Q3 2020 Verisk Analytics Inc Earnings Call
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Again today's conference call scheduled to begin momentarily. Please continue to standby we thank you for your patience.
[music].
P G everyone and welcome to the very third quarter Twenty-twenty earnings results Conference call.
This call is being recorded.
At this time, all participants are to listen old emailed.
After today's prepared remarks will conduct a question and answer session.
We're opening remarks, an introduction I would like to turn the call over to various cat of investors relations Misty. She brought bar by bar. Please go ahead.
Thank you.
Everyone. We appreciate you joining excuse me for a discussion third quarter 2023 instruments.
Today's column.
Chairman and Chief Executive Officer, providing overdue.
<unk> Chief Financial Officer.
Laurie.
Joining the team.
Yeah.
Yeah.
As long as the associated can can can be found in the investors.
Hi, Sarah.
The earnings release.
When he came out we furnished U D. S. P. C. A replay of this call will be available for 30 days.
Yeah.
Finally.
More detail.
Really.
He wants that to these call me.
Statement.
Future performance, including but not limited to the potential impact of the COVID-19 pandemic actual performance could do for me to really from what is suggested by our time today information about the factors that can affect future performance is convenient.
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Okay.
Yeah.
Stacy a good day, everyone I'm glad to be with you today and certainly hope you and your family continue to stay safe and well and the smell of it.
We can send you to focus on her key priorities to build long term shareholder value delivering for our customers through innovation service, while also protecting the health and wellbeing of our teammates around the globe to that and the majority of our offices continue to operate any phase one format and are available for those employees, who have volunteered to work from you all.
Our global protection services team closely monitors directives from local governments and public health officials around the world and.
And makes real time decisions to maintain the safety of our people over the duration of the pandemic. Our teams have proven they can transition efficiently into different work moves with minimal interruption in service to our customers. So while there remains much uncertainty around the pandemic I have complete confidence that are 9000, plus T makes it bears will.
Through these signs effectively and deliver the highest value to our customers. As we have is 21 during the third quarter. Our business performed solidly posting sequential growth from the second quarter and both are subscription and transactional revenues. In addition, we saw improvement in the year overgrowth rays of both are non covid sensitive.
And covid sensitive revenues during the quarter, we kept the kenai in caused by pacey headcount growth. While also benefiting from the responsiveness of our compensation structure and lower travel expenses that said, we continued to fully fund investment in our business, including our innovation agenda and the modernization of our.
Computing infrastructure through cloud migration tokenism of key data assets and the development of cutting edge date of fabric to underlie our analytic solutions. The net result, with strong organic constant currency adjusted EBITDA growth and margin expansion Lee will provide more details on our performance in his financial issue.
During the third quarter, we advanced or innovation agenda with the release of new solutions across our vehicles.
An insurance, we expanded the various data exchange with the addition of Ford Motor Company.
Owners afforded Lincoln vehicles will soon be able to easily access usage base insurance programs for many of the U S auto insurance that conducted the exchange the various data exchange employs advanced proprietary analytics to refine driving telemetry from Connecticut vehicles, it's a normalized easy to use insurance.
Ready information, including our Lady reading and scoring solutions. We're excited to have for just part of the exchange and believe there additional help our insurance customers expand their usage based insurance programs.
Fast we are very pleased with the success, we're having extending and accelerating the adoption fast solutions across our broad customer base. Since we acquired fast in December we have seen leaving wife insurers, including a Mika, Kansas City life, Lincoln Heritage and financial and Pacific Life license.
Fast SaaS based software to enable their digital transformation had become more automated fish.
Finally in our repair cost estimating solutions, we have launched exact analysis insights a new add on feature to our core exact analysis platform. This tool uses artificial intelligence and machine learning to create interactive and customizable dashboards that enable our customers with a more holistic view of their claims data we.
[noise] believes exact analysis insight should help our customers to work more efficiently and effectively as they can more quickly identify trends in their data.
And energy and specialized markets, we continue to make advances with our differentiated analytic platform called lounge and recently released the upstream portfolio optimization module, we are on track and on budget for further releases by your Ed.
Namely in the areas of power in renewables and upstream carbon emissions. Despite the softness in the energy and market. We continue to see increased demand from our customers for our lands platform, where our investment has delivered value for our clients and it's reflected in increasing contract values at deeper integration into our customers workflows.
And financial services, we launched merchant tracker, a unique solution that allows businesses to better understand where consumer spending and how their sales compared to other merchants. This solution enables business leaders to benchmark themselves on a weekly basis cross metrics, including sales and market share.
Versus other named merchants down to the ZIP code level.
The data can also differentiate between physical and online sales.
Merchant tracker builds upon the COVID-19, consumer spending dashboard that we developed in March to help our customers navigate through the early stages of the pandemic merchant tracker as an example of how we are creating new commercial opportunities from the disruption of the pandemic, while also delivering for our customers on.
And growing sales pipelines as we partner with our customers to help them become more digitally engage and connecting.
Continue to experience the modestly longer sales cycle relative to historic norms that we discussed last quarter and are managing as carefully.
Putting the customer first is one of the guiding principles embarrassed and improving our customer experience as a key focus for everyone across the organization I'm very pleased to share with you that we recently achieved our highest net promoter score in the company's history. Ah score 50. This is an improvement of six point.
From last year, which was our then peak score and reflects an increase in our investment in what we call. Our customer first program a solution set of customer experience data analytic tools and cultural drivers are nearly 40 frontline teams across the organization listen to the voice of our customers health.
Thing is to observe what is important in creating action plans to drive customer value and improved customer loyalty the meaningful insights. We glean from these day to day customer interactions and from our growing customer experience analytical capabilities helps us improve our solutions highlight important trends across solution been businesses at.
An alert to problems.
Four Star General most recently General book for US was in command of all US forces in Korea, where he can currently led the United Nations Command and the Republic of Korea US combined forces command, which was comprised of more than 650000 Korean and American soldiers I'm confident that as a member of <unk>.
Our board of Directors General Brooks will reinforce fair culture of operational excellence and as his experience and guidance will be instrumental as we work and complex global scale environments.
Ability and resilience of are primarily subscription based business model we.
We did continue to experience as we did in the prior quarter and negative impact from COVID-19 uncertain of our products and services largely transactional nature, which represent the balance or approximately 15% of our consolidated revenues.
These covid sensitive revenues declined approximately 10% on an organic constant currency basis during the third quarter, which was an improvement from the 20% decline in the second quarter.
And reflects improvements in all three of our segments as the underlying causal impacts began to diminish and some of the pressure on our revenues abated, though the pace of the recovery varies across the solutions. For example, we have seen a rebound in our commercial underwriting surveys as our field staff has now allowed to enter buildings and.
We have also seen improvements in trends across personal audio.
On the energy side, we have seen a more modest improvement is capex budgets at our customers continue to be under pressure affecting our consulting business. Despite the impact on revenue in the third quarter. We are pleased to report that we delivered strong EBITDA growth and expanded margins as the result of effective expense and head count management.
Organic constant currency adjusted EBITDA growth normalized for the injunction was 17.7% in the third quarter.
Total adjusted EBITDA margin, which includes both organic and inorganic revenue ending and adjusted EBITDA was 52.1% in the quarter, representing strong leverage across the business. This margin level includes roughly 140 basis points would benefit from lower travel expenses, but also reflects substantial investment.
Our business and infrastructure, including our cloud transition costs.
On that note, let's turn to our segment results on an organic constant currency basis and normal us for the injunction.
Insurance segment revenues increased 7%, reflecting healthy growth in our industry standard insurance programs catastrophe modeling solutions and repair cost estimating solutions, we experienced a modest benefit from storm related revenues as a result of a more normal hurricane season in 2020 as compared to the very slow.
Season in 2019, this was offset in part by a decline in certain transactional revenues that were negatively impacted by COVID-19.
I just did EBITDA grew 19.8% in the third quarter, demonstrating strong margin expansion. Despite certain revenue declines an investment in our breakout areas.
Lower average share count.
Net cash provided by operating activities was $207 million for the quarter down 3% from the prior year period, primarily due to a deferral of federal income tax payment under the cares Act from the second quarter of 2020 to the third quarter of 2020.
Partially offset by the deferral of certain employer payroll taxes, as well as higher customer collections and a reduction in travel payments as a result of close to 19.
Capital expenditures were $65 million for the quarter up 6.8% from the prior year period.
Capex represented 9.2% of total revenues in the quarter, reflecting some leasehold improvement expenditures associated with our office consolidations in Boston and London.
And they do not represent a structural change in our fundamental growth drivers and believe that as the underlying causal factors abate, we will show strong resilience in recovery.
Each of these causal factors has its own recovery curve, making it difficult to predict the duration of the impacts to our revenue growth. If we continue to have confidence in our ability to manage the cost structure effectively and delivering and deliver operating leverage while also continuing to invest in our innovation agenda.
While we restrict headcount growth at the outset of the Canada pandemic with improving revenue dynamics more recently, we have begun to partially release deferred hiring restrictions that said, we are watching the environment carefully and will calibrate headcount growth. According accordingly to protect profitability.
19 environment, meaning that we did see a larger reduction in expenses, owing to travel and entertainment.
And some compensation costs relative to the revenue growth train.
Changed so that was certainly an element that that contributed.
Our view is that there may be some permit permanent benefits.
From that as we look at the way, we Orient, our or size, our travel and entertainment activities. There may be some permanent benefits in terms of longer term real estate expense savings and so I think that there is some permanent element of that that we that we achieved so that's kind of the code.
The organic growth improved versus second quarter. Despite the really difficult comp. Obviously, you know <unk> Cove, it had probably moderate a little bit but the capex spending in the energy industry. You know is still tough as as you've mentioned just help us out with how you're thinking about whether you.
Did see growth in that segment in 2021, you know just given that 2020 was so challenging you know just <unk> just talk about how you how you see energy playing out thanks.
Sure so turning to the way that I would approach. It got use first with regard to to the wood Mackenzie component of that we are experiencing in two dimensions. One of course, the consulting element where from a cold insensitive perspective, and the challenges that the industry is facing.
That's where we're feeling the pressure as reflected in kind of the proven sensitive revenues and so it's difficult to predict how that energy sector. We will you will continue to experience that and and reflect that so I think we're expecting some level of that to persist into 2021.
On the subscription side I think as we've said we've continued to see growth in invests in that portion of the business that has been bolstered by the investments that we've made in lens and the perceived quality of that product platform and our ability to continue to grow subscription levels. There are some.
There are some impacts from consolidation within the industry that will have a negative impact going into 2021, but we still expect from a from an organic standpoint to see contributions to growth from math the other element.
They are dating analytics.
Of incentive compensation change was about a 40 basis points relative to the 140 basis points of key benefit and Thats just looking at the third quarter on a on a year over year basis.
So that would be the I think the number that you were looking for on the compensation front.
With regard to your second question I would say, it's it's still too early for us to associate the the productivity on the sales side, which Scott described and I think we're all very pleased with him to him how we calibrate our t. any expectations looking ahead I think.
Entertainment as a percentage of our of our revenues may be one way for us to gauge it but I think it's.
Undeniable that having been through this experience that we will we have the scope to think about the degree to which we're spending on that relative to revenues.
And far have other ways and more efficient means to interact with our with our customers, but it will be something that we're tracking enhanced by tracking be able to manage more effective and maybe a word on text around them.
Okay, digitizing total processes and obviously, how you can help as this postcode worlds place out I noticed a loaded question.
Yeah no. Thanks, Thanks, Alex Mark you want to make some observations from the insurance.
Thanks for the question I think we're all seeing is that our customers need to make sure. They operated effectively in this post covid world.
Past and that digital engagement with their policyholders is hugely important whether that's on the underwriting side or in the claim side. So the things that we've seen become kind of very important to insurers is some of the things we've talked about in the past so to the extent you thinking about adjudicating claims we have a tool.
That we gave away free during.
The pandemic least the early stages and what it does is it allows that adjuster to synagis desk and do a desktop.
Just made meaning actually adjudicated claim by interacting with the policyholder, taking pictures, taking videos taking that measurement from inside.
Upstream part of the hydrocarbon wing of the energy ecosystem now, it's less than 50% and most of what we do there is with the.
The integrated globals or with the.
From that work.
So we're plowing ahead and there are multiple works dreams inside so so part of it is actually sort of grooving the pathways and hardening the pathways an insurance security as we rotate things into.
Into the cloud.
But another part of it is the migration of our footprint away.
Away from.
Premise computing and especially the mainframe. So we're at work. We're we're in the middle of it right now the the work will proceed faster than.
The visible cost benefit associated with what we're doing it's just the nature of the thing.
The.
Cloud spending for example is a linear function and premise spending is more of a sort of.
You sort of take shelves of spending down, but you have to reach.
Points, where that has occurred and I would say that we are.
Well, along and we've talked before about the fact that mainframe migration for example.
Is a.
Couple of years.
And so.
So I have kind of like a two year horizon on when we can say we are fundamentally done or close to done with mainframe migration. So that's where we are the the.
The rate at which we will get the cost benefit of that will emerge kind of as a trailing function and this is what we've said about it all along actually I I hope that those of you that have been with us for a while have noted we've been making these investments for quite some time, they're all baked into our our P&L, it's not like we have to do.
Claire Some special project. We're just this is what we do and this is what we are doing so anyway. So a couple of years that sort of the window for technical migration and the rate at which the cost benefit sort of.
Later head will sort of be a trailing function.
Will be they will express themselves in the intermediate period, but even more after we have achieved the technical migration.
Andrew One thing I, just want to add to Scott's comments.
Its feet to where you're seeing the most momentum in that business. Thank you.
Yes, really broadly based.
Weve I think Weve described for in the past that we have multiple categories of solutions, we called out that at the moment.
Spend inform analytics, which does relate to.
Folks that are trying to promote their products and therefore ultimately things like advertising that has been feel.
Feeling the effects.
The covert moments, so we called out one out but all the other things that.
That we do are a part of the overall result that we shared with you. Yes, I think it's really there isn't anything that I'd call out specifically I think it has been fairly broad based on the subscription side.
Appreciate it.
On it and we're actually have an operating leverage beneath that.
Okay, Great and then just in terms of the improvement in transactional revenue you know being downturn versus 20 per cent last quarter decided into that a bit more just you know what are the biggest drivers or improvement you know I think you you spoke to it a bit, but just where things lagging style.
I would say where.
Where we are seeing recovery and you will go go back in the in the script, you'll see some comments around our survey or commercial mine's a survey business, where we have seen improvement part of that is access to the buildings. We've also seen an improvement on the personal lines are the personal auto on segment because with greater driving.
Laura that IPO opportunity.
The good news about that is.
The way these mature tech seem to be attractive to the market is because of the tech play the automation the way they go about things in the non traditional sense.
And I think what we have been fortunate to be a part of is as these new insured text come to market, whether initially as a managing general agent, where they don't actually underwrite the risk that they selected or a full blown underwriting sure.
They have looked to us for data analytics information as a part of that to trail. So we.
We have benefited from the insurance Tech world as it relates to those insurance companies and some of the biggest ones that are in market or are those that are coming to market are behind the scenes are quite quite effectively using a full suite of their solution. So I feel like were great.
Partners to those Interconnects I think the other part of the question that you have and I don't want to be.
Overly excited exhaustive, but theres also ensure tax that are providing services and those ensure techs that are providing services in part compete against us on and those businesses.
Clearly have you know I'll.
Ill fated enhance and increase the.
The views the awareness of insurers of alternate sources of doing business and I think the combination of a little bit of competition, which only makes us better but also the fact that now insurers are hearing that message there probably a little more openings.
Stress that to talk about our solutions and opportunities there so.
I hope not off without really hearing your question that woods.
Hopefully what you were looking for him and mine if I want to I want to add one thing and building off of Mark's comments on the competition dynamic and he was describing it with regard to other insurer test that provide services to us on the former point in terms of the new entrants on the secondary benefit in.
And frankly in some ways potentially even the more significant benefit if that that competitive pressure of new approaches to the insurance industry puts more pressure on some of the traditional players that are looking to.
Address and respond to that and so for instance in our light speed product I think the light speed product, where we've had great success is in many ways a competitive response to other new markets that are out there for it. So it's serving two I think lift the industry as a whole.
Apart from kind of that purely incremental amount of revenue that we get from those new those new entrants.
Yes thats helpful. Thank you that that's so there's going going out and for my second question. If we think that the new breakout areas.
I think some of them that you've talked about in the past and that have already broken out, but just what are some of the key ones. We should be keeping an eye on in terms of where the investments are going in today.
Well I would just highlight sort of that kind of high the thematic level.
The businesses that we have which are very much sort of saskpower business models.
Are doing very well and you know those show up in multiple parts of our business and in general.
The more that we lean into as we are what we refer to as platforms analytic environments.
The better basically and there are development cycles associated with those but.
When you get when you get to the place where you would you or the environment, where your customer finds that productive to do their work. That's a really really powerful place to be and that's a that's a theme which spans much of our company today and all the verticals.
Thank you.
Thank you next question comes from the line of George Tong from Goldman Sachs. Your line is open.
Hi, Thanks, you have a ryan on for George Today. So you had mentioned earlier that you're able to outgrow your end markets due to the increased value bring to customers. I was just wondering if you've seen any impact to pricing in the current environment and if so which segments are pulling back. The most and then also can you remind me what lift to organic growth that pricing tends to provide.
And in a given year.
Yes so.
Let's see in reverse order.
You should think of pricing is sort of the GNP ish kind of a number of sort of insight.
Inside of what it is that we do.
I don't really think that there have been differential effects in different parts of it I think your question was at the level of the verticals I don't really think there have been differential effects.
I would go back to what we signed him before which is services is the place where when the economy softens there tends to be a softening.
And so kind of that as the category, but in terms of licensed solutions.
I wouldn't make sharp distinctions across the verticals.
I think we I don't know if you would see it a differently, but doesn't feel that way no great.
To me and then the way that we think about pricing our solutions and you know Weve tried we've tried to be very deliberate about separating covert sensitive a non coated sensitive revenues you've heard our report in terms of the noncovered sensitive which tend to essentially be.
Licensable subscription based.
Sales of solutions, and we talked about slightly modestly longer sales cycles, but in terms of.
The terms that were striking with our customers I I have not picked up any signals that there's any real change there.
Thank you the question that Youre, asking and making reference is it in the text of Gov was focused on the energy and specialized markets performance relative to the to the end market and the one area that I would I would point out it was with reference to the lens platform and there I think it is a.
A microcosm of where we are adding a substantial value to the customer in this environment and that's enabling us to secure larger contract values because of the value that we're delivering into that end market and I think that in a way is what's powering us to outperform the market as a function of the of the value that we're.
Creating there and I think there are other instances of that.
Yes, that's a I think the the investment and the return dynamic.
Which is I think a separate answer than the point of view that Scott Express, which I agree with in terms of differential among the segments.
Great. Thanks, and then for for my follow up I know the I wish I was hoping to get an update on the GE omni situation I understand that you know the injunction with respect.
The lap for the revenue impact here in Threeq you essentially.
But you had previously discussed some other options to continue pursuing aerial imagery, such as commercial licensing even with the Eagleview and I'm. Just wondering if there was any other options that or things that are looking more realistic to you at this point.
Thanks for the question this is mark.
So first of all we continue.
Can you too.
Explore our legal options with regard to roof measurements.
As well you probably referenced earlier, what we did was we kind of moved a lot of our image capture to back Sal.
What that allowed into just emphasize the importance of that is.
What's its expenses and what's very important its coverage and coverage not only what geography, you have but how frequently you refresh that.
So with a combined source of image capture we are now able to better than anyone else cover the United States and company I think frequently and go international.
With that inventory, we have put to both together some solutions for underwriting purposes, which represent things about.
The outside of the building.
Physical structures pull things like that as well as ways to go about looking at claims entry arching claims after an advantaged tax catastrophe as an example or extreme weather.
And we've taken some of that inventory can we moved over into the energy space and ways. We go about helping energy companies.
Few things around their assets and their physical network. So what hopefully here is we've tried to leverage and gain scale on image capture well still doing the analytics.
And that analytic approach is not just insurance, it's more broadly even into real estate construction and other verticals here. So that has been our focus.
But at this time, we are not able to provide measurements, which is the very important app.
Our approach inside to claim space.
Great Thanks for that.
Thank you next question comes from the line of gas Mueller from Baird. Your line is open.
Thank you good morning, everyone. So sorry to beat the dead horse have already tried to address sports clubs, but.
So I hear you that there is an extra ordinary kind of margin benefit this year. So it sounds like a year over year step back in 21 that makes sense you reference in one of your answers Lee that 2019 as a reference here to build off of so it sounds like higher than 2019, just want to make sure that I'm considering the appropriate building blocks.
So I guess you referenced the back so benefit I guess two years of some form of normalized margin expansion in the business and then only a partial return of.
TMT or some of the temporary cuts so do I have the categories right anything that I'm missing and can you quantify the bechtel benefit for us. Thank you.
Yes, so Jeff was a little bit of it so hard to hear the last one the short answer is I think that you have the components the components correctly.
In the business you are they the variable is going to be.
The the ongoing impact of COVID-19.
On our business, yet and the inherent unpredictability of that we're we're certainly hopeful that we'll continue to see a return to a more normal environment and and in getting there I think our hope is that we will be able to hang on to some of these elements of margin improved.
That we saw.
Probably not all of them, we will need to travel and visit visit with clients. If we are performing better relative to our targets. Then we should see our compensation structure adjust to that but I think you have to come up components correctly and I think we're all we want to do is highlight.
Some of those temporary impacts and then to begin to anticipate the the return to a normal environment that we're going to try to manage so I think that hopefully addresses the first part of your question. The second part of your question I just would ask you to repeat because it wasn't entirely clear to me not that you weren't expressing a cooler and hard on hearing it.
It was just if you could quantify the vac sell benefit to margin.
I like I can't it's.
It's part I can because I think we view it as this this margin is reflective of the kind of the core under underlying margin of the insurance business back. So I'm sorry, the GE Ami business as we have discussed in the past on was the business that we were making a substantial investment in.
And that it was not contributing positive positive margin as we were investing in it now without you can kind of see the core and the core element of the of the business but.
We won't we don't quantify that.
Okay, and then on ones what percentage of the client base that it would be a good step for transit.
Transitioned over to lens at this point I guess roughly what is the immediate price slipped and then maybe more importantly, how does that change kind of the long term interaction.
With the customer and revenue opportunity. Thanks.
So Jeff if you if you were to to understand lands as sort.
Sort of the lens Mark.
Market space opportunity picture basically it's the product of all the different content families times all the accounts.
And when you think of it that way. We're we're we're in a very early stage of our journey.
Okay. Thank you.
You bet. Thank you.
Next question comes from the line of Seth Weber.
From RBC capital markets. Your line is open.
Hi, This is Emily Mclaughlin on for Seth This morning.
First question.
I think an earlier one can you talk about the monthly trends or the exit rate than 15% of the business that covert sensitive relative to the down 10% for the full quarter.
Yes. So it's it's obviously just one month I would say that so far.
You are based upon what we've seen we're seeing similar year over year growth rates in the Colgate sensitive.
Revenues on and in the non tobi sensitive revenues so I.
I think that we well certainly the third quarter demonstrated a sequential improvement.
Relative to the second quarter. So far again, it's just into the into the start of this we are perhaps seeing the impact of going into the into the winter season, and Im some impacts of.
Increased restrictions on on a global basis.
Matt.
That may be.
Create less opportunity for some couple of sequential improvement relative to the third quarter.
Got it that's kind of speculation nobody knows for certain but at least looking at October we're seeing kind of stable levels of year over year change in the non covered and the cobot sensitive on revenues.
Okay, Great. That's really helpful and my second question just the housekeeping one are you able to quantify how much the storm related revenue contributed to the insurance segment growth.
No. It's it's not a not a significant enough number is on on the margin it was beneficial, but we aren't quantifying that.
Okay. Thanks, very much for the time.
Thank you thanks.
Thank you next question comes from the line of handsome misery from Jefferies. Your line is open.
Hey, good morning, Thank you so much.
My first question is just on the international insurance business.
And my question really is a you know a number of years ago I think at an analyst day, maybe one or 2017 or 18.
That business I think was 130 million and then we are talked about potentially doubling that business organically.
Over the next five years.
And so I know I know rule book and sequel were powerful acquisition.
Further penetrate international.
I also know that hey, I R as well penetrated but maybe not certain other solution set. So you know just any update on you know where that international business is today, how it's performed.
Where do you think there's further opportunity.
No. Thank you for the question I do like talking about this topic.
I think.
If you were to think about that presentation and I appreciate you bring it back to us.
The UK.
That was in particular, a point, a particular focus and if you recall we.
Did a series of acquisitions. It brought a series of new products, there and I think that thesis as proving out wonderfully well I think we are growing probably in excess of that plan and we had definitely adding to our growth rates in insurance as a result of that international though.
Dimension.
Couple of things just to highlight where I think we've been particularly effective sequel rulebook.
Was it continues to be a wonderful acquisition not just because of the solution set but its ability from a from a technology perspective to integrate we together a lot of the Verisk insurance solutions. So we have a more holistic and more interconnected set of solutions as a result of that transition.
We also have some acquisitions that are in kind of the ISO world that really represent some of the things that we've done here, but extending it out.
And thats about writing risk and pricing risk and understanding kind of where it's our sales that again has been positive I think the place that I continue to aspire.
I would love to and I think we would have.
Love to recreate some of the success, we've had in UK other geography, and finding the right mix of solutions and acquisition are there maybe European nation.
That has been a little bit more of a challenge, but we continue to pursue that.
But.
Very helpful and just my follow up question is just on financial services and really.
Really the <unk> the job. The question really is it feels like you've done a lot of work there from a few years ago, whether transaction or whether the subscription piece.
There is a lot smaller it seemed like the customer base was my.
Much more concentrated at the bank.
Good could you. Maybe contrast, this business do you know where where does it sit today is it pretty similar to you know the.
The energy and insurance business and how does it differ from.
The healthcare business that you divested, which you know I guess that business became not very global in nature and I guess, the the customer base, we're getting very good gone too concentrated towards the government.
So just you know.
Big picture is that business kind of fixed for lack of a better word in terms of where it should be.
We're very happy with the progress that we've made.
The.
For me the primary point of distinction with you chose.
The health care vertical and all the factors that you cited are accurate but.
But to me the primary difference.
Was and remains that we have a remarkable and proprietary dataset inside of what we do and the financial services vertical we had the hypothesis. When we began the journey in the in the health care vertical that we could establish a data advantage and because of developments in the market environment.
That proved not to be the case and so caring.
Caring about returns that we drive for our shareholders. We said, okay, probably the best thing to do is to invest in other direction. So this this situation is very different from that situation.
And I and the number one factor that I would cite is a remarkably proprietary dataset.
Got it makes sense. Thanks, so much.
You bet.
Thank you there are no question at this time for centers you May proceed.
Okay, well. Thank you everybody for your continuing interest in Verisk and appreciate all your questions. We will as always be following up with you and look forward to that.
So thanks have a great day rest of the day.
Ladies and gentlemen. This concludes today's conference call. Thank you for participating human now disconnect have a great day.
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