Insurance giant Allianz and global fixed-income manager PIMCO have joined forces to create retirement income products, posing a threat to monopoly annuities provider Challenger Limited.
Allianz Retire+ Powered by PIMCO would be the first-ever co-branded business between the two global firms and would combine the scale and technical expertise of Allianz’s global life insurance business with PIMCO’s global investment management experience.
The new business, which the firms expect to create and fill more than 50 Sydney-based jobs, has also retained an executive search firm to recruit a CEO and during this process.
Adrian Stewart, head of PIMCO Australia and New Zealand, who has led the collaboration since its inception in 2015, would act as CEO in addition to his current role, the two firms said.
“We believe the strength of our independence and dedicated capabilities for the Australian market have never been more important,” Stewart said.
“Allianz Retire+ Powered by PIMCO combines the capabilities of a world-class life insurer and premier global fixed-income manager to provide a compelling suite of retirement income products.”
“The industry has an obligation to work harder to solve the Australian retirement income challenge, and last week’s federal budget announcement demonstrates the government’s commitment to developing a system that better supports Australians at all stages in their retirement.”
Richard Feledy, managing director of Allianz Australia, said the significant demand for retirement income solutions is not limited to Australia.
“It is a global challenge that we should all be focused on solving.”