Verisk (Nasdaq:VRSK), a leading data analytics provider, has announced results for the fourth quarter and fiscal year ended December 31, 2020.
Consolidated revenues were $713 million for the fourth quarter of 2020, up 5.4%, and up 3.5% on an organic constant currency (OCC) basis.Net income was $176 million for the fourth quarter of 2020, up 33.3%. Adjusted EBITDA, a non-GAAP measure, was $344 million, up 7.9%, and up 4.9% on an OCC basis.
Scott Stephenson, chairman, president, and CEO, said, “Despite the broader economic challenges the pandemic continues to present, Verisk delivered another year of strong organic constant currency revenue and adjusted EBITDA growth in 2020. These results demonstrate the resiliency and stability of our business model, the valuable impact of our technology and insights to customers, and the commitment of our more than 9,000 Verisk teammates to support our customers through an unprecedented period of digital transformation. We continue to have strong conviction in our long-term growth strategy and our plans to create durable shareholder value.”
Lee Shavel, CFO and group president, said, “Verisk delivered organic constant currency revenue growth of 3.5% and organic constant currency adjusted EBITDA growth of 4.9% in the fourth quarter, led by continued strength in our insurance business. During the year we generated $821 million in free cash flow, allowing us to continue to invest in our high growth, high return on investment projects while also returning capital to shareholders through repurchases and our dividend. Our dividend increase of 7.4% underscores our confidence in the long-term growth of our business and our capital management discipline.
Consolidated revenues increased 5.4% for fourth-quarter 2020 and 3.5% on an OCC basis.
Insurance segment revenues grew 8.5% in the fourth quarter of 2020 and 7.4% on an OCC basis.
- Underwriting & rating revenues increased 10.6% in the quarter and 6.8% on an OCC basis, resulting primarily from annual increases in prices derived from continued enhancements to the content of the solutions within our industry-standard insurance programs, as well as selling expanded solutions to existing customers in commercial and personal lines. In addition, catastrophe modeling services contributed to the growth. These increases were partially offset by a decrease in certain transactional revenues.
- Claims revenue grew 4.2% in the quarter and increased 8.8% on an OCC basis. Growth was primarily driven by repair cost estimating solutions revenue, claims analytics revenue, and workers compensation claims resolution services.
Energy and Specialized Markets segment revenue increased 3.5% in the quarter and declined 3.9% on an OCC basis. The Genscape acquisition, environmental health and safety service solutions and core research contributed to the growth. The decrease in the segment was primarily due to declines in consulting revenues in connection with the COVID-19 pandemic and declines in cost intelligence solutions’ implementation projects that did not reoccur.
Financial Services segment revenue decreased 19.6% in the quarter and 13.0% on an OCC basis, primarily the result of lower levels of project spending from our bank customers stemming from the COVID-19 pandemic.
Net Income and Adjusted EBITDA: During fourth-quarter 2020, net income increased 33.3%. Adjusted EBITDA increased 7.9%, and 4.9% on an OCC basis.
Source: Verisk Earnings Release