QBE has invested in Foyer Central Social Impact Bond to address youth homelessness in NSW as part of its Premiums4Good initiative, which has climbed to $US1.4 billion ($1.87 billion) in impact investments across 85 investments.

Premiums4Good sees QBE invest a portion of all customer premiums into investments that have social or environmental benefits.

Through the Foyer Central Social Impact Bond, investors provide financing and are repaid based on the successful achievement of agreed outcomes, aligning the interests of young people, service providers, investors and government.

Young Australians leaving out-of-home-care can spend up to two years at Foyer Central with onsite coaches developing life skills, supporting their transition to stable accommodation and providing employment and vocational education services.

Gary Brader, QBE Group CIO, says the results-based bond was an example of new social innovation funding.

“Alignment of interests is crucial to generate measurable positive changes,” he said. “Through this social impact bond, investors provide financing towards the program and are repaid based on the successful achievement of the agreed social performance outcomes.”

QBE says impact investing continues to grow at a fast pace after steady growth for a decade.

The market for responsible investments in Australia jumped to $1.2 trillion in 2020, up from $983 billion in 2019, according to the Responsible Investment Association Australasia.

The proportion of responsible investment to total managed funds grew to 40% in 2020, from 31%, even as all professionally managed funds in Australia grew only 2% over the same period.