Allianz announces a shift in its investment strategy. Faced, like other players with low interest rates for a long period, the company has been struggling with its life insurance where guaranteed rates were offered to policyholders. To fulfill its obligations Allianz is required to detain more profitable investments than government bonds.
The group announced an increase of 8 billion EUR (11 billion USD) in the investments of real estate offices or shopping centers which grew from 22 billion EUR (30 billion USD) to 30 billion EUR (41 billion USD), with major cities such as Paris and New York being targeted. Equity investments will also be consolidated with nearly 5 billion EUR (6.88 billion USD), that is 1% of the amount allocated being managed there.