Publications

- September 1, 2016: Vol. 9 Number 8

To read this full article you need to be subscribed to Institutional Investing in Infrastructure

Ensuring European infrastructure: Big European insurers have been making increasingly large allocations to infrastructure investment for several years. But will recent changes to capital charge rules see the wider market ramp up their allocations?

by John McKenna

Europe’s insurers have been grabbing the headlines when it comes to investing in infrastructure. In the United Kingdom alone, Pension Insurance Corp. has committed £100 million to the debt financing of the Thames Tideway Tunnel, a £4.2 billion new “super sewer” being built below London and due for completion in 2023. Life insurer Prudential, meanwhile, through its investment arm M&G is preparing to inject up to £100 million ($132 million) in the £1 billion ($1.3 billion) Swansea Bale Tidal Lagoon project in Wales.

Such commitments in 2016 have followed other high-profile moves into infrastructure debt investments such as reinsurer Swiss Re agreeing to invest $500 million as the first client of the newly established Macquarie Infrastructure Debt Investment Solutions in 2012. And Allianz in 2014 raised a £500 million infrastructure debt fund that included commitments from Japanese insurer Nippon Life.

Many hope that such high-profile commitments are the fi

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?