Allianz Group has raised its target for real asset based financing. The new mid-term investment goal is 110 billion euros compared with previously 80 billion euros. As per year end 2014, investments in this asset class amounted to 74.4 (previous year: 65.9) billion euros, an increase of 13 percent compared to year end 2013.
Real asset based financing includes debt and equity investments in real estate, infrastructure and renewable energy. The total investment portfolio of Allianz was approximately 615 billion euros at the end of 2014. The lion’s share of investments is allocated in debt instruments.
With this decision, Allianz Group continues the expansion of its investments in real assets. Recent transactions in infrastructure and real estate include Colchester Garrison and Porterbrook in the UK as well as Nice Etoile in France. The investment in Colchester Garrison includes accommodation, training, education and welfare facilities for more than 4,000 people. With Porterbrook, Allianz has invested in one of the major rolling stock leasing companies in the UK rail industry and with Nice Etoile in an inner-city shopping center in Nice, France.
In addition, Allianz Group has invested in 48 wind and seven solar parks in France, Germany, Italy and Sweden. They generate enough energy to supply a city the size of Milan.
"Thanks to our investment expertise, Allianz can soften the adverse developments of the continued low-interest rate environment," said Maximilian Zimmerer, Chief Investment Officer of Allianz SE. "Neither savers nor investors can fully avoid the impact of the artificially low interest rates."
"Our customers, however, benefit from attractive returns from real asset based investments and the continued healthy risk profile of our investment portfolio," he added. "Thus, Allianz investments not only support the general economy, they also play a crucial role in ensuring the old age provisions of millions of our customers."