Verisk

Thesis

• The business: the data and the standards utility of U.S. P&C insurance.
• Moat:
  • Mission critical proprietary data. A regulatory or certification role. Software as industry standard, embedded in customers' workflow.
• Economics:
  • Prepaid subscriptions with negative working capital. 0.3% of customers' premium.
• Growth drivers:
  • Annual price increases on the subscription base.
  • New modules and AI add-ons sold to the installed base.
• Growth constraint: expansion into adjacent markets draws antitrust scrutiny
• Risks:
  • Large customers in sourcing with AI.
  • EV and auto driving adoption will reduce the number of vehicles on the road and accidents, and make historical data set that's relevant.

Charts Forward PE and EPS

Reports

• Verisk Business Overview

Reference VRSK – Verisk High Quality Cash Flow, Limited Reinvestment Opportunities