- Follow-on fund, building on the success of the first fund, launched in 2017.
- One of the most effective climate change adaptation strategies to date, enabling over 40 million people in 26 countries to access climate risk insurance.
- Part of the G20 InsuResilience Global Partnership; blended finance fund, de-risked by the German government.
- Private equity investment strategy with track record of high impact and high additionality in climate change resilience; focus on affordability of and accessibility to climate insurance.
- Offering opportunity to invest in the fast-growing climate insurance market in some of the fastest growing economies.
IIF PE II will invest in companies in Asia, Africa and Latin America that are active in the climate insurance value chain, including insurers and reinsurers, aggregators, and technology companies. The fund is backed by German development bank KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and managed by BlueOrchard. With a target size of USD 100 million, IIF PE II is looking for companies that are able to disrupt, scale, and improve the resilience of populations and small businesses in emerging markets to extreme weather events and natural catastrophes. In addition to equity capital, the fund provides technical assistance and premium support to its partner companies. Building on a strong pipeline, IIF PE II has already received initial commitments from private sector investors.
Philipp Mueller, CEO of BlueOrchard said: “With the first InsuResilience Investment Fund, we successfully built a market by leveraging our global network and impact expertise. With a pioneering investment strategy, we were able to build and grow a climate risk insurance value chain that will continue to help protect millions of people from the effects of climate change. With the support of our partner KfW, we can now build on the success of the first fund and launch this follow-on fund. It is great to see that this blended finance initiative, which mobilises public and private sector capital for the benefit of people and planet alike, continues to thrive. I would like to thank our investors and partners who are helping us to drive access to climate insurance in the hardest-hit regions.”
The first IIF, closed in June 2020, mobilised USD 80 million from public and private investors. The fund has made nine equity investments in eight countries, and together with its sister debt sub-fund reaches over 40 million climate insurance beneficiaries in 26 countries as of June 2022. IIF is a prime example of a successful blended finance strategy. Structured as a public-private partnership, the fund attracted investments from established investors in both the public and private sectors, including the European Investment Bank and Soros Economic Development Fund.
Stephanie Lindemann-Kohrs, Director Global Equity and Funds at KfW said: “With BlueOrchard having proven that climate insurance expansion is a suitable impact investing theme, we are now able to leverage more private capital into these ventures; enabling private sector players to offer a meaningful contribution to the resilience of poor and vulnerable households and MSMEs against climate risks in yet underserved countries.”
The funds are the only components of the G20 InsuResilience Global Partnership (IGP) investing private capital in private sector companies to increase commercial insurance offerings in developing countries. IGP aims to protect more than 500 million vulnerable people in developing countries against the impacts of climate change.
Felix Hermes, Head of Private Equity and Sustainable Infrastructure at BlueOrchard, said: “Over the past 20 years, we have seen that business models targeting financial inclusion have made tremendous progress and achieved over proportional growth. Tremendous gaps remain with over 50% of the world’s population uninsured. This is particularly true for the 40-60% of population in emerging markets who are active in agriculture and directly exposed to the effects of climate change: extreme weather events and natural catastrophes. As the first IIF demonstrated, these vulnerable populations can be reached and better protected with relevant insurance offerings with commercially viable solutions, offering attractive opportunities for investors.”
– ends –
For further information, please contact:
+41 22 596 47 69
About BlueOrchard Finance Ltd
BlueOrchard is a leading global impact investment manager and member of the Schroders Group. As a pioneering impact investor, the firm is dedicated to generating lasting positive impact for communities and the environment, while aiming at providing attractive returns to investors. BlueOrchard was founded in 2001, by initiative of the UN, as the first commercial manager of microfinance debt investments worldwide. Today, the firm offers impact investment solutions across asset classes, connecting millions of entrepreneurs in emerging and frontier markets with investors with the aim to make impact investment solutions accessible to all and to advance the conscious use of capital. Being a professional investment manager and expert in innovative blended finance mandates, BlueOrchard has a sophisticated international investor base and is a trusted partner of leading global development finance institutions. To date, BlueOrchard has invested over USD 9,8bn across more than 90 countries. 246 million underserved individuals and MSMEs in emerging and frontier markets received access to financial and related services with the support of BlueOrchard as of March 2022. For additional information, please visit: www.blueorchard.com.
The information in this publication was produced by BlueOrchard Finance Ltd (“BOF”) to the best of its present knowledge and belief. However, all data and financial information provided is on an unaudited and “as is” basis. The opinions expressed in this publication are those of BOF and its employees and are subject to change at any time without notice. BOF provides no guarantee with regard to the accuracy and completeness of the content in this publication and BOF does not under any circumstance, accept liability for any losses or damages which may arise from making use of, or relying upon any information, content or opinion provided by BOF in this publication. This publication may contain references or links to other publications and websites and BOF has not reviewed such other publications and websites and is not responsible in any way in relation to the content of such publications and websites. The information in this publication is the sole property of BOF unless otherwise noted, and may not be reproduced in full or in part without the express prior written consent of BOF. All investments involve risk. We note specifically that past performance is not an indication of future results. Emerging markets impact investments involve a unique and substantial level of risk that is critical to understand before engaging in any prospective relationship with BOF and its various managed funds. Investments in emerging markets, particularly those involving foreign currencies, may present significant additional risk and in all cases the risks implicated in this disclaimer include the risk of loss of invested capital. The materials provided in this publication are for informational purposes only and nothing in this publication can be construed as constituting any offer to purchase any product, or a recommendation/solicitation or other inducement to buy or sell any financial instrument of any kind and shall not under any circumstances be construed as absolving any reader of this publication of his/her responsibility for making an independent evaluation of the risks and potential rewards of any financial transaction. We note in particular that none of the investment products referred to in this publication constitute securities registered under the Securities Act of 1933 (of the United States of America) and BOF and its managed/advised funds are materially limited in their capacity to sell any financial products of any kind in the United States. No investment product referenced in this publication may be publicly offered for sale in the United States and nothing in this publication shall be construed under any circumstances as a solicitation of a US Person (as defined in applicable law/regulation) to purchase any BOF investment product. The information provided in this publication is intended for review and receipt only by those persons who are qualified (in accordance with applicable legal/regulatory definitions) in their respective place of residence and/or business to view it, and the information is not intended under any circumstances to be provided to any person who is not legally eligible to receive it. Any recipient of information from this publication who wishes to engage with BOF in furtherance of any transaction or any relationship whatsoever must consult his/her own tax, legal and investment professionals to determine whether such relationship and/or transaction is suitable. By no means is the information provided in this document aimed at persons who are residents of any country where the product mentioned herein is not registered or approved for sale or marketing or in which dissemination of such information is not permitted. BOF disclaims all liability for any direct or indirect damages and/or costs that may arise from the use of (whether such use is proper or improper), or access to, this publication (or the inability to access this publication).
Copyright © 2022, BlueOrchard Finance Ltd. All rights reserved.