InsuResilience Investment Fund goes live in Luxembourg as Public-Private Partnership
Zurich, 14 July 2017 – The BlueOrchard managed InsuResilience Investment Fund, an evolved version of the Climate Insurance Fund, has been launched in Luxembourg as a public-private partnership. The Fund combines two separately investible Debt and Equity Sub-Funds and provides first loss protection to private investors. The mandate underlines BlueOrchard’s commitment as a leading impact investing manager.
The economic and financial losses caused by natural disasters have increased substantially over the last decades. It is expected that the frequency and severity of weather related events will increase further as climate change progresses. Developing and emerging countries are and will be particularly affected by these developments. Access to insurance is limited in developing economies, although insurance can effectively reduce the vulnerability of countries and their population towards natural catastrophes and extreme weather. The overall objective of the InsuResilience Investment Fund is therefore to contribute to the adaptation to climate change by improving access to and use of climate insurance in developing countries. It aims specifically at reducing the vulnerability of poor and vulnerable low-income households as well as micro, small and medium enterprises to extreme weather events.
The InsuResilience Investment Fund forms part of the G7 InsuResilience Initiative and has been initiated by KfW, the German Development Bank, on behalf of the German Ministry for Economic Cooperation and Development (BMZ). The Fund combines several levers to develop climate insurance solutions for the poor and vulnerable, such as Private Debt and Private Equity investments as well as technical assistance and premium support. Furthermore, KfW, on behalf of BMZ, is providing first loss protection for private investors. The Fund is now open for private investors.
“BlueOrchard is pleased to welcome private investors to the InsuResilience Investment Fund, joining our efforts to build and grow the market for climate insurance through the provision of equity, debt capital and technical expertise in developing countries. Together with our partner, CelsiusPro, we are looking forward to further expanding the outreach of the Fund and enhancing the adaptation of the poor and vulnerable to extreme weather risks and natural catastrophes,” says Patrick Scheurle, CEO of BlueOrchard.
“The IIF is thankful to both BMZ and KfW to have kick-started the development of commercially sustainable climate insurance investments through seed and first loss funding. Together with private investors we can now leverage their pioneering funding for the benefit of poor and vulnerable beneficiaries worldwide,” states Stefan W. Hirche, Director of InsuResilience Investment Fund.
For further information, please visit: www.insuresilienceinvestment.fund
KfW is one of the world’s leading and most experienced promotional banks. Established in 1948 as a public law institution, KfW is owned 80 percent by the Federal Republic of Germany and 20 percent by the federal states (“Länder”). KfW Development Bank is Germany’s leading development bank and an integral part of KfW. It carries out Germany’s Financial Cooperation (FC) with developing countries on behalf of the Federal Government. Its goal is to combat poverty, secure the peace, protect the environment and the climate and make globalization fair. KfW is a competent and strategic advisor on current development issues.
BlueOrchard Finance is a leading global impact investment management firm dedicated to fostering inclusive and sustainable growth while providing attractive returns for its investors. BlueOrchard offers premium multi-asset class solutions and is an expert in innovative blended finance and public-private partnership mandates. With a major presence in emerging and frontier markets and offices on four continents, BlueOrchard helps its partners around the world make profound investment decisions and meet their objectives.
Founded in 2001 by initiative of the UN, BlueOrchard was the first commercial manager of microfinance debt investments. The firm has utilized its know-how and experience to steadily expand into asset classes including credit, private equity, and sustainable infrastructure. To date, BlueOrchard has invested more than USD 4bn across 70 emerging and frontier markets, enabling fundamental social impact. BlueOrchard Finance is a licensed Swiss asset manager authorized by the FINMA. Its Luxembourg entity is a licensed alternative investment fund manager (AIFM) authorized by the CSSF. For additional information, please visit: www.blueorchard.com.
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