers to leverage the power of the increased volume of data available to understand the changing landscape of risk. We are proud to partner with our customers and continue to invest in developing new and enhanced solutions to meet their needs, both in the United States and other parts of the world.
“Consistent with our expectations, we accelerated our insurance solutions growth in the quarter. Our healthcare business continues to deliver excellent results and build for the future. We continue to execute our unified healthcare platform strategy and solutions that respond to the changing nature of risk sharing among industry participants.
“Financial services also remains an area in which we can build on the success of our payments solutions to date. Argus continues to exceed our expectations and be a thought leader within our firm for customer collaboration,” concluded Stephenson.
Source: Verisk Earnings Report