More cash to go in private equity, property and infrastructure
Allianz is to increase its investments in alternative asset classes, including private equity, property and infrastructure such as renewable energy assets, the FT reports.
Paul Achleitner, Allianz's board member responsible for finance, said Allianz's current €8bn of private equity investments, and a further €7bn of investments in alternative asset classes, could be doubled to a total of about €30bn.
Investments in property could rise from about €8bn to €23bn. Achleitner still expected investment returns to produce more than half of profit.
Return as high as 5%
Dow Jones added that Allianz expects to make a sustained return on investment of 4.5%-5%.
Allianz currently has around €15bn invested in private equity, of which about €7bn is pure private equity while €8bn includes infrastructure investment, Achleitner said. The property investment is €8bn. Fixed-income securities amount to 89% of Allianz's €400bn portfolio.
Achleitner said Allianz wants a one-stop insurance German regulator that understands the business model of insurers and is compatible with Europe-wide regulation.
