FRANKFURT (Reuters) – German reinsurer Munich Re said it hadagreed to buy a business that helps manage weather risks for theenergy sector from reinsurer RenaissanceRe
|The world's biggest reinsurer would pay a mid-two digit milliondollar amount for the business, a Munich Re spokesmansaid on Tuesday.
|The business, known as Real, has clients that are mainly U.S.energy companies seeking cover against swings in their income dueto adverse weather conditions. The acquisition willallow Munich Re to improve its ability to insureinvestors in renewable energies against the lack of wind orsunshine, Munich Re said.
|Real, which has about 30 employees, also trades commoditycontracts in oil and natural gas as part of its risk managementservices, Munich Re said.
|The acquisition, which is due to close in the fourth quarterpending regulatory approval, would add new regions and sectorsto Munich Re's range of weather derivatives, improving thegroup's diversification, the reinsurer said.
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