Project Future

Allianz is a pioneer in sustainable investments. In 2011, Allianz signed the United Nations Principles for Responsible Investment (PRI) and since has increasingly taken social and environmental concerns into account. "We believe that considering sustainability risks and opportunities is the only way to generate attractive long-term returns," explains Gabriele Recke, Head of Sustainability at Allianz Leben. "After all, Allianz Leben and Allianz Private Krankenversicherung are long-term investors and need to take long-term risks and opportunities into account." Allianz's sustainability approach consists of several building blocks. "We select asset managers that are aligned with our sustainability preferences. We have clear exclusion criteria for controversial weapons and restrictions for investments into coal and fossil fuels," says Recke. Allianz’ sustainable approach includes a focus on renewable energy, such as wind power, and also maintaining a regular dialogue with non-governmental organizations (NGOs). For listed assets’ ESG (Environmental, social, good governance) performance is systematically evaluated and companies with scores below a threshold require the asset manager’s explanation or divestment. For unlisted investments, such as real estate assets or infrastructure, we conduct case-by-case reviews. We aim for positive, real world change and therefore our engagement process and ongoing dialog with the companies with which we invest, is integral to our strategy. "We want to actively drive the transformation to a low-carbon economy with our investment strategy," emphasizes Gabriele Recke. "As a large institutional investor, we can influence how companies produce. For us, it is about helping companies to transform along a sustainable path."

As a founding member of the U.N.-convened Net-Zero Asset Owner Alliance, we advocate for ambitious decarbonization strategies and financing by industry. Our commitment is net zero greenhouse gas emissions in our proprietary investment portfolio by 2050 and we’re working towards our first intermediate target to reduce greenhouse gas emissions in listed equities and corporate bonds by 25 % by 2025 compared to 2019. In addition, by 2025, real estate investments are expected to be on track for the 1.5-degree target in 2050. "And, importantly, we report annually on our progress, creating transparency for our customers and the public," says Recke.

Klaus Berge, Chief Financial Officer of Allianz Private Krankenversicherung (AKPV), looking directly at the camera, smiling slightly.
Klaus Berge, Chief Financial Officer, Allianz Private Krankenversicherung (APKV)

Allianz Private Krankenversicherung (APKV) is currently investing 35 billion euros in the capital market. What do customers get out of it – and how sustainable are the investments? APKV CFO Klaus Berge talks about this in an interview.

Mr. Berge, the APKV invests money in the capital markets for its policyholders. What for? Investment is a key element of health insurance, although it is not well known. In this way, we ensure that premiums do not rise in old age, simply because people are getting older and tend to go to the doctor more often. 

How does it work? Our customers pay in a little more in their younger years than would initially be necessary for their medical care. We invest this additional amount – for example in the capital market, in real estate or in infrastructure projects, such as wind turbines. Later, these investment returns are fed back to the insured and "subsidize" the remaining premiums. The more successful an investment strategy is, the higher this benefit will be, i.e. the lower are the respective insurance premiums. If you compare our investment performance with the market, it is more stable and delivers a higher return, which is a great achievement of our AIM colleagues and our Group internal asset managers.

Why can premiums still rise? In fact, it is not the age of the individual insured person that is the decisive factor, but first and foremost medical progress. Today, medical care is more effective than ever before, but it also costs much more.  

 

How sustainable is APKV's investment? Our investments are increasingly geared toward sustainable investments. They offer attractive return opportunities in the long term, and we want to support the transformation toward a CO2-neutral economy. Anyone who invests over a period as long as private health insurance must take sustainability into account.

What does that mean in concrete terms? One clear example is coal. An investment in coal will hardly generate profits in the future. As another example, APKV, together with Allianz Lebensversicherung, recently invested a total of 700 million in the "FOUR Tower 1" in Frankfurt am Main, the third-highest office tower in Germany. The property is set to receive Germany's highest sustainability certification. This illustrates that we have a clear focus on climate protection and decarbonization and are already implementing our goal of structuring capital investments in a climate-neutral way by 2050 in various asset classes. 

These are special times to be responsible for sustainably investing health insurance policy premiums. When our customers purchase a health insurance policy from Allianz, they too are an integral part of investing in a greener future.

The Allianz Group is one of the world's leading insurers and asset managers with more than 126 million* private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 706 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage nearly 1.7 trillion euros** of third-party assets. Thanks to the systematic integration of environmental, social and governance criteria in our operations, business processes and investment decisions, we continue to be recognized as among the sustainable insurers in the Dow Jones Sustainability Index (September 23, 2022). In 2021, over 155,000 employees achieved total revenues of 148.5 billion euros and an operating profit of 13.4 billion euros for the group.

These assessments are, as always, subject to the disclaimer provided below.

*Including non-consolidated entities with Allianz customers.
** As of September 30, 2022
As with all content published on this site, these statements are subject to our cautionary note regarding forward-looking statements:
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