Investment manager BlueOrchard has released its InsuResilience Investment Fund Private Equity II (IIF PE II).
The company said it would invest in Asian, African and Latin American companies that are “active in the weather insurance value chain”. These will include, he said, insurers and reinsurers. BlueOrchard said the fund is backed by German development bank KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). It has a target size of $100 million.
Philipp Mueller, CEO of BlueOrchard, said: “With the first investment fund InsuResilience, we have successfully created a market by leveraging our global network and impact expertise. Through a pioneering investment strategy, we have been able to build and grow a climate risk insurance value chain that will continue to help protect millions of people against the effects of climate change.
He added: “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 mobilizes capital from the public and private sectors to benefit people and the planet, continues to thrive. I would like to thank our investors and partners who help us foster access to climate insurance in the hardest hit regions.
The first IIF, which closed in June 2020, raised $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, is reaching over 40 million climate insurance beneficiaries in 26 countries as of June 2022. The fund has attracted investments from established investors public and private sectors, including the European Investment Bank and the Soros Economic Development Fund.
IIF was established in 2015 by KfW Bank on behalf of the Federal Republic of Germany, with the main objective of contributing to adaptation to climate change by improving access to and use of insurance in developing countries. development.
The funds are the only components of the G20 InsuResilience Global Partnership (IGP) to invest private capital in private sector companies to increase commercial insurance offerings in developing countries. IGP aims to protect over 500 million vulnerable people in developing countries from the impacts of climate change.
Earlier this year, investment fund InsuResilience acquired 40% of Vanguard, a general insurance and microinsurance group operating in Ghana. At the time, he announced he would appoint directors to Vanguard’s board to help the company continue its market expansion, roll out its microinsurance delivery capabilities and further improve governance. .