Verisk Analytics (VRSK) 10-K risk factor changes: FY2024 vs FY2023

In general, we do not own the information in these data repositories, and the participating organizations could discontinue [added: or materially limit] contributing information to the data repositories.

If a substantial number of data sources, or certain key sources, were to [removed: withdraw or] [added: withdraw, materially limit,] be unable to provide their data, or if we were to lose access to data due to government [removed: regulation,] [added: regulation or policy,] decline in reputation or if the collection of data became uneconomical, our ability to provide solutions to our customers could be impacted, which could materially adversely affect our business, reputation, financial condition, operating results, and cash flows.

During the year ended December 31, [removed: 2023,] [added: 2024,] approximately [removed: 69%] [added: 70%] of our revenue was derived from solutions provided to U.S. P&C primary insurers.

Also, our invoices for certain of our solutions are linked in part to premiums in the U.S. P&C insurance market, which may rise or fall in any given year due to loss experience and capital capacity and other factors in the insurance industry [added: such as responses to natural disasters and climate-related events] that are beyond our control.

_Our financial position may be impacted by [removed: audit examinations] [added: tax audits] or changes in tax laws or tax [removed: rulings._][added: ruling_]

Our existing corporate structure and tax positions have been implemented in a manner which we believe is compliant with current [added: tax laws, however it is possible that tax authorities may disagree with the positions we have taken due to differing interpretations of] prevailing tax [removed: laws.][added: rules.]

[removed: However, changes] [added: Changes] in existing tax laws or rulings, [removed: including Federal, State and International,] [added: or changes in interpretations of existing laws,] could have a significant impact on our effective tax rate, cash tax [removed: positions] [added: positions,] and deferred tax assets and liabilities.

Furthermore, the Organization for Economic Co-operation and Development [removed: (OECD)] [added: ("OECD")] has issued Pillar Two model rules for a global minimum tax of 15% that has been agreed upon in principle by over 140 countries.

[removed: Although we] [added: We have assessed the effect of Pillar Two and] do not expect [removed: Pillar Two] [added: it] to materially increase our tax expense, the ultimate impact will depend on the implementation of specific rules in each jurisdiction.

Because personal, public and non-public information is stored in some of our data repositories, we are vulnerable to government regulation and [added: policy, as well as] adverse publicity concerning the use of our data.

| | • | amendment, enactment, [removed: or] interpretation of laws and regulations [added: or implementation of policy] which restrict the access and use of personal information and reduce the supply of data available to customers; |

| | • | failure of our solutions [added: or business processes or policies] to [added: meet or] comply with current and future laws and [removed: regulations;] [added: regulations] and [added: their interpretations;] |

| | • | failure of our solutions [added: or business processes or policies] to adapt to changes in the regulatory environment in an efficient, cost-effective [removed: manner.] [added: manner; and] |

_We are subject to antitrust, consumer protection, intellectual [removed: property] [added: property, data privacy,] and other litigation, as well as governmental investigations, and may in the future become further subject to such litigation and investigations; an adverse outcome in such litigation or investigations could have a material adverse effect on our financial condition, revenues and profitability._

We participate in businesses (particularly insurance-related businesses and services) that are subject to substantial litigation, including antitrust, consumer [removed: protection and] [added: protection,] intellectual property [removed: litigation.][added: litigation, and data privacy.]

Our failure to successfully defend or settle any litigation or resolve any governmental [removed: investigation] [added: investigation, inquiry or examination] could result in liability that, to the extent not covered by our insurance, could have a material adverse effect on our financial condition, revenues and profitability.

Given the nature of our business, we may be subject to litigation or [removed: investigation] [added: investigation, inquiry or examination] in the future.

We monitor third-party patents and patent applications that may be relevant to our technologies and solutions and we carry out freedom to operate [added: an] analysis where we deem appropriate.

Government contract laws and regulations [added: as well as policy implementation] affect how we do business with our customers and impose certain risks and costs on our business.

In order to continue support of our growth, we [added: have made and] are [removed: making] [added: continuing to make] significant technological upgrades to our information systems.

We are in [removed: the process] [added: various stages] of implementing a company-wide, single ERP software system and related processes to perform various functions and improve on the efficiency of our global business.

As of December 31, [removed: 2023,] [added: 2024,] our ten largest shareholders owned 40.3% of our common stock, including [removed: 2.5%] [added: 2.1%] of our common stock owned by our Employee Stock Ownership Plan or ESOP.

Pursuant to our equity incentive plans, options to purchase approximately [removed: 2,732,670] [added: 2,007,306] shares of common stock were outstanding as of February [removed: 16, 2024.][added: 21, 2025.]

Under Delaware law, a corporation may opt out of the anti-takeover [removed: provisions, but we do not intend to do so.][added: provisions.]

We are subject to tax in the U.S., various state, and foreign jurisdictions, and are routinely under audit by various tax authorities.

Tax audits with an adverse outcome could have a material impact on our effective tax rate, cash tax positions, and deferred tax assets and liabilities.

Existing tax laws in the jurisdictions in which we operate are subject to change given current political and economic conditions.

| | • | potential inquiries or investigations from government officials or others related to our policies and practices governing social issues. |

Similarly, a government funding pause, suspension, or shut down could adversely affect our business and future financial performance.

| | | |

Further, the Federal Reserve has increased its benchmark interest rate multiple times in 2023 in a bid to reduce rising inflation rates in the United States.

These interest rate increases have resulted in higher short-term and long-term borrowing costs.

Tax audit examinations with an adverse outcome could have a negative effect in the jurisdictions in which we operate.

Accordingly, we will continue to monitor global legislative action for potential impacts.

In addition, our tax positions are impacted by fluctuations in our earnings and financial results in the various countries in which we do business.

This discussion includes a comparison of our results of operations, liquidity and capital resources, financing and financing capacity and cash flow for the years ended December 31, [removed: 2023] [added: 2024, 2023,] and 2022_.

Subscriptions for our solutions are generally paid in advance of rendering services either quarterly or in full upon commencement of the subscription period, which is usually for one [removed: year] [added: to five years] and automatically renewed each year.

Approximately [removed: 80% and] 81% [added: and 80%] of the revenues in our Insurance segment for the years ended December 31, [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023, respectively,] were derived from hosted subscriptions through agreements [removed: (generally one to five years)] for our solutions, respectively.

For the years ended December 31, [removed: 2023] [added: 2024] and [removed: 2022,] [added: 2023,] approximately [removed: 20% and] 19% [added: and 20%] of our consolidated [removed: revenues] [added: revenues, respectively,] were derived from providing transactional and advisory/consulting solutions, respectively.

Personnel expenses, which represented approximately [removed: 57%] [added: 56%] and [removed: 59%] [added: 57%] of [removed: ourtotal] [added: our total] operating expenses (excluding gains/losses related to dispositions) for each of the years ended December 31, [removed: 2023] [added: 2024] and [removed: 2022,] [added: 2023,] respectively, include salaries, benefits, incentive compensation, equity compensation costs, sales commissions, employment taxes, recruiting costs, and outsourced temporary agency costs.

A significant change in [removed: P&C insurers’] [added: the] profitability [added: of P&C insurers] could affect the demand for our solutions.

[removed: For insurers, the] [added: The] keys to profitability [added: for insurers] include [added: premium growth,] increasing investment income, [removed: premium growth] and disciplined and accurate underwriting of risks.

[removed: Growth in P&C insurers’] [added: The growth of] direct written premiums [added: for P&C insurers] has [removed: been cyclical,] [added: exhibited cyclical patterns,] with total industry premium growth [removed: receding] [added: declining] from a peak of 14.8% in 2002 to a trough of [removed: negative 3.1%] [added: (3.1)%] in 2009 and subsequently recovering to 5.1% in 2019.

In 2020, industry premium growth declined to 2.3% due to the [removed: COVID-19] [added: impact of the] pandemic.

Direct premium growth accelerated to 9.5% in [removed: 2021 and] [added: 2021,] 9.7% in [removed: 2022] [added: 2022, and further increased to 10.4% in 2023,] indicating a [added: continued] recovery from the pandemic.

Based on the most recent results available, [removed: direct] written premiums continued to grow in [removed: 2023 on] [added: 2024 at a] comparable level.

[removed: Despite high interest rates in 2023, the] [added: Insurers’] annualized yield on investments (not attributable to cash transfers from outside the [removed: P/C] [added: P&C] industry) was [removed: 3.0%] [added: 2.5%] as of [removed: nine-months 2023,] [added: the first nine months of 2024,] down from the [removed: 3.3%] [added: 3.2%] yield [removed: for] [added: at] year-end [removed: 2022.][added: 2023 despite still moderately high interest rates (compared to the pre-pandemic period) in 2024.]

[removed: Both] [added: These] recent [added: investment] results are lower than the historical 15-year average of [removed: 3.4%,] [added: 3.3%,] showing that yields [added: on investments, a major component of insurers’ balance sheets,] have yet to follow the trend in interest rates.

Until premium pricing adjustments [removed: take effect] [added: are fully implemented,] and profitability improves, [added: some] carriers are [removed: refraining from] [added: not yet] spending [added: as much as they have in the past] to drive new policy volume, [removed: creating short term impacts] [added: which could have a short-term impact] on demand and volume for our Marketing Solutions offerings and auto underwriting solutions.

[removed: Trends] [added: These trends] in catastrophe and non-catastrophe losses (such as from weather, climate, casualty, terrorism, pandemics, and tsunamis) can [removed: have an effect on] [added: influence] our customers’ profitability, and therefore [removed: on] their appetite for buying analytics to help them manage their risks.

[removed: We also have a] [added: A] portion of our revenue [added: is also] related to the number of claims processed due to losses, which can be impacted by seasonal storm [added: or wildfire] activity.

The need by our customers to fight insurance fraud - both in claims and at policy inception - could [added: also] lead to increased demand for our underwriting and claims solutions.

We acquired [removed: 13] [added: 8] businesses since January 1, [removed: 2021.][added: 2022.]

See a description of our [removed: 2023 acquisitions] [added: 2024 acquisition] below and [Note 10](#fn10acquisitions).

[removed: Krug] [added: Rocket] has become a part of our claims [removed: category within our Insurance segment.][added: category.]

[removed: _Year] [added: _Year] Ended December 31, 2023 Compared to Year Ended December 31, [removed: 2022_][added: 2022_]

Our recent acquisitions (Morning Data within the underwriting category of our Insurance segment; and Mavera and Krug within the claims category of the Insurance [removed: segment] [added: segment)] increased net revenues by $32.4 million.

| | | [removed: 2023] [added: 2024] | | | | [removed: 2022] [added: 2023] | | | | Percentage change | | | | Percentage change excluding recent [removed: acquisitions, businesses held for sale] [added: acquisitions] and disposition | | |

| Specialized Markets | | | — | | | | 22.4 | | | | [removed: N/A] [added: (100.0] | [added: )%] | | | [removed: N/A] [added: —] | [added: %] |

| Financial Services | | | — | | | | 37.6 | | | | [removed: N/A] [added: (100.0] | [added: )%] | | | [removed: N/A] [added: —] | [added: %] |

Our recent acquisitions, primarily related to salaries and benefits of $24.5 million, contributed to the increase, offset by our recent dispositions and acquisition-related [removed: earn out] [added: earn-out] costs, which accounted for decreases of $34.1 million and $16.5 million, respectively.

| Less: [removed: Loss] [added: (Loss)] from discontinued operations, net of tax [removed: (benefit) expense] [added: (expense) benefit] of $(12.6) and $131.5, respectively | | | (154.0 | ) | | | (87.8 | ) |

| EBITDA | | [removed: $] | 1,424.1 | | | [removed: $] | 1,639.8 | |

Revenues were [removed: $2,681.4] [added: $2,881.7] million for the year ended December 31, [removed: 2023] [added: 2024] compared to [removed: $2,437.0] [added: $2,681.4] million for the year ended December 31, [removed: 2022,] [added: 2023,] an increase of [removed: $244.4] [added: $200.3] million or [removed: 10.0%.][added: 7.5%.]

Our underwriting [removed: revenues] [added: revenue] increased [removed: $158.2] [added: $131.6] million or [removed: 9.1%.][added: 7.0%.]

Our claims [removed: revenues] [added: revenue] increased [removed: $86.2] [added: $68.7] million or [removed: 12.3%.][added: 8.7%.]

Our recent acquisitions (Morning Data within the underwriting category of our Insurance segment; [removed: and] [added: Rocket,] Mavera and Krug within the claims category of the Insurance segment) [added: and dispositions (AER) within the underwriting category of our Insurance segment)] contributed net revenues of [removed: $32.4] [added: $7.4] million, while the remaining Insurance revenues increased [removed: $212.0] [added: $192.9] million or [removed: 8.7%.][added: 7.2%.]

Our underwriting [removed: revenues] [added: revenue] increased [removed: $146.6] [added: $131.9] million or [removed: 8.5%] [added: 7.0%,] primarily due to an annual increase in prices derived from continued enhancements to the [added: models and] content of the solutions within our forms, rules and loss cost [removed: services] [added: services,] as well as selling expanded solutions to new and existing customers within [added: extreme event solutions,] underwriting [added: data and analytic solutions, and specialty business] solutions.

Our claims [removed: revenues] [added: revenue] increased [removed: $65.4] [added: $61.0] million or [removed: 9.3%,] [added: 7.8%,] primarily due to growth in [removed: property estimating] [added: anti-fraud] solutions and [removed: anti-fraud] [added: property estimating] solutions.

Cost of revenues [removed: for our Insurance segment] was [removed: $876.5] [added: $901.1] million for the year ended December 31, [removed: 2023] [added: 2024] compared to [removed: $781.9] [added: $876.5] million for the year ended December 31, [removed: 2022,] [added: 2023,] an increase of [removed: $94.6] [added: $24.6] million or [removed: 12.1%.][added: 2.8%.]

Our recent acquisitions and dispositions [removed: represented a net] [added: accounted for an] increase of [removed: $26.2] [added: $6.1] million in cost of revenues, which was primarily related to salaries and employee benefits.

[removed: SGA] [added: Selling, general and administrative] expenses [removed: for our Insurance segment] [added: ("SGA")] were [removed: $391.8] [added: $408.7] million for the year ended December 31, [removed: 2023] [added: 2024] compared to [removed: $347.4] [added: $391.8] million for the year ended December 31, [removed: 2022,] [added: 2023,] an increase of [removed: $44.4] [added: $16.9] million or [removed: 12.8%.][added: 4.3%.]

The [removed: remaining increase in SGA] [added: offsetting decrease] of [removed: $36.4] [added: $5.8] million or [removed: 10.0%] [added: 1.4%] was primarily due to a [added: prior year] litigation reserve expense of $38.2 million [removed: associated with an indemnification of an ongoing inquiry] related to our former Financial Services segment, [removed: increases] [added: decreases] in [removed: travel expenses of $3.9 million, professional consulting] fees [removed: (mostly related to ERP costs)] [added: and membership costs] of [removed: $3.4] [added: $3.2] million, [removed: information technology expenses] [added: bad debt expense] of [removed: $0.6] [added: $1.1] million, and other operating costs of [removed: $0.9] [added: $1.2] million, partially offset by [removed: a decrease] [added: an increase] in [added: professional consulting fees of $15.8 million,] salaries and employee benefits of [removed: $10.6] [added: $12.3 million, a $6.5 million loss on the disposal of assets primarily due to a write-off of leasehold improvements related to our lease modification, increases in insurance expense of $2.0 million, and information technology expense of $1.3] million.

Investment income (loss) and others, net was a gain of [removed: $11.0] [added: $95.7] million for the year ended December 31, [removed: 2023] [added: 2024] compared to a [removed: loss] [added: gain] of [removed: $4.7] [added: $11.0] million for the year ended December 31, [removed: 2022.][added: 2023.]

EBITDA [removed: for our Insurance segment] was [removed: $1,424.1] [added: $1,659.1] million for the year ended December 31, [removed: 2023] [added: 2024] compared to [removed: $1,303.0] [added: $1,424.1] million for the year ended December 31, [removed: 2022.][added: 2023.]

_EBITDA._ We use year-over-year EBITDA growth as a key performance metric.

With inflation remaining above pre-pandemic levels throughout 2024 and the CPI consistently exceeding the 2% target, reaching 2.9% in December, the Federal Reserve took timely action to adjust its monetary policy and reduce interest rates.

The federal funds rate was reduced from a target range of 5.25-5.5% early in 2024 to a target range of 4.25-4.5% range by the end of December.

Reductions in interest rates can lead to increased consumer spending and investment, resulting in higher demand for insurance products as individuals and businesses seek to protect their assets.

In such cases, comprehensive data analysis and risk assessment support can help insurers significantly improve their operations.

It enables more accurate calculations and provides a broad, systemic view of the market.

Despite some progress made towards actuarially sound pricing, carriers are still working to improve loss ratios and profitability in the face of heightened inflation.

The trend of high catastrophe losses for insurers that began in 2020 continued through 2024.

Insurance losses in these five latest years were more than 1.75 times the losses in the prior five years (2015-2019).

Both 2023 and 2024 reflected a record high for the number of catastrophes recorded in a single year.

But while those 2023 catastrophes translated into the lowest financial losses in any year since the pandemic, 2024, however, brought much greater catastrophic impacts that resulted in significant losses.

The 2024 Atlantic hurricane season was the second most expensive on record, surpassed only by the 2017 season.

Although Hurricane Helene was the deadliest, causing massive flooding in North Carolina and significant property damage and loss of life, most of the damage was caused by Hurricane Milton, one of the strongest tropical cyclones to hit the Gulf of Mexico.

In addition, Hurricane Beryl, the earliest Category 5 hurricane on record, caused widespread devastation as it crossed the Caribbean and Gulf of Mexico.

And 2025 is off to an active start with the latest breakout of wildfires in California with insured industry losses to property that our Extreme Event Solutions group has estimated could be as much as $35.0 billion.

On January 8, 2024, we completed the acquisition of 100 percent of Rocket Enterprise Solutions GmbH ("Rocket") for a net cash purchase price of $10.1 million, of which $2.2 million represents a deferred payment and $0.3 million represents a holdback payment.

The majority of the purchase price was allocated to goodwill as we did not incur any material liabilities.

Rocket’s strong property claims and underwriting technology has been widely adopted by many of the largest insurers and service providers across Germany and Austria.

The acquisition, which follows a strategic investment by Verisk in Rocket in 2022, will further Verisk's expansion in Europe and the Company’s goal of helping insurers and claims service providers leverage more holistic data and technology tools to enhance the claims experience.

_Description of Dispositions_

In December 2024, we sold Atmospheric and Environmental Research ("AER") for $7.1 million.

The sale resulted in a loss of $12.1 million that was included within "Other operating (loss) income" in the accompanying consolidated statements of operations for the year ended December 31, 2024.

Our revenue by category for the periods presented is set forth below:

| Underwriting | | $ | 2,024.3 | | | $ | 1,892.7 | | | | 7.0 | % | | | 7.0 | % |

| Claims | | | 857.4 | | | | 788.7 | | | | 8.7 | % | | | 7.8 | % |

| Total Insurance | | $ | 2,881.7 | | | $ | 2,681.4 | | | | 7.5 | % | | | 7.2 | % |

The remaining cost of revenues increase of $18.5 million or 2.1% was primarily due to increases in salaries and employee benefits of $8.3 million, information technology expense of $6.9 million, data costs of $6.3 million, bad debt expense of $5.6 million, and fees and membership costs of $0.7 million, partially offset by a decrease in rent expense of $3.3 million, a decrease of $2.2 million on the disposal of fixed assets, $1.5 million gain primarily related to our Jersey City lease modification, decreases in office expense of $0.8 million, insurance expense of $0.7 million, professional consulting fees of $0.5 million, and other operating costs of $0.3 million.

This increase was primarily due to an acquisition-related earn-out credit of $20.0 million in the prior year that did not recur in the current period.

The increase was primarily due to the timing of certain large internally developed software projects that were completed and placed into service in the prior year, partially offset by a decrease due to our recent disposition of $0.3 million.

The loss in the current year was driven by the sale of AER.

_Net gain on Early Extinguishment of Debt_

Net gain on early extinguishment of debt was $3.6 million for the year ended December 31, 2024 due to a cash tender offer of $400.0 million aggregate principal of our 2025 Senior Notes that was completed on June 7, 2024.

The increase was primarily driven by net gains associated with the settlement of retained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022, partially offset by the impact of foreign currencies.

The increase in interest expense was primarily related to the issuance of our 2034 Senior Notes, offset by the cash tender that was completed on June 7, 2024.

The decrease in the effective tax rate in 2024 compared to 2023 was primarily due to tax charges incurred in structuring the sale of our Energy business in the prior year, as well as additional tax benefits recorded for capital losses that we were able to recognize due to capital gains arising from the settlement of our investments in non-public companies in the current year.

The increase in net income margin was primarily driven by net gains associated with the settlement of retained interests related to the prior sales of our healthcare business in 2016 and our specialized markets business in 2022, the early extinguishment of debt, discussed above, and a prior year litigation reserve expense related to our former Financial Services segment, partially offset by the loss recognized on the sale of AER.

The net income margin for December 31, 2023 included a loss from discontinued operations of $154.0 million, which negatively impacted our net income margin by 5.7%.

The increase was primarily driven by strong revenue growth and cost discipline, a prior year litigation reserve expense related to our former Financial Services segment, and net gains associated with the prior sales of our healthcare business in 2016 and our specialized markets business in 2022.

| | | 2024 | | | | 2023 | | |

| Net Income | | $ | 957.5 | | | $ | 614.4 | |

We use year-over-year EBITDA growth as metrics to measure our performance.

In 2023, the main economic indicators stabilized, inflation began to fall, and the federal interest rate increases stopped mid-year.

The trend of high catastrophic losses incurred by insurers that began in 2020, continued into 2023 – a time during which the estimated sum of losses from events that ISO's Property Claims Service had classified as catastrophes remains above the 10- and 20-year averages.

The catastrophes of 2020 included Hurricane Laura and the Midwest derecho, as well as multiple wildfires in the Western states.

The most notable events of 2021 included the winter storm in February that left much of Texas without power and Hurricane Ida in August.

Calendar year 2022 was marked by Hurricane Ian in September, the deadliest hurricane to strike Florida since 1935.

All three of these hurricanes - Laura, Ida, and Ian - are among the strongest hurricanes to ever make landfall in the United States.

While 2023 did not bring any high-loss large catastrophes, it is worth noting that the losses incurred by insurers during the tornado season from March to June were record-breaking in the history of ISO's Property Claims Service measurements.

The upward trend in the number of disasters recorded by ISO's Property Claims Service continues in 2023 - the average increase in the number of disasters was 14% over the last 5 years.

In Florida specifically, the high overall claim risk, as evidenced by Ian, combined with the litigious environment in the state poses an even greater risk to insurers who have faced two consecutive years with significant net underwriting losses.

In California, the Department of Insurance enacted regulations for wildfire mitigation discounts in rating plans and wildfire risk models in response to an insurance affordability crisis in wildfire prone areas.

We continue to provide the necessary coverages and data and analytics to meet the changing needs of communities, regulators and insurers as illustrated by these events.

In response to rising inflation, carriers are working to reset pricing to fix loss ratios and improve profitability.

This has slowed their marketing spend for customer acquisition.

In the life insurance market, carriers are looking to modernize and digitize their core platforms, as well as offer streamlined underwriting decision-making process to expand the number of policies, which can be offered more rapidly, and without cumbersome medical tests.

Our no-code modular technology stack and advanced analytics (such as using electronic health records to model mortality and detecting of tobacco use through voice analysis) enable the digital transformation of our customers' core infrastructure and automate their decision-making processes across the policy lifecycle.

On April 20, 2023, we acquired Krug Sachverständigen GmbH ("Krug") for a net cash purchase price of approximately $43.3 million including working capital adjustments, of which $3.8 million represents indemnity escrows.

Krug is a Germany-based motor claims solutions provider and has established an industry-leading position in the German insurance market through highly digitalized solutions that help insurers and car manufacturers achieve better and faster customer service, leading to sustainable reductions in costs.

The acquisition expands our claims and casualty offerings across Europe.

On February 1, 2023, we acquired 100 percent of the stock of Mavera Holding AB ("Mavera") for a net cash purchase price of $28.3 million, of which $4.2 million represents indemnity escrows.

Mavera, a Sweden-based InsurTech firm with a regional presence and established customer base for its personal injury claims management platform, has become a part of the claims category within our Insurance segment.

We expect that Mavera will support our expansion in continental Europe and our continued growth as a technology and analytics partner to the global insurance industry.

Dispositions and Discontinued Operations to our consolidated financial statements included in this annual report on Form 10-K for further discussions.

_Revenues_

Refer to the Results of Operations by Segment within this section for more information regarding our revenues.

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | |

| | | (in millions) | | | | | | | | | | | | | | |

_Cost of Revenues_

_Selling, General and Administrative Expenses_

The increase was primarily due to impact of foreign currencies.

Results of Continuing Operations by Segment

Insurance

_Revenues_

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | |

| | | (in millions) | | | | | | | | | | | | | | |

| Underwriting | | $ | 1,892.7 | | | $ | 1,734.5 | | | | 9.1 | % | | | 8.5 | % |

| Claims | | | 788.7 | | | | 702.5 | | | | 12.3 | % | | | 9.3 | % |

| Total Insurance | | $ | 2,681.4 | | | $ | 2,437.0 | | | | 10.0 | % | | | 8.7 | % |

As of December 31, [removed: 2023,] [added: 2024,] we had no borrowings outstanding under our Credit Facility.

[removed: The Amendment does not change the current borrowing capacity of $1,000.0 million, but does extend the maturity date to April 5, 2028_._] Interest on borrowings under the [removed: Amendment] [added: Credit Facility] is payable at an interest rate of SOFR plus 100.0 to 162.5 basis points, depending upon our public debt rating.

Movements in the U.S. dollar to British pounds and other foreign currency exchange rates did not have a material effect on our revenue for the year ended December 31, [removed: 2023.][added: 2024.]

The information required by this Item is set forth on pages 53 through [removed: 99] [added: 96] of this annual report on Form 10-K.

On April 5, 2023_,_ we entered into the Fifth Amendment (the "Amendment") to the committed senior unsecured Syndicated Revolving Credit Facility with Bank of America, N.A. as administrative agent.

We also maintained a $125.0 million Bilateral Term Loan Facility and a $275.0 million Bilateral Revolving Credit Facility (together the "Bilateral Credit Facilities") that matured on September 9, 2023 and October 2, 2023_,_ respectively.

The Bilateral Credit Facilities carried an interest rate of 135 basis points plus the one-month BSBY and was used for general corporate purposes, including working capital needs and capital expenditures, acquisitions, dividend payments, and the Repurchase Program.

We have had no outstanding borrowings under our Bilateral Credit Facilities during 2023 through the maturity dates.

The Bilateral Credit Facilities have not been renewed.

In [removed: 2023,] [added: 2024,] our clients included all of the top 100 property and casualty ("P&C") insurance providers in the U.S. for the lines of P&C services we offer.

We are leveraging our strong client relationships to extend our reach within [removed: insurance.][added: insurance and elevate the strategic dialogue with our clients.]

With the client at the center of all we do, we are driving innovation across our portfolio and partnering with our clients to help solve the insurance [removed: industries] [added: industry's] greatest challenges with a focus on rapidly changing technology, growing regulatory focus, and value creation;

We offer our solutions and services primarily through annual subscriptions or long-term agreements, which are typically prepaid [added: (annually] and [added: quarterly) and] represented approximately [removed: 80%] [added: 81%] of our revenues in [removed: 2023.][added: 2024.]

We have more than 240 insurance experts and specialized lawyers reviewing changes in each state’s insurance rules and regulations, including an average of approximately [removed: 14,800] [added: 12,300] legislative actions, [removed: 12,500] [added: 16,000] regulatory actions, and 2,000 court decisions per year, to make any required changes to our policy language and rating information.

For example, in the homeowners line of insurance, we maintain policy language and rules for approximately [removed: seven] [added: 6] basic coverages, 385 national endorsements, and [removed: 685] [added: 701] state-specific endorsements.

In [removed: 2023,] [added: 2024,] P&C insurers sent us approximately [removed: 2.8] [added: 2.7] billion detailed individual records of insurance transactions, such as insurance premiums collected or losses incurred.

We maintain an underwriting database of more than [removed: 34.5] [added: 36.3] billion statistical records, including approximately [removed: 9.2] [added: 9.7] billion commercial lines records and approximately [removed: 25] [added: 26] billion personal lines records.

Across all of our insurance lines, our proprietary quality process includes [removed: more than 2,900] [added: approximately 3,000] separate checks to ensure that the data meets our high standards.

The Reimagine program [removed: will include] [added: includes] significant enhancements to our existing solutions; new digital workflow tools, insights, and analytics; and an enhanced content delivery platform.

Our database contains data and analytics on approximately [removed: 15.9] [added: 143] million [added: residential properties and 16 million] commercial properties in the U.S. We have a staff of approximately 500 field representatives strategically located around the U.S. who observe and report on conditions at commercial and residential properties, evaluate community fire-protection capabilities, and assess the effectiveness of municipal building-code enforcement.

Each year, our field staff visits [removed: more than] [added: approximately] 300,000 commercial properties to collect information on new buildings, verify building attributes, and provide specific loss costs.

Our auto solutions are powered by a mix of third-party and proprietary data ranging from 2 billion traffic court records to [removed: 500 billion miles of connected car telematics data and we have] characteristics on more than [removed: 270] [added: 275] million insured drivers and 280 million registered vehicles with access to expansive industry databases on loss costs and claims.

We have developed models for hurricanes, earthquakes, winter storms, tornadoes, hailstorms, wildfires, and floods in more than 120 [removed: countries, as well as for pandemics worldwide.][added: countries and territories.]

[removed: We also help] [added: Up until the sale of Atmospheric and Environmental Research (“AER”) on December 2, 2024, we helped] businesses and governments better anticipate and monitor risks in Earth’s natural environment.

We [removed: prepare] [added: prepared] certain agencies and companies to anticipate, manage, react to, and profit from climate- and weather-related risk.

We [removed: serve] [added: served] our customers by providing advanced research, development, and analysis delivered in reports, data streams, and software solutions.

[removed: Finally, we] [added: We] offer global risk intelligence providing insight into [removed: sustainability, resilience, and environmental, social,] [added: sustainability] and [removed: governance (ESG)] [added: resilience] issues, underpinned by geospatial data and analytics.

We provide intelligence on sustainability, resilience, human rights, [added: environmental,] sovereign and political risk, [removed: and ESG—stitching] [added: stitching] together these disparate issues into an interconnected global view built upon objective insight and data.

We also power ongoing enrichment of prospective and current customer insights for the highest probability of retention and increased share of wallet (policy bundling) as well as full coverage of [removed: US] [added: U.S.] households and consumers to drive prospect marketing and advertising strategies.

The database contains information from more than [removed: 1.7] [added: 1.8] billion claim records and is the world’s largest database of P&C claims information used for claims processing and fraud investigations.

Insurers and other participants submit more than [removed: 184,000] [added: 187,917] new claims a day on average across all U.S. P&C insurance industry categories.

The customers [removed: in our Insurance segment] for the lines of P&C services we offer include the top 100 P&C insurance providers in the U.S., 18 of the top 25 global reinsurance companies, as well as domestic InsurTech companies and insurers in international markets.

Our claims database serves thousands of customers, representing approximately 90% of the P&C insurance industry by premium volume, approximately 500 self-insurers, approximately [removed: 400] [added: 450] third party administrators, several state fraud bureaus, and many law enforcement agencies involved in the investigation and prosecution of insurance fraud.

[removed: Our Insurance segment operates] [added: We operate] primarily in the U.S. P&C insurance industry.

Since [removed: 2021,] [added: 2022,] we have acquired [removed: 13] [added: 8] businesses, which have allowed us to enter new markets, offer new solutions, and enhance the value of existing services with additional proprietary sources of data.

[removed: Sales, Marketing,] [added: Client Strategy, Sales,] and [removed: Customer] Support

Within our [removed: Company, several areas] [added: organization, we] have [added: dedicated] sales teams that [removed: specialize in] [added: focus on] specific solutions and services.

To [removed: provide] [added: optimize] account management [removed: to] [added: for] our largest customers, we [removed: divide] [added: segment] our [removed: customers] [added: client base] into three [removed: groups.][added: distinct tiers.]

Tier Two [removed: (“Strategic Accounts") represents] [added: clients encompass] both large and middle-market customer groups.

[removed: In] [added: Within the] Tier One and Tier Two segments, [removed: we have] [added: our US and global] sales teams [added: are] organized by the following [removed: specialties:] [added: disciplines:] personal [removed: or] [added: lines underwriting and pricing,] commercial lines underwriting and pricing, claims, [removed: and] catastrophe [removed: risk.][added: modeling and exposure management, and specialty.]

Our tiered approach has proven to be [removed: a successful] [added: an effective] sales model [removed: and approach to] [added: for] building [added: strong] customer relationships.

[removed: Salespeople participate] [added: Account Executives play a key role] in both sales and customer service activities.

They provide direct [removed: support, interacting frequently with] [added: support to] assigned [removed: customers] [added: customers, engaging frequently] to ensure a [removed: satisfactory] [added: positive] experience [removed: using] [added: with] our services.

Subject [removed: matter experts work] [added: Matter Experts partner] with [removed: salespeople] [added: Account Executives] on specific opportunities [removed: for] [added: related to] their assigned solutions and [added: market] segments.

[removed: Salespeople] [added: Account Executives] manage the overall sales [removed: process and subject matter experts] [added: process, while Subject Matter Experts] manage the [removed: rigorous] [added: detailed] integration and functional [removed: fit] discussions to ensure [removed: mutual success] [added: successful outcomes] and [added: customer] satisfaction.

Both [removed: salespeople] [added: Account Executives] and [removed: technical consultants have responsibility] [added: Subject Matter Experts are responsible] for identifying new sales opportunities as well as [removed: handling] [added: managing] renewals of existing business.

A [removed: team approach and] [added: team-based approach, supported by] a [removed: common] [added: unified] customer relationship management [removed: system allow for] [added: system, ensures] effective coordination [removed: among the] [added: across all] groups.

In 2023, with our migration to cloud computing, we closed our Lehi, Utah Data [removed: Center.][added: Center, and in 2024, we closed our Somerset, New Jersey facility.]

As we migrate our [removed: application] [added: applications] to [added: the] public cloud, we also evaluate the level of redundancy required for each application.

See [Note 11](#FN_11_-_Businesses_Held_for_Sale_and_Disposition).

Our overall client strategy is driven by our extensive industry expertise and our unique position within the insurance ecosystem.

We endeavor to be the leading strategic data, analytics, and technology partner to the global insurance industry by delivering value to our clients through knowledge, expertise, and scale, and we focus on elevating the strategic dialogue with our clients.

Our company primarily engages with clients through direct interaction, leveraging a structured, multi-tiered sales approach.

This approach includes Managing Directors, Account Executives, Account Managers, Subject Matter Experts, Technical Consultants, and Sales Client Support specialists.

These specialized Account Executives are responsible for selling highly technical solution sets to targeted markets, working in close coordination with broader account management teams to ensure a holistic approach to customer engagement.

While Account Executives primarily focus on identifying new sales opportunities, they collaborate closely with various teams to align our solutions with customer needs.

We believe our deep solutions knowledge, ability to build trusted relationships, and local presence set us apart from the competition.

Tier One consists of our most significant customers.

To ensure strategic and executive-level engagement with these Tier One clients, a Managing Director within the Client Strategy organization is responsible for the overall and executive-level relationship between the client and all of Verisk, fostering alignment across our solutions and services.

Tier Three consists of smaller, specialized companies that may focus on a single line of business, serve specific regions, or be recent entrants to the market.

For Tier Three clients, a generalist Account Executive is assigned within each business unit, taking on overall account management responsibilities.

Additionally, our senior leadership team, including the Senior Operating Committee, regularly engages with senior management at our client organizations to ensure strategic alignment, and to foster opportunities for mutual partnership and innovation.

In 2024, we continued to prioritize career development across the company by utilizing an employee-centric strategy based on feedback from employees and managers.

We further developed a Career Framework, to provide clarity on jobs across all of our businesses and functions.

This enables employees to envision their next career steps and explore career pathways and development opportunities within the company.

By actively listening to both employees and managers, we identified key enhancements including skills and proficiency levels aligned to each of our job functions (over 2,000 skill/job combinations), and new tools and training for employees to navigate.

Our 2024 Career Framework education sessions were attended by 3,306 colleagues, providing them insights into how to navigate their careers at Verisk.

In 2024, we saw 854 people leaders attend our Career Conversations education sessions.

Also, during each of our quarterly check-ins, we asked employees to answer a question to track progress against a leadership goal assigned to all people managers.

By tracking employee answers, we know over 76% of employees discussed goals by the end of Q1, over 93% of employees reported receiving feedback in Q2, and 75% reported having career conversations with their managers in Q3.

This is a strong measure of employee perceptions of managers due to the high level of participation in quarterly reviews (90%+ of employees participate in quarterly reviews).

Our new Experienced Leader Program ran a pilot with 35 global leaders and had a successful fall 2024 cohort with 87 global leaders participating.

In 2024, we saw a large increase in participation for our rising professionals leadership program, Accelerate Your Leadership, which saw 455 colleagues enroll for the program this year.

This represented a 185% increase in participation comparative to 2023.

In 2024, our high-potential development program gave 52 “rising stars” access to Verisk’s senior leaders and Board of Directors, opportunities to network across business lines, and access to an executive coaching experience.

In addition, and more broadly, our mentoring program provided one-on-one learning and growth opportunities to a record 464 participants, more than double the number in 2023.

This represented a total attendance per month increase of 25% over 2023.

See Note 11.

We are dedicated to the advancement of the atmospheric and remote sensing science disciplines and directly addressing problems regarding weather, climate, and air quality as well as oceanography and the planetary sciences.

Through research conducted by our in-house scientific staff, and often in collaboration with prominent scientists at academic and other research institutions, we have developed analytical tools to help measure and observe environmental properties and translate those measurements into actionable information.

We sell our solutions and services primarily through direct interaction with our customers.

We employ a three-tier sales structure that includes salespeople, technical consultants, and sales support.

Those specialized sales teams sell specific, highly technical solution sets to targeted markets in coordination with account management.

Tier One (“Client Engagement Accounts") comprises our largest customers.

Tier Three is composed of small and specialized companies that may represent one line of business, may be regionally focused, or are recent new entrants into the marketplace.

In the Tier Three segment, we assign a sales generalist with overall account management responsibility.

Our senior executives regularly engage with the senior management of our customers to ensure customer satisfaction and strategic alignment and to support mutual partnership innovation opportunities.

Salespeople primarily seek out new sales opportunities and work with the various product teams to coordinate sales activities and ensure our solutions fit the customer's needs.

We believe our salespeople’s product knowledge, skills to develop relationships of trust, and local presence differentiate us from our competition.

We have plans to close our Somerset, New Jersey facility in the first half of 2024.

In addition, in 2022, we introduced Juneteenth as a U.S. holiday to recognize this significant milestone in U.S. history.

In 2023, career development across the Company was prioritized.

We listened to employee and manager feedback and implemented an employee-centric strategy.

We took the first step towards providing clearer pathways for career progression with the new Career Framework.

We started this journey to create a structure that organizes jobs and supports career growth.

We believe the Career Framework will put Verisk in a better position to attract, retain, and engage talent to help us meet our current and future business needs.

The framework will provide clarity on what it means to be in a certain role, so employees can leverage it to set goals and find different development opportunities within the Company.

We saw meaningful impact from this training.

63% of managers attended and 75% of managers who attended confirmed having career conversations with their direct reports.

This year, we also introduced in-person, conference style career events in five major locations, globally "CareerCon".

These events (attended by 755 employees globally) were structured around topics that included career pivots, career growth and career development tools.

Both programs were redesigned to align with our new corporate values and achieved global reach with the addition of APAC cohorts.

Our rising professionals program participation increased by 20% in 2023.

New for 2023, we introduced a targeted learning program for a small group of high potential talent, giving them access to meet members of our Board of Directors and network across business lines.

Throughout this year of change and steady improvement, we continued to have an engaged employee population.

We continued to curate self-paced learning resources and create real-time opportunities for employees to take charge of their development and learn from each other.

All employees have access to our world-class virtual learning platform, which features thousands of courses taught by industry experts.

Employees focused on building leadership, organizational, and technical skills on the platform.

Course enrollments remained steady at approximately 49,000.

Enrollment on our more specialized, long-form learning platform increased by 35%.

Learners spent an average of 15 hours on the platform.

Employees can also take advantage of our employee networks, grassroots groups that help support diversity-related programs and events and promote an inclusive community.

We currently have eight networks: the Verisk Women's Network, the Verisk Pride Network, the Verisk Veterans and Military Service Members Network, the Verisk REACH Network (dedicated to empowering Black employees), the Verisk Parents Network, the Verisk Unidos Network (promoting awareness of Hispanic and Latinx culture), the Verisk Asian Network, the Verisk Accessibility Network, and the recently added Verisk Indigenous Network, launched to commemorate National Day for Truth and Reconciliation in September.

In 2023, our Employee Networks (ENs) increased in membership with almost one-third of Verisk employees worldwide in at least one employee network.

A global mentoring program sponsored by our ENs is helping participants find an inclusive space in which to develop themselves, grow their careers, and build community.

Over 200 mentee/mentor pairs participated in this year's cohort, spanning 14 business functions, 30 locations and 11 countries.

Almost 2,000 hours of mentoring were delivered though this formal program in 2023.

For the fiscal year ended December 31, [removed: 2023][added: 2024]

As of June 30, [removed: 2023,] [added: 2024,] the last business day of the registrant’s most recently completed second fiscal quarter, the aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was [removed: $31,913,567,495] [added: $37,477,230,712] based on the closing price reported on the NASDAQ Global Select Market on such date.

As of February [removed: 16, 2024,] [added: 21, 2025,] there were [removed: 143,389,884] [added: 140,276,165] shares outstanding of the registrant's Common Stock, par value $.001.

Certain information required by Part III of this annual report on Form 10-K is incorporated by reference to our definitive Proxy Statement for our [removed: 2023] [added: 2024] Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission not later than 120 days after December 31, [removed: 2023.][added: 2024.]

| | Item 7. | [Management’s Discussion and Analysis of Financial Condition and Results of Operations](#i7) | [removed: [29](#i7)] [added: [28](#i7)] |

| | Item 7A. | [Quantitative and Qualitative Disclosures About Market Risk](#i7a) | [removed: [46](#i7a)] [added: [44](#i7a)] |

| | Item 8. | [Consolidated Financial Statements and Supplementary Data](#i8) | [removed: [46](#i8)] [added: [44](#i8)] |

| | | [Consolidated Balance Sheets](#cbs) | [removed: [55](#cbs)] [added: [53](#cbs)] |

| | | [Consolidated Statements of Operations](#cso) | [removed: [56](#cso)] [added: [54](#cso)] |

| | | [Consolidated Statements of Comprehensive Income](#cci) | [removed: [57](#cci)] [added: [55](#cci)] |

| | | [Consolidated Statements of Changes in Stockholders' Equity](#csse) | [removed: [58](#csse)] [added: [56](#csse)] |

| | | [Consolidated Statements of Cash Flows](#ccf) | [removed: [59](#ccf)] [added: [57](#ccf)] |

| | | [Notes to Consolidated Financial Statements](#notes) | [removed: [61](#notes)] [added: [59](#notes)] |

| | Item 9. | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#i9) | [removed: [46](#i9)] [added: [44](#i9)] |

| | Item 9A. | [Controls and Procedures](#i9a) | [removed: [47](#i9a)] [added: [45](#i9a)] |

| | Item 9B. | [Other Information](#i9b) | [removed: [50](#i9b)] [added: [48](#i9b)] |

| | Item 10. | [Directors, Executive Officers and Corporate Governance](#i10) | [removed: [50](#i10)] [added: [48](#i10)] |

| | Item 11. | [Executive Compensation](#i11) | [removed: [50](#i11)] [added: [48](#i11)] |

| | Item 12. | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#i12) | [removed: [50](#i12)] [added: [48](#i12)] |

| | Item 13. | [Certain Relationships and Related Transactions and Director Independence](#i13) | [removed: [50](#i13)] [added: [48](#i13)] |

| | Item 14. | [Principal Accounting Fees and Services](#i14) | [removed: [50](#i14)] [added: [48](#i14)] |

| | Item 15. | [Exhibits and Financial Statement Schedule](#i15) | [removed: [51](#i15)] [added: [49](#i15)] |

| | Item 16. | [Form 10-K Summary](#i16) | [removed: [51](#i16)] [added: [49](#i16)] |

| | | [EXHIBIT INDEX](#exind) | [removed: [100](#exind)] [added: [97](#exind)] |

| | | [SIGNATURES](#sigs) | [removed: [103](#sigs)] [added: [100](#sigs)] |

Cyber risk governance is founded on direction and priorities established by our leadership, supported and overseen by the Board of Directors [removed: (Board),] [added: ("Board"),] and deployed through our Framework.

[removed: As] [added: The Risk Committee] of [removed: February 2024,] the Board [added: was] established [added: in February 2024 to oversee risk assessment] and [removed: convened the first meeting of the Risk Committee] [added: risk management] of the [removed: Board, which] [added: Company] in coordination with other relevant Board Committees as appropriate, [removed: oversees risk assessment and risk management,] including but not limited to the policies, procedures and strategic approach to cyber, technology and information security risks.

The Enterprise Risk Management ("ERM") division [added: of the Company] oversees and advises on implementation of the Framework throughout our business units.

Also within the ERM division is our [removed: third-party] [added: third\-party] risk program, which implements processes to identify cybersecurity risk associated with our [removed: third-party] [added: _third_\-party] providers.

Management, including the CISO and our cybersecurity team, regularly update the Risk committee on our cybersecurity programs, material cybersecurity risks and mitigation strategies and provide cybersecurity reports quarterly that cover, among other topics, [removed: third-party] [added: _third_\-party] assessments of the company's cybersecurity programs, developments in cybersecurity and updates to the [removed: company's] [added: Company's] cybersecurity programs and mitigation strategies.

As custodians and/or processors of our stakeholders’ data, our business units also accept certain compliance responsibilities, including but [removed: not] [added: _not_] limited to, aspects of the General Data Protection Regulation ("GDPR"), the California Consumer Privacy Act (CCPA), the Gramm-Leach Bliley Act ("GLBA"), the Health Insurance Portability and Accountability Act ("HIPAA"), the Fair Credit Reporting Act ("FCRA"), and the Payment Card Industry ("PCI") standard, all to the extent applicable.

Key control functions that comprise the security measures include but are [removed: not] [added: _not_] limited to: risk assessment, asset management, supply chain risk management, identity and access management, customer credentialing, physical security, application and infrastructure security, perimeter and network security, secure development and change management, configuration management, endpoint security, security audit logging and monitoring, security operations center, incident response, business continuity and disaster recovery.

Strategic providers include, but are [removed: not] [added: _not_] limited to, a Managed Security Service Provider for our security operations center, as well as service providers that supplement incident response processes related to threat intelligence and dark web monitoring.

Independent assessors include, but are [removed: not] [added: _not_] limited to, our Internal Audit Department which provides reports to the Audit Committee, as well as assessors that are engaged directly to perform external audits and penetration tests.

Through independent assessors, our commitment to security has earned ISO [removed: 27001:2013] [added: _27001:2013_] Certification for our core ERM centrally provided cybersecurity services, which is an international standard for best practices associated with our Information Security Management System.

As discussed more fully under “Item [removed: 1A] [added: _1A_] – Risk Factors,” although our processes are designed to help identify, protect, detect, respond to and mitigate potential cybersecurity incidents, cybersecurity threats are rapidly evolving and we [removed: may not] [added: _may_ _not_] be able to anticipate, prevent or detect all such attacks and there is [removed: no] [added: _no_] guarantee that a future cybersecurity incident would not materially affect our business strategy, results of operations, or financial condition.

_24_

To date, risks from cybersecurity threats have not materially affected, and we currently do not expect that such risks are reasonably likely to materially affect, our business strategy, results of operations, or financial condition.

As of December 31, [removed: 2023,] [added: 2024,] our principal offices consisted of the following properties:

| Jersey City, New Jersey | | [removed: 352,765] [added: 276,443] | | December 31, 2033 |

| Krakow, Poland | | [removed: 21,519] [added: 31,210] | | June 30, 2028 |

We also lease offices in [removed: 16] [added: 12] states in the U.S., and [removed: 18] [added: 34] offices outside the U.S. to support our international operations in Australia, Canada, China, Costa Rica, France, Germany, India, Ireland, Italy, Japan, Nepal, Poland, Republic of Korea, Singapore, Spain, [removed: Singapore,] Sweden, and UK.

As of February [removed: 16, 2024,] [added: 21, 2025,] there were approximately [removed: 74] [added: 78] stockholders of record.

On February 14, [removed: 2023,] [added: 2024,] April [removed: 25, 2023,] [added: 24, 2024,] July [removed: 26, 2023,] [added: 24, 2024,] and October [removed: 25, 2023,] [added: 23, 2024,] our Board approved a cash dividend of [removed: $0.34] [added: $0.39] per share of common stock issued and outstanding to the holders of record as of March 15, [removed: 2023,] [added: 2024,] June 15, [removed: 2023,] [added: 2024,] September 15, [removed: 2023,] [added: 2024] and December [removed: 15, 2023,] [added: 13, 2024,] respectively.

Cash dividends of [removed: $196.8] [added: $221.3] million and [removed: $195.2] [added: $196.8] million were paid during the years ended December 31, [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023, respectively,] and recorded as a reduction to retained [removed: earnings, respectively.][added: earnings.]

We have a publicly announced share repurchase plan and repurchased a total of [removed: 86,204,465] [added: 90,198,709] shares since our IPO through December 31, [removed: 2023.][added: 2024.]

The graph below compares the cumulative total stockholder return on $100 invested in our common stock, with the cumulative total return on $100 invested in the S&P 500 index, an aggregate index of our proxy peers used in our Notice of Annual Meeting of Stockholders and Proxy Statement filed with the Securities and Exchange Commission on April 7, 2023 and an aggregate index of our proxy peer used in our Notice of Annual Meeting of Stockholders and Proxy Statement to be filed within 120 days of December 31, [removed: 2023] [added: 2024] (the "Proxy Statement").

The [removed: new] [added: old] peer issuers used for this graph are Black Knight, Inc., [removed: Nasdaq Inc.,] CoStar Group Inc., Equifax Inc., Fair Isaac Corp., Gartner, Inc., Global Payments, Inc., Clarivate PLC, [added: Nasdaq Inc.,] Intercontinental Exchange, Inc., Jack Henry & Associates Inc., Moody’s Corporation, MSCI Inc., S&P Global, and TransUnion.

The [removed: old] [added: new] peer issuers used for this graph are [removed: Black Knight,] [added: Thomson Reuters Corporation, Nasdaq] Inc., [removed: CoreLogic Inc. (as of June 3, 2021, CoreLogic was no longer a publicly-traded company),] CoStar Group Inc., Equifax Inc., Fair Isaac Corp., Gartner, Inc., Global Payments, Inc., [removed: IHS Markit (as of February 26, 2022, IHS Markit was no longer a publicly-traded company),] [added: Clarivate PLC,] Intercontinental Exchange, Inc., Jack Henry & Associates Inc., Moody’s Corporation, MSCI Inc., S&P Global, and TransUnion.

Assumes $100 Invested on December 31, [removed: 2018][added: 2019]

Fiscal Year Ended December 31, [removed: 2023][added: 2024]

[removed: ][added: ]

We had no unregistered sales of equity securities during [removed: 2023.][added: 2024.]

Under the [removed: Repurchase Program,] [added: share repurchase program ("Repurchase Program"),] we may repurchase stock in the market or as otherwise determined by us.

Our share repurchases for the quarter ended December 31, [removed: 2023] [added: 2024] are set forth below:

| Period | | Total Number of Shares Purchased | | | | [added: |] Average Price Paid per Share | | | | [added: |] Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | | | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | | |

| | | | | | | | | | | | | | | [added: | |] (in millions) | | |

(1) In [removed: March 2023,] [added: August 2024,] we entered into [added: an additional] Accelerated Share Repurchase ("ASR") [removed: agreements] [added: agreement (the "August 2024 ASR Agreement")] to repurchase shares of our common stock for an aggregate purchase price of [removed: $2.5 billion] [added: $400.0 million] with [removed: Citibank, N.A. and] Goldman Sachs & Co. [removed: LLC, respectfully.][added: LLC.]

The [added: August 2024] ASR [removed: agreements are] [added: Agreement is] accounted for as [added: a] treasury stock [removed: transactions] [added: transaction] and [added: a] forward stock purchase [removed: agreements] [added: agreement] indexed to our common stock.

Upon payment of the aggregate purchase price on [removed: March] [added: August] 7, [removed: 2023,] [added: 2024,] we received an initial delivery of [removed: an aggregate of 10,655,301] [added: 1,302,981] shares of our common stock at an initial price of [removed: $187.70] [added: $260.94] per share, representing [added: an initial delivery of] approximately [removed: 80] [added: 85] percent of the aggregate purchase price.

Upon the final settlement of [removed: this] [added: the November 2024] ASR [removed: agreement] [added: Agreement] in [removed: December of 2023,] [added: January 2025,] we received [removed: 865,232] [added: 189,909] additional [removed: shares,] [added: shares] as determined by the daily volume weighted average share price of our common [removed: stock] [added: stock, less a discount,] of [removed: $217.00] [added: $278.92] during the term of [removed: these] [added: the November 2024] ASR [removed: agreements.][added: Agreement.]

(2) In [removed: December 2023,] [added: November 2024,] we entered into an additional ASR agreement [added: (the "November 2024 ASR Agreement")] to repurchase shares of our common stock for an aggregate purchase price of [removed: $250.0] [added: $300.0] million with [removed: Goldman Sachs & Co. LLC.][added: Citibank, N.A. The November 2024 ASR Agreement is accounted for as a treasury stock transaction and a forward stock purchase agreement indexed to our common stock.]

Upon [added: the] payment of the aggregate purchase price on [removed: December 14, 2023,] [added: November 12, 2024,] we received an initial delivery of [removed: 873,479] [added: 885,663] shares of our common stock at an initial price of [removed: $243.28] [added: $287.92] per share, representing [added: an initial delivery of] approximately 85 percent of the aggregate purchase price.

Upon the final settlement of [removed: this] [added: the August 2024] ASR [removed: agreement] [added: Agreement] in [removed: February] [added: October] 2024, we received [removed: 178,227] [added: 212,635] additional [removed: shares] [added: shares,] as determined [removed: by] [added: based on] the [removed: daily] volume weighted average share price of our common [removed: stock] [added: stock, less a discount,] of [removed: $237.71] [added: $263.92] during the term of [removed: this] [added: the August 2024] ASR [removed: agreement.][added: Agreement.]

As of December 31, 2024, we had 403,588,401 shares of treasury stock.

As of December 31, 2024, we had $591.5 million available to repurchase shares.

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| October 1, 2024 through October 31, 2024 | | | 212,635 | | (1) | | $ | 263.92 | | (1) | | | 212,635 | | | $ | 891.5 | |

| November 1, 2024 through November 30, 2024 | | | 885,663 | | (2) | | $ | 287.92 | | (2) | | | 885,663 | | | $ | 591.5 | |

| December 1, 2024 through December 31, 2024 | | | — | | | | $ | — | | | | | — | | | $ | 591.5 | |

| | | | 1,098,298 | | | | | | | | | | 1,098,298 | | | | | |

As of December 31, 2023, we had 400,694,309 shares of treasury stock.

The graph assumes that the value of investment in our common stock and each index was $100 at December 31, 2018 and that all cash dividends were reinvested.

As of December 31, 2023, we had $641.5 million available to repurchase shares, being the remaining unused portion of a $3.0 billion authorization, which became effective on February 1, 2023.

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| October 1, 2023 through October 31, 2023 | | | — | | | | — | | | | — | | | $ | 891.5 | |

| November 1, 2023 through November 30, 2023 | | | — | | | | — | | | | — | | | $ | 891.5 | |

| December 1, 2023 through December 31, 2023 | | | 1,738,711 | | (1,2) | $ | 225.76 | | (1,2) | | 1,738,711 | | | $ | 641.5 | |

| | | | 1,738,711 | | (1,2) | $ | 225.76 | | (1,2) | | 1,738,711 | | | | | |

The ASR agreement is accounted for as a treasury stock transactions and a forward stock purchase agreement indexed to our common stock.

Our management, with the participation of the Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this annual report on Form 10-K for our Company and subsidiaries other than our recent [removed: acquisitions] [added: acquisition] in [removed: 2023] [added: 2024] (See [Note [removed: 10](#fn10acquisitions).][added: 10](#fn10acquisitions) of our consolidated financial statements included in this annual report on Form 10-K).]

Management excluded from its assessment the internal control over financial reporting of [removed: these acquisitions and collectively] [added: this acquisition because it] represents less than [removed: 0.4%] [added: 0.1%] of total assets (excluding goodwill and intangible assets which were integrated into our systems and control environment) and less than [removed: 0.9%] [added: 0.1%] of revenues as of and for the year ended December 31, [removed: 2023.][added: 2024.]

Based upon the foregoing assessments, our Chief Executive Officer and Chief Financial Officer have concluded that, as of December 31, [removed: 2023,] [added: 2024,] our disclosure controls and procedures were effective at the reasonable assurance level.

The information required by this Item is set forth on page [removed: 48] [added: 46] of this annual report on Form 10-K.

The information required by this Item is set forth on page [removed: 49] [added: 47] of this annual report on Form 10-K.

We are in the process of integrating our recent [removed: acquisitions] [added: acquisition] in [removed: 2023] [added: 2024] into our overall internal control over financial reporting process.

Other than this ongoing integration, there have been no changes in our internal control over financial reporting identified in connection with the evaluation of such internal control that occurred during the fourth quarter of [removed: 2023] [added: 2024] that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Based on this assessment, management concluded that our internal control over financial reporting was effective at December 31, [removed: 2023.][added: 2024.]

Management excluded from its assessment the internal control over financial reporting for our [removed: acquisitions] [added: acquisition] in [removed: 2023] [added: 2024] (See [Note [removed: 10](#fn10acquisitions).][added: 10](#fn10acquisitions) of our consolidated financial statements included in this annual report on Form 10-K).]

The excluded financial statements of [removed: these acquisitions] [added: this acquisition] constitute [removed: approximately 0.4%] [added: less than 0.1%] of total assets (excluding goodwill and intangible assets which were integrated into our systems and control environment) and [removed: 0.9%] [added: less than 0.1%] of revenues collectively included within our consolidated financial statements as of and for the year ended December 31, [removed: 2023.][added: 2024.]

Due to the timing of the [removed: acquisitions,] [added: acquisition,] management did not assess the effectiveness of internal control over financial reporting for [removed: these acquisitions.][added: this acquisition.]

Deloitte & Touche LLP, the independent registered public accounting firm that audited the consolidated financial statements included in this annual report on Form 10-K has also audited the effectiveness of our internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] as stated in their report which is included herein.

We have audited the internal control over financial reporting of Verisk Analytics, Inc. and subsidiaries (the “Company”) as of December 31, [removed: 2023,] [added: 2024,] based on criteria established in _Internal Control - Integrated Framework (2013)_ issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] based on criteria established in _Internal Control - Integrated Framework (2013)_ issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, [removed: 2023,] [added: 2024,] of the Company and our report dated February [removed: 21, 2024,] [added: 26, 2025,] expressed an unqualified opinion on those consolidated financial statements.

As described in _Management’s Report on Internal Controls over Financial Reporting_, management excluded from its assessment the internal control over financial reporting at [removed: Mavera Holding AB, which was acquired on February 1, 2023, Krug Sachverstandigen GmBH "SV Krug", which was acquired on April 19, 2023, and Morning Data Ltd.,] [added: Rocket Enterprise Solutions GmbH ("Rocket"),] which was acquired on [removed: May 25, 2023 (collectively, the “2023 Acquisitions”).][added: January 8, 2024.]

The financial statements of [removed: the 2023 Acquisitions] [added: Rocket] constitute less than [removed: 0.4%] [added: 0.1%] of total assets (excluding goodwill and intangible assets which were integrated into the Company's systems and control environment) and less than [removed: 0.9%] [added: 0.1%] of revenues of the consolidated financial statement amounts as of and for the year ended December 31, [removed: 2023.][added: 2024.]

Accordingly, our audit did not include the internal control over financial reporting at [removed: the 2023 Acquisitions.][added: Rocket.]

February 26, 2025

of our consolidated financial statements included in this annual report on Form 10-K).

of our consolidated financial statements included in this annual report on Form 10-K).

February 21, 2024

During the fiscal quarter ended _December 31, [removed: 2023,_] [added: 2024_,] the following Section _16_ officers and directors adopted, modified or terminated a “Rule _10b5_\-_1_ trading arrangement” (as defined in Item _408_ of Regulation S-K of the Exchange Act):

| | ● | Lee M. Shavel, Chief Executive Officer, President and director, adopted a new trading plan on [removed: _December 4, 2023] [added: _November 25, 2024] (_with the _first_ trade under the new plan scheduled for a date on or after _March [removed: 15, 2024)._] [added: 17, 2025)._] The trading plan will be effective until _December 31, [removed: 2024_] [added: 2025_] to sell [removed: 8,000] [added: 8,800] shares of common stock. |

| | ● | Elizabeth D. Mann, Chief Financial Officer, adopted a new trading plan on _December [removed: 15, 2023] [added: 13, 2024] (_with the _first_ trade under the new plan scheduled for a date on or after _March [removed: 15, 2024)._] [added: 17, 2025)._] The trading plan will be effective until _December 31, [removed: 2024_] [added: 2025_] to sell [removed: 2,000] [added: 3,000] shares of common stock. |

There were _no_ “non-Rule _10b5_\-_1_ trading arrangements” (as defined in Item _408_ of Regulation S-K of the Exchange Act) adopted, modified or terminated during the fiscal quarter ended _December 31, [removed: 2023_] [added: 2024_] by Section _16_ officers and directors.

| --- | --- | --- |

| | ● | David J. Grover, Controller and Chief Accounting Officer, adopted a new trading plan on _December 14, 2023 (_with the _first_ trade under the new plan scheduled for a date on or after _March 15, 2024)._ The trading plan will be effective until _April 1, 2024_ to sell 6,481 shares of common stock. |

The information required to be furnished by this Item 10 is incorporated herein by reference to our Notice of Annual Meeting of Stockholders and Proxy Statement to be filed within 120 days of December 31, [removed: 2023] [added: 2024] (the “Proxy Statement”).

Code of Business Conduct and Ethics

Insider Trading Policies and Procedures

The Company has insider trading policies and procedures that govern the purchase, sale, and other dispositions of its securities by directors, officers, and employees.

We believe these policies and procedures are reasonably designed to promote compliance with insider trading laws, rules and regulations, and applicable listing standards.

| Verisk Analytics, Inc. Consolidated Financial Statements as of December 31, [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023] and for the Years Ended December 31, [added: 2024,] 2023, [removed: 2022,] and [removed: 2021.] [added: 2022.] | |

| [Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)](#report) | [removed: [53](#report)] [added: [51](#report)] |

| [Consolidated Balance Sheets](#cbs) | [removed: [55](#cbs)] [added: [53](#cbs)] |

| [Consolidated Statements of Operations](#cso) | [removed: [56](#cso)] [added: [54](#cso)] |

| [Consolidated Statements of Comprehensive Income](#cci) | [removed: [57](#cci)] [added: [55](#cci)] |

| [Consolidated Statements of Changes in Stockholders' Equity](#csse) | [removed: [58](#csse)] [added: [56](#csse)] |

| [Consolidated Statements of Cash Flows](#ccf) | [removed: [59](#ccf)] [added: [57](#ccf)] |

| [Notes to Consolidated Financial Statements](#notes) | [removed: [61](#notes)] [added: [59](#notes)] |

| [Schedule II, Valuation and Qualifying Accounts and Reserves](#schedule2) | [removed: [99](#schedule2)] [added: [96](#schedule2)] |

We have audited the accompanying consolidated balance sheets of Verisk Analytics, Inc. and subsidiaries (the "Company") as of December 31, [removed: 2023] [added: 2024] and [removed: 2022,] [added: 2023,] the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows, for each of the three years in the period ended December 31, [removed: 2023,] [added: 2024,] and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2023] [added: 2024] and [removed: 2022,] [added: 2023,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2023,] [added: 2024,] in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, [removed: 2023,] [added: 2024,] based on criteria established in _Internal Control_ — _Integrated Framework (2013)_ issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February [removed: 21, 2024,] [added: 26, 2025,] expressed an unqualified opinion on the Company's internal control over financial reporting.

If [removed: the Company determines] [added: we do _not_ perform a qualitative assessment, or if we determine] that it is more likely than [removed: not] [added: _not_] that the carrying amount of [removed: its’] [added: our] reporting units exceeds their fair value, [removed: the Company would] [added: we] perform a quantitative assessment [removed: or “Step One” impairment test] and calculate the estimated fair value of the respective reporting unit.

As of December 31, [removed: 2023] [added: 2024] and [removed: 2022][added: 2023]

| | | [added: _2024_ | | | |] _2023_ | | | | _2022_ | | |

| Cash and cash equivalents | | $ | [removed: 302.7] [added: 291.2] | | | $ | [removed: 112.5] [added: 302.7] | |

| Accounts receivable, net | | | [removed: 334.2] [added: 434.4] | | | | [removed: 290.1] [added: 334.2] | |

| Prepaid expenses | | | [removed: 84.5] [added: 72.8] | | | | [removed: 83.7] [added: 84.5] | |

| Income taxes receivable | | | [removed: 23.5] [added: 83.3] | | | | [removed: 44.2] [added: 23.5] | |

| Other current assets | | | [removed: 65.2] [added: 29.9] | | | | [removed: 32.0] [added: 65.2] | |

| Total current assets | | | [removed: 810.1] [added: 911.6] | | | | [removed: 925.1] [added: 810.1] | |

| Fixed assets, net | | | [removed: 604.9] [added: 605.9] | | | | [removed: 541.5] [added: 604.9] | |

| Operating lease right-of-use assets, net | | | [removed: 191.7] [added: 156.0] | | | | [removed: 182.0] [added: 191.7] | |

| Intangible assets, net | | | [removed: 471.7] [added: 392.4] | | | | [removed: 504.8] [added: 471.7] | |

| Goodwill | | | [removed: 1,760.8] [added: 1,726.6] | | | | [removed: 1,676.0] [added: 1,760.8] | |

| Deferred income tax assets | | | [removed: 30.8] [added: 34.3] | | | | [removed: 31.7] [added: 30.8] | |

| Other noncurrent assets | | | [removed: 496.1] [added: 437.9] | | | | [removed: 371.4] [added: 496.1] | |

| Total assets | | $ | [removed: 4,366.1] [added: 4,264.7] | | | $ | [removed: 6,961.1] [added: 4,366.1] | |

| Accounts payable and accrued liabilities | | $ | [removed: 340.8] [added: 249.8] | | | $ | [removed: 292.8] [added: 340.8] | |

| Short-term debt and current portion of long-term debt | | | [removed: 14.5] [added: 514.2] | | | | [removed: 1,392.9] [added: 14.5] | |

| Deferred revenues | | | [removed: 375.1] [added: 447.2] | | | | [removed: 321.7] [added: 375.1] | |

| Operating lease liabilities | | | [removed: 33.1] [added: 26.0] | | | | [removed: 29.5] [added: 33.1] | |

| Income taxes payable | | | [removed: 7.9] [added: 1.7] | | | | [removed: \-] [added: 7.9] | |

| Total current liabilities | | | [removed: 771.4] [added: 1,238.9] | | | | [removed: 2,319.2] [added: 771.4] | |

| Long-term debt | | | [removed: 2,852.2] [added: 2,546.9] | | | | [removed: 2,343.2] [added: 2,852.2] | |

| Deferred income tax liabilities | | | [removed: 210.1] [added: 191.6] | | | | [removed: 145.6] [added: 210.1] | |

| Operating lease liabilities | | | [removed: 195.6] [added: 158.7] | | | | [removed: 189.9] [added: 195.6] | |

| Other noncurrent liabilities | | | [removed: 14.6] [added: 23.6] | | | | [removed: 17.9] [added: 14.6] | |

| Total liabilities | | | [removed: 4,043.9] [added: 4,159.7] | | | | [removed: 5,193.4] [added: 4,043.9] | |

| Common stock, $.001 par value; 2,000,000,000 shares authorized; 544,003,038 shares issued; [removed: 143,308,729] [added: 140,414,637] and [removed: 154,701,136] [added: 143,308,729] shares outstanding, respectively | | | 0.1 | | | | 0.1 | |

Fixed Assets - Capitalization of Software Development Costs - Refer to Notes 2 and 9 to the financial statements

As described in Note 2 to the financial statements, the Company’s capitalized software development costs primarily relate to internal-use software.

Such costs are capitalized in the application development stage in accordance with ASC 350-40, _Internal-use Software_.

Costs in the preliminary and post-implementation stages are typically expensed as incurred.

Internal software development costs capitalized as of December 31, 2024 was $1,334.8 million and the related accumulated amortization was $837.4 million.

We identified capitalized internal software development costs as a critical audit matter because of the inherent complexity and level of judgment involved in assessing management's determination of qualifying activities during the application development stage for capitalization.

This required a high degree of auditor judgment and an increased extent of effort to evaluate the appropriateness of management’s decisions regarding which activities qualify for capitalization and when a product reaches the application development stage.

Our audit procedures related to the Company’s capitalization of internal software development costs included the following, among others:

| | ● | We conducted inquiries with management to understand the processes and controls in place for identifying and capitalizing internal software development costs. | |

| | ● | We tested the effectiveness of controls over: | |

| | | ○ | The identification and tracking of internal software development costs, including controls related to the authorization and approval of capitalizable costs. |

| | | ○ | The allocation of employee time and other resources to capitalizable projects, ensuring that only eligible costs were capitalized. |

| | ● | We selected a sample of internal software development costs. For the selected samples, we performed testing to evaluate whether the costs met the capitalization criteria under the relevant accounting standards, including inspecting supporting documentation such as timesheets, invoices, project plans, and conducting inquiries with project managers. | |

| | ● | We assessed the completeness and accuracy of the data used by management in the capitalization process by reconciling the data with source documents, such as payroll records and vendor invoices, and ensuring that all relevant expenses were captured and recorded to validate that no capitalizable costs were omitted. | |

| | ● | We evaluated any indicators of project delays or cancellations by reviewing project status reports, conducting inquiries with project managers, and evaluating the impact of any identified indicators on the capitalization of costs and the determination of the in service date. | |

February 26, 2025

| | | _2024_ | | | | _2023_ | | |

| Net gain on early extinguishment of debt | | | 3.6 | | | | \- | | | | \- | |

| Net income | | | _\-_ | | | | \- | | | | \- | | | | \- | | | | 958.2 | | | | \- | | | | 958.2 | | | | (0.7 | ) | | | 957.5 | |

| Other comprehensive loss | | | _\-_ | | | | \- | | | | \- | | | | \- | | | | \- | | | | (44.3 | ) | | | (44.3 | ) | | | 0.9 | | | | (43.4 | ) |

| Investment in noncontrolling interests | | | _\-_ | | | | \- | | | | (7.0 | ) | | | \- | | | | \- | | | | 1.1 | | | | (5.9 | ) | | | (7.5 | ) | | | (13.4 | ) |

| Treasury stock acquired (3,994,244 shares) | | | _\-_ | | | | \- | | | | 37.5 | | | | (1,088.1 | ) | | | \- | | | | \- | | | | (1,050.6 | ) | | | \- | | | | (1,050.6 | ) |

| Excise tax associated with share repurchases | | | _\-_ | | | | \- | | | | \- | | | | (7.6 | ) | | | \- | | | | \- | | | | (7.6 | ) | | | \- | | | | (7.6 | ) |

| Treasury stock share repurchased not yet settled | | | _\-_ | | | | \- | | | | (45.0 | ) | | | 45.0 | | | | \- | | | | \- | | | | \- | | | | \- | | | | \- | |

| Other stock issuances (22,771 shares reissued from treasury stock) | | | _\-_ | | | | \- | | | | 3.6 | | | | 0.6 | | | | \- | | | | \- | | | | 4.2 | | | | \- | | | | 4.2 | |

| Balance as of December 31, 2024 | | | 544,003,038 | | | $ | 0.1 | | | $ | 2,994.0 | | | $ | (10,062.4 | ) | | $ | 7,153.4 | | | $ | 15.0 | | | $ | 100.1 | | | $ | 4.9 | | | $ | 105.0 | |

| Net gain on early extinguishment of debt | | | (3.6 | ) | | | — | | | | — | |

| Net gain upon settlement of investment in non-public companies | | | (100.6 | ) | | | — | | | | — | |

| Gain on lease modification | | | (1.9 | ) | | | — | | | | — | |

| Proceeds received upon settlement of investment in non-public companies | | | 113.3 | | | | — | | | | — | |

| Payment on early extinguishment of debt | | | (396.4 | ) | | | — | | | | — | |

| Payment of excise tax | | | (25.2 | ) | | | \- | | | | — | |

_59_

_60_

We account for the cost of software developed for internal use by capitalizing qualifying costs, which are substantially incurred during the application development stage.

The amounts capitalized primarily relate to internally developed software used to provide services to customers and are included in fixed assets on the Consolidated Balance Sheet.

Capitalized software development costs are amortized on a straight-line basis over the estimated useful life of the related product, which is typically three years, beginning with the date the software is placed into service.

Costs incurred in the preliminary and post-implementation stages of our products are expensed as incurred.

Our other PSUs are tied to the achievement of certain financial performance conditions, namely incremental return on invested capital ("ROIC-based PSUs").

| --- | --- | --- | --- |

Goodwill – Insurance Reportable Segment - Refer to Notes 2 and 12 to the financial statements

The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value.

For the year ended December 31, 2023, the Company performed its evaluation of goodwill for impairment using a qualitative assessment or “Step Zero” impairment test to determine whether it is more likely than not that impairment has occurred.

Changes in the assumptions utilized could have a significant impact on fair value.

The goodwill balance was $1,761 million as of December 31, 2023 which was fully attributable to the Insurance reportable segment.

We identified the evaluation of goodwill for impairment of the Insurance reportable segment as a critical audit matter due to significant judgments made by management to determine whether it is more likely than not that impairment of the underlying reporting units has occurred, including management’s judgment as it relates to their evaluation of macroeconomic conditions, industry and market considerations, internal cost factors, and the Company’s overall financial and share price performance, among other factors for the respective reporting units within the Insurance reportable segment.

This required a high degree of auditor judgment and an increased effort, including the need to involve our fair value specialists.

We, along with the assistance from our fair value specialists, evaluated the reasonableness of management’s Step Zero assessment by:

| | ● | Tested the design and operating effectiveness of management's internal controls over their goodwill impairment evaluation, including those over the significant assumptions used in management's qualitative Step Zero test. |

| --- | --- | --- |

| | ● | Evaluated the Company’s qualitative Step Zero test and inputs, including consideration of macroeconomic factors, industry and market considerations, internal cost factors, and overall financial and share price performance, among other factors that could change discount and growth rates, and key performance indicators, such as projected revenue and EBITDA, and performed sensitivity analysis on the key assumptions. |

| --- | --- | --- |

| | ● | Performed a retrospective review of current year results compared to the projections used in the most recent quantitative impairment test. |

| --- | --- | --- |

| | ● | Evaluated historical data used in developing the assumptions to assess whether the data is comparable and consistent with data of the period under audit. |

| --- | --- | --- |

| | ● | Assessed the headroom between the most recent fair value estimate performed as of June 30, 2022 and the carrying value of each reporting unit. |

| --- | --- | --- |

| | ● | Held inquires with appropriate management personnel regarding any changes in the Company’s internal structure that could cause its reporting unit determinations to change in the current year. |

| --- | --- | --- |

| | ● | Held ongoing inquires with management, the board of directors, and the legal department regarding any changes in management strategy or operations during the year that could potentially affect the drivers of the fair value for each reporting unit. |

| --- | --- | --- |

February 21, 2024

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Current assets held-for-sale | | | \- | | | | 362.6 | |

| Noncurrent assets held for sale | | | \- | | | | 2,728.6 | |

| | | | | | | | | |

| Current liabilities held-for-sale | | | \- | | | | 282.3 | |

| Noncurrent liabilities held-for-sale | | | \- | | | | 177.6 | |

| Balance as of January 1, 2021 | | | 544,003,038 | | | $ | 0.1 | | | $ | 2,490.9 | | | $ | (4,179.3 | ) | | $ | 4,762.2 | | | $ | (375.7 | ) | | $ | 2,698.2 | | | $ | — | | | $ | 2,698.2 | |

| Net income | | | _\-_ | | | | \- | | | | \- | | | | \- | | | | 666.2 | | | | \- | | | | 666.2 | | | | 0.1 | | | | 666.3 | |

| Other comprehensive income | | | _\-_ | | | | \- | | | | \- | | | | \- | | | | \- | | | | (18.9 | ) | | | (18.9 | ) | | | (0.5 | ) | | | (19.4 | ) |

| Investment in noncontrolling interests | | | _\-_ | | | | \- | | | | \- | | | | \- | | | | \- | | | | \- | | | | \- | | | | 26.4 | | | | 26.4 | |

| Treasury stock acquired (2,545,191 shares) | | | _\-_ | | | | \- | | | | \- | | | | (475.0 | ) | | | \- | | | | \- | | | | (475.0 | ) | | | \- | | | | (475.0 | ) |

| Other stock issuances (45,374 shares transferred from treasury stock) | | | _\-_ | | | | \- | | | | 5.6 | | | | 0.5 | | | | \- | | | | \- | | | | 6.1 | | | | \- | | | | 6.1 | |

We offer _two_ forms of hosted subscriptions.

VERISK ANALYTICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The _second_ form of hosted subscription is where customers have access to our online portals combined with software content that is delivered via disk drive/download to our customer (“Hosted Subscription with Disk Drive/Download”) and is offered only on a limited basis.

For this form of hosted subscription, we also grant our customer a license to enter our online portal as well as access the software content as needed and act as the same contractual mechanism as described for Hosted Subscriptions.