With that, very pleased to welcome Verisk CFO, Elizabeth Mann, to the 45th Growth Stock Conference. Elizabeth's going to give a presentation in the group on the business, and I'll pass it to you, Elizabeth. Thank you.
Great. Thank you, Andrew. Thanks for having us here, and thank you all so much for coming. We really appreciate your interest in Verisk. I will give you a brief introduction here, an overview of Verisk. I'll talk about our core value proposition and our competitive positioning within that, and then I'll end with an overview of our financial profile, and then we'll have questions later afterwards in the breakout room. If I can start just with a brief overview here, Verisk, is a $3 billion revenue company. We are the leading provider of data and analytics, to the insurance industry. You can see our revenues, are primarily coming on a subscription basis with very high retention revenue rates, and we break our revenues. We give you a subsegment disclosure on how our revenues perform in the underwriting segment of the insurance industry versus the claims subsegment.
Our business is mainly domestic, with some strong international businesses contributing to it. In terms of the insurance industry, our historical roots go back to the 1970s, and we are primarily in the property and casualty segment of the insurance industry. You can see here that we cover many, most, in fact, basically every aspect of the property and casualty insurance industry. We have more recently expanded into the life insurance space, so we also have some coverage in the life insurance industry. What we do for them, we actually go to business in, go to market in many different businesses. We have a number of different products through which we serve the insurance industry. Even though we are all now focused on the insurance end market, we have a fairly diversified product and solution set for that customer base.
I mentioned, so let me give you a little bit more background, which helps understand the history of the business and therefore kind of the core value proposition of the business. Within this pie chart, about 40%, of our revenues, come through the forms, rules, and loss cost business on the underwriting side and the anti-fraud business on the claims side. Those two businesses go back to the history of Verisk, which was created in the 1970s. It was called the Insurance Services Office, for the U.S. property and casualty insurance industry. They decided, because of the fragmentation of the market and because of the highly complex regulatory environment in the U.S. P&C industry, that they needed a consortium to share data and share some of the workflows.
Just to give you a bit more color on that, the P&C insurance industry, is regulated not once at the federal level, but in each of the 50 states across each of the different lines of businesses. Every carrier who wants to underwrite insurance in a certain business needs to file their policy forms and their pricing algorithms with the regulator in that state for that line of business. In addition, in order to estimate pricing and costs, they want to understand what's their actuarial expected loss cost, in underwriting a new policy. In a very fragmented market, no one carrier has enough data to have what they feel is a sufficiently granular view of the potential loss cost. In the 1970s, they created this consortium where they would share loss information with each other.
They would share and manage the policy forms and the policy language, and that consortium was called the Insurance Services Office. On the claims side, they created the anti-fraud business, which is the single biggest predictor of fraud and claims in the insurance industry is the past claims history of that filer. They created a contributory database where they would each contribute the claims so that when you receive a new claim, you can check the database for the past loss experience of that claimer. Those two businesses together go back to the 1970s and are still maintained and continued and are still built on that contributory data set from across the U.S. P&C insurance industry. Over time, historically, a couple of things happened. Number one, due to an antitrust case in the 1990s, it was determined that the insurance industry could not own this consortium.
That could be anti-competitive in the insurance industry. It was spun out as a separate business, which was the history, the start of Verisk. Over time, we've grown some organically, some through acquisitions to create other great businesses that serve the U.S. P&C insurance industry. That's been our history. We went public in 2009 and have been building and serving the insurance industry ever since, and we'll talk a lot about how the business has changed since the 1970s. Because of that historical presence and the value proposition that we create for the carriers and for our customers, we do have a very strong penetration in the industry. We say that of the top 100 P&C carriers, in the U.S., 100 of them are customers of Verisk.
We have a deep and trusted relationship with the industry, which we can build on by creating more data and analytics for them. That presence and that historical relationship of trust with the industry has given us a great deal of consistency. We have said that our medium-term revenue growth targets, are 6-8%, on an organic constant currency basis. You can see historically we have been in that range just about every year since we went public in 2009. You can see the exceptions to that. The only exceptions on the downside were in 2009 and 2020 in the great financial crisis and in COVID, respectively, which are years in which we are pretty proud. Even though it was below our range, we are proud to have delivered 5%, revenue growth, in those years in that context. Here we wanted to highlight the scale of the U.S.
insurance industry in which we play. We also have some presence internationally that we'll talk about. Even just in the U.S., it is nearly a trillion dollars, in annual premium spent. The premiums in the insurance industry probably grow historically on average about mid-single digits. It's growing a bit faster right now. I would highlight the technology spend in the insurance industry, is growing faster than that because the industry acknowledges and has come around to needing a significant amount of investment in their products, in their technology stack, to be able to drive more efficiency and better use data and analytics to underwrite the right risk and price it accordingly. There is quite a bit of investment going on in the insurance industry.
In terms of our presence and our opportunity, the Verisk revenues represent, we take a look at it as a fraction of premium in the industry. We are 30 basis points, relative to the overall industry premium spent. We are 40 basis points, as a proportion of the overall industry OpEx. We think that leaves us significant room to grow within the industry to help them take advantage of the secular opportunity for the insurance industry to continue to innovate and modernize and digitize. We like to think of this as our flywheel for overall industry growth. We have a good presence and a position of trusted relationships within the insurance industry.
That gives us an ability, a stable, consistent revenue growth, which gives us ability to invest and to be able to plan long-term for multi-year investments, which we continue to do, modernizing the products, which then increases the value proposition for the customers and sort of starts the flywheel over again. Let me move with that introduction to Verisk, and hopefully a level setting of who we are and what we do. Let me talk a little bit about our competitive positioning and what makes us unique and special. Here, look, we highlight some of our competitive advantages, but what I would really lean on here is our relationships with the industry, the trust that that creates, and then, of course, as the outcome of that, the proprietary data on which we are built. Again, we've had this long-term relationship with the industry.
They continue to contribute to us their loss cost information and the claims information in that anti-fraud database, off of which our most valuable products are built. More importantly than that, it speaks to the ongoing dialogue and relationship we have with the customers, and we can talk to them about their strategic direction and the products that we can build to help them continue to innovate and move along that chain. We have three key priorities to continue to drive consistent growth, to deliver operating efficiency and ongoing margin expansion, and to generate strong returns on invested capital via disciplined capital allocation. Let me take a minute on each of those, a minute and a slide or two on each of those priorities. In terms of driving, continuing to drive strong revenue growth, this is another way of looking at our business.
We talk about our core businesses, and then some of the more recent growth areas that we've been moving into. Our core businesses, I talked about this a little bit. I talked about the 40%, or so of our revenues, that are built on that proprietary, that contributory data set. Also included in that dark blue, in that dark blue section, of our core businesses are some very strong businesses that over time we have acquired or built up organically, integrating with those core businesses. Just to give a couple of examples on that, we have what we call our Extreme Event Solutions business. They are in the middle. That is a catastrophe modeling business, that helps insurers and reinsurers assess and price the risk for potential extreme events such as U.S. hurricanes or wildfires.
It also includes a panoply of different potential risks and perils across the world, such as Japanese tsunami or earthquakes, in various different regions. We also have in our claim solutions, I talked about that core anti-fraud business. We also have a property estimating solutions business, which enables the carriers, the claims adjusters, and the contractors actually doing the work to manage the workflow to assess the pricing for property repair, which is going to be covered by carriers. It will assess the pricing based on sort of current up-to-date, granularly tracked by different regions in the U.S., and it will help them manage that workflow as well. That is the property estimating solutions business. We also, on the underwriting side, provide a range of different data and analytics supporting that forms, rules, and loss cost business.
Supporting an underwriter to make an actionable decision on a risk, a policy that they're thinking of underwriting. That's the strength of our core businesses, and those represent about 85%, of our revenue today. Outside of those, more recently, in recent years, we've expanded into a number of different areas, which are new TAMs, for us and potentially growth and acceleration opportunities for us. We've entered first, and I mentioned this before, we entered in the life insurance business. Now, that is not, these businesses on the outer ring are generally not contributory data models like our core P&C insurance business. They tend to be more software-like businesses in new markets and new areas within the insurance industry. For example, the life insurance business is a SaaS platform. It is a policy administration workflow system for life insurance carriers. We acquired this in 2019.
We saw a great SaaS platform, with very much a right to win, but it was having very long sales cycles with life insurance carriers who were reluctant to trust a mission-critical software system to a small venture-backed player. They were growing mid-single digits when we acquired them. We significantly accelerated the growth rate because of the Verisk, name and credibility in the insurance industry, even though we did not play in life. Something like 40%, of our P&C customers, also underwrite some life business. We had an immediate customer validation point there. Similarly, we have entered into some new end markets in the marketing space in the specialty business solutions. Think of specialty insurance as like the insurance risks that are transacted on the Lloyd's Syndicate in London.
We have a business that reports inside the Extreme Event Solutions business, that does resilience and sustainability metrics for a number of risk assessment tools. Okay. Those are our core and our growth businesses. On innovation, I would say we have a strong track record of delivering innovation and new products. It is sort of systematic at Verisk. We think about it in a number of different categories, and we have different groups. In some cases, it lives within the business and the people that are closest to the products and closest to the end markets and customers work on the innovation. In other cases, we have a business development group that is more market-focused. We take each of those. Maybe I'll just, we have some examples listed there at the bottom.
I'm not going to go through each one, but I will highlight Core Lines Reimagine and Whitespace. Those are good examples of driving growth. The first is in the core business, and then the second is more on that kind of new and growth expanding area. In the Core Lines Reimagine, this is the reimagining, the reinvestment in our core product. I said that product went back to the 1970s. It has evolved a lot since the 1970s. We started off by mailing paper circulars with the loss cost tables to all of our customers. We have not done that for a very long time. For much of the content, it is still primarily accessed via PDFs downloaded from a website. That is not the 2020s way to use and interact with and incorporate data and analytics.
As we've been reinvesting in that project, we've been revolutionizing the way that our customers are interacting with our core content in ways that they have told us both directly and that we hear indirectly through market checks is driving a great deal of efficiency and better usage of our core content. Rejuvenating the value proposition even of our core businesses that go back to the 1970s. On a much newer front, the Whitespace platform, I talked about the fact that we do business supporting the specialty insurance business and the Lloyd's Syndicate. The Whitespace platform, is a transaction platform. It is a network business where the brokers who are syndicating the risk in an insurance policy and the carriers who are signing on to different tranches of risk in that policy can exchange information about the policy, exchange information about the risk.
The carriers can assess in a true data-first way the characteristics of that risk and how it fits in with the rest of their portfolio. They can come together. The carriers can quote a price on that risk, and the brokers can transact, and ultimately, both parties can bind the risk. That is the start of a network business. It has been adopted by Marsh, which is the leading broker in the world, and they are putting through a significant portion of their policy volume on the platform. That is one of our growth areas, which sort of came from our innovation process. Let me pause there. That was the focus on driving consistent growth. The second of my three priorities was on delivering margin expansion. Our margins are about 55% today. Our business has operating leverage. It starts with high margins.
There are still opportunities for efficiency and to drive operating leverage in the business. Now, I will say we just completed a margin expansion target, that we quoted a target in 2021 that we would expand margins by 300-500 basis points, by 2024. We've just finished and delivered on that commitment. We expanded margins by 420 basis points. I've been very open about the fact that that rate of margin expansion trajectory, expanding well over 100 basis points a year, is probably not where we will continue for the foreseeable future. We do still have opportunities for efficiency, but we also have quite a lot of reinvestment opportunity in the core business. We will continue to deliver margin expansion, but at a slightly more moderate pace than we have over those past three years in order to continue building that sustainability of future growth.
On a capital allocation basis, we follow a returns on invested capital framework. We are focused on maximizing our returns on invested capital. Our priorities fall roughly in this order. We prioritize organic investment in the business. You'll notice if you look at our financials, our R&D line, is not that meaningful. That's because so many of our businesses are software-like businesses and incorporate the benefits of our existing products, which means that most of our investment spend is classified as CapEx, which is almost all internally developed software. We have a significant amount of reinvestment in the business. We measure our returns on that organic internal investment. It has been and continues to drive very strong returns on that invested capital. We will prioritize first that organic investment in the business. We will look strategically at M&A. We have a binary filter on M&A.
We are focused solely on businesses that serve the insurance end market vertical. Historically, we had gone into some other end markets and divested those businesses in order to focus solely on the insurance industry. From a balance sheet perspective, we have a strong balance sheet. We will maintain that. Finally, where we have excess opportunity in capital, we will continue to return capital to shareholders. I'll come back to that in a little bit more detail when I talk about the financials. Financially, I've given a bunch of data points already, so I'll just go through this a bit more quickly. From a historical perspective, this is the last five years. We've grown revenues, by approximately 7%. That's on an organic constant currency basis.
Earlier in my historical chart, you'll see that M&A, added probably on average a little more than a point of revenue growth, but we grade ourselves on an organic basis. On an EBITDA growth basis, also on an organic constant currency basis, we have 9.5%, growth on the EBITDA side. We sometimes think about our building blocks, our revenue growth in terms of these building blocks. 6-8%, is what we've achieved historically. It's also been our medium-term targets that we quoted at the 2023 Investor Day. Those targets were through 2025, and we've continued to deliver against this. Of that 6-8% growth, we say about half of it should come from pricing growth, so about 3-4% growth from pricing.
I've said that in 2023 and 2024, due to a variety of strengths, our pricing growth has been a bit above the historical average. On top of that pricing growth, we also have the opportunity to cross-sell and upsell to our existing customers, and we have some brand new initiatives like in the growth areas that I highlighted before. Each of those two vectors should contribute about 1.5-2 percentage points each. We do have some new customer opportunities. That's that 50-150 basis points. Given our high penetration in the U.S. P&C industry, a brand new customer is probably coming either from one of our new areas like life insurance that we talked about, or it may also be coming within the insurance industry.
There are sometimes periodic liquidations and firms that go out of business, and then there can be new capital formations of new companies forming in a space. Those are very often in our new customer bucket. Finally, we have this headwind. We call it here consolidation, but it can also be traditional attrition. When there are mergers in the insurance industry, that has historically been a bit of a headwind to growth for us. When there is a carrier who may stop writing a certain line of business in a certain state and pull back in certain areas, that can be a headwind for us. That is this headwind. It is not, we never like to see it happen, but it is not a shock to the system.
It's very much built-in and familiar as part of the growth algorithm, and it's something we've been experiencing all along as we've historically delivered that 6-8% revenue growth. From a margin expansion standpoint, this is a little more specific. I referenced that 420 basis points, over three years. This is it. As I said, though the trajectory of expansion may slow, as I said, we do continue to see further efficiency opportunities. We will always strive to be as efficient as possible in our core business and use technology and automation to get us there and continue to do so. We may redeploy some of that efficiencies in investment for future growth. From a capital return standpoint, we are fortunate to have a very cash-generative business. I touched before on return of capital to shareholders, but this quantifies it for you.
We have been steadily returning capital to investors in the form of the dividend. We initiated that back in 2019 and have grown at about 10%, CAGR, since then, actually more acceleration in the last couple of years as we have had the full cash flow generation opportunity of the insurance-focused business. On the share repurchase side, maybe just some comments to contextualize the numbers there, particularly on the free cash flow to measure it. I want you to remember that I said that we had some divestitures. We sold some businesses in 2021 and 2022. That is why it is those divestitures, why the free cash flow, number is going down. You can see we have reaccelerated. Even having divested some businesses last year, we delivered record cash flow above anything we had even when owning those businesses.
The other observation on those divestitures, when we sold businesses, we mainly took the proceeds and returned them to shareholders via those share repurchases. That is why those numbers are so large in 2022 and 2023. We are now back at a more steady state level, but we still have an ongoing and continuous commitment to return capital, that we do not need and that we do not see value creating. Finally, on the balance sheet, we are investment grade. We are Baa1, at Moody's and BBB at S&P. Our target is 2-3 times, debt to EBITDA. We are at 2 times right now. With EBITDA growth, we continue to see balance sheet capacity to deliver, to be used to support the business. I mentioned we have a very free cash flow generative business. Working capital , for us is typically a source of cash.
As in our primarily subscription business, we are paid typically upfront for our contracts. We do not anticipate any issues in maintaining this strong balance sheet. This is our guidance for 2025. We have been publicly giving guidance since 2023 and delivering on that. Our revenue, numbers just over $3 billion, corresponding to 6%-8%, organic constant currency growth. EBITDA margins, of 55%-55.8%, and EPS, of $6.80-$7.10. That is slightly lower. Our long-term or our medium-term EPS growth goal, is double digits. You can see for this calendar year, it is just a bit behind that because we had some one-time lower tax rate in 2024, elevating that base. We also have some headwinds from higher interest costs on our balance sheet due to refinancings and a bit higher D&A.
On a two-year basis, that is still very much in the double-digit EPS growth range. I won't comment on the other line items there. I'll just wrap up by saying in conclusion, we have a long track record of delivering on the consistent and predictable growth profile. We're committed to continue margin expansion at a moderate level, slightly less fast than it had been for a couple of years, but still margin expansion. We will maintain our disciplined capital allocation. We're excited about the growth prospects ahead. Thanks so much.