The insurance group said yesterday that its commitment follows a deal on new European capital requirements for insurers – known as Solvency II – which had proved less burdensome than initially feared, freeing up more money to invest.
“As a direct consequence of the recent agreement on Solvency II, we now have the political and regulatory foundations to invest in the country’s infrastructure,” said Aviva chief executive Mark Wilson.
The government earlier in December unveiled plans for six insurers, including Aviva, to invest £25bn in transport and energy projects as part of a national infrastructure plan designed to jump start economic growth.
Insurers are typically keen to invest in infrastructure because they offer long-term inflation beating regular returns from road tolls and rents which fit well with the companies long term liabilities on pension products.
Aviva said it already has £5bn invested in UK infrastructure including loans for developing schools, universities and hospitals.