ABI outlines industry progress on £100bn productive asset investment pledge

Written by Adam Cadle

17/07/2025

The insurance and long-term savings industry invested £10.9bn in 2024 across a variety of sectors including real estate, utilities and transport, therefore making “positive progress” towards its pledge to invest £100bn into assets contributing to economic growth and the net-zero transition, the ABI has said.

In its first update report, tracking the industry’s progress towards reaching its commitment, the ABI said £3.8bn has been invested in real estate, helping to build affordable and social housing and student accommodation; £2.7bn has been invested in utilities including energy and water supply; £1bn has been invested in transport, supporting buses and ports; and the remaining £3.4bn was invested across a variety of sector including manufacturing, construction, and human health and social work.

Changes to the prudential regulatory regime, now known as Solvency UK, aimed to make it easier for annuity providers to invest in productive assets – which are typically large-scale and long-term debt investments, expected to generate greater returns over time. During discussions at the time of the reforms, annuity providers pledged to invest £100bn in productive finance over the next decade. This was helped by a reduction in the risk margin and investors now being able to include assets with ‘highly predictable’ cash flows within their matching adjustment portfolios.

Hannah Gurga, ABI director general, said: “Annuity investors have the potential to be true nation-builders – channelling long-term capital into infrastructure and green projects that grow the economy and accelerate the UK’s net-zero transition.

“With £10.9bn invested last year, the momentum is real – and with the right pipeline of opportunities we’re ready to go further and faster.”

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