News in brief: 21 January

- Sweden’s Alecta has invested USD 450m in two natural disaster risk reinsurance funds.

The first is a USD 250m in a fund through the reinsurance company Swiss Re and the second is USD 200m in a fund through the reinsurance company SCOR. In recent years, the world has been hit by an increasing number of natural disasters as a result of extreme weather. This has increased the general need for capital in reinsurance as damage to properties and other things has led to large costs for the insurance industry.

“Investments in funds linked to natural disaster risks are attractive to us for several reasons. These are assets that both give us good risk diversification, as natural disasters are not at all correlated with developments on the stock exchange and create an attractive return over time for our customers,” Alecta head of interest and strategy, Tony Persson, said.

- The Netherlands’ ABP has invested €570 million in a new fund for sustainable private loans in emerging countries.

The loans are for projects and companies that contribute to, among other things, access to clean energy, food security and access to finance. On behalf of ABP, its asset manager APG is the first investor in the new fund, established by provider ILX. This fund selects and bundles loans issued by institutions such as the World Bank, the African Development Bank and the Dutch Development Bank FMO.

- Denmark’s ATP has invested in a Danish geothermal heating system that will be built in Aarhus, and is set to become the largest geothermal power plant in Europe.

ATP has invested in Innargi, which will build and operate the geothermal power plant that will extract energy from deep inside the soil in Jutland, Denmark. By 2025 the power plant will supply heat to Aarhusians and is expected to be fully developed in 2030.

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