German Insurance Giant Allianz Upsizes VC Fund To $1.1B

German insurance giant Allianz Group has increased the size of its corporate venture capital arm, Allianz X, to €1 billion, or around $1.1 billion, more than double its initial size.

The expansion comes as venture investment into insurance startups continues to rise, capping a multi-year trend.

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Danielle Dias Coutinho, a spokesperson for Allianz X, told me this morning that the fund was launched in 2016 at an initial amount of €430 million, or around $490 million. Parent Allianz SE put more money into the fund, which is focused on investing in digital businesses related to insurance.

So far, Allianz X has made more than 15 direct investments, including participating in Indonesia-based ride-hailing company Go-Jek’s $1.5 billion Series E. The fund also put nearly $100 million in microinsurer BIMA, which uses mobile technology to serve low-income customers in Africa, Asia and Latin America. Allianz X also participated in N26’s $300 million Series D funding round after co-leading N26’s $160 million Series C last year. That company helps customers manage their bank accounts via their smartphones.

Coutinho said the additional €570 million will go toward additional growth investments and for “setting up global platforms” with its portfolio companies.

“Our criteria when investing is that a company has to be strategically relevant to Allianz’s core business, which is insurance and asset management,” she said. “But that also includes areas such as mobility, connected property, connected health, cybersecurity and data, for example.”

An example of a global platform is one that it has set up between portfolio company AUTO1 via a joint venture with Deutsche Bank to address dealer financing. The partnership allows dealers on the AUTO1 platform to have an integrated financing platform, she said. Another example is a partnership between Go-Jek and Allianz Indonesia by which Go-Jek customers and drivers are offered Allianz insurance products and services.

“Since shifting our strategy, we have built a great portfolio in which many companies have already developed successful partnerships with Allianz’s business units,” said Dr. Nazim Cetin, CEO of Allianz X, in a written statement.

Illustration: Li-Anne Dias