Allianz Top Managers See No Reason to Sell Pimco - Report

By Ulrike Dauer

Allianz SE (ALIZF) sees no reason to spin off or sell Pacific Investment Management Company even though the asset manager still suffers from net asset outflows, "which probably won't change in the course of the year," departing Chief Executive Michael Diekmann said in an interview with monthly magazine Manager Magazin, together with his designated successor Oliver Baete.

Mr. Baete will head Europe's biggest insurer by market value on May 6 after the annual shareholders' meeting.

Mr. Diekmann said he considers a positive "that the situation has stabilized and that Pimco is again gaining customer funds."

"Despite all difficulties, Pimco is one of the most profitable asset managers on the planet and one of the most successful investments in our company history," the magazine quotes Mr. Diekmann as saying.

Pimco has been a major headache for Allianz since last year's management shake-up that involved the acrimonious departure of Pimco co-founder and star fund manager Bill Gross in late September, preceded by the exit of former chief executive Mohamed El-Erian.

Pimco funds struggle with net asset outflows that continue after Mr. Gross's departure. Last year, at the annual general meeting in May, Allianz shareholders grilled management about Pimco's weak performance and the top management shake-up.

Mr. Baete pointed to the "enormous synergies" between the group's asset management and life insurance operations as an argument against selling Pimco.

"It would be stupid to give up this model, which is to the envy of many, and we've also explained this to our shareholders," Mr. Baete said.

He added he will spend the rest of 2015 developing a group strategy for the coming years.

Write to Ulrike Dauer at [e-mail]

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