Femi Ogunjumo

Private and Confidential Financial Statement Analysis of Verisk Analytics, Inc Nasdaq: VRSK VRSK-Financial Model_vF Femi Ogunjumo Private and Confidential Financial Statement Analysis for Verisk Analytics, Inc General Inputs Company Name Verisk Analytics, Inc Ticker VRSK Exchange NASDAQ Circularity Breaker 1 1=Default; 0=Break Circularity Legend for Color Scheme Hard-coded inputs Most Recent Quarter-end (MRQ) 3/31/2018 Formula linking to cells in same tab Most Recent Year-end (MRY) 12/31/2017 Formula linking to cells in different tab Accounting Number of Days Portion of Current Year Remaining (%) Sources 360 75.0% VRSK financial filings, S&P Capital IQ Key Financial Assumptions Twelve Months Ended Dec. 31, 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Balance Sheet: Days Sales Outstanding 58.0 58.0 58.0 58.0 58.0 58.0 58.0 58.0 58.0 58.0 Capex/Revenue (%) 9.6% 8.9% 8.9% 8.9% 8.9% 8.9% 8.9% 8.9% 8.9% 8.9% 73.9% 76.9% 79.9% 82.9% 85.9% 88.9% 91.9% 94.9% 97.9% 100.0% 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 98.2 18.0% 18.0% 18.0% 18.0% 18.0% 18.0% 18.0% 18.0% 18.0% 18.0% 2.50% 3.00% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% Depreciation/Capex (%) Days Payable Outstanding Deferred Revenues/Total Revenues (%) 3-month Libor Curve Short-term Debt Interest Rate L + 1.625% Cash Interest Rate 1.25% Minimum Cash Balance 100.0 Income Statement: Insurance Segment Revenue Growth Rate 9.3% 5.3% 5.3% 5.0% 4.8% 4.5% 4.3% 4.0% 3.8% 3.5% Energy & Specialized Markets Revenue Growth Rate 15.0% 10.0% 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% Financial Services Revenue Growth Rate 20.0% 15.0% 12.0% 11.5% 11.0% 10.5% 10.0% 9.5% 9.0% 8.5% Gross Profit Margin (%) 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% SG&A/Revenue (%) 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% Effective Tax Rate (%) 21.1% 21.1% 21.1% 21.1% 21.1% 21.1% 21.1% 21.1% 21.1% 21.1% Additional Assumptions - Capital expenditures for 2018FY projected at $230.0 million per recent management guidance; expenditures after 2018 occur at a fixed percentage of revenues (8.9%). - Verisk is assumed to make no additional acquisitions nor any additional investments in intangible assets during the projected period; capital expenditures are assumed to be sufficient to support revenue growth. - Senior notes are paid off at their respective maturities and additional long-term debt capacity is not added. - Share repurchases are used to offset dilution from issuance of shares under existing equity incentive plans. - Libor curve assumptions reflect an anticipated rising-rate environment through 2020 and flat for the projection period after 2020. - Accounts Payable line item is projected using Days Payable Outstanding (i.e. Accrued Liabilities are assumed to be a small portion of total projected amounts). VRSK-Financial Model_vF 2 of 12 Femi Ogunjumo Private and Confidential Financial Statement Analysis for Verisk Analytics, Inc Projected Historical Three Months Ended Mar. 31, Twelve Months Ended Dec. 31, $ in millions, except share and per share amounts 2015 2016 2017 2017 2018 Twelve Months Ended Dec. 31, 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Balance Sheet for Verisk Analytics, Inc Cash, Equivalents, and AFS Securities Accounts Receivable $141.9 $138.5 $146.1 $158.6 $153.6 $153.3 $704.1 $1,584.5 $2,067.3 $2,738.6 $3,811.8 $4,968.4 $5,296.0 $6,608.8 $7,973.4 251.0 263.9 345.5 298.7 424.1 384.2 411.2 438.4 466.3 494.6 523.1 551.8 580.3 608.6 636.3 Prepaid Expenses 34.1 28.9 38.1 25.0 52.6 41.7 44.7 47.6 50.6 53.7 56.8 59.9 63.0 66.1 69.1 Income Taxes Receivable 48.6 49.3 28.8 3.3 8.1 28.8 28.8 28.8 28.8 28.8 28.8 28.8 28.8 28.8 28.8 129.0 20.3 39.1 28.2 70.2 70.2 70.2 70.2 70.2 70.2 70.2 70.2 70.2 70.2 70.2 $604.6 $500.9 $597.6 $513.8 $708.6 $678.2 $1,258.9 $2,169.6 $2,683.2 $3,385.9 $4,490.7 $5,679.1 $6,038.4 $7,382.5 $8,777.8 350.3 380.3 478.3 377.8 489.0 538.3 590.6 639.2 683.1 721.5 753.5 778.1 794.4 801.5 801.5 Intangible Assets 1,245.1 1,010.8 1,345.3 1,027.2 1,356.6 1,216.2 1,088.0 962.0 846.5 742.3 638.1 533.9 429.7 325.5 221.3 Goodwill 2,753.0 2,578.1 3,368.7 2,653.3 3,454.2 3,454.2 3,454.2 3,454.2 3,454.2 3,454.2 3,454.2 3,454.2 3,454.2 3,454.2 3,454.2 Other Current Assets Total Current Assets Fixed Assets Deferred Income Tax Assets Other Assets Total Assets Accounts Payable and Accrued Liabilities 0.0 15.6 15.9 15.8 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 640.7 145.5 214.5 160.8 221.9 221.9 221.9 221.9 221.9 221.9 221.9 221.9 221.9 221.9 221.9 $5,593.7 $4,631.2 $6,020.3 $4,748.7 $6,246.9 $6,125.4 $6,630.3 $7,463.5 $7,905.5 $8,542.4 $9,575.0 $10,683.9 $10,955.2 $12,202.1 $13,493.3 222.1 184.0 225.4 162.1 223.8 250.0 258.7 283.7 293.2 318.7 328.5 354.2 363.9 389.1 398.2 Short-term Debt 874.8 106.8 724.4 6.6 740.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Deferred Revenues 340.9 330.8 384.7 501.6 586.6 428.4 458.5 488.9 519.9 551.5 583.3 615.3 647.1 678.6 709.5 Income Taxes Payable 00 0.0 00 0.0 31 3.1 21 2.1 68 6.8 31 3.1 31 3.1 31 3.1 31 3.1 31 3.1 31 3.1 31 3.1 31 3.1 31 3.1 31 3.1 Other Current Liabilities 41.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $1,479.3 $621.6 $1,337.6 $672.4 $1,558.1 $681.5 $720.3 $775.7 $816.3 $873.3 $915.0 $972.5 $1,014.1 $1,070.8 $1,110.8 2,270.9 2,280.2 2,284.4 2,281.0 2,041.1 2,290.6 2,041.1 2,041.1 1,592.8 1,245.6 1,245.6 1,245.6 354.4 354.4 354.4 329.2 322.2 337.8 329.4 356.5 356.5 356.5 356.5 356.5 356.5 356.5 356.5 356.5 356.5 356.5 Total Current Liabilities Long-term Debt Deferred Income Tax Liabilities Other Liabilities Total Liabilities Stockholders’ Equity (Par Value) Additional Paid-In Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Losses 142.3 74.8 135.1 80.3 106.9 106.9 106.9 106.9 106.9 106.9 106.9 106.9 106.9 106.9 106.9 $4,221.7 $3,298.8 $4,094.9 $3,363.1 $4,062.6 $3,435.5 $3,224.8 $3,280.2 $2,872.5 $2,582.3 $2,624.0 $2,681.5 $1,831.9 $1,888.6 $1,928.6 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 2,023.4 2,121.6 2,180.1 2,134.1 2,201.9 2,240.0 2,299.3 2,358.6 2,417.9 2,477.2 2,536.5 2,595.8 2,655.1 2,714.4 2,773.7 (2,571.2) (2,891.4) (3,150.5) (2,993.4) (3,185.3) (3,179.8) (3,198.2) (3,216.5) (3,234.8) (3,253.2) (3,271.5) (3,289.8) (3,308.2) (3,326.5) (3,344.8) 2,161.7 2,752.9 3,308.0 2,861.7 3,476.9 3,939.0 4,613.6 5,350.4 6,159.2 7,045.2 7,995.3 9,005.6 10,085.6 11,234.8 12,445.1 (242.0) (650.8) (412.3) (616.9) (309.3) (309.3) (309.3) (309.3) (309.3) (309.3) (309.3) (309.3) (309.3) (309.3) (309.3) Total Equity $1,372.0 $1,332.4 $1,925.4 $1,385.6 $2,184.3 $2,690.0 $3,405.5 $4,183.3 $5,033.0 $5,960.1 $6,951.1 $8,002.3 $9,123.3 $10,313.5 $11,564.7 Total Liabilities and Equity $5,593.7 $4,631.2 $6,020.3 $4,748.7 $6,246.9 $6,125.4 $6,630.3 $7,463.5 $7,905.5 $8,542.4 $9,575.0 $10,683.9 $10,955.2 $12,202.1 $13,493.3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Balance check: VRSK-Financial Model_vF 3 of 12 Femi Ogunjumo Private and Confidential Financial Statement Analysis for Verisk Analytics, Inc Projected Historical Three Months Ended Mar. 31, Twelve Months Ended Dec. 31, $ in millions, except share and per share amounts 2015 2016 2017 2017 2018 Twelve Months Ended Dec. 31, 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Income Statement for Verisk Analytics, Inc Revenues: $1,330.6 $1,419.1 $1,550.6 $366.9 $412.6 $1,694.3 $1,783.5 $1,877.4 $1,971.6 $2,065.6 $2,158.9 $2,251.0 $2,341.4 $2,429.6 $2,515.0 Energy and Specialized Markets Insurance 308.8 442.8 444.6 106.3 125.5 511.3 562.4 613.0 665.1 718.4 772.2 826.3 880.0 932.8 984.1 Financial Services 121.3 133.3 150.0 29.4 43.1 180.0 207.0 231.8 258.5 286.9 317.1 348.8 381.9 416.3 451.7 $1,760.7 $1,995.2 $2,145.2 $502.6 $581.2 $2,385.6 $2,552.9 $2,722.3 $2,895.3 $3,070.9 $3,248.2 $3,426.1 $3,603.3 $3,778.7 $3,950.8 Cost of Revenues 612.0 714.4 783.8 182.9 221.2 871.6 932.8 994.7 1,057.9 1,122.0 1,186.8 1,251.8 1,316.6 1,380.6 1,443.5 SG&A 278.3 301.6 322.8 75.9 91.8 365.5 391.2 417.2 443.7 470.6 497.7 525.0 552.1 579.0 605.4 Depreciation and Amortization (Fixed Assets) 96.6 119.1 135.6 33.8 40.5 170.0 174.1 192.9 212.8 233.9 256.1 279.2 303.2 328.1 350.4 Amortization (Intangible Assets) 70.4 92.5 101.8 22.3 33.2 129.1 128.2 126.0 115.5 104.2 104.2 104.2 104.2 104.2 104.2 $1,057.3 $1,227.6 $1,344.0 $314.9 $386.7 $1,536.2 $1,626.3 $1,730.7 $1,829.9 $1,930.7 $2,044.8 $2,160.2 $2,276.1 $2,391.9 $2,503.5 Operating Income 703.4 767.6 801.2 187.7 194.5 849.3 926.7 991.6 1,065.4 1,140.2 1,203.4 1,265.9 1,327.2 1,386.8 1,447.3 Investment Income (and other) 102.1 6.1 9.2 1.9 0.6 9.2 9.2 9.2 9.2 9.2 9.2 9.2 9.2 9.2 9.2 (28.4) (32.8) (80.9) (67.0) (49.5) (26.4) (8.5) 5.4 32.5 60.6 77.3 $1,280.5 $1,368.9 $1,456.6 $1,533.8 Total Revenues Expenses: Total Expenses Interest Expense (121.4) (120.0) (119.4) Income Before Income Taxes $684.1 $653.7 $691.0 Provision for Income Taxes (196.6) (202.2) (135.9) Net Income from Continuing Operations $487.5 $451.5 $555.1 $108.8 Basic Net Income Per Share $2.95 $2.68 $3.36 Diluted Net Income Per Share $2.89 $2.64 $3.29 Basic 165.090 168.248 Diluted 168.451 171.172 $161.2 $754.2 $855.0 $933.8 (159.1) (180.4) (197.0) (216.3) (237.0) (254.1) $133.0 $595.1 $674.6 $736.8 $808.8 $886.1 $950.0 $1,010.3 $1,080.1 $1,149.2 $1,210.2 $0.65 $0.81 $3.61 $4.09 $4.46 $4.90 $5.37 $5.76 $6.12 $6.54 $6.96 $7.33 $0.64 $0.79 $3.52 $3.99 $4.36 $4.79 $5.24 $5.62 $5.98 $6.39 $6.80 $7.16 165.168 166.443 165.043 165.043 165.043 165.043 165.043 165.043 165.043 165.043 165.043 165.043 165.043 168.689 170.151 168.993 168.993 168.993 168.993 168.993 168.993 168.993 168.993 168.993 168.993 168.993 $1,010.3 $1,080.1 $1,149.2 $1,210.2 (52.4) $162.3 (104.3) (29.3) $1,025.1 $1,123.0 $1,204.1 (270.2) (288.8) (307.3) (323.6) Earnings Per Share Weighted average shares outstanding EBITDA Schedule $595.1 $674.6 $736.8 $808.8 $886.1 $950.0 Interest Expense/(income) Earnings 104.3 80.9 67.0 49.5 26.4 8.5 Provision for Taxes 159.1 180.4 197.0 216.3 237.0 254.1 D&A (5.4) 270.2 (32.5) (60.6) (77.3) 288.8 307.3 323.6 299.1 302.3 318.9 328.3 338.1 360.3 383.4 407.4 432.3 454.6 $1,157.6 $1,238.2 $1,319.7 $1,403.0 $1,487.5 $1,572.9 $1,658.5 $1,743.8 $1,828.2 $1,911.1 Revenue $2,384.5 $2,552.4 $2,721.9 EBITDA $1,130.9 $1,224.8 $1,305.9 $589.4 $645.3 $711.7 $3.50 $3.88 $4.34 EBITDA $913.9 $1,004.7 $1,047.8 $245.7 $268.8 Consensus Analyst Estimates Net Income (GAAP) EPS (GAAP) VRSK-Financial Model_vF 4 of 12 Femi Ogunjumo Private and Confidential Financial Statement Analysis for Verisk Analytics, Inc Projected Historical Twelve Months Ended Dec. 31, $ in millions, except share and per share amounts 2015 2016 2017 Three Months Ended Mar. 31, 2017 2018 Twelve Months Ended Dec. 31, 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cash Flow Statement for Verisk Analytics, Inc Net Income $595.1 $674.6 $736.8 $808.8 $886.1 $950.0 $1,010.3 $1,080.1 $1,149.2 $1,210.2 + Depreciation of Fixed Assets 170.0 174.1 192.9 212.8 233.9 256.1 279.2 303.2 328.1 350.4 + Amortization of Intangible Assets 129.1 128.2 126.0 115.5 104.2 104.2 104.2 104.2 104.2 104.2 30.6 30.6 30.6 30.6 30.6 30.6 30.6 30.6 30.6 30.6 ($38.7) ($27.0) ($27.3) ($27.9) ($28.3) ($28.6) ($28.6) ($28.5) ($28.2) ($27.7) (3.6) (2.9) (3.0) (3.0) (3.1) (3.1) (3.1) (3.1) (3.1) (3.0) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (31.1) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Deferred Income Tax Assets (0.7) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other Assets (7.4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Accounts Payable 24.6 8.8 25.0 9.5 25.5 9.8 25.6 9.7 25.2 9.1 Deferred Revenues 43.7 30.1 30.4 31.1 31.5 31.8 31.9 31.8 31.5 30.9 Income Taxes Payable 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other Current Liabilities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 18.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 + Stock-based Compensation Changes in: Accounts Receivable Prepaid Expenses Income Taxes Receivable Other Current Assets Deferred Income Tax Liabilities Other Liabilities (28.2) Cash Flow from Operations $902.0 Capital Expenditures (230.0) Other Investments Cash Flow from Investments Short-term Debt Issuance/(Debt Paydown) (85.5) ($315.5) (724.4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $1,016.4 $1,111.4 $1,177.4 $1,280.5 $1,350.9 $1,450.1 $1,528.0 $1,637.5 $1,704.6 (226.4) 0.0 ($226.4) (241.4) 0.0 ($241.4) (256.8) 0.0 ($256.8) 0.0 ($319.5) (335.1) 0.0 ($335.1) (350.4) 0.0 ($350.4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (347.2) 0.0 0.0 (891.2) 0.0 0.0 (28.7) (28.7) (28.7) (28.7) (28.7) (28.7) (28.7) 39.1 39.1 39.1 39.1 39.1 39.1 39.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $10.4 $10.4 $10.4 $10.4 $1,364.6 (448.3) Share Repurchases (39.8) (28.7) (28.7) Adjustments and Other Financing Activities (incl. Stock Options Exercised, etc.) 178.7 39.1 39.1 0.0 0.0 0.0 VRSK-Financial Model_vF ($303.8) (319.5) 0.0 0.0 End of Period Cash 0.0 0.0 (249.5) Beginning of Period Cash ($288.1) (303.8) 0.0 0.0 Change in Cash 0.0 0.0 (Repayment) of Long-term Debt ($579.3) ($272.3) (288.1) 0.0 6.2 Cash Flow from Financing 0.0 0.0 Issuance of Long-term Debt Dividends (272.3) ($239.1) $10.4 ($437.9) ($336.8) ($880.8) 0.0 $7.2 $550.9 $880.4 $482.7 $671.3 $1,073.2 $1,156.7 $327.6 $1,312.8 146.1 153.3 704.1 1,584.5 2,067.3 2,738.6 3,811.8 4,968.4 5,296.0 6,608.8 $153.3 $704.1 $1,584.5 $2,067.3 $2,738.6 $3,811.8 $4,968.4 $5,296.0 $6,608.8 $7,973.4 5 of 12 Femi Ogunjumo Private and Confidential Financial Statement Analysis for Verisk Analytics, Inc Projected Historical Three Months Ended Mar. 31, Twelve Months Ended Dec. 31, $ in millions, except share and per share amounts 2015 2016 2017 2017 2018 Twelve Months Ended Dec. 31, 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Balance Sheet Schedules Accounts Receivable Days Sales Outstanding (using EOP AR) Days Sales Outstanding (Using Average AR) Memo: Average AR/Revenue (%) $- $-% $-% $298.7 $424.1 $-% $-% $-% $-% $-% $-% $-% $-% $-% $-% $- $- $- $- $- $- $- $- $- $- - - - - - - - - - - $41.7 4.8% 11.4% 3.4% $44.7 4.8% 11.4% 3.4% $47.6 4.8% 11.4% 3.4% $50.6 4.8% 11.4% 3.4% $53.7 4.8% 11.4% 3.4% $56.8 4.8% 11.4% 3.4% $59.9 4.8% 11.4% 3.4% $63.0 4.8% 11.4% 3.4% $66.1 4.8% 11.4% 3.4% $69.1 4.8% 11.4% 3.4% Projected Prepaid Expenses As % of Cost of Revenue Projected Prepaid Expenses As % of SG&A Projected Prepaid Expenses As % of Total Expenses (excl. D&A) $- $- $- $- $- $- $- $- $- $- Projections: Prepaid Expenses Scenario Selected: As % of Cost of Revenue (1) As % of SG&A (2) As % of Total Expenses (excl. D&A) (3) 3.4% 4.8% 11.2% 3.4% 3.4% 4.8% 11.2% 3.4% 3.4% 4.8% 11.2% 3.4% 3.4% 4.8% 11.2% 3.4% 3.4% 4.8% 11.2% 3.4% 3.4% 4.8% 11.2% 3.4% 3.4% 4.8% 11.2% 3.4% 3.4% 4.8% 11.2% 3.4% 3.4% 4.8% 11.2% 3.4% 3.4% 4.8% 11.2% 3.4% Projected Accounts Receivable (using EOP AR) Projected Accounts Receivable (using Average AR) Projections: Days Sales Outstanding Scenario Selected: End of Period (1) Average (2) 1 Prepaid Expenses Prepaid Expenses/Cost of Revenue (%) Prepaid Expenses/SG&A (%) Prepaid Expenses/Total Expenses (excl. D&A) (%) $34.1 5.6% 12.3% 3.8% $28.9 4.0% 9.6% 2.8% $38.1 4.9% 11.8% 3.4% $25.0 $52.6 3 Income Taxes Receivable $48.6 Note: Projections assume no change from levels as of period ended 12/31/2017 $49.3 $28.8 $3.3 $8.1 $28.8 $28.8 $28.8 $28.8 $28.8 $28.8 $28.8 $28.8 $28.8 $28.8 Other Current Assets $129.0 Note: Projections assume no change from levels as of period ended 03/31/2018 $20.3 $39.1 $28.2 $70.2 $70.2 $70.2 $70.2 $70.2 $70.2 $70.2 $70.2 $70.2 $70.2 $70.2 $- (170.0) $538.3 $- (174.1) $590.6 $- (192.9) $639.2 $- (212.8) $683.1 $- (233.9) $721.5 $- (256.1) $753.5 $- (279.2) $778.1 $- (303.2) $794.4 $- (328.1) $801.5 $- (350.4) $801.5 $-% $-% $-% $-% $-% $-% $-% $-% $-% $-% 73.9% 8.9% 76.9% 3.0% 8.9% 79.9% 3.0% 8.9% 82.9% 3.0% 8.9% 85.9% 3.0% 8.9% 88.9% 3.0% 8.9% 91.9% 3.0% 8.9% 94.9% 3.0% 8.9% 97.9% 3.0% 8.9% 100.0% 2.1% Fixed Assets (Beginning of Period) + Capex - Depreciation Fixed Assets (End of Period) Depreciation Capex Capex/Revenue (%) Depreciation/Capex Projections: Capex/Revenue (%) Projections: Depreciation/Capex (%) Depreciation/Capex Steps: VRSK-Financial Model_vF $350.3 $380.3 $478.3 $377.8 $489.0 $-% 58.2% $-% 76.1% $-% 73.9% $33.8 $40.5 6 of 12 Femi Ogunjumo Private and Confidential Financial Statement Analysis for Verisk Analytics, Inc Projected Historical Three Months Ended Mar. 31, Twelve Months Ended Dec. 31, $ in millions, except share and per share amounts 2015 2016 2017 2017 Twelve Months Ended Dec. 31, 2018 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 $1,345.3 0.0 (129.1) $1,216.2 $1,216.2 0.0 (128.2) $1,088.0 $1,088.0 0.0 (126.0) $962.0 $962.0 0.0 (115.5) $846.5 $846.5 0.0 (104.2) $742.3 $742.3 0.0 (104.2) $638.1 $638.1 0.0 (104.2) $533.9 $533.9 0.0 (104.2) $429.7 $429.7 0.0 (104.2) $325.5 $325.5 0.0 (104.2) $221.3 Balance Sheet Schedules (Continued) Intangible Assets (Beginning of Period) + Investments in Intangible Assets - Amortization Intangible Assets (End of Period) $1,245.1 $1,010.8 $1,345.3 $1,027.2 $1,356.6 $70.4 $92.5 $101.8 $22.3 $33.2 $129.1 $128.2 $126.0 $115.5 $104.2 $104.2 $104.2 $104.2 $104.2 $104.2 Goodwill $2,753.0 $2,578.1 Note: Projections assume no change from levels as of period ended 03/31/2018 $3,368.7 $2,653.3 $3,454.2 $3,454.2 $3,454.2 $3,454.2 $3,454.2 $3,454.2 $3,454.2 $3,454.2 $3,454.2 $3,454.2 $3,454.2 $15.6 $15.9 $15.8 $16.6 $16.6 $16.6 $16.6 $16.6 $16.6 $16.6 $16.6 $16.6 $16.6 $16.6 Other Assets $640.7 $145.5 Note: Projections assume no change from levels as of period ended 03/31/2018 $214.5 $160.8 $221.9 $221.9 $221.9 $221.9 $221.9 $221.9 $221.9 $221.9 $221.9 $221.9 $221.9 Accounts Payable (and Accrued Liabilities) Days Payable Outstanding (EOP) Days Payable Outstanding (Average) Memo: Average AP/Cost of Revenue $-% $162.1 $223.8 $-% $-% $-% $-% $-% $-% $-% $-% $-% $-% $- $- $- $- $- $- $- $- $- $- - - - - - - - - - - $428.4 $458.5 $488.9 $519.9 $551.5 $583.3 $615.3 $647.1 $678.6 $709.5 Amortization Deferred Tax Assets $0.0 Note: Projections assume no change from levels as of period ended 03/31/2018 $- $-% Projected Accounts Payable (using EOP AP) Projected Accounts Payable (using Average AP) Projections: Days Payable Outstanding (EOP) Scenario Selected: End of Period (1) Average (2) Deferred Revenues Deferred Revenues/Total Revenues 2 $-% $-% $-% $501.6 $586.6 Projections: Deferred Revenue/Total Revenue 18.0% 18.0% 18.0% 18.0% 18.0% 18.0% 18.0% 18.0% 18.0% 18.0% $0.0 Income Taxes Payable Note: Projections assume no change from levels as of period ended 12/31/2017 $0.0 $3.1 $2.1 $6.8 $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 $3.1 $41.5 Other Current Liabilities Note: Projections assume no change from levels as of period ended 03/31/2018 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $329.2 $322.2 Deferred Income Tax Liabilities Note: Projections assume no change from levels as of period ended 03/31/2018 $337.8 $329.4 $356.5 $356.5 $356.5 $356.5 $356.5 $356.5 $356.5 $356.5 $356.5 $356.5 $356.5 $142.3 Other Liabilities Note: Projections assume no change from levels as of period ended 03/31/2018 $135.1 $80.3 $106.9 $106.9 $106.9 $106.9 $106.9 $106.9 $106.9 $106.9 $106.9 $106.9 $106.9 VRSK-Financial Model_vF $74.8 7 of 12 Femi Ogunjumo Private and Confidential Financial Statement Analysis for Verisk Analytics, Inc Projected Historical Three Months Ended Mar. 31, Twelve Months Ended Dec. 31, $ in millions, except share and per share amounts 2015 2016 2017 2017 2018 Twelve Months Ended Dec. 31, 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Balance Sheet Schedules (Continued) Shareholders' Equity Schedule Stockholders’ equity (Par Value) $0.1 Note: Projections assume no change from levels as of period ended 03/31/2018 $0.1 Additional Paid-In Capital Beginning of Period $57.5 $56.2 + Stock Options Exercised 30.1 29.9 + Stock-based Compensation + Other (incl. Employee Stock Purchase Plan and Restricted Stock Awards) $2,023.4 $2,121.6 Ending Period $0.1 $28.7 31.8 (2.0) $2,180.1 $0.1 $2,134.1 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 $2,201.9 $2,- $2,240.0 $2,- $2,299.3 $2,- $2,358.6 $2,- $2,417.9 $2,- $2,477.2 $2,- $2,536.5 $2,- $2,595.8 $2,- $2,655.1 $2,- $2,714.4 $2,- $2,773.7 $- $- $- $- $- $- $- $- $- $- Projections: Stock Options Exercised Projections: Stock-based Compensation Projections: Other (incl. Employee Stock Purchase Plan and Restricted Stock Awards) Treasury Stock Beginning of Period $120.5 + Share Repurchases (11.7) - Stock Options Exercised - Other (incl. Employee Stock Purchase Plan and Restricted Stock Lapses) $2,571.2 Ending Period $333.3 (10.2) $2,891.4 $269.8 (9.2) (1.5) $3,150.5 $2,993.4 $3,185.3 Projections: Share Repurchases Projections: Stock Options Exercised Projections: Other (incl. Employee Stock Purchase Plan and Restricted Stock Lapses) Retained Earnings Beginning of Period + Net Income + Adj. Related to Topic 606 and ASU 2016-01 - Dividends End of Period $2,161.7 $2,752.9 $3,308.0 $2,861.7 $3,476.9 Projections: Dividends Accumulated Other Comprehensive Losses Beginning of Period + Other Comprehensive Income - Adj. Related to Topic 606 and ASU 2016-01 End of Period VRSK-Financial Model_vF ($242.0) ($650.8) ($412.3) ($616.9) ($309.3) $3,- (10.4) (0.1) $3,179.8 $3,- (10.4) 0.0 $3,198.2 $3,- (10.4) 0.0 $3,216.5 $3,- (10.4) 0.0 $3,234.8 $3,- (10.4) 0.0 $3,253.2 $3,- (10.4) 0.0 $3,271.5 $3,- (10.4) 0.0 $3,289.8 $3,- (10.4) 0.0 $3,308.2 $3,- (10.4) 0.0 $3,326.5 $3,- (10.4) 0.0 $3,344.8 $39.8 (10.4) (0.1) $28.7 (10.4) 0.0 $28.7 (10.4) 0.0 $28.7 (10.4) 0.0 $28.7 (10.4) 0.0 $28.7 (10.4) 0.0 $28.7 (10.4) 0.0 $28.7 (10.4) 0.0 $28.7 (10.4) 0.0 $28.7 (10.4) 0.0 $3,- $3,939.0 $3,- $4,613.6 $4,- $5,350.4 $5,- $6,159.2 $6,- $7,045.2 $7,- $7,995.3 $7,995.3 1,- $9,005.6 $9,005.6 1,- $10,085.6 $10,085.6 1,- $11,234.8 $11,234.8 1,- $12,445.1 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($- (0.7) ($309.3) 8 of 12 ($- ($309.3) ($- ($309.3) ($- ($309.3) ($- ($309.3) ($- ($309.3) ($- ($309.3) ($- ($309.3) ($- ($309.3) ($- ($309.3) Femi Ogunjumo Private and Confidential Financial Statement Analysis for Verisk Analytics, Inc Projected Historical Three Months Ended Mar. 31, Twelve Months Ended Dec. 31, $ in millions, except share and per share amounts 2015 2016 2017 2017 2018 Twelve Months Ended Dec. 31, 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Balance Sheet Schedules (Continued) Debt Schedule Assumptions: Short-term Debt Interest Rate L + 1.625% Cash Interest Rate 1.25% Minimum Cash Balance 100.0 3-month Libor Curve Assumptions 2.34% Cash Flow Available for Financing Activities 2.50% 3.00% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% $586.5 $790.0 $870.0 $920.7 $1,008.1 $1,062.8 $1,146.3 $1,208.4 $1,302.4 $1,354.2 Share Repurchases (39.8) (28.7) (28.7) (28.7) (28.7) (28.7) (28.7) (28.7) (28.7) (28.7) Adjustments and Other Financing Activities (incl. Stock Options Exercised, etc.) 178.7 39.1 39.1 39.1 39.1 39.1 39.1 39.1 39.1 39.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 146.1 153.3 704.1 1,584.5 2,067.3 2,738.6 3,811.8 4,968.4 5,296.0 6,608.8 Dividends + Beginning of Period Cash Balance - Minimum Cash Balance Cash Available for Debt Repayment (100.0) (100.0) $771.5 $853.6 Long-term Debt Issuance 6.2 Long-term Debt (Repayment) 0.0 Excess Cash Available for Revolver 0.0 (249.5) (100.0) $1,- (100.0) $2,415.6 0.0 (448.3) (100.0) $2,985.8 0.0 (347.2) (100.0) $3,711.8 (100.0) $4,868.4 0.0 0.0 0.0 0.0 (100.0) $6,087.2 0.0 (891.2) (100.0) $6,508.8 (100.0) $7,873.4 0.0 0.0 0.0 0.0 $777.7 $604.1 $1,484.5 $1,967.3 $2,638.6 $3,711.8 $4,868.4 $5,196.0 $6,508.8 $7,873.4 Beginning of Period $724.4 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Issuance/(Repayment) (724.4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 4.1% 4.6% 5.1% 5.1% 5.1% 5.1% 5.1% 5.1% 5.1% 5.1% $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Revolver/Short-term Debt Schedule End of Period $874.8 $106.8 $724.4 $6.6 Revolver Interest Rate Interest Expense from Revolver/Short-term Debt $491.4 $14.9 Long-term Debt Outstanding as Outstanding as of 12/31/2017 of 03/31/2018 Interest rate Maturity Date Senior Notes issued 5/15/2015 $890.9 $891.2 4.000% 2025 Senior Notes issued 5/15/2015 345.1 345.2 5.500% 2045 Senior Notes issued 9/12/2012 347.1 347.2 4.125% 2022 Senior Notes issued 12/8/2011 249.3 249.5 4.875% 2019 Senior Notes issued 4/6/2011 448.2 448.3 5.800% 3.8 9.2 $2,284.4 $2,290.6 Other (Leases and Issuance Costs) VRSK-Financial Model_vF NA 2021 NA 9 of 12 Femi Ogunjumo Private and Confidential Financial Statement Analysis for Verisk Analytics, Inc Projected Historical Three Months Ended Mar. 31, Twelve Months Ended Dec. 31, $ in millions, except share and per share amounts 2015 2016 2017 2017 Interest rate Maturity Date 2018 Twelve Months Ended Dec. 31, 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Balance Sheet Schedules (Continued) Outstanding as Outstanding as of 12/31/2017 of 03/31/2018 Projections: Senior Notes issued 5/15/2015 (4%) Beginning of Period + Issuance - Repayment End of Period $890.9 $891.2 4.000% 2025 Interest Expense Projections: Senior Notes issued 5/15/2015 (5.5%) Beginning of Period + Issuance - Repayment End of Period $345.1 $345.2 5.500% $347.1 $347.2 4.125% $249.3 $249.5 4.875% $448.2 $448.3 5.800% $9.2 NA NA Total Long-term Debt Total Interest Expense from Long-Term Debt Cash Interest Income Schedule Cash End of Period Balances Interest Income Total Net Interest Expense/(Income) VRSK-Financial Model_vF $141.9 $138.5 $146.1 $- $891.2 $- $891.2 $- $891.2 $891.2 0.0 (891.2) $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $35.6 $35.6 $35.6 $35.6 $35.6 $35.6 $35.6 $17.8 $0.0 $0.0 $- $345.2 $- $345.2 $- $345.2 $- $345.2 $- $345.2 $- $345.2 $- $345.2 $- $345.2 $- $345.2 $- $345.2 $13.8 $13.8 $13.8 $13.8 $13.8 $13.8 $13.8 $13.8 $13.8 $13.8 $- $347.2 $- $347.2 $- $347.2 $- $347.2 $347.2 0.0 (347.2) $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $13.9 $13.9 $13.9 $13.9 $6.9 $0.0 $0.0 $0.0 $0.0 $0.0 $- $249.5 $249.5 0.0 (249.5) $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $0.0 0.0 0.0 $0.0 $10.0 $5.0 $0.0 $- $448.3 $- $448.3 $- $448.3 $17.9 $17.9 $17.9 $9.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $9.2 $9.2 $9.2 $9.2 $9.2 $9.2 $9.2 $9.2 $9.2 $9.2 $2,- $2,- $2,- $1,- $1,- $1,- $1,- $- $- $- $153.3 1.9 $704.1 5.4 $1,- $2,- $2,- $3,- $4,- $5,- $6,- $7,- $104.3 $80.9 $67.0 $49.5 $26.4 $8.5 2021 Interest Expense $3.8 Projections: Other (Leases and Issuance Costs) Note: Projections assume no change from levels as of period ended 03/31/2018 $- $891.2 2019 Interest Expense Projections: Senior Notes issued 4/6/2011 Beginning of Period + Issuance - Repayment End of Period $- $891.2 2022 Interest Expense Projections: Senior Notes issued 12/8/2011 Beginning of Period + Issuance - Repayment End of Period $- $891.2 2045 Interest Expense Projections: Senior Notes issued 9/12/2012 Beginning of Period + Issuance - Repayment End of Period $- $891.2 $158.6 $153.6 10 of 12 $448.3 0.0 (448.3) $0.0 ($5.4) ($32.5) ($60.6) ($77.3) Femi Ogunjumo Private and Confidential Financial Statement Analysis for Verisk Analytics, Inc Projected Historical Three Months Ended Mar. 31, Twelve Months Ended Dec. 31, $ in millions, except share and per share amounts 2015 2016 2017 $1,330.6 $1,419.1 6.7% 71.1% $1,550.6 9.3% 72.3% 2017 2018 Twelve Months Ended Dec. 31, 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 $1,694.3 9.3% 71.0% $1,783.5 5.3% 69.9% $1,877.4 5.3% 69.0% $1,971.6 5.0% 68.1% $2,065.6 4.8% 67.3% $2,158.9 4.5% 66.5% $2,251.0 4.3% 65.7% $2,341.4 4.0% 65.0% $2,429.6 3.8% 64.3% $2,515.0 3.5% 63.7% 9.3% 5.3% 4.0% 5.3% 0.0% 5.0% 0.3% 4.8% 0.3% 4.5% 0.3% 4.3% 0.3% 4.0% 0.3% 3.8% 0.3% 3.5% 0.3% $-% 21.4% $-% 22.0% $613.0 9.0% 22.5% $665.1 8.5% 23.0% $718.4 8.0% 23.4% $772.2 7.5% 23.8% $826.3 7.0% 24.1% $880.0 6.5% 24.4% $932.8 6.0% 24.7% $984.1 5.5% 24.9% 15.0% 10.0% 5.0% 9.0% 1.0% 8.5% 0.5% 8.0% 0.5% 7.5% 0.5% 7.0% 0.5% 6.5% 0.5% 6.0% 0.5% 5.5% 0.5% $-% 7.5% $-% 8.1% $-% 8.5% $-% 8.9% $-% 9.3% $-% 9.8% $-% 10.2% $381.9 9.5% 10.6% $416.3 9.0% 11.0% $451.7 8.5% 11.4% 20.0% 15.0% 5.0% 12.0% 3.0% 11.5% 0.5% 11.0% 0.5% 10.5% 0.5% 10.0% 0.5% 9.5% 0.5% 9.0% 0.5% 8.5% 0.5% $2,-% 100.0% $2,552.9 7.0% 100.0% $2,722.3 6.6% 100.0% $2,895.3 6.4% 100.0% $3,070.9 6.1% 100.0% $3,248.2 5.8% 100.0% $3,426.1 5.5% 100.0% $3,603.3 5.2% 100.0% $3,778.7 4.9% 100.0% $3,950.8 4.6% 100.0% 2,-% 2,552.1 7.0% 2,721.9 6.7% $-% 11.2% $-% 7.0% $-% 6.6% $1,-% 6.4% $1,-% 6.1% $1,-% 5.8% $1,-% 5.5% $1,-% 5.2% $1,-% 4.9% $1,-% 4.6% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% $-% 13.2% $-% 7.0% $-% 6.6% $-% 6.4% $-% 6.1% $-% 5.8% $-% 5.5% $-% 5.2% $-% 4.9% $-% 4.6% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% $9.2 $9.2 $9.2 $9.2 $9.2 $9.2 $9.2 $9.2 $9.2 $9.2 Income Statement Schedules Revenues from Insurance Segment Growth Rate (%) Memo: Insurance Revenues/Total 75.6% $-% $-% 71.0% Projections: Insurance Segment Growth Rate Growth Rate Steps Revenues from Energy and Specialized Markets Segmen Growth Rate (%) Memo: Energy Revenues/Total $308.8 $-% 22.2% 17.5% $444.6 0.4% 20.7% $-% $-% 21.6% Projections: Energy Segment Growth Rate Growth Rate Steps Revenues from Financial Services Segment Growth Rate (%) Memo: Financial Services Revenues/Total $121.3 $133.3 9.9% 6.7% 6.9% $-% 7.0% $29.4 5.8% $43.1 46.6% 7.4% Projections: Financial Services Segment Growth Rate Growth Rate Steps Total Revenues Growth Rate (%) Contribution % check $1,-% $1,-% 100.0% $2,145.2 7.5% 100.0% $-% $-% 100.0% Memo: Consensus Analyst Projections (Mean) Implied Growth Rate (%) Cost of Revenues Gross Margin (%) Memo: Growth Rate (%) $-% $-% 16.7% $-% 9.7% $-% $-% 20.9% Projections: Gross Margin SG&A SG&A/Revenue (%) Memo: Growth Rate (%) $-% $-% 8.4% $-% 7.0% $75.9 15.1% $91.8 15.8% 20.9% $6.1 $9.2 $1.9 $0.6 ($52.4) 32.5% ($29.3) 18.1% Projections: SG&A/Revenue $102.1 Investment Income (and other) Note: Projections assume no change from levels as of period ended 12/31/2017 Tax Schedule Income Tax Expense Effective Tax Rate ($-% ($-% ($-% ($-% ($-% ($-% ($-% ($-% ($-% ($-% 21.0% 2.6% (2.1%) 0.0% 0.0% 0.0% (0.4%) 21.1% 21.0% 2.6% (2.1%) 0.0% 0.0% 0.0% (0.4%) 21.1% 21.0% 2.6% (2.1%) 0.0% 0.0% 0.0% (0.4%) 21.1% 21.0% 2.6% (2.1%) 0.0% 0.0% 0.0% (0.4%) 21.1% 21.0% 2.6% (2.1%) 0.0% 0.0% 0.0% (0.4%) 21.1% 21.0% 2.6% (2.1%) 0.0% 0.0% 0.0% (0.4%) 21.1% 21.0% 2.6% (2.1%) 0.0% 0.0% 0.0% (0.4%) 21.1% 21.0% 2.6% (2.1%) 0.0% 0.0% 0.0% (0.4%) 21.1% 21.0% 2.6% (2.1%) 0.0% 0.0% 0.0% (0.4%) 21.1% 21.0% 2.6% (2.1%) 0.0% 0.0% 0.0% (0.4%) 21.1% EPS Analysis WASO (basic) (millions- WASO (diluted) (millions- EPS (basic) $2.95 $2.68 $3.36 $0.65 $0.81 $3.61 $4.09 $4.46 $4.90 EPS (diluted) $2.89 $2.64 $3.29 $0.64 $0.79 $3.52 $3.99 $4.36 $4.79 Memo: Growth Rate (Diluted EPS)(%) (8.9%) 24.8% 23.1% 7.0% 13.4% 9.2% 9.8% Note: Projections assume no change from levels as of period ended 03/31/2018 (i.e. share repurchases are used to offset dilution from issuance of shares under existing equity incentive plans) - $5.37 $5.24 9.5% - $5.76 $5.62 7.2% - $6.12 $5.98 6.3% - $6.54 $6.39 6.9% - $6.96 $6.80 6.4% - $7.33 $7.16 5.3% Federal Statutory Rate State and Local Taxes, net of Fed Tax Benefit Foreign Tax Differentials Federal Tax Reform-deferred rate change U.K. Legislative Change Stock-based Compensation Other Effective Tax Rate VRSK-Financial Model_vF ($-% ($-% ($-% 35.0% 2.6% (6.8%) 0.0% (2.1%) 0.0% 0.0% 28.7% 35.0% 2.7% (4.7%) 0.0% (1.0%) 0.0% (1.1%) 30.9% 35.0% 2.6% (2.1%) (12.9%) 0.0% (2.5%) (0.4%) 19.7% 11 of 12 Femi Ogunjumo Private and Confidential Financial Statement Analysis for Verisk Analytics, Inc Projected Historical Three Months Ended Mar. 31, Twelve Months Ended Dec. 31, $ in millions, except share and per share amounts 2015 2016 2017 2017 2018 Twelve Months Ended Dec. 31, 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Key Financial Ratios Growth Rates Revenue 13.3% 7.5% 15.6% 11.2% 7.0% 6.6% 6.4% 6.1% 5.8% 5.5% 5.2% 4.9% Revenue CAGR (10-year) 4.6% 6.3% EBITDA 9.9% 4.3% 9.4% 10.5% 7.0% 6.6% 6.3% 6.0% 5.7% 5.4% 5.1% 4.8% 4.5% 9.1% 4.4% 3.6% 6.0% 9.1% 7.0% 7.4% 7.0% 5.5% 5.2% 4.8% 4.5% 4.4% (7.4%) 22.9% 22.2% 7.2% 13.4% 9.2% 9.8% 9.5% 7.2% 6.3% 6.9% 6.4% EBITDA CAGR (10-year) 6.2% Operating Income Operating Income CAGR (10-year) 6.1% Net Income Net Income CAGR (10-year) 5.3% 8.1% Assets (17.2%) 30.0% 31.5% 1.7% 8.2% 12.6% 5.9% 8.1% 12.1% 11.6% 2.5% 11.4% 10.6% Equity (2.9%) 44.5% 57.6% 39.7% 26.6% 22.8% 20.3% 18.4% 16.6% 15.1% 14.0% 13.0% 12.1% 64.2% 63.5% 61.9% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% 63.5% Margins Gross Profit 65.2% 63.6% EBITDA 51.9% 50.4% 48.8% 48.9% 46.2% 48.5% 48.5% 48.5% 48.5% 48.4% 48.4% 48.4% 48.4% 48.4% 48.4% Operating 40.0% 38.5% 37.3% 37.3% 33.5% 35.6% 36.3% 36.4% 36.8% 37.1% 37.0% 36.9% 36.8% 36.7% 36.6% Pre-tax Earnings 38.9% 32.8% 32.2% 32.1% 27.9% 31.6% 33.5% 34.3% 35.4% 36.6% 37.1% 37.4% 38.0% 38.5% 38.8% Net Income 27.7% 22.6% 25.9% 21.6% 22.9% 24.9% 26.4% 27.1% 27.9% 28.9% 29.2% 29.5% 30.0% 30.4% 30.6% Return on Average Equity 33.4% 34.1% 25.8% 22.1% 19.4% 17.6% 16.1% 14.7% 13.5% 12.6% 11.8% 11.1% Return on Average Assets 8.8% 10.4% 9.8% 10.6% 10.5% 10.5% 10.8% 10.5% 10.0% 10.0% 9.9% 9.4% Returns Segment Revenue Contribution Insurance Revenues/Total 75.6% 71.1% 72.3% 73.0% 71.0% 71.0% 69.9% 69.0% 68.1% 67.3% 66.5% 65.7% 65.0% 64.3% 63.7% Energy & Specialized Markets Revenues/Total 17.5% 22.2% 20.7% 21.2% 21.6% 21.4% 22.0% 22.5% 23.0% 23.4% 23.8% 24.1% 24.4% 24.7% 24.9% 6.9% 6.7% 7.0% 5.8% 7.4% 7.5% 8.1% 8.5% 8.9% 9.3% 9.8% 10.2% 10.6% 11.0% 11.4% Financial Services Revenues/Total Leverage Total Debt/EBITDA 3.4x 2.4x 2.9x Debt/Total Capitalization 0.7x 0.6x 0.6x VRSK-Financial Model_vF 0.6x 0.6x 2.0x 1.6x 1.5x 1.1x 0.8x 0.8x 0.8x 0.2x 0.2x 0.2x 0.5x 0.4x 0.3x 0.2x 0.2x 0.2x 0.1x 0.0x 0.0x 0.0x 12 of 12 Femi Ogunjumo