Swiss Re to Expand Infrastructure Investments
Monday, 06 22 2015, Category: Insurance and Reinsurance, Country: Europe
Swiss Re AG Chief Investment Officer Guido Fuerer said the world’s second-biggest reinsurer would invest as much as 5 percent of its funds in infrastructure if securities used to fund projects were more easily tradeable.
“The fact that we have invested less than 1 percent in infrastructure is not because we aren’t interested or we don’t think it’s a great asset,” Fuerer said in an interview. “Three percent to 5 percent is absolutely thinkable,” he said.
Swiss Re had investments of $127.6 billion in the first quarter, with about two-thirds in bonds and 7 percent in stocks. Reinsurers, which help primary insurers cover the costs of damage claims, as well as insurers are looking for new ways to invest as record low interest rates have undermined returns.
Source: Insurance Journal