Moody’s announces acquisition of geospatial AI intelligence provider CAPE Analytics

Moody’s Corporation has agreed to acquire CAPE Analytics, a provider of geospatial AI intelligence for residential and commercial properties across the United States, Canada, and Australia.

From what we understand, Moody’s will combine its Intelligent Risk Platform and catastrophe risk modeling with CAPE’s geospatial AI analytics, which will ultimately create a property database that provides address-specific risk insights. 

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

“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,” the firm said. 

Importantly, this remarkable amount of data will allow for insurance carriers, reinsurers, and other financial stakeholders to better determine property exposures, vulnerabilities, valuations and the risks posed by natural disasters such as wildfires, hurricanes, and hailstorms. 

Rob Fauber, President and Chief Executive Officer of Moody’s, commented on the acquisition: “I continually hear from our customers that they are seeking more precise and actionable information as they evaluate an evolving set of risks. 

“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.”

Moody’s Insurance Solutions is a leading catastrophe risk modeller in the catastrophe bond and wider insurance-linked securities (ILS) space, with its models and services utilised for primary issuance, as well as within the business processes of many ILS funds and investors.

We also understand that CAPE Analytics advanced structured property data services are already utilised by a number of specialist ILS managers.

So, by bringing CAPE Analytics service offering under the Moody’s umbrella this acquisition should further elevate awareness of the product within the ILS community.