Life insurance firm Allianz Lebensversicherung, a subsidiary of Allianz, is planning to invest €860m of its clients’ funds in infrastructure in Germany nad Portugal.
The investor will deploy €700m in a joint venture that the group’s asset management arm, Allianz Capital Partners, will form with Spanish telecommunication company Telefonica once it receives final regulatory approval.
Telefonica and Allianz had reached an agreement to create a partnership to deploy fibre optic services in Germany through an open wholesale company with up to €5bn in funding.
Allianz Leben will invest the rest of the capital worth €160m in a natural gas distribution network handled by Galp Gás Natural Distribuição in Portugal.
Allianz Capital Partners has acquired a 75% stake in Galp Gás Natural Distribuição to carry out the first direct infrastructure investment in Portugal.
“Sustainable projects are long-term investments that fit with the strategy of the life insurance,” said Andreas Lindner, chief investment officer at Allianz Leben, adding that the firm wants to generate long-term attractive returns.
Allianz Leben is looking to improve returns through flexible capital investments in a zero and negative interest rate environment, it said, as it moves to combine security assets with investments in equities, alternatives, corporate or emerging market bonds.
The firm has assets under management worth €308bn. It has invested 28% of its assets in alternatives including infrastructure, real estate and renewable energy projects.