Dutch insurers considering investing in Defense industry

Dutch insurers like NN Group, Achmea, and ASR are seriously looking into opportunities to invest in the national defense industry. They’re giving heed to increasing pressure from the government on institutional investors to contribute to strengthening the armed forces, the Financieele Dagblad reported.

The insurers say they want to do their part in strengthening the Netherlands’ ability to protect itself, but they also want to be careful about how they invest. For example, Dutch insurers will not invest in chemical weapons or cluster munitions, a spokesperson for the Dutch Association of Insurers told FD. They also want to avoid companies that do business with countries that violate human rights.

According to the newspaper, ASR is already well into formulating its investment strategy for defense companies. NN Group and Achmea are also considering their options.

The insurers are examining exactly how to approach these investments, as Dutch defense companies are generally not listed on the stock exchange. The insurers would like for the government to create a defense bond in which they can invest.

Investing in weapons and defense companies has long been taboo for Dutch insurers, but the increase in tensions on the world stage and growing pressure from the government is changing that.

“As a sector, we feel a moral responsibility and we want to show that we are not deaf to the call from society,” the association spokesperson said.