Verisk Analytics cut its annual revenue forecast on Wednesday and reported third-quarter revenue below Wall Street estimates, as mild weather conditions weighed on demand for the data analytics firm’s property claims estimating tool.
The company’s shares fell as much as 15% to $197, hitting their lowest since May 2023.
Verisk’s claims estimating software helps insurers and contractors calculate repair costs using real-time data and automation. But with fewer severe weather events, insurers processed fewer claims during the reported quarter.
The 2025 Atlantic hurricane season marks the first time in a decade when no hurricanes made landfall in the United States through the end of September, according to AccuWeather.
“In the quarter, we experienced an exceptionally low level of severe weather, resulting in a decline in claims assignments,” CEO Lee Shavel said on an earnings call with analysts.
Verisk now expects 2025 revenue between $3.05 billion and $3.08 billion, below analysts’ average estimate of $3.12 billion, according to data compiled by LSEG.
Related: Hurricane Melissa Makes Cuba Landfall After Lashing Jamaica
The New Jersey-based company’s consolidated third-quarter revenue rose 5.9% to $768 million from a year earlier, versus estimates of $776 million.
“We expect shares to be pressured today to reflect the lower-than-expected organic growth print” said William Blair analyst Andrew Nicholas in a note.
“Temporary factors including a historically low level of severe weather events explaining the majority of the miss,” he added.
However, Verisk’s underwriting revenue in the quarter ended September 30 increased 6.9% to $542 million from a year earlier, while claims revenue rose 3.6% as demand for the company’s anti-fraud and casualty solutions grew.
On an adjusted basis, Verisk earned $240.9 million, or $1.72 per share, in the July-to-September period, compared with $238.5 million, or $1.67 per share, a year earlier. Analysts, on average, expected EPS of $1.70.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Krishna Chandra Eluri and Shailesh Kuber)
Topics Trends Profit Loss
Was this article valuable?
Here are more articles you may enjoy.
Hurricane Melissa Churns Toward Jamaica as Category 5 Storm 
World’s Largest Retirement Community Taps Muni Market to Help Build More Homes 
Rotting Apple: Berkley Explains Property Market, Company Appetite 
AWS Outage a ‘Moderate Incident,’ Another Near Miss for Insurance Industry 
