Moody’s Corporation has announced the completion of its acquisition of catastrophe risk modelling firm RMS, having first signalled the deal on August 5.
RMS is a leading global provider of climate and natural disaster risk modeling and analytics.
The acquisition is seen as a way to expand Moody’s insurance data and analytics business and accelerate the development of the company’s global integrated risk capabilities to address the next generation of risk assessment.
As part of the Moody’s Analytics platform, RMS is expected to generate up to $150 million of incremental run-rate revenue by 2025.
Moody’s funded the transaction through a combination of cash-on-hand and the issuance of new debt.
The acquisition will build upon the two companies’ customer bases and capabilities in the life and P&C insurance and reinsurance segments.
This announcement follows Moody’s decision to invest in Flood risk modeller Fathom.
