GlobeNewswire Inc | Feb 23, 2021 04:10PM EST

February 23, 2021

-- Consolidated revenues were $713 million for the fourth quarter of 2020, up 5.4%, and up 3.5% on an organic constant currency (OCC) basis.

-- Net income was $176 million for the fourth quarter of 2020, up 33.3%. Adjusted EBITDA, a non-GAAP measure, was $344 million, up 7.9%, and up 4.9% on an OCC basis.

-- Diluted GAAP earnings per share (GAAP EPS) were $1.07 for the fourth quarter of 2020. Diluted adjusted earnings per share (adjusted EPS), a non-GAAP measure, were $1.27.

-- Net cash provided by operating activities was $248.9 million for the fourth quarter of 2020, up 41.1%. Free cash flow, a non-GAAP measure, was $176.5 million, up 57.0%.

-- We paid a cash dividend of 27 cents per share on December 31, 2020. Our Board of Directors has approved an increase in our cash dividend to 29 cents per share payable on March 31, 2021.

-- We repurchased $50 million of our shares in the fourth quarter of 2020.

JERSEY CITY, N.J., Feb. 23, 2021 (GLOBE NEWSWIRE) -- Verisk (Nasdaq:VRSK), a leading data analytics provider, today announced results for the fourth quarter and fiscal year ended December 31, 2020.

Scott Stephenson, chairman, president, and CEO, said, Despite the broader economic challenges the pandemic continues to present, Verisk delivered another year of strong organic constant currency revenue and adjusted EBITDA growth in 2020. These results demonstrate the resiliency and stability of our business model, the valuable impact of our technology and insights to customers, and the commitment of our more than 9,000 Verisk teammates to support our customers through an unprecedented period of digital transformation. We continue to have strong conviction in our long-term growth strategy and our plans to create durable shareholder value.

Lee Shavel, CFO and grouppresident, said, Verisk delivered organic constant currency revenue growth of 3.5% and organic constant currency adjusted EBITDA growth of 4.9% in the fourth quarter, led by continued strength in our insurance business. During the year we generated $821million in free cash flow, allowing us to continue to invest in our high growth, high return on investment projects while also returning capital to shareholders through repurchases and our dividend. Our dividend increase of 7.4% underscores our confidence in the long-term growth of our business and our capital management discipline.

Summary of Results (GAAP and Non-GAAP)(in millions, except per share amounts)Note: Adjusted EBITDA, diluted adjusted EPS, and free cash flow are non-GAAP measures.

Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 Change 2020 2019 Change Revenues $ 713.3 $ 676.8 5.4 % $ 2,784.6 $ 2,607.1 6.8 %Net income $ 176.2 $ 132.2 33.3 % $ 712.7 $ 449.9 58.4 %Adjusted $ 344.0 $ 318.8 7.9 % $ 1,376.5 $ 1,224.1 12.4 %EBITDADiluted $ 1.07 $ 0.80 33.8 % $ 4.31 $ 2.70 59.6 %GAAP EPSDilutedadjusted $ 1.27 $ 1.13 12.4 % $ 5.04 $ 4.38 15.1 %EPSNet cashprovidedby $ 248.9 $ 176.4 41.1 % $ 1,068.2 $ 956.3 11.7 %operatingactivitiesFree cash $ 176.5 $ 112.4 57.0 % $ 821.4 $ 739.5 11.1 %flow

RevenuesConsolidated revenues increased 5.4% for fourth-quarter 2020and 3.5% on an OCC basis.

We haveanalyzed oursolutions and services to assess the impact of COVID-19 on ourrevenue streams. Wehavenot identified any material impact stemming fromCOVID-19 on approximately 85% of ourrevenues at this point, as much of these revenues are subscription-based and subject to long-term contracts. These revenues increased 6.5% on an OCC basis in the fourth quarter of 2020. Of the remaining 15%, we haveidentified specific solutions and services, largely transactional in nature, that are being negatively impacted by COVID-19. These revenues declined 12.5%on an OCC basis in fourth-quarter 2020compared to the prior-year period.

Revenues and Revenue Growth by Segment(in millions)

Revenue Growth Three Months Ended Three Months Ended December 31, December 31, 2020 2020 2019 Reported OCC Underwriting & $ 355.1 $ 321.2 10.6 % 6.8 %ratingClaims 156.8 150.4 4.2 % 8.8 %Insurance 511.9 471.6 8.5 % 7.4 %Energy and 163.3 157.8 3.5 % (3.9 )%Specialized MarketsFinancial Services 38.1 47.4 (19.6 )% (13.0 )%Revenues $ 713.3 $ 676.8 5.4 % 3.5 %

Revenue Growth Twelve Months Ended Twelve Months Ended December 31, December 31, 2020 2020 2019 Reported OCC Underwriting & $ 1,390.6 $ 1,254.3 10.9 % 6.7 %ratingClaims 595.7 610.9 (2.5 )% 2.1 %Insurance 1,986.3 1,865.2 6.5 % 5.3 %Energy andSpecialized 641.6 563.9 13.8 % (1.3 )%MarketsFinancial 156.7 178.0 (12.0 )% (3.0 )%ServicesRevenues $ 2,784.6 $ 2,607.1 6.8 % 3.3 %

Insurance segment revenues grew 8.5% in the fourth quarter of 2020and 7.4% on an OCC basis.

-- Underwriting & rating revenues increased 10.6% in the quarter and 6.8% on an OCC basis,resulting primarily from annual increasesin prices derived from continued enhancements to the content of thesolutions within ourindustry-standard insurance programs, as well as selling expanded solutions to existing customers in commercial and personal lines. In addition, catastrophe modeling services contributed to the growth. These increases were partially offset by a decrease in certain transactional revenues.

-- Claims revenue grew 4.2% in the quarter and increased 8.8% on an OCC basis. Growth was primarily driven by repair cost estimating solutions revenue, claims analytics revenue, and workers compensation claims resolution services.

Energy and Specialized Markets segment revenue increased 3.5% in the quarter and declined 3.9% on an OCC basis. The Genscape acquisition, environmental health and safety service solutions andcore researchcontributed to the growth. The decrease inthe segment was primarily due todeclines in consulting revenues in connection with the COVID-19 pandemic anddeclines in cost intelligence solutions' implementation projects that did not reoccur.

Financial Services segment revenue decreased 19.6% in the quarter and 13.0% on an OCC basis, primarily the result of lower levels of project spending from our bank customers stemming from the COVID-19 pandemic. Energy and Specialized Markets segment revenue increased 3.5% in the quarter and declined 3.9% on an OCC basis. The Genscape acquisition, environmental health and safety service solutions andcore researchcontributed to the growth. The decrease inthe segment was primarily due todeclines in consulting revenues in connection with the COVID-19 pandemic anddeclines in cost intelligence solutions' implementation projects that did not reoccur.

Net Income and Adjusted EBITDADuring fourth-quarter 2020, net income increased 33.3%. Adjusted EBITDA increased 7.9%, and 4.9% on an OCC basis.

EBITDA and Adjusted EBITDA by Segment(in millions)Note: Consolidated EBITDA and adjusted EBITDA are non-GAAP measures. Margin is calculated as a percentage of revenues.

Three months ended December 31, EBITDA EBITDA Margin Adjusted EBITDA Adjusted EBITDA Growth Adjusted EBITDA Margin 2020 2019 2020 2019 2020 2019 2020 2020 OCC 2020 2019 ReportedInsurance $ 283.1 $ 238.2 55.3 % 50.5 % $ 282.6 $ 247.7 14.1 % 12.2 % 55.2 % 52.5 %Energy andSpecialized 51.3 33.5 31.4 21.3 51.3 52.0 (1.4 ) (19.5 ) 31.4 32.9 MarketsFinancial 10.1 19.1 26.6 40.3 10.1 19.1 (47.0 ) (28.1 ) 26.6 40.3 ServicesConsolidated $ 344.5 $ 290.8 48.3 43.0 $ 344.0 $ 318.8 7.9 4.9 48.2 47.1

Twelve months ended December 31, EBITDA EBITDA Margin Adjusted EBITDA Adjusted EBITDA Growth Adjusted EBITDA Margin 2020 2019 2020 2019 2020 2019 2020 2020 2020 2019 Reported OCCInsurance $ 1,129.3 $ 823.3 56.9 % 44.1 % $ 1,115.5 $ 980.4 13.8 % 12.5 % 56.2 % 52.6 %Energy and Specialized 216.8 141.2 33.8 25.0 216.8 183.1 18.5 (0.9 ) 33.8 32.5 MarketsFinancial Services 47.7 54.4 30.4 30.6 44.2 60.6 (27.2 ) (3.7 ) 28.2 34.1 Consolidated $ 1,393.8 $ 1,018.9 50.1 39.1 $ 1,376.5 $ 1,224.1 12.4 9.8 49.4 47.0

Earnings Per ShareDiluted EPS increased33.8% to $1.07 for the fourth quarter of 2020primarily dueto a decrease in acquisition-related costs (earn-outs) and a lower effective tax rate.

Diluted adjusted EPS grew 12.4% to $1.27 for the fourth quarter of 2020, reflecting cost disciplinein the business, a reduction in travel expenses as a result of COVID-19,and a lower average share count.

Cash FlowNet cash provided by operating activities was $248.9million for the fourth quarter of 2020, up 41.1%. Capital expenditures were $72.4million for the fourth quarter of 2020, up13.1%. Free cash flow was $176.5million for the fourth quarter of 2020, up 57.0%, primarily due to an increase in collections, a reduction in income tax payments primarily due to an increase in deductible stock option exercises, the deferral of certain employer payroll taxes resulting from the CARES Act, and a reduction in travel payments as a result of COVID-19.

Free cash flow represented 51.3% of adjusted EBITDA for the fourth quarter of 2020, compared with 35.3% in the prior-year period.

DividendOn December 31, 2020, wepaid a cash dividend of 27cents per share of common stock issued and outstanding to the holders of record as of December15, 2020.

On February 17, 2021, our Board of Directors approved a 7.4% increase in our cash dividend to 29 cents per share of common stock issued and outstanding, payable on March 31, 2021, to holders of record as of March 15, 2021.

Share RepurchasesWe repurchased approximately 260thousand shares through an accelerated share repurchase (ASR) programat an average price of $190.19, for a total cost of $50million for the fourth quarter of 2020. We also entered into an additional $50million ASR agreement; the associated shares will be delivered and settled in March 2021. At December31, 2020, we had $279million remaining under ourshare repurchase authorization. On February 16, 2021, our Board of Directors approved an additional authorization of $300 million.

Conference CallOur management team will host a live audio webcast on Wednesday, February 24, 2021, at 8:30 a.m. EST (5:30 a.m. PST, 1:30 p.m. GMT) to discuss the financial results and business highlights. All interested parties are invited to listen to the live event via webcast on our investor website at http://investor.verisk.com. The discussion is also available through dial-in number 1-877-755-3792 for U.S./Canada participants or 1-512-961-6560 for international participants.

A replay of the webcast will be available for 30 days on our investor website and also through the conference call number 1-855-859-2056 for U.S./Canada participants or 1-404-537-3406 for international participants using conference ID #5731667.

About VeriskWe (Nasdaq:VRSK) providepredictive analytics and decision support solutions to customers in the insurance, energy and specialized markets, and financial services industries. More than 70 percent of the FORTUNE 100 uses our advanced technologies to manage risks, make better decisions and improve operating efficiency. Our analytic solutions address insurance underwriting and claims, fraud, regulatory compliance, natural resources, catastrophes, economic forecasting, geopolitical risks, as well as environmental, social, and governance (ESG) matters. Celebrating our50th anniversary, wecontinueto make the world better, safer, and stronger, and fosteran inclusive and diverse culture where all team members feel they belong. With more than 100 offices in nearly 35 countries, weconsistently earn certification by Great Place to Work.For more, please visit ourwebsite at http://verisk.comor follow oursocial media profiles on LinkedIn, Twitter, Facebook, and YouTube.

Contact:

Investor RelationsStacey BrodbarHead of Investor RelationsVerisk201-469-4327IR@verisk.com

MediaAlberto CanalVerisk201-469-2618Alberto.Canal@verisk.com

Forward-Looking StatementsThis release contains forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. This includes, but is not limited to, ourexpectation and ability to pay a cash dividend on ourcommon stock in the future, subject to the determination by ourBoard of Directors and based on an evaluation of our earnings, financial condition and requirements, business conditions, capital allocation determinations, and other factors, risks, and uncertainties. In some cases, you can identify forward-looking statements by the use of words such as may, could, expect, intend, plan, target, seek, anticipate, believe, estimate, predict, potential, or continue or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements, because they involve known and unknown risks, uncertainties, and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements.

Other factors that could materially affect actual results, levels of activity, performance, or achievements can be found in our quarterly reports on Form 10-Q, annual reports on Form 10-K, and current reports on Form 8-K filed with the Securities and Exchange Commission. If any of these risks or uncertainties materialize or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement in this release reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise.

Notes Regarding the Use of Non-GAAP Financial Measures

We haveprovided certain non-GAAP financial information as supplemental information regarding ouroperating results. These measures are not in accordance with, or an alternative for, U.S. GAAP and may be different from non-GAAP measures reported by other companies. We believethat ourpresentation of non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. In addition, our management uses these measures for reviewing our financial results,for budgeting and planning purposes, and for evaluating the performance of senior management.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA Expenses: EBITDA represents GAAP net income adjusted for (i) depreciation and amortization of fixed assets; (ii) amortization of intangible assets; (iii) interest expense; and (iv) provision for income taxes. Adjusted EBITDA represents EBITDA adjusted for acquisition-related costs (earn-outs), gain/loss from dispositions (which includes businesses held for sale), nonrecurring gain/loss, and interest income on the subordinated promissory note. Adjusted EBITDA expenses represent adjusted EBITDA net of revenues. We believethese measures are useful and meaningful because they allow for greater transparency regarding our operating performance and facilitate period-to-period comparison.

Adjusted Net Income and Diluted Adjusted EPS: Adjusted net income represents GAAP net income adjusted for (i) amortization of intangible assets, net of tax; (ii) acquisition-related costs (earn-outs), net of tax; (iii) gain/loss from dispositions (which includes businesses held for sale), net of tax;(iv) nonrecurring gain/loss, net of tax; and (v) interest income on the subordinated promissory note, net of tax.Diluted adjusted EPS represents adjusted net income divided by weighted-average diluted shares. We believethese measures are useful and meaningful because they allow evaluation of the after-tax profitability of ourresults excluding the after-tax effect of acquisition-related costs and nonrecurring items.

Free Cash Flow: Free cash flow represents net cash provided by operating activities determined in accordance with GAAP minus payments for capital expenditures. We believefree cash flow is an important measure of the recurring cash generated by our operations that may be available to repay debt obligations, repurchase our stock, invest in future growth through new business development activities, or make acquisitions.

Organic Constant Currency (OCC): Our operating results, such as, but not limited to, revenue and adjusted EBITDA, reported in U.S. dollars are affected by foreign currency exchange rate fluctuations because the underlying foreign currencies in which wetransactchanges in value over time compared with the U.S. dollar; accordingly, wepresentcertain constant currency financial information to assess how we performed excluding the impact of foreign currency exchange rate fluctuations.We calculateconstant currency by translating comparable prior-year-period results at the currency exchange rates used in the current period. We defineorganic as operating results excluding the effect of recent acquisitions and dispositions (which include businesses held for sale) that have occurred over the past year.An acquisition is included as organic at the beginning of the calendar quarter that occurs subsequent to the one-year anniversary of the acquisition date.Once an acquisition is included in its current-period organic base, its comparable prior-year-period operating results are also included to calculate organic growth. A disposition (which includes a business held for sale) is excluded from organic at the beginning of the calendar quarter in which the disposition occurs (or when a business meets the held-for-sale criteria under U.S. GAAP).Once a disposition is excluded from its current-period organic base, its comparable prior-year-period operating results are also excluded to calculate organic growth. The organic presentation enables investors to assess the growth of the business without the impact of recent acquisitions for which there is no prior-year comparison. A dispositions results are removed from all prior periods presented to allow for comparability. We believeorganic constant currency is a useful and meaningful measure to enhance investors understanding of the continuing operating performance of ourbusiness and to facilitate the comparison of period-to-period performance because it excludes the impact of foreign exchange rate movements, acquisitions, and dispositions.

See page 10for a reconciliation of consolidated adjusted EBITDA, and asegment results summary and a reconciliation of adjusted EBITDA.See page 11for a reconciliation of segment adjusted EBITDA margin, areconciliation of adjusted EBITDA expenses,and a reconciliation of diluted adjusted EPS. See page 12for a reconciliation of net cash provided by operating activities to free cash flow.

Attached Financial Statements

Please refer to the full Form 10-K filing for the complete financial statements and related notes.

VERISK ANALYTICS, INC.CONSOLIDATED BALANCE SHEETSAs of December31, 2020and 2019

2020 2019 (in millions, except for share and per share data)ASSETS: Current assets: Cash and cash equivalents $ 218.8 $ 184.6 Accounts receivable, net 432.4 441.6 Prepaid expenses 81.2 60.9 Income taxes receivable 25.4 25.9 Other current assets 36.4 17.8 Current assets held for sale ? 14.1 Total current assets 794.2 744.9 Noncurrent assets: Fixed assets, net 632.3 548.1 Operating lease right-of-use assets, net 267.6 218.6 Intangible assets, net 1,384.8 1,398.9 Goodwill 4,108.1 3,864.3 Deferred income tax assets 9.1 9.8 Other noncurrent assets 365.7 159.8 Noncurrent assets held for sale ? 110.8 Total assets $ 7,561.8 $ 7,055.2 LIABILITIES AND STOCKHOLDERS? EQUITY: Current liabilities: Accounts payable and accrued liabilities $ 406.7 $ 375.0 Acquisition-related liabilities 0.6 111.2 Short-term debt and current portion of long-term 514.3 499.4 debtDeferred revenues 466.7 440.1 Operating lease liabilities 38.7 40.6 Income taxes payable 3.8 6.8 Current liabilities held for sale ? 18.7 Total current liabilities 1,430.8 1,491.8 Noncurrent liabilities: Long-term debt 2,699.6 2,651.6 Deferred income tax liabilities 396.9 356.0 Operating lease liabilities 271.6 208.1 Other noncurrent liabilities 64.7 48.8 Noncurrent liabilities held for sale ? 38.1 Total liabilities 4,863.6 4,794.4 Commitments and contingencies Stockholders? equity: Common stock, $.001 par value; 2,000,000,000shares authorized; 544,003,038 shares issued; 0.1 0.1 162,817,526 and 163,161,564 shares outstanding,respectivelyAdditional paid-in capital 2,490.9 2,369.1 Treasury stock, at cost, 381,185,512 and (4,179.3 ) (3,849.9 )380,841,474 shares, respectivelyRetained earnings 4,762.2 4,228.4 Accumulated other comprehensive loss (375.7 ) (486.9 )Total stockholders? equity 2,698.2 2,260.8 Total liabilities and stockholders? equity $ 7,561.8 $ 7,055.2

VERISK ANALYTICS, INC.CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three and Twelve Months Ended December31, 2020and 2019

Three Months Ended December 31, Twelve Months Ended December 31, 2020 2019 2020 2019 (in millions, except for share and per share data) Revenues $ 713.3 $ 676.8 $ 2,784.6 $ 2,607.1 Operating expenses:Cost of revenues(exclusive ofitems shown 260.5 259.8 993.9 976.8 separatelybelow)Selling, generaland 109.0 124.8 413.9 603.5 administrativeDepreciation andamortization of 50.8 47.7 192.2 185.7 fixed assetsAmortization ofintangible 42.3 37.9 165.9 138.0 assetsOther operating ? ? (19.4 ) 6.2 (income) lossTotal operating 462.6 470.2 1,746.5 1,910.2 expensesOperating income 250.7 206.6 1,038.1 696.9 Other income (expense):Investmentincome (loss) 0.7 (1.4 ) (2.4 ) (1.7 )and others, netInterest expense (35.4 ) (33.1 ) (138.2 ) (126.8 )Total other (34.7 ) (34.5 ) (140.6 ) (128.5 )expense, netIncome before 216.0 172.1 897.5 568.4 income taxesProvision for (39.8 ) (39.9 ) (184.8 ) (118.5 )income taxesNet income $ 176.2 $ 132.2 $ 712.7 $ 449.9 Basic net income $ 1.08 $ 0.81 $ 4.38 $ 2.75 per shareDiluted net $ 1.07 $ 0.80 $ 4.31 $ 2.70 income per shareWeighted-averageshares outstanding:Basic 162,673,926 163,289,013 162,610,586 163,535,438 Diluted 164,723,137 166,218,621 165,320,709 166,560,115



VERISK ANALYTICS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Years Ended December31, 2020and 2019

Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 (in millions) Cash flows from operating activities:Net income $ 176.2 $ 132.2 $ 712.7 $ 449.9 Adjustments to reconcilenet income to net cash provided by operatingactivities:Depreciation andamortization of fixed 50.8 47.7 192.2 185.7 assetsAmortization of intangible 42.3 37.9 165.9 138.0 assetsAmortization of debtissuance costs andoriginal issue discount, 0.5 0.4 1.8 3.9 net of original issuepremiumProvision for doubtful 6.3 2.1 13.1 7.2 accountsOther operating (income) ? ? (19.4 ) 6.2 expensesStock-based compensation 8.5 6.3 47.6 42.7 expenseRealized gain onavailable-for-sale ? (0.2 ) ? (0.9 )securities, netDeferred income taxes 20.2 (1.9 ) 31.1 (29.3 )Loss on disposal of fixed 0.1 0.3 0.6 0.3 assets, netChanges in assets andliabilities, net of effects from acquisitions:Accounts receivable 5.4 (15.8 ) 1.8 (70.3 )Prepaid expenses and other (4.4 ) 0.2 (66.5 ) (19.7 )assetsOperating lease 14.5 22.8 43.1 51.3 right-of-use assets, netIncome taxes (3.8 ) 1.1 (0.5 ) 15.0 Acquisition-related (13.6 ) 29.9 (77.0 ) 70.4 liabilitiesAccounts payable and 36.4 (1.8 ) 24.3 150.9 accrued liabilitiesDeferred revenues (73.1 ) (60.1 ) 21.2 11.4 Operating lease (13.0 ) (22.3 ) (29.6 ) (49.5 )liabilitiesOther liabilities (4.4 ) (2.4 ) 5.8 (6.9 )Net cash provided by 248.9 176.4 1,068.2 956.3 operating activitiesCash flows from investing activities:Acquisitions, net of cashacquired of $5.9 and $3.6, (123.9 ) (589.7 ) (275.8 ) (699.2 )and $11.1 and $10.4,respectivelyProceeds from sale of ? ? 23.1 ? assetsInvestments in non-public (31.0 ) ? (94.8 ) ? companiesEscrow funding associated (1.3 ) ? (9.3 ) (4.5 )with acquisitionsCapital expenditures (72.4 ) (64.0 ) (246.8 ) (216.8 )Other investing (2.5 ) 0.3 7.8 (7.4 )activities, netNet cash used in investing (231.1 ) (653.4 ) (595.8 ) (927.9 )activities

Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 (in millions) Cash flows from financing activities:Proceeds (repayment) of 50.0 485.0 (445.0 ) 80.0 short-term debt, netRepayments of current ? ? ? (250.0 )portion of long-term debtProceeds from issuance oflong-term debt, inclusive oforiginal issue premium and ? ? 494.8 619.7 net of original issuediscountProceeds from issuance ofshort-term debt with ? ? 20.0 ? original maturities greaterthan three monthsRepayment of short-term debtwith original maturities ? ? (20.0 ) ? greater than three monthsPayment of debt issuance ? (1.0 ) (5.7 ) (6.3 )costsRepurchases of common stock (50.0 ) (100.0 ) (348.8 ) (300.0 )Net share settlement oftaxes from restricted stock (0.6 ) (0.4 ) (4.1 ) (5.5 )awardsPayment of contingentliability related to ? ? (34.2 ) ? acquisitionProceeds from stock options 19.7 6.6 88.0 52.4 exercisedDividends paid (44.0 ) (40.8 ) (175.8 ) (163.5 )Other financing activities, (1.4 ) (3.7 ) (14.4 ) (15.9 )netNet cash (used in) provided (26.3 ) 345.7 (445.2 ) 10.9 by financing activitiesEffect of exchange rate 5.5 4.4 6.7 6.1 changesNet (decrease) increase incash and cash equivalents,including cash classified (3.0 ) (126.9 ) 33.9 45.4 within current assets heldfor saleLess: (Decrease) increase incash classified within ? (0.3 ) 0.3 (0.3 )current assets held for sale(Decrease) increase in cash (3.0 ) (127.2 ) 34.2 45.1 and cash equivalentsCash and cash equivalents, 221.8 311.8 184.6 139.5 beginning of periodCash and cash equivalents, $ 218.8 $ 184.6 $ 218.8 $ 184.6 end of periodSupplemental disclosures: Income taxes paid $ 23.7 $ 40.9 $ 156.5 $ 139.8 Interest paid $ 51.4 $ 42.7 $ 134.3 $ 119.9 Noncash investing and financing activities:Debt issuance costs includedin accounts payable and $ ? $ 1.3 $ ? $ ? accrued liabilitiesDeferred tax liabilityestablished on date of $ 11.2 $ 40.6 $ 13.0 $ 43.4 acquisitionsRight-of-use assets obtainedin exchange for new $ ? $ ? $ ? $ 247.6 operating lease liabilitiesFinance lease additions $ 5.5 $ 1.0 $ 30.9 $ 20.2 Operating lease additions, $ 40.3 $ 10.4 $ 87.8 $ 13.7 net of terminationsTenant improvement includedin operating lease $ 0.1 $ 0.1 $ ? $ 1.7 right-of-use assets, netGain on sale of assetsincluded in other current $ ? $ ? $ 3.5 $ ? and long term assetsFixed assets included inaccounts payable and accrued $ 0.3 $ 1.6 $ 0.8 $ 1.6 liabilitiesNon-cash contribution ofassets for a non-public $ ? $ ? $ 65.9 $ ? companyDividend payable included in $ 0.2 $ 0.6 $ 0.7 $ 0.6 other liabilities

Non-GAAP ReconciliationsConsolidated Adjusted EBITDA Reconciliation(in millions)Note: Adjusted EBITDA is a non-GAAP measure. Margin is calculated as a percentage of consolidated revenues.

Three Months Ended December 31, Twelve Months Ended December 31, 2020 2019 2020 2019 Total Margin Total Margin Total Margin Total Margin Net income $ 176.2 24.7 % $ 132.2 19.6 % $ 712.7 25.6 % $ 449.9 17.3 %Depreciation andamortization of 50.8 7.1 47.7 7.0 192.2 6.9 185.7 7.1 fixed assetsAmortization of 42.3 5.9 37.9 5.6 165.9 6.0 138.0 5.3 intangible assetsInterest expense 35.4 5.0 33.1 4.9 138.2 5.0 126.8 4.9 Provision for 39.8 5.6 39.9 5.9 184.8 6.6 118.5 4.5 income taxesEBITDA 344.5 48.3 290.8 43.0 1,393.8 50.1 1,018.9 39.1 Litigation reserve ? ? ? ? ? ? 125.0 4.8 Acquisition-related (0.5 ) (0.1 ) 28.0 4.1 2.1 0.1 74.0 2.9 costs (earn-outs)(Gain) loss from ? ? ? ? (19.4 ) (0.8 ) 6.2 0.2 dispositionsAdjusted EBITDA 344.0 48.2 318.8 47.1 1,376.5 49.4 1,224.1 47.0 Adjusted EBITDAfrom acquisitions (11.9 ) 1.5 (6.1 ) 1.6 (44.3 ) 1.6 (14.5 ) 0.8 and dispositionsOrganic adjusted 332.1 49.7 $ 312.7 48.7 1,332.2 51.0 $ 1,209.6 47.8 EBITDA

Segment Results Summary and Adjusted EBITDA Reconciliation(in millions)Note: Organic revenues and adjusted EBITDA are non-GAAP measures.

Three Months Ended December 31, 2020 Three Months Ended December 31, 2019 Energy and Financial Energy and Financial Insurance Specialized Services Insurance Specialized Services Markets MarketsRevenues $ 511.9 $ 163.3 $ 38.1 $ 471.6 $ 157.8 $ 47.4 Revenues fromacquisitions and (20.4 ) (23.6 ) (0.7 ) (14.9 ) (14.8 ) (4.5 )dispositionsOrganic revenues $ 491.5 $ 139.7 $ 37.4 $ 456.7 $ 143.0 $ 42.9 EBITDA $ 283.1 $ 51.3 $ 10.1 $ 238.2 $ 33.5 $ 19.1 Acquisition-related (0.5 ) ? ? 9.5 18.5 ? costs (earn-outs)Adjusted EBITDA 282.6 51.3 10.1 247.7 52.0 19.1 Adjusted EBITDAfrom acquisitions (4.8 ) (8.6 ) 1.5 0.2 (2.8 ) (3.5 )and dispositionsOrganic adjusted $ 277.8 $ 42.7 $ 11.6 $ 247.9 $ 49.2 $ 15.6 EBITDA

Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Energy and Financial Energy and Financial Insurance Specialized Services Insurance Specialized Services Markets MarketsRevenues $ 1,986.3 $ 641.6 $ 156.7 $ 1,865.2 $ 563.9 $ 178.0 Revenues fromacquisitions and (68.5 ) (98.3 ) (3.1 ) (44.0 ) (14.8 ) (19.2 )dispositionsOrganic revenues $ 1,917.8 $ 543.3 $ 153.6 $ 1,821.2 $ 549.1 $ 158.8 EBITDA $ 1,129.3 $ 216.8 $ 47.7 $ 823.3 $ 141.2 $ 54.4 Litigation reserve ? ? ? 125.0 ? ? Acquisition-related 2.1 ? ? 32.1 41.9 ? costs (earn-outs)(Gain) loss from (15.9 ) ? (3.5 ) ? ? 6.2 dispositionsAdjusted EBITDA 1,115.5 216.8 44.2 980.4 183.1 60.6 Adjusted EBITDAfrom acquisitions (12.8 ) (33.8 ) 2.3 (0.4 ) (1.5 ) (12.6 )and dispositionsOrganic adjusted $ 1,102.7 $ 183.0 $ 46.5 $ 980.0 $ 181.6 $ 48.0 EBITDA



Segment Adjusted EBITDA Margin ReconciliationNote: Segment adjusted EBITDA margin is calculated as a percentage of respective segment revenues.

Three Months Ended December 31, 2020 Three Months Ended December 31, 2019 Energy and Financial Energy and Financial Insurance Specialized Services Insurance Specialized Services Markets MarketsEBITDA margin 55.3 % 31.4 % 26.6 % 50.5 % 21.3 % 40.3 %Acquisition-related (0.1 ) ? ? 2.0 11.6 ? costs (earn-outs)Adjusted EBITDA 55.2 31.4 26.6 52.5 32.9 40.3 margin

Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Energy and Financial Energy and Financial Insurance Specialized Services Insurance Specialized Services Markets MarketsEBITDA margin 56.9 % 33.8 % 30.4 % 44.1 % 25.0 % 30.6 %Litigation reserve ? ? ? 6.7 ? ? Acquisition-related 0.1 ? ? 1.8 7.5 ? costs (earn-outs)(Gain) loss from (0.8 ) ? (2.2 ) ? ? 3.5 dispositionsAdjusted EBITDA 56.2 33.8 28.2 52.6 32.5 34.1 margin

Consolidated Adjusted EBITDA Expense Reconciliation(in millions)Note: Adjusted EBITDA expenses are a non-GAAP measure.

Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 Operating expenses $ 462.6 $ 470.2 $ 1,746.5 $ 1,910.2 Depreciation and amortization of (50.8 ) (47.7 ) (192.2 ) (185.7 )fixed assetsAmortization of intangible (42.3 ) (37.9 ) (165.9 ) (138.0 )assetsInvestment (income) loss and (0.7 ) 1.4 2.4 1.7 others, netLitigation reserve ? ? ? (125.0 )Acquisition-related costs 0.5 (28.0 ) (2.1 ) (74.0 )(earn-outs)Gain (loss) from dispositions ? ? 19.4 (6.2 )Adjusted EBITDA expenses $ 369.3 $ 358.0 $ 1,408.1 $ 1,383.0

Diluted Adjusted EPS Reconciliation (in millions, except per share amounts)Note: Diluted adjusted EPS is a non-GAAP measure.

Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 Net income $ 176.2 $ 132.2 $ 712.7 $ 449.9 plus: Amortization of 42.3 37.9 165.9 138.0 intangiblesless: Income tax effect on (9.3 ) (8.0 ) (36.5 ) (29.0 )amortization of intangiblesplus: Litigation reserve ? ? ? 125.0 less: Income tax effect on ? ? ? (29.9 )litigation reserveplus: Acquisition-related costsand interest expense (0.5 ) 28.2 2.1 75.1 (earn-outs)less: Income tax effect onacquisition-related costs and 0.1 (1.9 ) (0.5 ) (4.7 )interest expense (earn-outs)less: (Gain) loss from ? ? (19.4 ) 6.2 dispositionsplus: Income tax on effect on ? ? 9.6 (1.5 )(gain) loss from dispositionsAdjusted net income $ 208.8 $ 188.4 $ 833.9 $ 729.1 Diluted EPS $ 1.07 $ 0.80 $ 4.31 $ 2.70 Diluted adjusted EPS $ 1.27 $ 1.13 $ 5.04 $ 4.38 Weighted-average diluted shares 164.7 166.2 165.3 166.6 outstanding



Free Cash Flow Reconciliation (in millions)Note: Free cash flow is a non-GAAP measure.

Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 Change 2020 2019 Change Net cashprovided by $ 248.9 $ 176.4 41.1 % $ 1,068.2 $ 956.3 11.7 %operatingactivitiesCapital (72.4 ) (64.0 ) 13.1 (246.8 ) (216.8 ) 13.8 expendituresFree cash $ 176.5 $ 112.4 57.0 $ 821.4 $ 739.5 11.1 flow