Capital Solutions

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.
Product description

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. 

Risks covered
  • Insurance Linked Securities
  • catastrophe bonds
  • catastrophe swaps
  • natural catastrophe risks
  • property & casualty risks
Product description
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. 
Risks covered
  • 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)

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.

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.

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.

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.
Financial strength backed by
strong ratings
Network to service clients in 200+
countries and territories
Manager of 2,800+ global programs for international insurances
A tradition of excellence, 100+ years of technical expertise
Wide range of dedicated risk consulting services by our engineers
We field one of the strongest claims teams of any global insurer
92m customers globally – we insure over three quarters of the Fortune 500®
4,000+ employees in over 30 countries and 50 offices worldwide
Part of the Allianz Group, a leading financial services provider
ESG integrated into our underwriting via industry-leading rules and tools
Allianz Group is a founding member of UN Net-Zero Insurance Alliance

Allianz Risk Barometer

  1. Cyber incidents (44%) - 2021 rank: 3 (40%)
  2. Business interruption (42%) - 2021 rank: 1 (41%)
  3. Natural catastrophes (25%) - 2021 rank: 6 (17%)
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.
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.