The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Allianz: Insurance companies occupy the middle ground

Insurance company issuers occupy a small and rather uncomfortable niche in the debt capital markets somewhere between banks and corporates.

"We can say that we are not a bank, which is a good thing," says Stephan Theissing, treasurer of Allianz. "And if you look at the spread development on our bonds, we are trading better than most banks. Insurance companies, unlike banks, are not being forced to reinvent the business model. The model of receiving premiums first and paying out later is better than needing the constant refinancing of the balance sheet that banks do. And through the crisis, insurers have generally done better than banks at preserving their capital."

Theissing must also be giving thanks that Allianz is headquartered in Germany and that it has maintained an Aa3/AA rating. Its spreads in the secondary market suggest a certain flight to a safe haven within the insurance sector. But insurers, whose returns are in large part driven by returns on investments in financial markets that are suddenly beset by risks to sovereign and bank bonds that investors did not realize would arise when they first bought them, are hardly immune to the gyrations of financial markets.

"When the crisis hit we were seen by some investors, such as US-based investors in the euro markets, as a European financial player," says Theissing.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree