Verisk reveals $87m Rulebook acquisition for expansion
Verisk Analytics, a provider of property/casualty (P&C) insurance risk information, has acquired London-based Rulebook for $87 million in cash.
Rulebook is a provider of business intelligence and software solutions for the London insurance market. Its pricing engine is used for internal pricing and underwriting as well as external distribution for the specialty insurance market, according to a corporate statement.
Verisk said the acquisition will enable it to enhance its position as a provider of insurance software solutions to the global specialty market. In addition, Verisk expects the acquisition to generate an attractive return in excess of Verisk's cost of capital.
The transaction is expected to be accretive to 2019 adjusted earnings per share (EPS), and is likely to close in the fourth quarter of 2018.
"The acquisition will expand Verisk's existing offerings to the specialty insurance market by adding Rulebook's proprietary pricing and management information engines to Sequel's specialized software suite," said Ian Summers, CEO of Verisk unit Sequel. "These enhanced offerings will provide our customers with more efficient methods of distribution and significantly improved data analytics capabilities. The complementary applications give us a unique opportunity in our sector to complete the value chain, driving data through the process from broker to underwriter and quote through to claims settlement."
Mark Anquillare, chief operating officer of Verisk, added: "Rulebook is a Verisk-like business that furthers our goal of providing leading solutions to the global insurance market, including a comprehensive chain of solutions to specialty insurers for mitigating risk and optimizing total cost of operations."
Andy Galli, managing director of Rulebook, commented: "We're very excited to join Verisk, as this will accelerate our growing business by providing greater access to global markets and Verisk's existing international customers. We offer a unique value proposition that will be further enhanced by leveraging synergies and collaborating with other Verisk businesses and their data analytics."
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