Insurers Sell Risk Management Via Verisk IPO (HIG, TRV, CNA, AFG, AIG, ACE)

A company called Verisk Analytics Inc. has filed to come public via an initial public offering in a securities sale of up to $750 million worth of class A common stock.  The company did not provide any reference on the shares being offered nor any price indications.  This is an amalgamated risk management company that is actually owned by many insurance and financial companies as follows:

• Hartford Financial Services Group Inc. (NYSE: HIG)
• The Travelers Companies, Inc. (NYSE: TRV)
• CNA Financial Corporation (NYSE: CNA)
• American Financial Group, Inc. (NYSE: AFG)
• American International Group, Inc. (NYSE: AIG)
• ACE Group Holdings, Inc. (NYSE: ACE)

Verisk is a New Jersey-based risk management company, and the companylisted Merrill Lynch and Morgan Stanley as the only two underwriters.The company did not list the ticker nor which exchange it would list on.

According to the company’s filing, Verisk will not receive any proceedsfrom this offering since all of the shares being sold are being sold byselling stockholders.  The amount listed was not given, but we’d again notethat many public insurance companies are listed as owners. 

Verisk generated $802.195 million in 2007 revenues, which grew from$730.133 million in 2006.  In Q1-2008, its revenues were $215.618million versus $198.834 million in Q1-2007.

Jon C. Ogg
August 13, 2008