Verisk UK Group Tax Strategy

Latest publication date: 31^st December 2024

Introduction

Verisk Analytics, Inc. (“Verisk”) is a leading data analytics and technology partner to the global insurance industry. Verisk empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses.

This UK tax strategy, which applies to the UK subsidiaries of Verisk (listed in Appendix 1), sets out Verisk’s approach to conducting its tax affairs and managing tax risks in the UK. It has been published in accordance with paragraph 19(2) Schedule 19 to the Finance Act 2016 and relates to the year ended 31st December 2024.

Verisk’s UK tax strategy is aligned with our overall approach to corporate governance and risk management, including Verisk’s Code of Business Conduct and Ethics.

The UK Tax Strategy defines the Board approved objectives with respect to Verisk’s approach to tax and tax risk and in particular, Verisk will:

Comply with all relevant UK laws, rules, regulations, and reporting and disclosure requirements.
Apply professional diligence and care in the management of all risks associated with tax matters and ensure governance and assurance procedures are appropriate.
Maintain a professional, transparent, and constructive relationship with tax authorities.
Utilize incentives and reliefs where available to minimize the tax burden on UK Group companies where there is sound commercial economic basis.

Approach to Tax Risk and Governance

Verisk has a dedicated Group Tax Team who are responsible for overseeing the day-to-day tax compliance obligations of Verisk Group Companies and managing Verisk’s tax risks. Verisk manages risk by employing appropriately qualified and experienced tax professionals in the Group Tax Team.

The Group Tax Team collaborates across business functions to ensure that tax consequences of business changes are considered and that decisions are taken at an appropriate level of authority; including board approval and engagement with HMRC as needed. The Group Tax Team is led and managed by the Vice President of Tax who reports directly into the Chief Financial Officer of Verisk Analytics Inc.

Diligent professional care and judgement will be employed to identify, assess, and manage tax risks. Where a tax risk is identified, it will be promptly brought to the attention of the appropriate senior personnel. When making decisions on tax risk, the materiality of any item is taken into consideration, as well as the costs of effective risk mitigation.

Verisk believes that external tax advisors can add value, particularly when providing advice regarding new legislation and case law or in complex areas where further analysis is beneficial. All external advice is reviewed by the in-house tax team to ensure any outcome is in line with our overall tax strategy and approach to managing risk. Furthermore, where appropriate, the Group Tax Team actively engages with HM Revenue & Customs (“HMRC”) through Verisk’s Customer Relationship Manager to address areas of tax risk and create additional certainty.

Attitude to Tax Planning and Level of Risk

Verisk conducts its business on sound commercial principles and, in doing so, considers all relevant costs, including tax. Any tax planning is based on reasonable interpretation of applicable tax law with due consideration and is aligned with the substance of the economic and commercial activity of our business. Commercial principles and decisions are paramount when considering any tax related matter and must be considered in the first instance. Where multiple legitimate options are available to implement a transaction, the most tax efficient method will normally be chosen.

Verisk is committed to ensuring that intra-group transactions are in accordance with the arm’s length principle.

As a large, multinational organization, Verisk and its UK subsidiary companies can be exposed to tax risk. Where such risks arise, they are identified, evaluated, and managed in a proactive manner. We monitor operations, tax structures and arrangements so that they comply with changing tax laws and regulations. We consult with external advisors when there is uncertainty as to the proper interpretation or application of tax laws or regulations related to a material transaction.

Working with HMRC

Verisk and the Group Tax Team deal professionally, transparently, and appropriately with all tax authorities and actively works with HMRC and the Verisk’s Customer Compliance Manager. In particular, Verisk:

Applies diligence and care in its processes and procedures with the intention of identifying and rectifying any potential issues before tax filing is made.
Ensures all interactions with Tax Authorities are conducted in an open, collaborative, and professional manner.
Responds to questions from tax authorities on a timely and professional basis, providing all necessary information as required by law.
Offers to provide business updates to HMRC.

Appendix 1: Verisk UK Group Companies as at 31 December 2024

Arium Limited
AIR Worldwide Limited
Automated Insurance Solutions Limited
Business Insight Limited
Contact State Limited
Datarise Limited Limited
Datum Point Consulting Limited
Emergent Network Intelligence Limited
GeoInformation Group Limited
Ignite Software Systems Limited
Maplecroft.Net Limited
Marvel Newco Limited
Morning Data Limited
Rebmark Legal Solutions Limited
Sequel Bidco Limited
Sequel Business Holdings Limited
Sequel Equityco Limited
Sequel Holdco 1 Limited
Sequel Holdco 2 Limited
Sequel Midco Limited
Sequel Rulebook Limited
V Acquisition Co. Limited
Verisk Analytics Limited
Verisk Claims UK Limited
Verisk New UK Midco Limited
Verisk New UK Topco Limited
Verisk Limited
Verisk Risk Rating Ltd
Verisk Specialty Business Solutions Ltd
Whitespace Software Limited