The acquisition would help Moody’s build its business of providing data and risk assessments to the insurance industry. Credit: WikimediaImages from Pixabay.

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.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“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.