Allianz PNB Life Insurance, a joint venture between German insurer Allianz SE and Lucio C. Tan-owned Philippine National Bank, is reportedly eyeing investments in long-term infrastructure projects.
At a news conference on July 5, Allianz’s CEO Alexander Grenz said the firm is looking for vehicles that will allow it to “hedge basically out risk and hedge our investments over long-term.”
He also asserted that the more long-term investments should be leveraged at the governmental level.
“And we are speaking not only about the five, seven and 10 years, which are the typical in the market but if we could find things that help us to invest 20 years to 30 years with certain guaranteed years; that is something life insurance is highly interactive,” said Grenz.
He added, “I think there’s still a possibility to improve that and to leverage better life insurance companies. So, I think it’s a missed opportunity that such vehicles and financial instruments are not catering to the life insurance, particularly.”
According to Business World, the insurance company is in talks with the Manila-based Insurance Commission to create a platform that would make this possible.
Last December, the Insurance Commission encouraged insurance firms to invest in debt and/or equity security instruments for infrastructure projects.
