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Meeting Britain’s urban infrastructure challenges


in 21st centry infrastructure


new and refurbished homes


better transport

The insurance and long-term savings industry is an engine of the UK economy, investing in 21st century infrastructure across Britain, from homes to power to transport. Insurers like Prudential and Aviva have made a national commitment to £25bn in infrastructure spending, while Allianz is investing in housing and transport from Aberdeen to Dover. Pension Insurance Corporation has invested £100m in debt secured on the Thames Tideway Tunnel.

By its nature, the insurance and long-term savings industry is in it for the long term. We build relationships with private and public sector organisations that support them through the years it takes to build - and the centuries it takes to maintain - vital infrastructure. 

Red Kite Community Housing

In July 2017, PIC invested £60mn with Red Kite Community Housing Limited, a regulated housing association based in High Wycombe. The funds are to be
used to refinance existing debt and fund future housing development.

Main points of the transaction:

£60mn size, split across three tranches maturing in 2030, 2033 and 2040, to match PIC’s pension liabilities

Partly deferred for 12 months, providing certainty of funding cost for Red Kite, but reducing the cost of carry

The funding arrangement will allow Red Kite to build up to 375 new homes, as well as refinancing existing debt

Ray Prior, Group Director of Resources, at Red Kite said:

“We are incredibly pleased to have secured this new funding arrangement which gives us everything we need, particularly with greater flexibility, to deliver on our ambitious plans. We have many exciting things to do now and the new financing
makes those plans much more of a reality. For our customers, this will be invaluable in improving their homes and the lives of our communities”. 

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Supporting the country’s traditional institutions

In 2015, PIC was the sole investor in £70 million of secured debt, issued by the Church of England Pension Board. The funds are being used to acquire and maintain retirement housing for retired Church of England Ministers.

Allianz recently invested equity in the Colchester Garrison, home to the 16th Air Assault Brigade and in university accommodation in Nottingham and Exeter. 

By road, rail, and sea

Spotlight on Allianz

Allianz has made a series of major equity and debt investments across the UK to support the development of crucial transport infrastructure:

Rail: trains that are fit for purpose.

Allianz invested equity in Porterbrook, which owns a third of the trains and rolling stock used by Network Rail’s system.

Road: Improving connections in Scotland.

Allianz GI is launching its second Infrastructure Debt Fund – a pioneering model to support long-term infrastructure - later this year. The company has already committed over £750 million on UK infrastructure projects including the Aberdeen Western Peripheral Route, M8 road projects in Scotland, and the A1/A4/A5 projects in Northern Ireland.

Sea: redeveloping our docks. 

The company has provided a £55 million bond for the redevelopment of the Dover Western Dock.

Meanwhile, Aviva helped finance an injection of more than £600 million into East Anglia’s railways, radically improving their performance. As part of a consortium, Aviva helped finance the deal to acquire 58 new trains to replace the existing fleet on the East Anglia network. New trains will operate on key routes on the network, making Norwich and East Anglia better connected and a more attractive place for businesses. Not only will rail links be improved but the potential knock-on reduction in pressure on roads will help too. 

Resilient Cities

Swiss RE is a founding partner of the Resilient Cities initiative, which works to protect cities from natural disasters like flooding, health and demographic risks - and new dangers such as cybercrime.  Resilient Cities get access to a platform of services, including financing for resilient infrastructure so they can prepare for whatever the future brings.

PIC has helped to improve London’s long-term resilience by investing £100 million in debt secured on the Thames Tideway Tunnel, a 25km sewer under the Thames to protect the river from pollution caused by overflows for at least the next 100 years.

Summer 2017

If you have any questions please contact publicaffairsteam@abi.org.uk or +44 (0) 207 600 3333

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