Less than a week after Pimco co-founder Bill Gross left the firm, the asset manager's German parent company, Allianz SE, said its top executive is also on his way out.German insurer Allianz on Thursday said Chief Executive Michael Diekmann will step down in May. His contract was due to end on Dec. 31, about a week after he turns 60 years old, and he will be succeeded by Oliver Baete, 49.
The move comes amid a period of turmoil at Allianz's U.S. asset manager, Pacific Investment Management Co., or Pimco, which Mr. Gross left abruptly last week. Investors withdrew a net $23.5 billion from Pimco's Total Return fund during September, and Pimco said Wednesday that the lion's share took place Friday-the day of Mr. Gross's resignation.
Allianz's supervisory board, the body that appoints and controls members of the management board, said it agreed to Mr. Diekmann's request to not further extend his appointment beyond the age limit of 60. Contracts of Allianz management board members usually end at the age of 60, when only annual contract extensions are granted, until the final retirement age is reached at 65.
"It was Mr. Diekmann's wish to end his term after the 2015 annual general meeting and be able to report to shareholders about the 2014 business year," said a person close to Allianz.
Allianz celebrates its 125th year in 2015.
In recent months, a number of shareholders expressed their preference for Mr. Diekmann to stay on for another one to two years to ensure continuity amid the turbulence at Pimco and heavy losses at U.S. insurer Fireman's Fund, and because no immediate successor to Mr. Diekmann seemed in sight.
Mr. Baete, who heads Allianz's insurance business in western and southern Europe and is responsible for global property and casualty insurance, and Markus Riess, 48, who is in charge of Allianz's German operations, were discussed as possible successors to Mr. Diekmann.
Also Thursday, Allianz renewed the contracts of its chief financial officer, Dieter Wemmer, and three other management board members: Werner Zedelius, Helga Jung and Manuel Bauer. It also appointed Sergio Balbinot to its management board, responsible for the insurance business in western and southern Europe.
Board member Clement Booth, who turned 60 earlier this year, will retire from the management board at the end of the year, Allianz said. Axel Theis was named to succeed him on the management board.
Gary Bhojwani will leave the management board. Board member Jay Ralph will assume his responsibility for the U.S. insurance business, in addition to his duties as head of Allianz's asset-management operations.