Discussion about the future of the subsidiary AGI

Munich When all bills have been paid, all assets have been transferred to the new “partner” and all documents have been filed away, it will become clear what no one at Allianz has openly said so far: the group’s own fund subsidiary Allianz Global Investors (AGI) is history in the USA.

Far away from the Munich headquarters, she had gambled away with risky hedge fund strategies, and three fund managers had deliberately fooled professional investors, as has become clear since this week with the detailed investigation reports from the US authorities. A first-class scandal that costs Europe’s largest insurer around six billion euros.

The sum was largely priced in. The bottom line, however, is “a huge reputational damage for Allianz,” says Ingo Speich, who is responsible for sustainability and good corporate governance at the major shareholder Deka. The question arises as to whether Allianz has given too little thought to operational risks in the important US market in the past and has kept the leash too loose.