Verisk Analytics, Inc. (NASDAQ: VRSK) has recently entered into accelerated share repurchase agreements (ASR agreements) with HSBC Bank USA, National Association, and Wells Fargo Bank, National Association to repurchase an aggregate of $1.5 billion of the company's common stock. This move indicates the company's confidence in its financial position and future prospects.
As a result of these ASR agreements, approximately $1.0 billion will remain available for share repurchases under the company’s previously announced authorized share repurchase program, signifying a significant allocation of resources for returning value to shareholders.
The ASR counterparties are expected to make an aggregate initial delivery of approximately 7.0 million shares of the company's common stock to Verisk at the inception of the ASR agreements. The total number of shares ultimately to be purchased by the company under the ASR agreements will generally be based on the daily volume-weighted average share price of the company’s common stock during the calculation period of each ASR agreement, less an agreed discount and subject to adjustments pursuant to the terms and conditions of the respective ASR agreement.
The final settlement of the transactions under the ASR agreements is expected to occur no later than the company’s third fiscal quarter ending September 30, 2026. This timeline provides insight into the company's near-term capital allocation priorities.
It's worth noting that Verisk may continue to repurchase shares in the open market from time to time subject to market and other conditions, reflecting a commitment to ongoing shareholder value enhancement.
Verisk Analytics, Inc., a leading strategic data analytics and technology partner to the global insurance industry, empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud, and make informed decisions about global risks, including climate change, catastrophic events, sustainability, and political issues. The company's consistent certification as a Great Place to Work and its focus on fostering an inclusive culture further underscore its commitment to sustainable growth and stakeholder value.
This strategic move to repurchase shares, along with the continued pursuit of operational excellence and resilience-building for individuals, communities, and businesses, positions Verisk Analytics, Inc. for continued success in the global insurance industry. Following these announcements, the company's shares moved -0.74%, and are now trading at a price of $220.41. Check out the company's full 8-K submission here.
