Washington DC-based Ullico has acquired a minority stake in an operating wind farm for an undisclosed amount, the insurance and investment company said in a statement. It is the company’s first investment in the energy sector and second in infrastructure to date.
The wind farm, located in the US, is operated by a renewable energy developer under a long-term contract and has a 20-year power purchase agreement with a utility company. Ullico did not disclose the name of the developer nor of the utility, which it described as “investment grade”.
“The investment’s long-term contractual revenue and expense streams along with the underlying hard assets fit very well with Ullico’s investment approach for infrastructure,” said Joseph R. Linehan, president of Ullico Investment Advisors. “The wind farm is complementary to our first investment in a water and wastewater utility concession in Rialto, California,” he added.
Ullico had made that investment in December 2012, participating through its infrastructure business as a majority equity investor in Rialto Water Services.
Originally established as a life insurance company in 1927, Ullico currently comprises five companies: The Union Labor Life Insurance Company; Ullico Casualty Company; Ullico Casualty Group; Ullico Investment Advisors; and Ullico Investment Company.