QBE’s Premiums4Good grows to $633m in impact investments
Business confirms commitment to USD $1 billion 2021 ambition
QBE Insurance Group has grown its Premiums4Good portfolio to USD $633 million in pursuit of its ambition to expand impact investment allocation to USD $1 billion by 2021, according to the 2018 – 2019 QBE Premiums4Good Investment Impact Report.
The industry-first Premiums4Good initiative sees QBE invest up to 25 per cent of customer premiums across its Australian, North American and European operations into impact investments with additional social or environmental benefits, with no extra cost or risk to customers.
QBE Group CEO Pat Regan said Premiums4Good was an important part of QBE’s investment and sustainability strategy.
“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.
Mr Regan said the portfolio was representative of QBE’s industry leading commitment to impact investment.
“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.”
Mr Regan said should QBE achieve its ambition to grow its impact investment allocation to USD 1 billion by 2021, impact investment would represent a significant 4 per cent of QBE’s total investment portfolio.
“Premiums4Good has the potential to become an industry catalyst that fundamentally alters our industry’s approach to investment.”
QBE European Operations is part of QBE Insurance Group, one of the world’s leading international insurers and reinsurers and Standard & Poor’s A+ rated. Listed on the Australian Securities Exchange, QBE’s gross written premium for the year ended 31 December 2018 was US$13.7 billion.
As a business insurance specialist, QBE European Operations offers a range of insurance products from the standard suite of property, casualty and motor to the specialist financial lines, marine and energy. All are tailored to the individual needs of our small, medium and large client base.
We understand the crucial role that effective risk management plays in all organisations and work hard to understand our clients’ businesses so that we offer insurance solutions that meet their needs – from complex programmes to simpler e-trading solutions – and support them in minimising their risk exposures. Our expert risk management and rehabilitation practitioners focus on helping clients improve their risk management so that they may benefit from a reduction in claims frequency and costs.
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