"Pimco's strong, yet improving, cost-income ratio will help it preserve its competitive advantage too and suggests it is successfully leveraging its scale," said Andrew Broadfield, an analyst with Barclays Plc in London. "For Allianz, owning such a successful asset manager is a good business hedge, should life insurers lose share of the savings market to asset managers, as they have in many of the mature markets."
Allianz Commitment
Ralph said Gross and El-Erian remain committed to their parent.
"Pimco feels very comfortable within the Allianz group, as do Bill and Mohamed, therefore I don't foresee any changes to our two asset manager strategy or their commitment to the current setup," he said.
While Allianz's asset management business thrives, other financial firms, including Deutsche Bank AG, have been trying to sell their fund managers to free up capital amid Europe's sovereign-debt crisis. Germany's biggest bank shelved a plan in May to sell its asset management operations to Guggenheim Partners.
Italy's UniCredit SpA also scrapped the sale of its Pioneer Global Asset Management unit last year, while Robeco Groep NV is "working closely" with its owner, Rabobank Groep, on a strategic review of its business, the money manager said Aug. 14.
Societe Generale SA earlier this month sold Los Angeles- based TCW Group Inc., the $131 billion asset manager founded by Robert Day in 1971, to Carlyle Group LP in a deal that ended 11 years under the French bank's ownership.
Allianz isn't interested in asset management acquisitions, Ralph said.
"Why would you buy other asset managers?" he said "We already have a global distribution and would rather try to attract talented people with investment expertise than pay for additional legal entities."