×

Allianz CFO says pressure to cut costs is rising

MUNICH, Germany, Oct 10 (Reuters) - Allianz is under increasing pressure to cut costs given the low-interest rate environment, which undermines the insurer's ability to earn adequate returns on investment, its Chief Financial Officer Oliver Baete said.

The insurer is already trimming costs at its German property-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 wind projects. The Munich-based insurer could invest up to 1 billion euros ($1.3 billion), given the right legal conditions, Baete said.

Investments in onshore wind projects yield a gross margin of between 7 and 9 percent, way above the 1.5 percent return on 10-year German sovereign debt.

By end 2012, Allianz will have invested about 1.5 billion euros 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)(Reuters Messaging: edward.taylor.thomsonreuters.com@reuters.net))

Keywords: ALLIANZ/COSTS