Generali Deutschland Holding AG (GE1) plans to increase lending to companies to diversify its investments, Boersen-Zeitung reported, citing an interview with the insurer’s Chief Financial Officer Torsten Utecht.
“We’re expanding our credit exposure, hence loans to medium-sized companies would be of interest for us for diversification,” Utecht was quoted by Boersen-Zeitung as saying. While the company still lacks the know-how to compete with banks, it plans to invest to build expertise, he said, the newspaper reported.
Generali is generating yields of 3.5 percent to 4 percent on new investments, Utecht said, according to Boersen-Zeitung. The company isn’t currently buying German government bonds and the share of sovereign debt in its portfolio is declining, he added, the newspaper said.
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