FRANKFURT, Sept 3 German reinsurer Munich Re said it had agreed to buy a business that helps manage weather risks for the energy sector from reinsurer RenaissanceRe.
The world's biggest reinsurer would pay a mid-two digit million dollar amount for the business, a Munich Re spokesman said on Tuesday.
The business, known as Real, has clients that are mainly U.S. energy companies seeking cover against swings in their income due to adverse weather conditions. The acquisition will allow Munich Re to improve its ability to insure investors in renewable energies against the lack of wind or sunshine, Munich Re said.
Real, which has about 30 employees, also trades commodity contracts in oil and natural gas as part of its risk management services, Munich Re said.
The acquisition, which is due to close in the fourth quarter pending regulatory approval, would add new regions and sectors to Munich Re's range of weather derivatives, improving the group's diversification, the reinsurer said.