NDF invests USD 14.5 million in BlueOrchard's climate insurance private equity fund
A press release has been issued on NDF's and BII's investment to the InsuResilience Investment Fund II.
Read the original press release here.
BlueOrchard climate insurance private equity fund welcomes BII and NDF as new investors to the InsuResilience Investment Fund II (IIF II), approaching target size of USD 100 M.
NDF has now committed USD 13.5 million to the fund, with an additional USD 1 million as a grant for the fund’s Technical Assistance Facility. Together with the British International Investment's (BII) commitment of USD 15 million, these new investments bring the total committed capital for the fund to over USD 90 million, close to its target size of USD 100 million. The final closing of the fund will be in the second half of 2024.
Building upon the achievements of its predecessor, the fund places significant emphasis on leveraging technology along the value chain to enhance the affordability and accessibility of climate insurance solutions.The fund’s unique strategy has a successful track record of fostering climate change adaptation in regions most affected by climate change. It provides growth capital and market-rate returns for private investors and extends technical assistance and premium support to its partner companies. First-loss protection mitigates risks for private investors.
The IIF PE II fund is a joint initiative between BlueOrchard and KfW, the German development bank, acting on behalf of the German government under the InsuResilience Global Partnership. Its primary objective is to protect vulnerable people and microentrepreneurs in emerging markets in Africa, South and South-East Asia, and Latin Americas, from the impacts of climate change by providing access to climate insurance.
The fund makes direct investments, focusing on investing in business models at the forefront of providing climate insurance solutions to underserved communities, with a particular emphasis on parametric climate insurance and insurtech. The fund has already made notable investments in several innovative companies in the climate insurance sector, including Newe, a data-driven innovative Brazilian specialty insurance company, Igloo, one of the top insurtech companies in Southeast Asia, Pula, an agricultural insurance and technology company with an unparalleled outreach in Sub-Saharan Africa, and FinAGG, an Indian provider of cash flow financing solutions with embedded insurance coverage.
"Climate insurance can provide concrete solutions to the disastrous consequences of climate change and the people and businesses affected by it. We are proud as NDF to partner with BlueOrchard, invest in InsuResilience Investment Fund II and be part of making positive change in the regions where this is needed the most,” said Satu Santala, Managing Director of NDF.
Pula, an agricultural insurance and technology company in Kenya working on climate solutions. Photo: Pula for BlueOrchard
