Investing in projects

Aviva, one of the UK's largest insurance groups, plans to use shareholders' money to finance infrastructure projects at an early stage. Such a decision would be a radical change in the company's internal investment efforts and would be similar to the approach of its competitors, Legal and General, the Financial Times wrote.

Aviva chief executive Amanda Blanc has advocated using the financial strength of insurers to invest in social infrastructure and environmentally friendly projects.

The company is exploring the possibility of investing its shareholders' money in infrastructure projects when, for example, a construction project is at the pre-planning stage. Then, when the projects are implemented and the risks are reduced, "you can move it from one part of your balance sheet to another," Blanc added.

Although putting the plan into practice is at an early stage, the first deal could be done as early as this year, the newspaper said. Targeted investments would, for example, be aimed at building in disadvantaged areas or tackling climate change.

Blanc said the group's investment arm, Aviva Investors, had already launched a three-year plan to raise £10bn in the country's infrastructure and real estate.

The UK government wants to make changes to the Solvency II regulatory regime, which is currently under discussion, to unlock billions for investment in the real economy.