Ratings company Moody’s has agreed to purchase RMS, the insurance business of Daily Mail and General Trust, for approximately $2bn.
The acquisition of the catastrophe risk-management and modelling firm is part of Moody’s strategy to boost its climate risk business.
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The acquired firm has over 400 risk models covering 120 countries, which provides climate and catastrophe risk modelling solutions for P&C insurers and reinsurers.
The deal will add approximately $500m in revenue to Moody’s insurance data and analytics business.
RMS is expected to generate revenue of approximately $320m for the fiscal year ending on 30 September 2021, Moody’s noted in its press statement.
Moody’s president and CEO Rob Fauber said: “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.
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By GlobalData“We are excited to add RMS and its team of world-class data scientists, modellers and software engineers to the Moody’s family to help accelerate solutions that enable customers to build resilience and make better decisions.”
RMS CEO Karen White said: “Within Moody’s, I’m 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.”
Moody’s plan to fund the acquisition by a combination of cash-on-hand and the issuance of new debt.
The deal is expected to close late in the third quarter of 2021, subject to receipt of regulatory approval and other closing conditions.
