10 Apr 2025
8 minutes
As extreme weather events grow more frequent and severe, insurance is emerging as an unlikely sustainable investment opportunity. Global natural disaster losses now top US$400 billion annually – yet only about 30% of these losses are insured*. This vast protection gap creates fertile ground for forward-thinking insurers and, in turn, for sustainable investors.
Traditionally viewed as a low-growth commoditised sector, insurance is being reimagined. A select group of insurers are evolving beyond simple risk coverage to offer preventative, proactive insurance solutions. These not only provide financial protection against weather-related risks, but also help customers reduce their exposure to them. This includes advising on fire prevention and behavioural changes – measures that can lower both losses and premiums while increasing customer loyalty.
Simply put, for the most forward-thinking insurers, increasing climate risk is an opportunity to innovate, grow market share and improve returns. Companies like Canada’s Intact Financial are leading the way, with advanced underwriting models and an offering that promotes community resilience while delivering shareholder value. Despite Canada experiencing record catastrophe losses due to wildfires and other weather events last year, Intact generated a c.17% return on equity, 6.6% ahead of the industry average.
In a world grappling with climate change, insurance might intuitively seem like a no-go area for investors. Yet for investors able to uncover the companies that are leaning into the opportunity – with innovative solutions and underwriting models that focus on prevention, resilience and sustainable value creation – we believe the age of extreme weather brings with it a significant alpha opportunity.
*Source: AON, Weather Climate and Catastrophe Insight, 2024.
A research trip to China has reinforced that the energy transition and intelligent economy are accelerating – and investable
The decarbonisation investment universe is well-stocked with ‘heavy-asset, low-obsolescence’ companies that are well-placed to benefit from an investment supercycle.
Following recent research trips, the Ninety One Global Environment team report back from the world’s first ‘electro-state’.
Oil shocks don’t just disrupt, they accelerate change. Higher prices and energy insecurity are fast-tracking the shift to electrification and clean technology, led by emerging markets.
Emerging markets have become the new growth engine of the transition, with Chinese exports of clean technologies allowing countries to electrify and industrialise more cleanly and cheaply than ever before. Meanwhile in developed markets, AI and electrification are driving up power demand at a rate not seen in decades – fuelling demand for renewable energy and efficiency solutions across industries.
A new cycle reshaping global equity leadership.
AI is dramatically changing trends in electricity demand, creating exciting opportunities for equity investors.
Our research offers three reasons why the dollar’s upside is limited, while the balance of risks increasingly point lower.
Deirdre Cooper, Head of Sustainable Equity, explores the implications for investors in decarbonisation of President Trump's 'One Big Beautiful Bill' Act.
The energy transition has not reversed, it is just taking a different path to the one we expected. Developed markets are going more slowly, but emerging markets are surprising dramatically to the upside.
Dollar cycles are longer than others because four self-reinforcing forces create inertia. They rarely reverse unless all four turn at once. Trump-era policies, fiscal strain and shifting global capital could trigger such a convergence.
For years, capital has gravitated to the US. A one-way trade powered by tech dominance and economic heft. But as the world tilts on its axis, the next cycle is unlikely to resemble the last, and the investment map is beginning to redraw itself.
Ninety One’s Sam Segameglio speaks with portfolio manager Graeme Baker about the recent blackouts in Spain and Portugal and what they reveal about the state of Europe’s energy infrastructure.
Emerging Markets (EM) are gaining investor confidence, driven by tech innovation, India’s rise, and China’s evolving private sector. With US growth uncertainty and attractive valuations, EM equities offer compelling opportunities despite ongoing risks.
High interest rates and uncertainty have created a challenging backdrop for Brazilian companies. But some businesses are using adversity to catalyse innovation.
Higher interest rates and policy uncertainty have resulted in negative sentiment towards clean-tech sectors. This is creating a compelling opportunity for a countercyclical, diversified source of returns.
The high cost of shipping materials and goods around Indonesia – a country comprising more than 17,000 islands – is putting a brake on the development of the e-commerce sector. The largest Indonesian e-commerce player is innovating to break the logistics logjam, and in doing so extend its market leadership.
China’s equity performance over the past three years has left investors disappointed. However, with the rollout of its most substantial stimulus package in years, it raises the question: should investors reassess their stance on China?
How will Trump 2.0 affect clean-tech sectors, including renewable energy and electric vehicles? Deirdre Cooper considers what lies ahead for investors in global decarbonisation.
Artificial intelligence is accelerating demand for clean and efficient energy. As a result, the growth opportunity across the clean-tech value chain is multiplying.
Market and portfolio insights, webinars & events curated from across our investment teams to help you steer through changing investment landscapes.
Important Information
This communication is provided for general information only and should not be construed as advice.
All the information in this communication is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessarily reflect those of Ninety One.
Any opinions stated are honestly held but are not guaranteed and should not be relied upon.
All rights reserved. Issued by Ninety One.
For further information on indices, fund ratings, yields, targeted or projected performance returns, back-tested results, model return results, hypothetical performance returns, the investment team, our investment process, and specific portfolio names, please click here.