Allianz mulling asset management unit in Malaysia

PETALING JAYA: Allianz Asset Management AG, the second largest asset manager in the world with €1.8 trillion (RM8 trillion) in assets under management (AUM), is exploring the possibility of setting up an asset management company in Malaysia.
Its chairman Jay Ralph (pix) told SunBiz said the company has no specific plan at the moment but thought that Malaysia was an interesting market.
"We are evaluating and exploring the idea. However, there is nothing concrete as we have not completed our analysis yet," he said via a telephone interview from Singapore last week.
Ralph said the company is looking at the opportunities in Malaysia and whether it makes sense to set up an asset management company here.
"The market is attractive," he said.
If successful, this would not be the first time an insurer sets up an asset management company in Malaysia.
In 2009, insurer Manulife Holdings Bhd (MHB), part of Canada-based Manulife Financial, formed Manulife Asset Management Services Bhd.
Late last year, the newly set up unit bought MAA Group Bhd's MAAKL Mutual Bhd for a total price tag of RM96.48 million. This deal increased MHB's total AUM to RM7 billion, elevating MHB's unit trust assets to become one of the Top 10 largest in the country.
Ralph acknowledged that Allianz has a strong brand and market position in Malaysia through its insurance business. Allianz Malaysia Bhd operates both life and general insurance business since 2001.
For the financial year ended Dec 31, 2013, Allianz Malaysia, a composite insurer, saw its total assets increased by 17% to RM10.7 billion from RM9.2 billion in the previous year.
In August last year during a retirement presentation, Allianz Malaysia's CEO Jens Reisch said the company aimed to grow its AUM with retirement products being the key driver for the company. The presentation was conducted by Brigitte Miksa, head of International Pensions at Allianz Asset Management.
Allianz Asset Management operates under two brands worldwide via Allianz Global Investors and Pacific Investment Management Company, LLC, or commonly called PIMCO, the world's largest bond manager.
Allianz Asset Management is the fund management unit of Germany Allianz SE is also number one property and casualty insurer in the world and top five life insurer globally.
According to Ralph some 30% of Allianz SE's operating profits come from Allianz Asset Management. It is the second largest contributor to the group.
Of the €1.8 trillion AUM, about 10% of it comes from its Asian operations which describes as a strong growth market for the group.
"Asia is a growing very rapidly. The growth dynamics in the Asian markets is faster than any other markets," he said.
Ralph revealed that about 10% of the company's AUM is located in Asia.
"I would say that approximately 15% of our sales from Asia," he added.
In 2013, Allianz Asset Management Capital saw its revenue increase overall by 5.9% to €7.1 billion from €6.7 billion the previous year. Operating profit rose 7% to €3.2 billion for the year from €3 billion in 2012.