Munich Re has come to an agreement to acquire RenaissanceRe’s weather-related energy risk management unit, RenRe Energy Advisors.
Munich Re has been working with RenRe Energy Advisors for more than three years as a risk capacity provider.
RenRe Energy Advisors specialises in covering and trading weather risks. Its clientele mainly consists of energy companies in the US requiring coverage against fluctuations on income due to adverse weather conditions.
The business also includes the trading of commodity contracts in oil and natural gas, with the aim of offering one-stop risk solutions.
Thomas Blunck, the Munich Re board member responsible for this segment, said: "With the acquisition of RenRe Energy Advisors, we are actively expanding our know-how and product range of weather risks and investing in a promising and profitable market.”
“The new unit is an ideal complement to our expertise in the field of weather trends and weather risks, and also to our existing business model with solutions for weather risks.”
The transaction is expected to close in Q4 2013.
