RenaissanceRe to sell weather unit to Munich Re
RenaissanceRe is selling its weather and weather-related energy risk management unit, RenRe Energy Advisors (REAL) to Munich Re.
REAL’s team of experts have more than 16 years of experience in covering and trading weather risks and its clientele consists mainly of energy companies in the US and of other markets requiring coverage against fluctuations in income due to adverse weather conditions.
Munich Re has been working successfully with REAL, which also includes the trading of commodity contracts in oil and natural gas, for over three years as a risk capacity provider.
"With the acquisition of REAL, we are actively expanding our know-how and product range of weather risks and investing in a promising and profitable market. The new unit is an ideal complement to our expertise in the field of weather trends and weather risks, and also to our existing business model with solutions for weather risks", explained Thomas Blunck, a member of the Munich Re Board.
The new unit will enhance Munich Re's diversification in the field of weather derivatives, since it covers additional regions and sectors.
The transaction is expected to close in the fourth quarter of 2013, and is subject to regulatory approvals and customary closing conditions.