It has been announced that Moody’s Corporation (MCO) will acquire RMS, a leading global provider of models and analytics relating to disasters and climate variability. Through this acquisition, Moody’s insurance data and analytics business will experience an increase in revenue of nearly $500 million and Moody’s will be able to develop improved risk-assessment capabilities globally.

Rob Fauber, President and Chief Executive Officer of Moody’s, commented, “leaders face a complex, interlinked world of risks and stakeholders. 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. 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.”

The acquisition expands Moody’s and RMS’s capabilities in the life insurance and property and casualty reinsurance segments. As part of its operations, Moody’s provides pricing, financial analysis, and capital management solutions to the life insurance industry. RMS offers comprehensive climate and catastrophe risk modeling solutions that enable P&C insurers and reinsurers to better quantify, measure, and manage risks. Moody will be able to offer its insurance industry clients a more integrated risk assessment strategy, including capabilities in the areas of cyber, commercial real estate, and supply chain risks via RMS, as well as the strengths and interests of both companies.

Karen White, Chief Executive Officer of RMS, said, “Moody’s is an exceptional fit for RMS and our customers. Global risks are now more complex, connected, and systemic. Climate change and catastrophic events like extreme weather, pandemics, and cyberattacks have broader and more harmful impacts across virtually all industries. 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’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.”