Allianz Lebenversicherung, the life insurance firm subsidiary of Allianz, plans to be more selective with its alternative investments in the future, changing its approach after expanding in private markets in recent years, a spokesperson for the company told IPE.
“Our strategy is to maintain the high level of more than a third of Allianz Leben’s assets in private markets, and expand through selected investment,” the spokesperson said, adding that Allianz Leben has currently almost €100bn invested in alternative assets.
Assets under management in private markets have increased from €93bn recorded in the first half of this year, including holdings in infrastructure and renewable energy, private debt, private equity, real estate, and commercial real estate, according to its latest financial statement.
Allianz Leben will increasingly look to invest in infrastructure and renewable energy that will drive the green transformation and in need of private capital.
It also plans to finance small and medium-sized firms, known as Mittelstand in Germany, for example through direct corporate loans promising very attractive returns with higher interest rate levels, according to the statement.
It has invested in the Hollandse Kust Zuid wind farm, and in the He Dreiht offshore wind farm, in the north sea, the spokesperson said.
“We are asset manager and life insurer in one. Our customers have access to global capital markets – including alternative asset classes – even with small contributions, and through these [asset classes] we offer inflation protection, providing [at the same time] capital for the digital and sustainable transformation of the economy,” chief executive officer Katja de la Viña said in a LinkedIn post.
The firm, instead, has turned a blind eye to private equity and real estate investments for the time being, it added in the statement.
Allianz Leben will increasingly look to opportunities in corporate and government bond investments, the spokesperson added. In an interview with Handelsblatt, CEO de la Viña described the turnaround in interest rate as “a new era”.
It manages assets totalling around €260bn, up from €257bn recorded at the end of last year.
It invests 7% of assets in equities, 11% in infrastructure, renewable energy and private equity, 11% in real estate, 20% in corporate bonds, 6% in emerging market bonds, 21% in developed market government bonds, 10% in loans, and 14% in real estate financing, according to H1 figures published by Allianz.
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