Andy Briggs, CEO of Phoenix Group, comments on HM Treasury’s consultation response setting out the final reforms of Solvency II:

“The proposed reforms to Solvency II announced today present a very significant opportunity to ensure more private sector capital can be directed by insurers into the real economy and ensure we better mobilise the UK’s £3.4trn of pension wealth. These regulations are an important component of the changes needed to the wider UK investment landscape which will enable Phoenix to meet its ambition to invest more in the future. Phoenix plans to invest £40-50bn in illiquid assets and sustainable investments over the next five years to support house building, green energy, and local communities across the country without compromising policyholder protection in any way”.

Below are some of the examples of our social and sustainable investment last year.

• Affordable Housing, total £542m  
  • Supporting 16 housing associations in the UK and Europe who own/manage >190,000 homes for some of society’s most vulnerable people.  
  • Example - sustainability linked financing for Barcud Cyf, a non-profit Welsh Housing Association, to build an extra 1,000 sustainable, low carbon homes by 2025 in the mid-Wales region.  
• Positive environmental impact, total £220m  
  • Supporting a range of modern, renewable energy production projects across the UK, helping the government deliver on its net zero ambitions and to promote energy security.
  • Example - refinancing of community owned solar assets that generate carbon neutral electricity and deliver annual profit-sharing initiatives for local communities.
• Healthcare and education, total £364m  
  • Supporting communities to provide access to care homes, healthcare and university facilities in the UK, US and Europe  
  • Example - supporting Impact Healthcare REIT plc’s acquisition of 35 care homes providing 2,000 beds for the UK’s elderly population.  
• Other sustainable investment, total £168m  
  • Invested assets include sustainability linked loans, green bonds and charitable lending.  
  • Example - financing the Mercers’ Company’s development of a new archive building that incorporates several publicly accessible spaces, including an education suite.