Allianz, Europe’s largest insurance company, told the Financial Times that it plans to substantially increase its investments in infrastructure and other alternative asset classes.
An Allianz spokesman confirmed to InfrastructureInvestor that the group, through private-equity subsidiary Allianz Capital Partners, intends to increase its allocations to infrastructure but does not have a specific target-size or timeframe in mind for the sector.
Allianz manages some €400 billion of client capital in insurance policies. But lower than expected returns in traditional investments such as bonds are leading the group to seek better results from less liquid assets. Achleitner said Allianz had the advantage of having “a very long-term investment horizon”, which makes it particularly suitable for these asset classes.
It currently holds about €8 billion of private equity investments with a further €7 billion of investments in other alternative asset classes. Almost 10 percent of the Allianz’s investments are in equities with the group targeting returns of between 4.5 percent and 5 percent.