PIMCO Launches New Insurance-Linked Securities Business in Partnership with Allianz
Newport Beach, California (January 24, 2019) – PIMCO, one of the world’s premier fixed income investment managers has hired Rick Pagnani, Executive Vice President, to lead the launch of the firm’s property and casualty insurance-linked securities (ILS) business. The insurance-linked market, which offers low correlation to other asset classes and limited sensitivity to moves in interest rates, is a strategically important asset class for PIMCO’s broader alternatives platform, with more than $34 billion of assets under management.*
PIMCO will work in partnership with its parent, Allianz, to source global catastrophe risk in the form of collateralized reinsurance and other structured investments, while maintaining independent underwriting and portfolio construction procedures. This differentiated approach will also give PIMCO the flexibility to source risk from the open market in an effort to deliver attractive risk-adjusted returns for clients.
“We are excited to enter the insurance-linked securities market at a time when volatility has become a mainstay of financial markets and clients want to diversify their investments,” said Emmanuel Roman, PIMCO’s Chief Executive Officer. “Partnering with Allianz will give PIMCO access to a diversified portfolio of global catastrophe risk and the ability to leverage the robust capabilities of a premier global insurance group in our effort to deliver attractive risk-adjusted returns for clients.”
“We believe that this partnership of PIMCO and Allianz truly leverages the strengths of both companies,” says Amer Ahmed, CEO of Allianz Re. “With PIMCO we have a partner with access to an investor base that can provide the capital for which Allianz can supply insurance risks, both traditional catastrophe exposure risks and over time other risk classes. At Allianz we are excited that this will enable us to expand our underwriting capacity and generate new fee-based income streams.”
Together with Allianz Re, Allianz Group’s corporate insurance carrier Allianz Global Corporate & Specialty will support the PIMCO ILS business through access to its international underwriting network and the deal structuring capabilities of its Capital Solutions team.
Mr. Pagnani, who has more than 30 years of experience in the insurance-linked securities market, will lead a group of dedicated professionals and incorporate robust underwriting and risk management tools for the business. He will report to Nic Johnson, Managing Director and Portfolio Manager. Prior to joining PIMCO, Mr. Pagnani was the Chief Executive Officer of Mt. Logan Re where he launched the third-party ILS investment business of Everest Reinsurance. Prior to joining Everest in 2012, Mr. Pagnani was a Partner at TigerRisk Partners and Chief Executive Officer of Ascendant Reinsurance.
Rick Pagnani is an Executive Vice President and Head of PIMCO’s Insurance-Linked business. Prior to joining the firm, he was the Chief Executive Officer of Mt. Logan Re where he launched and grew the third-party ILS investment business for Everest Reinsurance Prior to that, he was a partner at TigerRisk Partners, where he focused on production in both the life and P&C markets and new product development. He also served as Chief Executive Officer of Ascendant Reinsurance, a class 3 Bermuda-based reinsurance company focusing on catastrophe derivatives, and was a managing director at Swiss Re New Markets, a division of Swiss Reinsurance Company. Mr. Pagnani has over 30 years of investment experience. Mr. Pagnani holds an MBA from Fordham University and a bachelor’s degree from Hobart College.
PIMCO is one of the world’s premier fixed income investment managers. With our launch in 1971 in Newport Beach, California, PIMCO introduced investors to a total return approach to fixed income investing. In the 45+ years since, we have continued to bring innovation and expertise to our partnership with clients seeking the best investment solutions. Today we have offices across the globe and 2,500+ professionals united by a single purpose: creating opportunities for investors in every environment. PIMCO is owned by Allianz SE, a leading global diversified financial services provider.
The Allianz Group is one of the world's leading insurers and asset managers with more than 88 million retail and corporate customers. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing over 660 billion euros on behalf of its insurance customers while our asset managers Allianz Global Investors and PIMCO manage an additional 1.4 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we hold the leading position for insurers in the Dow Jones Sustainability Index. In 2017, over 140,000 employees in more than 70 countries achieved total revenue of 126 billion euros and an operating profit of 11 billion euros for the group.
*AUM data is of the end of September, 2018.
This material does not constitute an offer to sell or a solicitation of an offer to buy interests in a fund or any other PIMCO trading strategy or investment product. An investment in any PIMCO managed fund entails a high degree of risk and investors could lose all or a portion of their investment.
Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.