Verisk Analytics, Inc. VRSK subsidiary, ISO unveiled a home healthcare program yesterday, which is aimed at providing a coverage and rating solution to insurers.
The latest program offers professional and general liability coverage, and encompasses optional endorsements for several critical exposures like allegations of abuse or molestation, theft of patient or client property, employment-related practices liability and home healthcare equipment. It also offers 31 different classes for the most common home healthcare professions ranging from home health aides to registered nurses.
According to Maroun Mourad, president of ISO Commercial Lines, "ISO`s new turnkey program can help insurers enter this growing market. The program offers flexible coverages and extensive rating information to help insurers meet the diverse needs of home healthcare providers."
What Investors Need to Know
The U.S. Census Bureau expects the number of Americans aged 65 and older to double within 30 years to reach 84 million. According to the U.S. Bureau of Labor Statistics, home healthcare and personal care aide employment is anticipated to grow 40% from 2016 to 2026. The aging population will lead to significant expansion of home healthcare market, creating opportunities for companies like Verisk.
The new program seems to be part of Verisk’s bid to boost its Insurance segment revenues. The segment provides underwriting & rating, catastrophe modeling, claims analytics, repair cost estimating, and aerial imagery and remote sensing solutions and contributed significantly to revenue growth in the first quarter of 2018.
Revenues came in at $412.6 million, up 12.5% year over year on a reported basis and 8.7% on an organic constant-currency basis.
Within this segment, underwriting & rating revenues of $280.6 million were up 10.8% on a reported basis and 6.9% on an organic constant-currency basis. Claims revenues of $132 million improved 16.1% on a reported basis and 12.6% on an organic constant-currency basis.
We observe that shares of Verisk have gained 30.9% over the past year, outperforming the 23.5% gain of the industry it belongs to.
Zacks Rank & Stocks to Consider
Verisk currently carries a Zacks Rank #3 (Hold) stock. Better-ranked stocks in the broader Business Services sector are Automatic Data Processing ADP, Accenture plc ACN and Broadridge Financial Solutions Inc. BR, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share growth rate for Automatic Data Processing, Accenture and Broadridge is 11%, 10% and 10%, respectively.
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