Moody’s to acquire Risk Management Solutions

Moody’s Corp. said Thursday that it will acquire Newark, California-based catastrophe modeler Risk Management Solutions Inc. for about $2.0 billion.

The acquisition is expected to close in the late third quarter. Moody’s said in a statement that it plans to fund the transaction through a combination of cash on hand and the issuance of new debt.

For the fiscal year ending Sept. 30, RMS is expected to generate about $320 million in revenue. The acquisition will bring Moody’s insurance data and analytics business to nearly $500 million in annual revenue and “will accelerate the development of the company’s global integrated risk capabilities to address the next generation of risk assessment,” the company said.

RMS provides more than 400 risk models covering 120 countries and is a leading supplier of climate and natural disaster risk modeling to the global property/casualty insurance and reinsurance industries.

Moody’s said the deal “builds upon Moody’s and RMS’s complementary customer bases and capabilities in the life and P&C insurance and reinsurance segments” and “will meaningfully accelerate Moody’s integrated risk assessment strategy for customers in the insurance industry.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.