Pimco Parent Allianz to Join Rush for Asset Management Deals

Allianz SE’s board member overseeing bond giant Pacific Investment Management said the German insurance company plans to play an active role in asset management consolidation as mergers and acquisitions in the fragmented industry speed up.

“We saw M&A acceleration in 2020, and it looks like there will be another acceleration this year,” Jacqueline Hunt, who runs Allianz’s $3 trillion-dollar asset management business that also includes Allianz Global Investors, said in an interview. “I think we will see more M&A, more generally. And we would participate in that.”

relates to Pimco Parent Allianz to Join Rush for Asset Management Deals

Bloomberg previously reported that Allianz was looking at the asset management arm of NN Group NV after exploring a combination with Deutsche Bank AG’s DWS Group about two years ago. Hunt declined to comment on specific targets, but said any deal would have to complement its existing asset management business.

In the last 18 months alone, fund manager Amundi SA has struck deals for Sabadell Asset Management and Societe Generale SA’s Lyxor investment arm. Bank of Montreal recently sold its international asset manager. Hunt said she doesn’t want to grow Pimco and AGI at all costs, as both asset managers have sufficient scale as stand-alone companies.

Valuations are high as “there is a fair amount of money chasing a few opportunities,” she said by video. Geographically, fast-growing Asia-Pacific remains a region of interest for Allianz, she said.

Record High

Allianz’s third-party assets have grown steadily since Hunt took over

Allianz’s total third-party assets under management have risen to about 1.8 trillion euros ($2.2 trillion) in the first quarter this year, from 1.3 trillion euros about five years ago, shortly before Hunt joint Allianz. The two units also run internal money for the insurer.