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Verisk (VRSK) Expands Product Portfolio with Arium Buyout

Leading data analytics provider, Verisk Analytics, Inc.VRSK , recently acquired a liability risk modeling and decision support company, Arium for an undisclosed amount. Per the acquisition, Arium will become part of Verisk's AIR Worldwide (AIR) business. This will augment AIR's product portfolio with additional modeling solutions and analytics for the casualty market.

Formed in 1998, Arium or Architects for Risk Identification, Understanding, and Management specializes in developing risk models, mainly for the reinsurance industry. The company uses a unique methodology based on dependency theory. Its casualty analytics platform enables other companies to run historical and emerging scenarios and build their own scenarios across all casualty lines.

Verisk outperformed the Zacks categorized Business - Information Services in 2016 with an average return of 5.6% compared with a negative 1.5% return for the latter. In addition, over the last 90 days, the company's earnings estimates have increased 3.34% for the current year to $3.09, further signifying inherent fundamental strength.

Incorporating Arium's methodologies will enable Verisk's clients to comprehensively manage risks across their portfolios in the casualty market. We expect this acquisition to be accretive for the company in the near future. The company's continued acquisition binge will likely boost its top line in the near future.

Headquartered in Boston, Verisk offers catastrophe risk modeling solutions to help individuals, businesses, and society become more resilient. Various key institutions rely on AIR's advanced science, software, and consulting services for catastrophe risk management, insurance-linked securities, site-specific engineering analyses, and agricultural risk management.

Verisk currently carries a Zacks Rank #2 (Buy). Some other favorably ranked stocks in the industry include Hitachi, Ltd. HTHIY , FactSet Research Systems Inc. FDS and Barloworld Ltd. BRRAY . All three stocks carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here

Hitachi has a long-term earnings growth expectation of 13% and is currently trading at a forward P/E of 14.2x.

Barloworld has a long-term earnings growth expectation of 12.8% and is currently trading at a forward P/E of 11.5x.

FactSet has a long-term earnings growth expectation of 10.7% and is currently trading at a forward P/E of 23.5x.

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FactSet Research Systems Inc. (FDS): Free Stock Analysis Report

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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