Verisk Analytics’ VRSK agreement to bring KatRisk onto its Model Exchange strengthens the platform’s position as an open, multi-vendor catastrophe risk modeling ecosystem. By adding KatRisk’s climate-informed models covering perils, such as inland flood, wildfire, tropical cyclone, storm surge and earthquake, VRSK broadens the range of independent risk perspectives available to insurers and reinsurers.

The move comes as the insurance industry faces rising climate-related losses and increasing regulatory scrutiny, increasing the importance of transparent, comparable and defensible catastrophe models. Expanding the platform’s portfolio of third-party models is expected to enhance underwriting, portfolio management and capital planning while reinforcing Verisk’s role as a key provider of risk analytics and decision-support solutions for the global insurance market.

The company’s reengineered U.S. Tropical Cyclone Model, delivered through its cloud-native Synergy Studio platform, represents a significant enhancement to its catastrophe risk analytics capabilities. By integrating updated climate science, refined hazard and vulnerability modeling, and a reengineered stochastic event catalog, the model provides insurers, reinsurers and capital market participants with a more realistic assessment of hurricane-related risks and potential losses.

The launch also strengthens VRSK’s competitive position by combining advanced scientific modeling with scalable cloud-based analytics, enabling faster risk assessments, improved portfolio management and more transparent, defensible decision-making as climate-related weather events become more frequent and severe.

VRSK continues to reward shareholders through consistent dividend payments and share repurchases. The company paid out dividends of $195.2 million, $196.8 million, $221.3 million and $251.3 million, while repurchasing shares worth $1.7 billion, $2.8 billion, $1 billion and $624 million in 2022, 2023, 2024 and 2025, respectively.

The company’s growth strategy is also driven by its strong focus on innovation and acquisitions, as it rapidly invests in global companies to enhance its data and analytical capabilities. Recently, the company acquired SuranceBay, a leading provider of producer licensing, onboarding, appointment and compliance solutions, which is expected to expand VRSK’s life and annuity offerings.

Other Factors That Make VRSK an Attractive Pick

Solid Rank: VRSK carries a Zacks Rank #2 (Buy).

Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

Positive Earnings Surprise History: VRSK has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters and missed once, delivering an earnings surprise of 6.29%, on average.

Verisk Analytics, Inc. Price and EPS Surprise

Verisk Analytics, Inc. price-eps-surprise | Verisk Analytics, Inc. Quote

Strong Growth Prospects: The Zacks Consensus Estimate for Verisk’s 2026 revenues is pinned at $3.22 billion, reflecting 5% year-over-year growth. The consensus estimate for 2026 earnings is pegged at $7.63 per share, indicating a 6.6% year-over-year increase.

Bullish Industry Rank: The industry to which VRSK belongs currently has a Zacks Industry Rank of 18 (out of 243). Such a favorable rank places it in the top 7% of Zacks Industries. Studies show that 50% of a stock’s price movement is directly related to the performance of the industry group to which it belongs.

A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.

Other Stocks to Consider

Some other top-ranked stocks for investors’ consideration are Dave Inc. DAVE and Coherent Corp. COHR.

Dave currently sports a Zacks Rank of #1 (Strong Buy). The company has an expected earnings growth rate of 10.5% and 24.5% for 2026 and 2027, respectively.

DAVE has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 54.2%.

Coherent Corp. sports a Zacks Rank of #1. COHR has an expected earnings growth rate of 55% and 51.04% for 2026 and 2027, respectively.

The company has an encouraging earnings surprise history as it has topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 6.20%.

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Verisk Analytics, Inc. (VRSK): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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