Impact investing is a catalyst for positive change
QBE’s impact investing initiative, Premiums4Good is integrating social value with business value, while also delivering positive social and environmental impacts.
QBE has released it’s 2020-2021 Premiums4Good investment impact report and it highlights how this unique initiative is focused on driving a better future for communities.
QBE Group Chief Investment Officer Gary Brader said the Premiums4Good initiative began in 2014 and demonstrates QBE’s leadership in impact investments, where demand continues to grow with new additions such as Foyer Central Social Impact Bond.
QBE, through Premiums4Good, recently invested in Foyer Central Social Impact Bond, which aims to address the significant problem of youth homelessness in NSW, particularly young people leaving out-of-home-care (OOHC).
Through the investment in Foyer Central Social Impact Bond*, working capital is provided for the delivery of the Foyer Central Program. This is the first time the Foyer Program has been entirely funded by a community housing organisation and its partners.
Drawing on their collective experience supporting vulnerable young people, Foyer Central is delivered by Uniting in partnership with St. George Community Housing (SGCH). SGCH brings deep expertise in community housing, development and tenancy management. The program supports young people, at risk or experiencing homelessness upon leaving OOHC.
Uniting Executive Director, Tracy Burton said young people with a care background deserve a stable home with consistent support and mentorship, just like their peers.
“We are delighted to build on the established and highly reputable Foyer model with our partner organisations. Young people tell us they want opportunities to create a life for themselves on their own and Foyer Central is here to support those ambitions.”
Young people spend up to two years at Foyer Central, with onsite and dedicated Youth Development Coaches developing life skills, supporting their transition to stable accommodation and providing employment and vocational education services.
Young people leaving care are more likely to have poor social outcomes which can lead to further disadvantage and perpetuate the cycle of homelessness. The average cost to government of meeting the (modelled) service needs of an OOHC leaver is estimated to be approximately $500,000 over 20 years.**
“Impact investing is all about a collective effort from the community. It takes a collective effort to solve these wicked problems,” Mrs Burton said.
Mr Brader said the results based social impact bond provided an expansion of social innovation funding and much needed social care, alongside a financial return for investors.
“Through this social impact bond, investors provide financing towards the program and are repaid based on the successful achievement of the agreed social performance outcomes. Alignment of interests is crucial to generate measurable positive changes.”
QBE’s impact investing continues to grow, with further growth ambitions.
Earlier this year QBE announced it had grown its impact investment allocation to over USD 1 billion well ahead of schedule. QBE currently has USD 1.4 billion invested across 85 investments including social impact bonds, green social and sustainability (GSS) bonds, and infrastructure.
“The investment community understands the enormous benefits of impacting investing. Impact investment has been steadily growing since it was coined over a decade ago and what we are seeing is an evolution of the market; sustainable investments are poised for continued global growth.”
According to the Responsible Investment Association Australasia (RIAA)^, the market for responsible investments in Australia has soared to $1.2 trillion in 2020, up from $983 billion in 2019. Additionally, the proportion of responsible investment AUM to total managed funds grew from 31% to 40% in 2020, despite there only being a 2% increase in all professionally managed funds in Australia over the same period. Impact investing is a sub-set of responsible investing and continues to grow at a fast pace.
QBE believes Premiums4Good provides a catalyst for many positive changes and proud of our active role in sharing the value of impact investing. It has helped QBE rethink the role we can play in creating a more resilient, inclusive and sustainable low carbon economy.
The QBE Premiums4Good Investment Impact Report is available to download at:
Premiums4Good Impact Investment Report
About QBE
QBE is a general insurance and reinsurance company. Across our operations we offer commercial, personal and specialty products and risk management solutions to our customers.
Our purpose is to give people the confidence to achieve their ambitions. QBE is listed on the Australian Securities Exchange (ASX) and headquartered in Sydney. We employ more than 11,000 people in 27 countries.
*The Foyer Central Social Impact Bond is managed by not-for-profit organisation Social Ventures Australia.
**Taylor Fry & NSW Office of Social Impact Investment, Analysis of future service usage for Out-of-Home-Care leavers, July 2018.
^Responsible Investment Association Australasia, Responsible Investment Benchmark Report Australia 2021, September 2021.