Insurance and analytics provider Verisk has reported marginally higher revenues of $651.6 million for the first quarter of 2023, aided by revenue growth of 11.1% within its insurance segment, including growth of 9.8% on an organic constant currency (OCC) basis.
The company attributed the “modest” 1.2% growth in its overall revenues to the sale of an environmental health and safety business and its financial services segment in the prior year.
The increase in OCC revenue growth, meanwhile, reflected strong growth in underwriting & rating and claims, it added.
Verisk also reported underwriting & rating revenues growth of 10.7% in the quarter and 9.1% on an OCC basis, resulting primarily from strong growth across its core underwriting solutions, extreme events solutions, and life solutions.
Meanwhile, claims revenues grew 12.1% in the quarter and 11.4% on an OCC basis, with strong results recorded in property estimating, anti-fraud and international solutions.
Income from continuing operations was $194.4 million in Q1, down 60.1%, while adjusted EBITDA was $340.3 million, up 11.5% or 15.7% on an OCC basis.
The decrease in income was again primarily due to the aforementioned prior year sale, which resulted in a net gain in other operating income, while EBITDA growth reflects the contribution from strong revenue growth combined with cost discipline, Verisk said.
“We are pleased that 2023 is off to a very strong start at Verisk. Our first-quarter results are a demonstration of our sharpened focus, operating discipline, and results-oriented culture,” said Lee Shavel, President and CEO, Verisk.
“We are elevating the dialogue with our clients and leveraging our scale and centrality to solve the insurance industry’s biggest problems and improve our client’s performance. We have the right team and strategy in place to deliver value for our shareholders.”
Elizabeth Mann, CFO, also commented: “Verisk delivered strong revenue and EBITDA growth, demonstrating broad-based growth across most of our businesses. That in turn generated solid operating leverage. We are focused on our commitments to deliver revenue growth and margin expansion and we remain confident in our ability to achieve our stated goals for 2023 and the longer term.”
