Allianz Global Corporate & Specialty's (AGCS) Capital Solutions team focuses on the Insurance Linked Securities (ILS) market. They specialize in structuring insurance risks into a form acceptable to capital market investors. They do this by linking insurance solutions and capital markets to transfer risk for the benefit of customers, insurers, and investors.
Meet our expert
Capital solutions
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Product description
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Risks covered
We focus on transforming insurance risks driven by events such as earthquakes, hurricanes or floods into investment products. We do this by transferring risk out of the traditional insurance sector into the capital markets for investors seeking alternative asset classes.
With a team of experts based mainly in Bermuda and New York, we work closely with specialist funds and partners in many capacities in the Insurance Linked Securities markets. We act as both structurer and sponsor of Catastrophe Bonds, broking private placements between Allianz and capital market investors. We also act as a transformer between financial and insurance execution formats and as an investor.
- Insurance Linked Securities
- catastrophe bonds
- catastrophe swaps
- natural catastrophe risks
- property & casualty risks
Climate solutions
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Product description
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Risks covered
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Scenarios
Protecting your business's finances and operations against unexpected weather effects, our climate solutions can be structured in an insurance or financial form to suit your local regulatory landscape.
These solutions support companies in any sector exposed to temperature, rain, snow, or wind risks, and can also improve creditworthiness and create favorable financing terms.
- financial volatility from unexpected weather patterns
- business interruption (weather related)
- supply risks (e.g. wind for wind farms, warmth for plant growth, water for hydro-power generation, etc.)
- operational risk (e.g. snow and ice cancelling flights, low rivers impacting barge traffic, cooling of manufacturing plants, etc.)
- demand risk (e.g. cold weather affecting battery and coat sales, hot weather increasing beverage sales, etc.)
- promotional risk (e.g. product sales boosted as a result of risks linked to weather peril)
The challenge
Weather-dependent power generation
A lack of wind can significantly impair power generation and, potentially, the ability to fulfil financing commitments. Annual wind power generation can deviate by more than 20 percent from the long-term average, resulting in production and earnings volatility.
Weather changes and car battery sales
Retail sales are highly sensitive to weather changes, creating volatility in earnings and uncertainty for the retailer. For example, an auto supply company sells more batteries during cold winters than during warmer ones.
Allianz's response
Allianz's weather solutions can manage short- and long-term risks at a single location or over a portfolio of assets. We cover everything from extreme scenarios for project finance security to utility-scale production, resulting in more stable cash flows from existing and planned operations. Our demand-side weather solutions protect our clients from revenue deterioration and volatility and improve their creditworthiness.
By analyzing the correlations between sales and weather, we can provide coverage tailored to specific locations and risk periods. If your company has a national footprint, its total sales can be weighted by actual sales data per market, customer traffic or population. The risk period could be November 1st to April 30th, with emphasis on the first part of the season. Daily or average temperatures might trigger payouts. Such weather protection can guard against revenue deterioration and promote better budgeting.
All the latest news
Annual survey identifying business risks
Allianz Risk Barometer
Top 3 global business risks in 2023
- Cyber incidents (34%) - 2022 rank: 1 (44%)
- Business interruption (34%) - 2022 rank: 2 (42%)
- Macroeconomic developments (25%) - 2022 rank: 10 (11%)
Allianz Group companies
The Allianz Group offers a wide range of products, services, and solutions in insurance and asset management and operates as an international insurer on almost every continent.
AGCS offices
With our worldwide network, Allianz Global Corporate & Specialty (AGCS) is one of the very few global insurers with an exclusive focus on the needs of global corporate and specialty clients.