Allianz CFO says pressure to cut costs is rising

MUNICH, Germany, Oct 10 (Reuters) - Allianz isunder increasing pressure to cut costs given the low-interestrate environment, which undermines the insurer's ability to earnadequate returns on investment, its Chief Financial OfficerOliver Baete said.

The insurer is already trimming costs at its Germanproperty-casualty division, a move which will involve job cuts,Baete said at an event in Munich.

Allianz also said it was open to investing in offshore windprojects. The Munich-based insurer could invest up to 1 billioneuros ($1.3 billion), given the right legal conditions, Baetesaid.

Investments in onshore wind projects yield a gross margin ofbetween 7 and 9 percent, way above the 1.5 percent return on10-year German sovereign debt.

By end 2012, Allianz will have invested about 1.5 billioneuros in solar and windparks.($1 = 0.7754 euros)

(Reporting By Christian Kraemer; writing by Edward Taylor;editing by Victoria Bryan)

((Edward.Taylor@thomsonreuters.com)(+49 69 7565 1187)(ReutersMessaging: edward.taylor.thomsonreuters.com@reuters.net))