German primary insurers increased their infrastructure investments in 2018 by almost a third to €32bn, figures published by the German Insurance Association (GDV) have shown.
“With a stronger focus on infrastructure, companies are trying to become more independent of the capital market and low interest rates,” the association stated.
“Investments in the energy or telecommunications sector, gas or water supply and road construction generate predictable and steady returns.
“The projects, with their long maturities, also fit well with the life insurance business model. Their share of total investments now stands at 2.2% (2017: 1.6%) - and is set to rise further.”