Zurich Insurance to make maiden infra debt allocation

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Zurich Insurance to make maiden infra debt allocation

Online magazine Asia Asset Management has announced that Zurich Insurance, the Swiss life insurer, is preparing to make its first allocation to infrastructure debt moved by the low yields derived from fixed-income assets.

Speaking at a roundtable event in Hong Kong, Cecilia Reyes, Zurich Insurance's global chief investment officer, said that the company was seeking global infrastructure opportunities that tied in with the theme of environmental, social and corporate governance (ESG).

Ms. Reyes said:

"We've decided to make an allocation to infrastructure debt; we're in the process of implementing that strategy. The asset class would enhance the return on our portfolio; because infrastructure debt demands a liquidity-risk premium, which can range depending on the maturity from 150 to 300 basis points, because they're illiquid - you can't trade them."

Life insurance investors prefer long-dated and illiquid assets that can match the long-dated and illiquid nature of their liabilities.

Ms. Reyes declined to give the size of Zurich's forthcoming investment allocation in the infrastructure debt space, but she indicated that given the nature of the industry, the allocation would have to be substantial to justify the mobilization of resources.

Ms. Reyes said that Zurich would rely on third party asset managers with the appropriate expertise to execute the investments.

With about US$200 billion in assets, in its most recent financial results, Zurich reported a total return on group investments of 4.8% for the first half of 2014.

List of country news

Country news

  • November 25, 2014

    Partners Group announces adjustments to its leadership structure

    Partners Group has appointed 22 senior managers to a new and diverse global leadership team (the Global Executive Board), charged with driving forward the global business and corporate development of the firm. Read more
  • December 19, 2014

    Capital Dynamics achieves final close for clean energy fund

    Capital Dynamics, a global private asset manager, has achieved final closing of its Capital Dynamics Clean Energy and Infrastructure (CEI) LP  fund. Read more
  • August 25, 2015

    Second closing of Susi renewable energy fund II at 121 million

    The SUSI Renewable Energy Fund II has received commitments of €121 million (US$137.7 million), in line with the planned fundraising schedule. Read more
  • November 16, 2015

    First close for Quaero capital's european infrastructure fund at 50 million

    Quaero Capital an independent, specialist fund management firm has reached the first close of its European Infrastructure fund, with €50 million (US$53.8 million) of commitments. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.