07 May 2021
Insurance investors are faced with a paradox when investing in infrastructure as "old" infrastructure works very well in capital models, but the needs for investments is in "new" infrastructure (i.e. renewables, telecom...), the audience at Insurance Asset Risk's investing in Real assets will hear.
The conference takes place on the 27 May, more information can be found here.
"Renewable energy financing is not new per se," Adrian Jones, director of infrastructure debt at Allianz Global Investors, told Insurance Asset Risk. "Historically people have done renewables in a very subsidised and predictable way. Increasingly, we're seeing liberalisation of energy markets and investors are being asked to take much more of a view on renewables in the merit order, at a time of rapid change in the mix of installed capacity – which in previous electricity market dislocations caused losses to "merchant" power lenders."
Jones will be speaking on a panel on infrastructure investments which will discuss the challenges of switching from old to new infrastructure assets. The panel will explore how Solvency II capital charges are a big driver for insurance companies, but insurers cannot expect the regulation to run ahead of the commercial reality on the ground, the fact that many of these new infrastructure assets perhaps are not ready for insurance balance sheets, and that they have been financed by banks.
The panel will be moderated by Curtis Spillers, senior credit analyst corporate bonds at RGA Reinsurance Company.
- Adrian Jones, director of infrastructure debt, Allianz Global Investors
- Corrado Pistarino, chief investment officer, Foresters Friendly Society
- Tom Sumpster, head of private debt origination, Phoenix Group