Premiums4Good announces $633 million in impact investments

QBE Insurance Group has grown its Premiums4Good impact investment portfolio to $633 million in 2019.

The sustainability report, which was launched at FERMA Forum 2019, said the group is aiming to expand impact investment allocation to $1 billion by 2021.

QBE Group CEO Pat Regan said Premiums4Good was an important part of QBE’s investment and sustainability strategy.

He said: “Through Premiums4Good we invest in a variety of assets that seek to deliver positive change in communities across the globe – from renewable energy projects and sustainable infrastructure, through to social services and programs to support vulnerable people and communities.

“By investing for a social, environmental and financial benefit, Premiums4Good delivers shared value to our business and the community - proving it’s possible to make a difference while also delivering attractive risk-adjusted financial returns.

“It also helps us deliver on an increasingly important driver for our stakeholders, giving our people, customers and partners an opportunity to help drive positive change.” 

As at June 2019, QBE’s USD 633 million portfolio was invested across 43 assets, spanning classes including green bonds, social bonds and infrastructure bonds that were delivering or forecast to deliver positive social and environmental impact in communities across Europe, North America, Africa, Asia and the Pacific.

Regan continued: “Thanks to the support of our customers, partners and our people, Premiums4Good has expanded into new asset classes, including our most recent investment in the LeapFrog Emerging Consumer Fund III, which invests in emerging markets to improve access to financial services and consumer health products.

“We have enhanced our investment strategy to focus on opportunities that deliver deeper social or environmental impact. New investments have been made in areas including social care and provision of community services, social inclusion, diversity and gender as well as urban and community development. 

“In line with our position as an institutional investor in social impact bonds globally, social impact bonds also remain a key part of our Premiums4Good portfolio.

“This year, we’ve also taken a consistent approach to impact investment allocation across our North American, European and Australia Pacific operations, committing a minimum of USD 100 million, GBP 100 million and AUD 100 million of customer premium from each respectively.”

He said that if QBE achieves its ambition to grow its impact investment allocation to $1 billion by 2021, impact investment would represent a significant four per cent of QBE’s total investment portfolio.

The QBE Premiums4Good Investment Impact Report is available to download at: https://www.qbe.com/aboutqbe/sustainability/premiums4good.