* Eyes doubling proportion of investments in alternatives
* To raise property investment to 30 bln eur from 20 in 5
* Moves help increase yield in face of low interest rates
(Adds detail, background)
FRANKFURT, Nov 13 Allianz is looking
to invest about 10 billion euros ($12.7 billion) in property
over the next five years as it seeks to offset low yields from
Europe's biggest insurer has an investment portfolio of 498
billion euros, more than 90 percent of which is invested in
fixed-income securities that have seen their yields cut in the
wake of the financial crisis.
Allianz would like to invest about 2 billion euros each
year in property over the next five years to bring the total to
30 billion, Maximilian Zimmerer, Allianz's board member
responsible for the insurer's investment strategy, told a
Zimmerer said it would be "desirable" to double the
proportion that alternative investments like property, corporate
loans and private equity play in the insurer's capital
investments to 16 percent in the coming years.
"All that would serve to widen the base of our investments
while achieving higher yields than are possible on the market
now," said Zimmerer, who took over the role of investment chief
from Paul Achleitner on June 1.
Zimmerer predicted that insurers would continue to help fill
the gap in corporate financing left by banks, who are paring
back their activity in the face of stricter risk capital rules.
Allianz is already playing an important role in the shift to
renewable energy, such as wind power, although it is not taking
on project risk in its investments.
Zimmerer said he expected Allianz to increase its
investments in corporate bonds and secured paper like covered
bonds, while paring back investments in euro zone sovereigns and
senior unsecured bank bonds.
($1 = 0.7867 euros)
(Reporting by Jonathan Gould and Alexander Huebner; Editing by