QBE’s Premiums4Good announces USD 633 million in impact investments and confirms commitment to USD 1 billion 2021 ambition
QBE Insurance Group (QBE) 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 released today.
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.”
The QBE Premiums4Good Investment Impact Report is available to download at: https://www.qbe.com/about-qbe/sustainability/premiums4good.
Premiums4Good is an innovative initiative that sees QBE invest everyday premiums to make an extraordinary difference to communities across the globe. Through Premiums4Good, we invest customers’ premiums into investments that have additional social or environmental benefits at no extra cost to the customer.
These investments include social impact bonds, social bonds, green bonds and infrastructure, supporting a range of projects and programs that seek to create change.
From renewable energy initiatives and sustainable infrastructure, to social services and programs to support vulnerable people and communities – Premiums4Good helps us, together with our customers and partners, make a difference.
About our Premiums4Good investment approach:
Premiums4Good supports our belief that we can deliver attractive risk-adjusted returns and business value, while also seeking to deliver positive social and environmental impact.
We have a globally consistent approach to impact investment across our North American, European and Australia Pacific operations. In 2019, each division committed a minimum of USD 100m, GBP 100m and AUD 100m of premium respectively to Premiums4Good on behalf of our policy holders.
To help us grow Premiums4Good, select customers also can also choose to contribute more and opt in to allocate 25% of their premiums to the initiative. Our ambition is to grow our impact investment allocation to USD 1 billion by 2021.