(Image source: Rulebook homepage.)
Verisk (Jersey City, N.J.), a provider of data analytics to the insurance and other industries, has signed a definitive agreement to acquire Rulebook (London), a provider of business intelligence and software solutions for the London Insurance Market. Through an $87 million cash transaction, Rulebook will complement an earlier acquisition of Sequel (London), helping to position Verisk as a leading provider of insurance software solutions to the global specialty market.
“Rulebook is a Verisk-like business that furthers our goal of providing leading solutions to the global insurance market, including a comprehensive chain of solutions to specialty insurers for mitigating risk and optimizing total cost of operations,” comments Mark Anquillare, chief operating officer, Verisk.
In a statement about the acquisition, Verisk says that Rulebook has a proprietary, uniquely distinctive pricing engine that can be used for internal pricing and underwriting as well as external distribution for the specialty insurance market through its Rulebook Hub platform. Rulebook also offers a data analytics solution that develops business intelligence solutions for clients to enable historical, current, and predictive views of business operations.
Rulebook’s pricing engine is used by prominent carriers in the London specialty insurance market to build underwriting rules for complex specialty insurance products through what Verisk characterizes as a simple, easy-to-use web-based platform. Through its platform, Rulebook provides clients with greater accuracy and better control over the pricing and distribution process, thus facilitating consistency and improving regulatory reporting and compliance.
“The acquisition will expand Verisk’s existing offerings to the specialty insurance market by adding Rulebook’s proprietary pricing and management information engines to Sequel’s specialized software suite,” comments Ian Summers, CEO, of Sequel, acquired by Verisk in 2017. “These enhanced offerings will provide our customers with more efficient methods of distribution and significantly improved data analytics capabilities. The complementary applications give us a unique opportunity in our sector to complete the value chain, driving data through the process from broker to underwriter and quote through to claims settlement.”
Unique Value Proposition
“We’re very excited to join Verisk, as this will accelerate our growing business by providing greater access to global markets and Verisk’s existing international customers,” comments Andy Galli, Managing Director, Rulebook. “We offer a unique value proposition that will be further enhanced by leveraging synergies and collaborating with other Verisk businesses and their data analytics.”
The purchase price of the acquisition is $87 million in cash, funded through cash on hand and existing bank facilities, subject to typical closing adjustments. The transaction is expected to be accretive to 2019 adjusted EPS. In addition, Verisk expects the acquisition to generate an attractive return in excess of Verisk’s cost of capital. The transaction is expected to close before the end of 2018, subject to the completion of customary closing conditions.