Allianz Trade introduces Specialty Credit Social2Social, a new solution supporting projects that are addressing a specific social issue and achieving positive social outcomes. Through this product, Allianz Trade enables corporates, financial institutions, multilaterals and public actors to engage in projects that foster a positive social impact through the issuance of a specialty credit policy, protecting them against non-payment and political risks. Eligible projects include affordable basic infrastructure and essential services, affordable housing, and socioeconomic advancement and empowerment for underdeveloped areas or disadvantaged communities. The company also commits to hold all premium received from Social2Social policies as investment in certified social bonds[1].
Unlocking the full-circle benefits of social impact
Specialty Credit is a tailored insurance solution designed to help multinationals, financial institutions, export credit agencies and multilaterals mitigate and manage risks. These risks can relate to non-payment, contract interruption, confiscation and other factors affecting organizations operating on a global scale. It allows them to manage their exposures and take advantage of opportunities in new markets.
“For decades now, we collaborate with global institutions and partners dedicated to fostering positive social impact, underwriting policies that empower them to expand their programs. Managing short-to-long-term transactions, political risk and highly concentrated risks from large contracts and structured deals is becoming more complex. Our impact underwriting capabilities are therefore becoming instrumental for these players. As an insurer and corporate citizen, we decided to do more to drive the virtuous cycle of social impact, and have therefore created Specialty Credit Social2Social”, explains Pierre Lamourelle, Deputy Global Head of Specialty Credit & Midterm at Allianz Trade.
Protecting the corporates, banks, authorities and multilaterals that act for positive impact
With Specialty Credit Social2Social, Allianz Trade acts all along the value chain of social impact, from risk transfer to supporting the rise of new projects.
“First, thanks to the policies we issue for our clients, we allow them to engage in projects that address or mitigate a specific social issue. It could be a contribution to universal higher education with new school construction, or to public health with hospital projects. Second, the premium generated through Social2Social policies are held as investments in certified social bonds. We are therefore creating a circular model that continually fuels social progress. Of course, the whole process is conditioned to a rigorous assessment led by our sustainability experts, in order to ensure that the transaction at hand meets our criteria”, adds Florence Lecoutre, Board Member in charge of Sustainability, Data Analytics & AI, Human Resources, Compliance and Communications at Allianz Trade.
Bonds consistent with Social Bonds Principles from ICMA (International Capital Markets Association) or a comparable social investments framework, aligned with the evolving regulation over time.