Investor Sarat Sethi Adds Verisk Stake, Sees AI Fears Disconnected From Business Strength
Verisk Analytics, the Jersey City-based insurance data and software provider, generated about USD 3.1 billion in 2025 revenue, roughly 0.3% of total US insurance premiums. More than 80% of revenue is recurring subscriptions, customer retention exceeds 95%, and EBITDA margins top 50%. Growth has slowed to about 5% to 6% from a historical 8%. The shares fell about 21% in 2026 and about 34% over the past 12 months.
Verisk Analytics is headquartered in Jersey City, New Jersey. Its business traces back to 1971, when a group of US property and liability insurers joined together to collect industry data and report it to regulators. The company is now a major supplier of data analytics and software to the insurance industry, focused on underwriting and claims, helping insurers price policies, assess risk, estimate property losses and identify fraud.
Starting in 2022, Verisk divested its non-insurance businesses and appointed Lee Shavel as chief executive, forming a "new Verisk" focused on insurance. Shavel had previously served as Verisk's chief financial officer and, earlier, as chief financial officer and executive vice president of Nasdaq.
On financials, Verisk generated about USD 3.1 billion in revenue in 2025, roughly equivalent to 0.3% of total US insurance premiums. Its customers include the top 100 US property and liability insurers and 18 of the world's top 25 reinsurers. More than 80% of revenue comes from recurring subscriptions, customer retention is above 95%, and EBITDA margins exceed 50%. Once its datasets and software are built, they can serve more customers at limited incremental cost.
On growth, Verisk's insurance business historically grew revenue at about 8% a year, slowing to about 5% to 6% over the past year. More than 90% of revenue comes from proprietary data and intellectual property, and the company is also developing its own artificial intelligence tools for customers. Government contracts and auto claims-related matters are relatively small, with contract business accounting for less than 1% of revenue. In addition, the number of severe weather events had previously been unusually low.
On the shares, Verisk stock fell about 21% in 2026 and about 34% over the past 12 months. From 2022 to mid-2025, its forward enterprise value-to-EBITDA ratio typically ranged between 20 and 25 times; it is currently about 15 times.