IAG's allocation to growth assets at the end of 2014 made up 36% of shareholders' funds at the end of 2014, according to the Australian insurer's first-half 2015 results. This compared with 42% at 30 June 2014.
Within the group's allocation to growth assets, alternative investments accounted for 17.8% of shareholders' funds at 31 December 2014, slightly lower than the proportion at 30 June 2014.
IAG said, "These alternative investments typically display a lower volatility than equities, deliver a higher return than fixed income and increase overall investment diversification."
The group's largest allocation within the alternatives category is to global convertible bonds. Other exposures include a diversified portfolio of absolute return strategies and alternative fixed interest.
But the group's overall investment allocation remains conservative, with nearly 89% of total investments in fixed interest and cash at 31 December 2014.
Total investments were A$15.2bn (US$11.1bn) at 31 December 2014. Technical reserves -- of A$10.5bn -- were entirely invested in fixed interest and cash. For shareholders' funds -- A$4.7bn – the proportion for fixed interest and cash was 64%.
IAG said the credit quality of its investments remained strong with 83% of the portfolio rated 'AA' or higher.