Moody's Corporation announced Aug. 5 that it will acquire RMS – a provider of climate and natural disaster risk modeling and analytics – for approximately $2.0 billion from Daily Mail and General Trust plc.
Moody’s says the deal will increase its insurance data and analytics business to nearly $500 million in revenue and accelerate the development of its global integrated risk capabilities “to address the next generation of risk assessment.”
RMS provides climate and natural disaster risk modeling serving the global property and casualty (P&C) insurance and reinsurance industries. It has more than 400 risk models covering 120 countries.
A wider range of risks than ever before
"Today’s leaders face a complex, interlinked world of risks and stakeholders,” said Rob Fauber, President and Chief Executive Officer of Moody’s. “In the context of a global pandemic, the climate crisis and increasing cyberattacks, our customers must manage a wider range of risks than ever before. We are excited to add RMS and its team of world-class data scientists, modelers and software engineers to the Moody’s family to help accelerate solutions that enable customers to build resilience and make better decisions."
As part of the Moody’s Analytics platform, RMS is expected to generate up to $150 million of incremental run-rate revenue by 2025, says Moody’s, which intends to fund the deal through a combination of cash-on-hand and the issuance of new debt.
The acquisition is expected to close late in the third quarter of this year, subject to customary closing conditions.
