BNG Insurance

The benefits:
•Covers the project against unknown impacts
on the viability of the project, such as climate,
disease, and compulsory purchase orders
Improves investment attractiveness to the
lender market
•Removes any due diligence uncertainty
Reduces future valuation risks from new
discoveries and laws introduced
•Mitigates the need to establish an escrow,
indemnity or other financial provisions
for purchasers

For habitat banks mitigates the need to place
financial provisions on the balance sheet to
cover the provision of product warranties as
implied in signing the provision of contracts with
third parties
Product is used
ideally when
•
Owners of commercial assets are preparing
to finance or refinance them and they want to
achieve the best available market rates
•
•
•
Give confidence for housing developers, that a
BNG s106 agreement does not cause frictional
costs in selling the properties
Developers are seeking a clean exit from a site
Lenders have concerns regarding the
environmental credentials of an asset and future
asset values
•
For sellers of BNG Units, provides confidence to,
and can enhance the value of the product as the
BNG unit is backed up by Insurance capacity with
an A.M.Best A+ Stable rating and not their own
balance sheet
Biodiversity Warranty Protection - Protects
biodiversity risks in site developments,
transactions and financing.
Where the owners or investors in land or
built assets are:
•
•
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Developing sites where BNG or Nutrient
Neutrality obligations apply
Selling or buying sites which have
biodiversity obligations attached to them
Habitat Banks and sellers of
biodiversity units

• Provides an insurance wrapper assuring
  the BNG performance obligations of an
  asset over a sustained, 10 year period:
  
  Unknown future impacts on the habitat
  
  Costs for the complete or partial
  restoration of habitat
  Lenders’ exposure
  Attaches to the asset and transfers on
  sale to buyers
  Loss of Biodiversity unit income
  (Habitat Banks)
  Improving the certainty of returns from
  investing in habitat banks Asset sale values