Moody’s Acquires RMS to Speed Growth of Climate Risk Business

(Credit: Moody’s)

Risk assessment firm Moody’s Corporation announced plans to purchase RMS, a provider of climate risk modeling and analytics. The $2 billion deal will accelerate the development of its climate risk business to address “the next generation of risk assessment,” the company says.

Today’s leaders face an unprecedented level of climate and natural disaster risk, says Rob Fauber, president and CEO of Moody’s. The acquisition will help Moody’s customers to “build resilience and make better decisions,” he adds.

With over 400 risk models covering 120 countries, RMS is a leading provider of climate and natural disaster risk modeling serving the global property and casualty insurance and reinsurance industries.

“Global risks are now more complex, connected and systemic,” says Karen White, Chief Executive Officer of RMS. “Climate change and catastrophic events like extreme weather, pandemics and cyberattacks have broader and more harmful impacts across virtually all industries.” The acquisition will enable RMS to accelerate technology and model innovations, while combining with Moody’s core data and analytics offerings. This will ultimately help customers better understand and mitigate the future of risk, she adds.

Moody’s procured 100% renewable electricity in 2020, and says it intends to reach net-zero emissions by 2050, consistent with its commitment to the United Nations Global Compact (UNGC) Business Ambition for 1.5°C.