Good day, everyone, and welcome to the Verisk Analytics Third Quarter 2015 Earnings Results Conference Call. This call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Verisk's SVP and Treasurer, Ms. Eva Huston. Ms. Huston, please go ahead.

Thank you, Jackie, and good morning to everyone. We appreciate you joining us today for a discussion of our third quarter 2015 financial results. With me on the call this morning are Scott Stephenson, President and Chief Executive Officer, and Mark Anquillare, Chief Financial Officer. Following comments by Scott and Mark highlighting some key points about our strategic priorities and financial performance, we will open up the call for your questions. The earnings release referenced on this call, as well as the associated 10-Q, can be found in the Investor section of our website, verisk.com. The earnings release has also been attached to an 8-K that we have furnished to the SEC. A replay of this call will be available for 30 days on our website and by dial-in. Finally, as set forth in more detail in yesterday's earnings release, I will remind everyone that today's call may include forward-looking statements about Verisk's future performance. Actual performance could differ materially from what is suggested by our comments today. Information about the factors that could affect future performance is summarized at the end of our press release as well as contained in our recent SEC filings. And now, I will turn the call over to Scott Stephenson. Scott G. Stephenson - President, Chief Executive Officer & Director: Thanks, Eva. Good morning, everybody. Before we turn to our third quarter results, I want to highlight two recent milestones in our journey. Forbes included Verisk in its list of the World's 100 Most Innovative Companies, and Verisk was added to the S&P 500 index. Both of these achievements are recognition of the foundation that's been created over decades and the hard work being done by our colleagues to add value for our customers every day, and evidence of excellence at scale. Yesterday, we…

Great. Thank you, Mark. Given the large number of analysts we have covering us now, we would ask that you ask one question and one follow-up. That will give more people an opportunity to ask a question during the Q&A. And with that, I'll open the line to the operator to open for questions.

Your first question comes from the line of Tim McHugh with William Blair and Company. Your line is open. Timothy McHugh - William Blair & Co. LLC: Excuse me. Thank you. On Wood Mackenzie, can you just give a little more color? You, I guess, talked about non-subscription growth slowing, but did you see any slowdown, I guess, in the subscription side of the business, and I guess, any way you can help us kind of quantify more the different pieces impacting that? Scott G. Stephenson - President, Chief Executive Officer & Director: Yeah. We're not breaking out those two parts of the business, Tim. But I will say that the subscription revenue growth has held up very nicely, and the full year view and the quarterly view are both good and strong. Timothy McHugh - William Blair & Co. LLC: Okay. And then in healthcare, I guess, one, your comment that it's tracking to your annual guidance or annual expectation, can you just elaborate? I think it was probably slower than most people expected, and maybe we had the wrong view. But is there anything that's changed in the environment, whether demand or competition wise? And secondarily, can you give us any sort of help with the profitability of that business as we think about the potential sale of it? Thanks. Scott G. Stephenson - President, Chief Executive Officer & Director: Yeah. So let me take the first part of that, Tim. So the comment that Mark made earlier was that the business is tracking with our expectations, meaning, our portfolio forecast for the business, and so that was his comment. With respect to the business, the environment is relatively unchanged. The dynamic with the customers is relatively unchanged. As you know, there's seasonality in this business, and it's…

Your next question comes from the line of Andrew Jeffrey with SunTrust. Your line is open.

Hey. Good morning. Thank you for taking the question. Scott G. Stephenson - President, Chief Executive Officer & Director: Good morning. Mark V. Anquillare - Chief Financial Officer & Executive Vice President: Good morning.

So I guess, with regard to RA, which is doing very nicely, can you talk a little bit about the sustainability of that faster organic revenue growth, say 6%, 6%-plus, and what exactly is underpinning that improvement over what we've seen in the last few years? Is it all invoicing, or is there some specific customer ROI call outs that are driving that? Scott G. Stephenson - President, Chief Executive Officer & Director: Definitely not just invoicing. This is the time of year where we actually set the pricing for the kind of the industry standard program, rules, forms, lost cost, the part of it that relates heavily to just the overall regulation and structure of the insurance industry. But we are working very hard to expand that suite of solutions, bringing new solutions to the market and growing newer forms of putting the content and the analysis out there. So predictive models are growing very nicely. Electronic Rating Content is growing very nicely. We're searching for all opportunities to expand the business to international customers, and we've made headway on that front as well. So it's broadly based, and we're very optimistic about the future profile for this business.

Okay. And as a follow-up, just from a big picture, now that the strategic nature of healthcare is something you guys are thinking hard about, kind of down to three core businesses, in the long term, do you start to rebuild from there? Are you looking for new areas strategically long term that are a good fit or is this really probably the right sort of core business set with which Verisk runs going forward? Scott G. Stephenson - President, Chief Executive Officer & Director: Yeah. Thank you for the question. And that is something that we've spent a lot of time on, and we feel very good about these three core verticals. And I think what you can expect from us is that we will continue to grow and expand inside of them. Our thesis is, and I referenced this in my comments up front, that there are things that make Verisk, Verisk; those four distinctives. One of the things that I just feel so strongly about is Wood Mackenzie is absolutely aligned with those four distinctives. And we'll do a better job of both feeding off of core competencies that we have at Verisk, but also feeding them. And so, for example, Wood Mackenzie is a business that definitely will benefit from our strong and growing expertise in multitier, multispectral imaging in a way that actually the healthcare business wouldn't. Another comment along the same lines is that the global energy business is inherently global, whereas healthcare will always remain a domestic business. And so we think very hard about who is it that we want to be. And I think that the right way to frame us is the verticals, the distinctives and the core competencies that I laid out for you. And we feel that the three verticals that you focused on are very, very nice steps with that, with all of that.

Okay. Helpful. Thank you.

Your next question comes from the line of Manav Patnaik with Barclays. Your line is open.

Good morning, guys. Scott G. Stephenson - President, Chief Executive Officer & Director: Good morning.

So I just wanted to step back and just try to understand what changed, in a little bit more detail, so both WoodMac and healthcare. So with WoodMac, I mean, last quarter the energy environment was challenging as well, but it sounded like you guys were confident with the growth rate there. So trying to understand the delta there. And on healthcare, I guess, I understand the rationale that it sounded like you said, you guys were looking at this over a year ago. But I think around that time, you guys were pretty committed to the long term, like selling it wasn't in the sights, and I think you had that focus on Investor Day. So I guess what I'm really trying to get at is from last quarter to today, what are the real changes that have led to the WoodMac result and the healthcare decision? Scott G. Stephenson - President, Chief Executive Officer & Director: Okay. So in order. On WoodMac, the thing that I would call out for you is just that there are different profiles to how the energy market works basically, and we had said for some time that we thought that 2016 could represent some softness, and the question was what might be the timing. And we just found that the timing has been pulled forward a little bit, probably related to things that are going on with our customers as they make decisions about spending in light of the current environment. And it's really that simple. On healthcare, we've been asking – well, we're always asking the question about the deployment of capital across everything that we do. So even a year ago, we were thinking critically about what are the highest and best uses of our capital and how does healthcare fit into that picture? Since that time, what has happened? Well, there has been a public offering of a company that is very analogous to ours. There has been the activity in the healthcare M&A market generally. And we just take account of all of that basically, and with deliberation at a moment in time, we've drawn a conclusion about an exploration.

Okay. Fair enough. And then just a quick follow-up. So just on WoodMac, how should we think about the trajectory of that 1% growth you called out in the quarter? Is that where your initial 2016 expectations were or was that even worse than maybe what you had modeled there? Scott G. Stephenson - President, Chief Executive Officer & Director: Yeah. So we're going to talk in more depth about WoodMac at our December Investor Day, and I would encourage everybody to come and be with us. But what I would point you to, as Mark put out there, our view for full year 2015 and that's what we've said about it so far.

Okay. Thanks a lot, guys. Scott G. Stephenson - President, Chief Executive Officer & Director: Thanks.

Thank you.

Your next question comes from the line of Jeff Meuler with Baird. Your line is open. Jeff P. Meuler - Robert W. Baird & Co., Inc. (Broker): When you said that 2016 softness in WoodMac may have been pulled forward, I know you're not breaking out subs versus non-subs. But does that include some weakness being pulled forward on WoodMac bookings trends for the subscription business? Scott G. Stephenson - President, Chief Executive Officer & Director: No. Jeff P. Meuler - Robert W. Baird & Co., Inc. (Broker): Okay. And then on the healthcare decision to, I guess, explore, at least, the strategic alternatives announced last night, the disclosure or the timing of the disclosure, should we view that as being driven by press reports or by reaching some step in the process relatively recently? And if it's the latter, can you just comment on, and I know you've talked about the timing over the last year, but can you talk about the timing of reaching that conclusion just given how trends are right now as you think about maximizing value for your shareholders? Scott G. Stephenson - President, Chief Executive Officer & Director: Yeah. We've been in a long and deliberate discussion with our board. And the process has accounted for a lot of different things, a lot of different considerations and driven by our own considerations, definitely not by the press. Not at all. It's just in our own timing, we decided that we were comfortable making the statement that we made last night. But it was entirely our own thinking and developed, again, over a very – we've been talking with our board about this for some time. Jeff P. Meuler - Robert W. Baird & Co., Inc. (Broker): Okay. Thanks, Scott. Scott G. Stephenson - President, Chief Executive Officer & Director: You bet. Thanks, Jeff.

Your next question comes from the line of Toni Kaplan with Morgan Stanley. Your line is open. Toni M. Kaplan - Morgan Stanley & Co. LLC: Hi. Thanks. Good morning. Scott G. Stephenson - President, Chief Executive Officer & Director: Good morning. Toni M. Kaplan - Morgan Stanley & Co. LLC: Within WoodMac, could you just give us a better sense of what services clients are pulling back on, and also, just what types of customers are tightening their spending the most? Is it the NOCs or is it more broad-based? Scott G. Stephenson - President, Chief Executive Officer & Director: Yeah. I'll start, and, Mark, you might want to jump in as well. So we have commented on the difference between the hardcore data analytic business and then the services, and it's definitely being felt on the services side. The hardcore data analytic, which is subscription-based, has performed very nicely in this environment. With respect to within the customer base, there is some segments that are doing very nicely, actually. But it is among the companies in the industry, the oil companies themselves, and I would point particularly to NOCs and also the focused E&P players. That's where it's been felt most strongly. Mark V. Anquillare - Chief Financial Officer & Executive Vice President: I will just highlight, I think, something Scott said earlier. I think the silver lining, the good news in there, besides the subscription rates being extremely high, the renewals of those. We've seen a lot more usage. This is about what the analytics and the actual people looking at the content of about 25%. So you can clearly see the value of the solutions they provide despite what is an interesting time in the market. Scott G. Stephenson - President, Chief Executive Officer & Director: And, sorry. I just wanted to correct something I said. I didn't mean to say the NOCs. I meant to say the integrated global oil companies. National oil companies have actually been pretty strong in the current environment. Toni M. Kaplan - Morgan Stanley & Co. LLC: Okay. Great. And just on healthcare, just looking at fourth quarter, like, should we expect sort of a similar expectation to what the growth in this quarter, is there any reason to think that it will be better than this quarter was? Thanks. Scott G. Stephenson - President, Chief Executive Officer & Director: I think we've just tried to highlight that we did expect a deceleration in the second half of the year from a growth perspective. We are continuing to track internally. We think it's a very good business, very big market, and we have confidence in that team.

Your next question comes from the line of Andrew Steinerman with JPMorgan. Your line is open.

(32:09 – 32:13) usual about EBITDA margins in the fourth quarter, including healthcare. The way I just want to make sure I understand the third quarter number for EBITDA margin, the 50.7% includes warrants. So if I exclude the warrants of $15.6 million, gains in the third quarter was $47.8 million, right? And how should I be thinking about the fourth? Mark V. Anquillare - Chief Financial Officer & Executive Vice President: Your math is good. I got $47.9 million, but I'm sure we're probably just rounding. I would tell you that we continue to see a strength in the margins. I think you saw that in third quarter. There's operating leverage throughout. We do have beginning of some of the hiring that we had identified earlier on with that realignment inside of risk assessment. So some of those costs will come back into fourth quarter. I want to mention that. And I think the natural ebbs and flows of expenses as it relates to fourth quarter should feel generally like the third.

Okay. Thank you. Scott G. Stephenson - President, Chief Executive Officer & Director: Thanks, Andrew.

Your next question comes from the line of Bill Warmington with Wells Fargo. Your line is open.

Good morning, everyone. Scott G. Stephenson - President, Chief Executive Officer & Director: Hi, Bill. Mark V. Anquillare - Chief Financial Officer & Executive Vice President: Good morning.

So first question on healthcare, just to ask. If you go through this process and you do decide you want to sell the asset, what are your thoughts in terms of the use of the proceeds? Scott G. Stephenson - President, Chief Executive Officer & Director: Well, you can expect from us the same approach that we've always taken, which is when we put out a leverage target, we're going to meet that leverage target. And then we continue to lean into the M&A agenda. That's our first best use for available funds. And we've always felt very good about the share buyback program, and you will continue to see that featured in our capital deployment as well.

Okay. And now the second question to ask about, financial services and Argus. Basically, if you could comment on the pipeline that you're seeing in demand for media effectiveness and then as you – I understand it's a lumpy business because of the project-related apportion of some of the revenue. So I'm trying to understand how we should think about the annual revenue, the growth rate for revenue on an annual basis. Scott G. Stephenson - President, Chief Executive Officer & Director: Yeah. Yeah. So the overall profile for Argus, when you account for all the different ways that this business can grow, it can grow internationally. It can grow by new customer acquisition for the existing solution. It can grow by more applied analytics for individual customers. It can grow by the expansion of the media effectiveness business. All of those things are at work. All of those things are powering the performance of Argus. I expect Argus in 2016 and beyond to be the same Argus that you've known and that we've known. It is a very innovative team that is working on top of a very proprietary set of intellectual property assets and doing a great job with them. And so the outlook is completely unchanged. And there is this somewhat lumpier quality that will be there from time-to-time when the very large, particularly, I would say, new media players get interested, their entry tends to have a pretty substantial effect and then it sort of normalizes as you go forward. So there probably will be lumps going forward, but the overall profile of the business is going to look very much like it has.

Okay. Thank you very much. Scott G. Stephenson - President, Chief Executive Officer & Director: Thanks, Bill.

Your next question comes from the line of Sara Gubins with Bank of America Merrill Lynch. Your line is open.

First, a question on Decision Analytics margin. When we adjust for the benefit of the healthcare pass-through revenue change and the investment gain, it looks like the underlying margins in that segment were down year-over-year. Could you talk about what might be driving that and whether or not we should continue throughout next quarter? Mark V. Anquillare - Chief Financial Officer & Executive Vice President: Yeah. Let me take that. There was some reduction in the margins for the third quarter relative to last year when you do do that math. I would highlight that overall, margins are extremely strong. I think the Decision Analytics margin is based upon kind of the overall way the business is set up should, into the future, continue to grow. But obviously, a consistency to fourth quarter as you saw third quarter, that's probably a good parallel.

And is there anything that changed versus the first half of the year that would be driving that? Mark V. Anquillare - Chief Financial Officer & Executive Vice President: Well, I mean, there's a few things that we did highlight up front. If you were to think about the Touchstone investments, some of the work that we're doing to kind of integrate platforms and bring Touchstone together, that is one item. The other thing is some OpEx and CapEx as we bring on new initiatives like the Telematics data exchange. There's cost in there that we need to incur now and revenue is following. So these are long-term investments that will prove fruitful for both our top line and bottom line in the future. But there's some cost to be undertaken.

Thank you. Scott G. Stephenson - President, Chief Executive Officer & Director: You're welcome.

Your next question comes from the line of Arash Soleimani with KBW. Your line is open. Arash Soleimani - Keefe, Bruyette & Woods, Inc.: Thanks, and good morning. Scott G. Stephenson - President, Chief Executive Officer & Director: Morning. Arash Soleimani - Keefe, Bruyette & Woods, Inc.: Couple of questions here. You mentioned in the press release on healthcare that it'll give you the opportunity to pursue some of your global ambitions. I just wanted to know if you could talk a bit about that. Is that mostly on the insurance side and just see if there's any more color you can provide there? Scott G. Stephenson - President, Chief Executive Officer & Director: Yeah. So you're going to see the deployment of capital having a couple of characteristics going forward. One is it will be spread across everything we do at Verisk. So it's not going to be concentrated in any one part of the business. And the other thing that you'll see is that we are going to try to deploy the capital disproportionately in non-U.S. markets in order to support the expansion of everything that we do globally. Arash Soleimani - Keefe, Bruyette & Woods, Inc.: Thanks. Mark V. Anquillare - Chief Financial Officer & Executive Vice President: And this is Mark. So just trying to, and sorry to do this, but even to Sara's earlier question, some of the margins that you were referring to on last question, we have put some resources into international business development and, also, to localize our solution, so that we can attract and attack various international markets. So let me add that to be as the third bullet to some of the cost we incurred. Sorry for that, Scott. Scott G. Stephenson - President, Chief Executive Officer & Director: Yeah.…

Your next question comes from the line of Jeff Silber with BMO Capital Markets. Your line is open.

Thank you very much. In the 10-K, when you're talking about the lower growth in healthcare, you say that it was due to changes in our customer contract language in the healthcare revenue category. Can you elaborate a bit on this? Is that something that just happened in the third quarter, and is that something that's going to impact growth going forward? Thanks. Mark V. Anquillare - Chief Financial Officer & Executive Vice President: So I think what we're referring to there is with a customer beginning, like, first quarter of this year, we went from basically a gross accounting for certain services to net accounting. So we did not want to, for the most part, continue to provide the service. We went to a third party. So we transitioned because of the contract, because of the nature of the contract. The bottom line, let me say, did not change. The EBITDA did not change. I think this is just the notion of how we account for it, gross versus net, from a revenue perspective. Same contracts, same revenues, same pricing, it was just simply the nature of the relationship caused a change in the accounting methodology.

And I'm sorry. Roughly, what was the impact this quarter? Mark V. Anquillare - Chief Financial Officer & Executive Vice President: Hang on. Give me a second here. Maybe David can follow-up with you, but I do believe that it was probably about $10 million to $11 million, but we'll get back to you.

Okay, great. I'll follow-up on that. And then just one question on WoodMac. Sorry. You had mentioned that you're looking for I think it was $210 million in revenue contribution on a dollar GAAP basis. It was lower than it was before. Can you just remind us what it was before? Mark V. Anquillare - Chief Financial Officer & Executive Vice President: We were at $225 million.

Okay, great. Thanks so much.

You're next question comes from the line of Andre Benjamin with Goldman Sachs. Your line is open. Andre Benjamin - Goldman Sachs & Co.: Thanks. I first wanted to ask about the expectations for the Telematic exchange even though I know it's not supposed to launch until summer 2016. I was wondering what is the go-to-market and how you actually plan to charge insurance companies for this service. And then given it's really not until 2016, how much still needs to happen? Is it still primarily development work that needs to be done or is it just signing people up, et cetera? Scott G. Stephenson - President, Chief Executive Officer & Director: Let me start with the answer of kind of what we're doing and where we're at and then Mark can talk about the revenue model. So we are in the process of actually dimensioning the data sets and the UX so that our insurance customers can make use of the data that we'll be compiling inside of the data set. So there is root and branch work which is going on right now, and Mark mentioned that before and I'll just mention more. Here's the general theme where Verisk is concerned. I think we're doing a very good job of running the business tightly, which I think you can see in the margins. And we're doing that at a moment where, actually, the software intensity of a number of our businesses is actually going up. And so it's kind of a fine balancing act, but I actually feel very strongly positive about the way our operation has been able to actually raise efficiency while, at the same time, actually deepening investment in some of these ways. So there is root and branch development work of all of the…

Your next question comes from the line of Anj Singh with Credit Suisse. Your line is open. Anjaneya K. Singh - Credit Suisse Securities (USA) LLC (Broker): I was wondering if you could discuss the dynamics behind why there was such a latent impact on the services businesses for WoodMac in light of where the oil prices have been and some of your competitors dealing with this pressure for a few quarters now. Scott G. Stephenson - President, Chief Executive Officer & Director: Yeah. You know, I'm not really going to comment on the competitors except to say that we observe in what we're doing the relationship that we have with our customers. And what we see is that the content that we provide is a must-have, and the depth and quality of the customer relationships remains unchanged. The renewal rates are enormously high. They're actually higher than found in several other parts of Verisk. And so we're very, very pleased with where the business is in terms of making a difference for customers and the content being meaningful. And as you know, the revenues at WoodMac are weighted heavily towards the recurring subscription-based data analytic, and that continues to do very well. In this moment, I would think particularly our industry customers, our oil and gas industry customers, are attempting to respond to an unusual set of circumstances. They've decided, in this moment as they've right-sized their own teams, as they have modified their capital expenditures, they've also taken hard look at that which is discretionary. And the kind of services that we provide, which is the minority of what we do, those have been under pressure at this time. But I think the true measure of the business is the underlying recurrent subscription business and that's held up,…

Your next question comes from the line of Paul Ginocchio with Deutsche Bank. Your line is open.

Thanks for taking my question. Scott, there's a couple concerns have come up with the results around healthcare in the call today on energy and the lack of guidance has created probably even more uncertainty around both of those. Is there any way here at the end of the call you just want to try to clarify or help us get a little color on trends going forward? Can you give us 3Q bookings growth for WoodMac? And how does the fourth quarter in healthcare look? Is it more like the third quarter or more like the first half? Scott G. Stephenson - President, Chief Executive Officer & Director: We've never provided bookings commentary on any of our businesses. Mark already put out there our expectation for WoodMac for the full year of 2015. So I do think we spoke to that. And in light of our comments about our strategic review, we've sort of said what we're going to say about healthcare.

Okay.

And your next question comes from the line of Jeff Meuler with Baird. Your line is open. I'll now turn the call back over to Mr. Stephenson for closing remarks. Scott G. Stephenson - President, Chief Executive Officer & Director: Okay. Well, thank you very much, everybody, for joining us. We look forward to catching up with you at Investor Day in December. Hope all of you will be there with us. We're going to feature a lot of discussion and commentary about Wood Mackenzie particularly, so hopefully you'll find that very helpful and interesting. And otherwise, thanks and enjoy your day.

Ladies and gentlemen, this concludes today's conference call. You may now disconnect.