Intriguing Options on the Horizon: Allianz Evaluates Strategies for Its AllianzGI Division

Allianz SE is evaluating strategic options for its Allianz Global Investors (AllianzGI) unit, including a merger or partial sale. According to sources familiar with the matter, these discussions could aid in achieving a larger scale for the business. AllianzGI, which manages 555 billion euros in assets, could be valued at over 4 billion euros including debt.

Two sources, who requested anonymity due to the confidentiality of the discussions, noted that a potential restructuring might result in Allianz relinquishing control over the unit. The discussions concerning AllianzGI do not include the company's Pimco operations, which are being kept separate from the current evaluations.

This development follows BNP Paribas's acquisition of AXA Investment Managers for over 5 billion euros. Industry bankers expect this deal to encourage further mergers and acquisitions in the sector. AllianzGI previously sold its U.S. division to Voya Financial in 2022 following a $6 billion agreement with U.S. authorities and a fraud conviction.

Despite challenges, Allianz reported a better-than-expected net profit for the second quarter and is on track to meet its full-year financial targets. The broader Allianz group experienced significant net client inflows in its asset management business, with 48 billion euros coming in during the first half of 2024, though AllianzGI accounted for only about 3 billion euros of this total.

Allianz did not comment on potential changes to the AllianzGI unit. The company has outperformed most of its main competitors and the leading German stock index over the past decade. The exchange rate at the time of reporting was 1 dollar to 0.9263 euros.