Moody’s Corporation announced today that it has acquired Barrie & Hibbert Limited, a leading provider of risk management modeling tools for insurance companies worldwide.
The acquisition broadens Moody’s Analytics suite of software solutions for the insurance and pension sectors. With more than 150 customers around the world, Barrie & Hibbert’s Economic Scenario Generator (ESG) is widely recognized as an industry standard for valuing and projecting assets and liabilities and assessing risk and capital positions.
In addition, Barrie & Hibbert’s offerings and expertise in understanding the risks in long-term asset and liability management will enhance Moody’s data management, capital calculation and regulatory reporting platform to further meet the needs of institutions as they undertake risk management and regulatory compliance activities.
“Barrie & Hibbert has built a strong reputation for its specialized expertise and unique product offerings for insurance risk management,” said Mark Almeida, President of Moody’s Analytics. “Adding Barrie & Hibbert’s skills and experience to Moody’s Analytics expands our ability to help insurers meet worldwide solvency modernization initiatives including Solvency II and other regulatory challenges, and reinforces our commitment to assisting financial institutions as they address a growing array of risk management needs.”
“We are pleased to be joining a dynamic organization that is recognized as a global leader in helping financial institutions manage risk. The combination of Moody’s Analytics and Barrie & Hibbert will benefit our clients by providing them with a broader and more robust set of tools and services to assess financial risk and respond to regulatory requirements,” said Andy Frepp, CEO of Barrie & Hibbert.
Moody’s purchased Barrie & Hibbert for GBP 50 million (USD $77.6 million), and the acquisition was funded from cash on hand. Reflecting the unfavorable impact of purchase accounting and integration costs, the transaction is expected to be several cents dilutive to Moody's GAAP earnings per share in 2012.
Based in Edinburgh, Scotland, Barrie & Hibbert will be integrated into the Moody’s Analytics Risk Management Software segment, which includes a range of award winning products used by financial institutions around the world.