Munich Re has added to its weather risk expertise with the purchase of RenRe Energy Advisors.

RenRe’s clientele are mainly US energy companies and businesses that need cover against income fluctuations caused by adverse weather.

It also trades oil and natural gas commodity contracts.

“With the acquisition… we are actively expanding our know-how and product range of weather risks and investing in a promising and profitable market,” Munich Re board member Thomas Blunck said.

Munich Re has worked with RenRe as a risk capacity provider for more than three years. It has monitored global weather trends and loss developments for nearly 40 years.

It says the acquisition offers regional and sector diversification. Expansion opportunities include covering lack of wind or sunshine for renewable energy investors.

The transaction is expected to close in the fourth quarter of this year, subject to conditions and regulatory approvals.

RenRe is a unit of Bermuda-based RenaissanceRe Holdings.