Moody’s Corporation is acquiring Risk Management Solutions, Inc. (RMS), a leader in natural disaster and climate-related risk management, in an effort to augment their capabilities as a global integrated risk management firm. Since 1988, RMS has operated as a subsidiary of British multinational media company The Daily Mail and General Trust, innovating in the areas of catastrophe risk modeling and risk analysis services. The $2 billion purchase is expected to boost Moody’s insurance data and analytics business to nearly $500 million in revenue, the company said in a release. The acquisition is also intended to accelerate the development of global integrated risk capabilities for the American business and financial services firm, which hopes to innovate for the next generation of risk assessment.
Moody’s Chief Executive Officer Rob Fauber sees the purchase as an immediate boost for the company’s environmental, social, governmental (ESG), and climate-related revenues, expecting long-term demand in these services alongside global climate change. In 2019, the firm acquired a majority stake in Four Twenty Seven, a California-based provider of data and analysis related to physical climate risks, confirming its commitment to understanding the impacts of climate change and developing new contingencies for its clients.