Feb 18 (Reuters) - Verisk's fourth-quarter profit topped Wall Street expectations on Wednesday on the back of steady demand for its data analytics offerings, sending its shares up nearly 10% before the bell.
The New Jersey-based insurance-focused firm has benefited from insurers increasingly turning to its data analytics services to improve underwriting and claims processing, tackle fraud and strengthen efficiency.
The market-beating results came even as temporary headwinds such as low levels of weather activity and a reduction in a federal government contract impacted Verisk's growth.
Verisk stock has plunged nearly 21% this year amid broader concerns around AI-driven disruption to the information services business model.
The company traces its history to 1971, when Insurance Services Office was formed to gather data from insurers and help them meet regulatory requirements.
Since Verisk's business is underpinned by proprietary contributory datasets directly from insurers, analysts see low risk of AI disruption due to these unique datasets and the company's deeply integrated workflows with the insurance industry.
Verisk expects adjusted profit per share to be between $7.45 and $7.75 in 2026, compared with estimates of $7.71, according to data compiled by LSEG.
Total revenue is anticipated to be between $3.19 billion and $3.24 billion in 2026, compared with expectations of $3.28 billion.
The company has boosted its buyback authorization to $2.5 billion and expects to implement it through a $1.5 billion accelerated share repurchase program in the near term.
Underwriting revenue rose 8.7% in the quarter from a year earlier. Total revenue rose 5.9% to $778.8 million, compared with expectations of $773.6 million.
Adjusted profit per share was $1.82 in the reported quarter, beating expectations of $1.61.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Vijay Kishore)
