QBE's impact investment seeks to lift youth out of homelessness

QBE's impact investment seeks to lift youth out of homelessness | Insurance Business Australia

QBE's impact investment seeks to lift youth out of homelessness

QBE’s impact investing initiative called Premiums4Good is fusing social value with business value to drive a better future for vulnerable communities in its 2020-21 Investment Impact Report.

Gary Brader, group chief investment officer at QBE, said the initiative demonstrates QBE’s leadership in the growing demand for impact investments. For instance, QBE has recently invested in Foyer Central Social Impact Bond to address homelessness and out-of-home-care (OOHC) among the youth in New South Wales.

Through QBE’s investment in the Foyer Central Social Impact Bond, the Foyer Central Program is given working capital which it will use to deliver its program in partnership with St. George Community Housing (SGCH). Together, they support young people, at risk or experiencing homelessness upon leaving OOHC. Without proper intervention, OOHC youth are at risk of poorer social outcomes that are likely to perpetuate the cycle of homelessness.

“We are delighted to build on the established and highly reputable Foyer model with our partner organisations,” said Tracy Burton, executive director at Uniting. “Young people tell us they want opportunities to create a life for themselves on their own and Foyer Central is here to support those ambitions.”

Young people spend up to two years at Foyer Central, where they learn to develop life skills and receive vocational education services from trained Youth Development Coaches.

The social impact bond also supports an expansion of social innovation funding and social care. For investors, there is a financial return based on the success of the social outcomes.

QBE’s impact investment will continue to grow along with its ambition for a better world. Earlier this year, QBE had allocated over $1 billion to its impact investment ahead of schedule after recognizing its crucial role in continued global growth.

“Impact investing is all about a collective effort from the community. It takes a collective effort to solve these wicked problems,” Burton said. “Alignment of interests is crucial to generate measurable positive changes.”