Moody’s to Acquire CAPE Analytics, Adding AI-Powered Geospatial Property Risk Intelligence to Its Industry-Leading Insurance Risk Models

Rhea-AI Summary

Moody’s (NYSE:MCO) announced an agreement to acquire CAPE Analytics, a leading provider of geospatial AI intelligence for residential and commercial properties.

This acquisition aims to integrate CAPE's cutting-edge AI analytics with Moody’s industry-leading Intelligent Risk Platform and catastrophe risk modeling for the insurance sector.

According to Rob Fauber, President and CEO of Moody’s, the combination will offer customers the most advanced property risk analytics available, enhancing insights and decision-making across the insurance lifecycle.

The acquisition will enable Moody’s to provide in-depth, property-specific data, including building characteristics, firmographic data, peril risk and average annual loss estimates, geospatial AI analytics, valuation, and probability of default models.

CAPE Analytics leverages computer vision, machine learning, and geospatial imagery to deliver immediate, detailed risk assessments for properties in the US, Canada, and Australia.

The acquisition is expected to close in Q1 2025, pending customary closing conditions and regulatory approvals. The terms were not disclosed, and the transaction is not expected to materially impact Moody’s financial results.

Positive

• Acquisition enhances Moody’s property risk analytics capabilities with AI-powered insights.
• Integration of CAPE’s technology with Moody’s risk models improves decision-making for insurance sector.
• Expanded data offerings include detailed building characteristics, peril risk, and valuation models.

Negative

• Terms of the transaction were not disclosed, leading to uncertainty about financial impact.

Insights

Financial Technology Analyst

This strategic acquisition positions Moody's to dominate the insurance risk analytics market through advanced AI integration. By merging CAPE's geospatial AI capabilities with Moody's existing catastrophe risk models, the company is creating an unparalleled property risk assessment platform that could revolutionize insurance underwriting efficiency.

The timing is particularly strategic as climate-related risks continue to escalate, driving demand for more sophisticated risk assessment tools. CAPE's AI-powered instant property analysis capabilities, when combined with Moody's extensive risk modeling infrastructure, will create a competitive moat in the insurance analytics space.

While the financial terms weren't disclosed, CAPE's technology stack and existing market presence in the US, Canada and Australia suggest this is likely a mid-sized acquisition that could generate significant synergistic value. The immediate integration into Moody's Intelligent Risk Platform indicates strong potential for rapid commercialization and revenue generation.

Insurance Industry Analyst

This acquisition represents a significant advancement in property risk assessment capabilities for the insurance sector. The integration will enable insurers to perform real-time, granular risk assessments at the individual property level - a game-changing capability in an industry where precise risk evaluation directly impacts profitability.

The combined solution addresses a critical pain point in insurance underwriting: the need for instant, accurate property risk assessment. Traditional methods often rely on historical data and manual inspections, leading to delays and potential inaccuracies. CAPE's AI-driven approach, enhanced by Moody's comprehensive risk models, will enable faster, more accurate underwriting decisions and potentially reduce loss ratios through better risk selection.

For property insurers facing increasing climate-related risks, this enhanced capability could significantly improve portfolio management and pricing accuracy, ultimately leading to better loss ratios and improved profitability.

NEW YORK--(BUSINESS WIRE)-- Moody’s Corporation (NYSE:MCO) announced today that it has entered into an agreement to acquire CAPE Analytics, a leading provider of geospatial AI intelligence for residential and commercial properties. The acquisition will bring together Moody’s industry-leading Intelligent Risk Platform and catastrophe risk modeling for the insurance sector with CAPE's cutting-edge geospatial AI analytics, creating a sophisticated property database capable of delivering instant, address-specific risk insights.

“I continually hear from our customers that they are seeking more precise and actionable information as they evaluate an evolving set of risks,” said Rob Fauber, President and Chief Executive Officer of Moody’s. “By combining our CAT risk models with CAPE’s AI-powered property risk intelligence, we will provide our customers with the most advanced property risk analytics available in the industry, enhancing insights and decision-making across the insurance lifecycle.”

With the acquisition of CAPE, Moody’s will provide its customers more in-depth, property-specific data than ever before, including building characteristics, firmographic data, peril risk and average annual loss estimates, geospatial AI analytics, valuation, probability of default models, and more. This rich reservoir of data will allow insurance carriers, reinsurers, and various financial stakeholders to better determine property exposures, vulnerabilities, valuations and the risks posed by natural hazards such as wildfires, hurricanes, and hailstorms.​

CAPE Analytics creates property intelligence analytics through computer vision, machine learning, and geospatial imagery, providing immediate, detailed risk assessments for properties on an individual address basis throughout the United States, and in large parts of Canada and Australia.

The acquisition is expected to close in the first quarter of 2025, subject to the satisfaction of customary closing conditions, including the expiration or termination of any applicable regulatory waiting periods.

The terms of the transaction were not disclosed, and the transaction is not expected to have a material impact on Moody’s financial results.

About Moody’s Corporation
In a world shaped by increasingly interconnected risks, Moody’s (NYSE: MCO) data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. With a rich history of experience in global markets and a diverse workforce of approximately 15,000 across more than 40 countries, Moody’s gives customers the comprehensive perspective needed to act with confidence and thrive. Learn more at moodys.com.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995
Certain statements contained in this release are forward-looking statements and are based on future expectations, plans and prospects for Moody’s business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements. Stockholders and investors are cautioned not to place undue reliance on these forward-looking statements. Such statements include, but are not limited to, statements relating to the impact of the acquisition of CAPE Analytics on Moody’s business. The forward-looking statements and other information in this release are made as of the date hereof, and Moody’s undertakes no obligation (nor does it intend) to publicly supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed expectations or otherwise, except as required by applicable law or regulation. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Moody’s is identifying certain factors that could cause actual results to differ, perhaps materially, from those indicated by these forward-looking statements. These factors, risks and uncertainties include, but are not limited to: the impact of general economic conditions (including significant government debt and deficit levels, and inflation and related monetary policy actions by governments in response to inflation) on worldwide credit markets and on economic activity, including on the volume of mergers and acquisitions, and their effects on the volume of debt and other securities issued in domestic and/or global capital markets; the uncertain effectiveness and possible collateral consequences of U.S. and foreign government initiatives and monetary policy to respond to the current economic climate, including instability of financial institutions, credit quality concerns, and other potential impacts of volatility in financial and credit markets; the global impacts of the Russia - Ukraine military conflict and the military conflict in the Middle East on volatility in world financial markets, on general economic conditions and GDP in the U.S. and worldwide, on global relations and on the Company's own operations and personnel; other matters that could affect the volume of debt and other securities issued in domestic and/or global capital markets, including regulation, increased utilization of technologies that have the potential to intensify competition and accelerate disruption and disintermediation in the financial services industry, as well as the number of issuances of securities without ratings or securities which are rated or evaluated by non-traditional parties; the level of merger and acquisition activity in the U.S. and abroad; the uncertain effectiveness and possible collateral consequences of U.S. and foreign government actions affecting credit markets, international trade and economic policy, including those related to tariffs, tax agreements and trade barriers; the impact of MIS’s withdrawal of its credit ratings on countries or entities within countries and of Moody’s no longer conducting commercial operations in countries where political instability warrants such actions; concerns in the marketplace affecting our credibility or otherwise affecting market perceptions of the integrity or utility of independent credit agency ratings; the introduction or development of competing and/or emerging technologies and products; pricing pressure from competitors and/or customers; the level of success of new product development and global expansion; the impact of regulation as an NRSRO, the potential for new U.S., state and local legislation and regulations; the potential for increased competition and regulation in the jurisdictions in which we operate, including the EU; exposure to litigation related to our rating opinions, as well as any other litigation, government and regulatory proceedings, investigations and inquiries to which Moody’s may be subject from time to time; provisions in U.S. legislation modifying the pleading standards and EU regulations modifying the liability standards applicable to credit rating agencies in a manner adverse to credit rating agencies; provisions of EU regulations imposing additional procedural and substantive requirements on the pricing of services and the expansion of supervisory remit to include non-EU ratings used for regulatory purposes; uncertainty regarding the future relationship between the U.S. and China; the possible loss of key employees and the impact of the global labor environment; failures or malfunctions of our operations and infrastructure; any vulnerabilities to cyber threats or other cybersecurity concerns; the timing and effectiveness of any restructuring programs; currency and foreign exchange volatility; the outcome of any review by tax authorities of Moody’s global tax planning initiatives; exposure to potential criminal sanctions or civil remedies if Moody’s fails to comply with foreign and U.S. laws and regulations that are applicable in the jurisdictions in which Moody’s operates, including data protection and privacy laws, sanctions laws, anti-corruption laws, and local laws prohibiting corrupt payments to government officials; the impact of mergers, acquisitions or other business combinations and the ability of Moody’s to successfully integrate acquired businesses; the level of future cash flows; the levels of capital investments; and a decline in the demand for credit risk management tools by financial institutions. These factors, risks and uncertainties as well as other risks and uncertainties that could cause Moody’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements are described in greater detail under “Risk Factors” in Part I, Item 1A of Moody’s annual report on Form 10-K for the year ended December 31, 2023, and in other filings made by the Company from time to time with the SEC or in materials incorporated herein or therein. Stockholders and investors are cautioned that the occurrence of any of these factors, risks and uncertainties may cause the Company’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements, which could have a material and adverse effect on the Company’s business, results of operations and financial condition. New factors may emerge from time to time, and it is not possible for the Company to predict new factors, nor can the Company assess the potential effect of any new factors on it. Forward-looking and other statements in this release may also address our corporate responsibility progress, plans, and goals (including sustainability and environmental matters), and the inclusion of such statements is not an indication that these contents are necessarily material to investors or required to be disclosed in the Company’s filings with the Securities and Exchange Commission. In addition, historical, current, and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250113472182/en/

For Moody’s Investor Relations:

Shivani Kak

Moody’s Corporation

+1 212-553-0298

Shivani.Kak@moodys.com

For Moody’s Communications:

Chris Cashman

Moody’s Corporation

+1 212-553-1461

Chris.Cashman@moodys.com

Source: Moody’s Corporation Investor Relations

FAQ

What does the MCO acquisition of CAPE Analytics mean for shareholders?

The acquisition is expected to enhance Moody’s property risk analytics capabilities, potentially improving decision-making and service offerings for the insurance sector.

When will the MCO acquisition of CAPE Analytics be completed?

The acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions and regulatory approvals.

How will the acquisition of CAPE Analytics impact Moody's financial results?

The transaction is not expected to have a material impact on Moody’s financial results.

What new capabilities will Moody’s gain from acquiring CAPE Analytics?

Moody’s will gain advanced geospatial AI analytics, enhancing property-specific data such as building characteristics, peril risk, and valuation models.

Why is Moody’s acquiring CAPE Analytics?

Moody’s aims to combine its catastrophe risk models with CAPE’s AI-powered property risk intelligence to provide more advanced property risk analytics and improve decision-making in the insurance sector.

Which regions will benefit from CAPE Analytics’ technology after the acquisition?

The technology will benefit properties throughout the United States, and in large parts of Canada and Australia.