The industry is already a key investor in UK infrastructure projects, providing long-term investment capital for the benefit of communities and businesses across the nations and regions. The update report shows a number of investments made in this period, including high-quality rental and social housing for families on an average income, temporary accommodation for vulnerable residents awaiting a long-term home, education campuses and vital water infrastructure for approximately 2.5 million people across North West England.
Annuity providers’ pledge to invest £100 billion was made following changes to the prudential regulatory regime, now known as Solvency UK, which made it easier for the insurance and long-term savings industry to invest in productive assets.
The top three sectors invested in over the first two years of the pledge are:
£9 billion invested in real estate, including helping to build affordable and social housing and student accommodation;
£5.3 billion invested in utilities, including energy and water supply;
£1.8 billion invested in transport, storage and construction, including in ports, buses and rail transport.
The ABI and its members continue to engage with regional authorities and the investment community across the UK to develop relationships and explore further potential opportunities, especially those with a focus on green and good projects and supporting economic growth. To maintain momentum, a stable and predictable pensions policy environment is crucial to give long-term investors the confidence they need to invest.
Rt. Hon. Lucy Rigby KC MP, Economic Secretary to the Treasury: It’s very good to see that insurers are on track to deliver on their pledge to invest £100 billion in UK productive assets, like energy, housing and infrastructure projects. These are tangible investments which are driving economic growth and positive change in communities across the country.
Hannah Gurga, Director General, ABI: Two years into this pledge, firms have already invested almost £23 billion into projects that make a real difference across the UK, from new homes and student accommodation to major water infrastructure and education facilities. This is exactly the sort of long-term investment our sector is well placed to provide. Maintaining a stable and predictable policy environment will be essential if firms are to continue investing at scale in the homes, infrastructure and businesses that support economic growth across the country.
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