British insurance group Aviva is looking to invest shareholder money in early-stage infrastructure projects, Financial Times reported citing Aviva CEO Amanda Blanc. 

“We are looking at [whether] we invest our shareholder money as well as our policyholder money in some of these infrastructure investments at the very early stages,” Blanc told the publication in an interview. 

Aviva plans to use shareholder funds when the building project is in its pre-planning stage. 

The idea is at an early stage, but Aviva could make a deal as early as this year, a source aware of the discussions told the publication. 

The insurer plans to make these investments with a social purpose in mind such as building in deprived areas or fighting climate change. 

Earlier Blanc had said: “As a major investor in UK infrastructure and real estate, Aviva has a significant opportunity and responsibility to ensure we finance projects that help the built environment in its transition to net zero.”

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According to the source, a team at the group level would pick investment targets for the insurer, with inputs from Aviva Investors, the investment arm of Aviva.

The team is in the middle of preparing a three-year plan, which will see Aviva invest £10bn in local infrastructure and real estate, the report said. 

The industry experts believe that regulatory changes in the right areas could support these moves but even with a reduction in the key capital buffer, changes to other parts of the rules could limit insurers and impact their investment strategy.