Verisk to Focus Solely on insurance Data Business, Provides Update on Strategic Review
Verisk (NASDAQ:VRSK) provided an update on ongoing activities to advance corporate governance and enhance shareholder value. VRSK will become a pure play insurance data analytics solutions provider and is evaluating strategic alternatives for separating its Energy unit, with relevant workstreams underway.
VRSK expects to conclude this review and provide details on which transaction it intends to pursue for the Energy business no later than Q3-end, projecting that any such deal would be executed by Q1 2023.
VRSK has been undertaking a proactive study of its cost structure to better align costs with the scale and requirements of the ongoing insurance-focused businesses.
With these steps, VRSK expects to deliver sustainable cost efficiencies that produce a target of 300-500 bps of EBITDA margin expansion in the consolidated remaining insurance-focused business by 2024, while maintaining organic revenue growth rates.
VRSK also said it will nominate 3 new independent directors to its board – Jeffrey Dailey, an insurance industry veteran who is currently CEO of Farmers Group; Wendy Lane, member of Willis Towers Watson’s board and a former director at MSCI and Corelogic; and Kimberly Stevenson, an experienced independent board member at publicly traded technology firms.
Dailey, Lane and Stevenson will be included in VRSK’s slate of nominees for election at its 2022 Annual Shareholder Meeting.
D.E. Shaw (D. E. Shaw Company) recommended the addition of Lane to the board and showed support for the other candidates as well as for VRSK’s ongoing governance enhancements and business initiatives.
“We are appreciative of the constructive approach taken by the board and believe that VRSK is well-positioned to drive significant value for all shareholders,” said Michael O’Mary, managing director, D.E. Shaw. Last week, D.E. Shaw – a significant stakeholder in VRSK – said the stock could see 70% upside if VRSK could implement the investor’s plans to enhance shareholder value.
For the latest announcement by Verisk providing an update of activities to enhance Shareholder Value click here: Verisk Analytics
Editorial Comment: A major shareholder forced a management change and a return to the company’s roots: VRSK will become a pure play insurance data analytics solutions provider