Moody’s is set to acquire Risk Management Solutions (RMS), a leading provider of climate and natural disaster risk modelling and analytics, to advance its global integrated risk assessment strategy.
The acquisition is expected to close in late Q3 2021 and is reported to be around $2 billion, and will increase Moody’s insurance business to almost $500 million in revenue.
RMS primarily serves the global property and casualty insurance, reinsurance and insurance-linked securities industries, and is expected to secure around $320 million in revenue and $55 million in operating income for fiscal year ending 30 September 2021.
The firm’s global risk offering spans natural and man-made catastrophes, cyber and pandemics across risk identification, mitigation, underwriting and portfolio management.
Following the acquisition, global integrated risk assessment firm Moody’s will combine its risk and finance solutions for life insurers with RMS’ risk modelling solutions to provide capabilities across climate, cyber, commercial real estate and supply chain risk.
Rob Fauber, president and CEO of Moody’s, comments: “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.”
Karen White, CEO of RMS, adds: “Moody’s is an exceptional fit for RMS and our customers. We share the vision to bring a global, integrated risk assessment platform to our markets with the goals of deeper, more sophisticated risk insights and greater global resiliency.”
“Within Moody’s, I am confident RMS will be able to accelerate technology and model innovations while combining with Moody’s core data and analytics offerings for powerful, holistic solutions. The team and I are excited to bring new value to customers as we transform how we are able to understand and mitigate the future of risk,” she continues.
