Verisk to acquire SuranceBay for $162.5 million in cash

JERSEY CITY, N.J. - Verisk (NASDAQ:VRSK), a $42.25 billion data analytics company trading near its 52-week high of $322.92, announced Thursday it has signed a definitive agreement to acquire SuranceBay, a provider of producer licensing and compliance solutions for the life and annuity industry, for $162.5 million in cash. According to InvestingPro analysis, Verisk’s current valuation appears to be on the higher side compared to its Fair Value.

The acquisition will integrate SuranceBay’s agency management software, including its SureLC platform, into Verisk’s FAST life and annuity platform. The combined capabilities aim to streamline workflows between carriers, general agencies, insurance agents and consumers. With impressive gross profit margins of 69.15% and annual revenue of $2.93 billion, Verisk demonstrates strong operational efficiency in its existing business.

"Verisk is committed to investing in the life and annuity space to drive efficiencies in the ecosystem, and we know that the connection between carriers and distribution is crucial in an increasingly dynamic market," said Saurabh Khemka, co-president of underwriting solutions at Verisk.

SuranceBay CEO Anatole Tartakovsky stated, "The Verisk and SuranceBay teams share a joint focus on our clients and technology that will help them streamline operations, making it simpler and faster to buy and sell insurance."

The integration is designed to enhance efficiency between carriers and distribution partners by covering all aspects of the insurance lifecycle, from the buying experience through claims processing.

SuranceBay develops software that automates insurance buying and selling processes. Its flagship solution, SureLC, is a multi-carrier contracting automation system that synchronizes with multiple data sources for licensing, contracting and appointing producers.

Verisk plans to provide additional details about SuranceBay’s impact on its consolidated financial results during its second quarter 2025 earnings conference call.

The transaction is subject to customary closing conditions, according to the company’s press release statement. InvestingPro subscribers can access 12 additional key insights about Verisk’s financial health, which currently rates as "GOOD" with particularly strong profitability metrics. For comprehensive analysis including valuation metrics and growth projections, check out the Pro Research Report, available exclusively on InvestingPro.

In other recent news, Verisk Analytics Inc. reported financial results for the first quarter of 2025, surpassing analyst expectations. The company achieved an earnings per share of $1.73, exceeding the projected $1.69, and reported revenue of $753 million, which was above the forecasted $749.96 million. Subscription revenues, making up a significant 83% of total revenue, grew by 10.6% on an organic constant currency basis. Additionally, Verisk’s adjusted EBITDA margin expanded to 55.3%, marking a 130 basis point increase from the previous year. In another development, Verisk announced a definitive agreement to acquire SuranceBay for $162.5 million in cash. This acquisition is expected to integrate SuranceBay’s agency management capabilities with Verisk’s existing solutions, enhancing efficiency between carriers and distribution partners. The transaction is subject to customary closing conditions. These recent developments underscore Verisk’s ongoing commitment to strategic growth through innovation and acquisitions.

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