Allianz chief executive to step down next year

Michael Diekmann is set to be replaced by ex-McKinsey executive Oliver Baete

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Allianz, the insurance giant that owns troubled bond manager Pimco, said its chief executive Michael Diekmann will step down next year.

The 59-year-old will retire next May when he will be replaced by ex-McKinsey executive Oliver Baete at the company’s  annual meeting. It comes at a delicate time for Allianz, which has seen two leading executives quit its Pimco bond management unit this year, including renowned investor Bill Gross, and investors pull out billions in funds.   

Baete, who is 49, had been seen as front runner for the job and is currently serving as Allianz’s board member for its insurance operations in Western and Southern Europe.

“He seems to have kind of the right level of steel and energy to run a business as big and as complex as Allianz and I’m sure he’s going to have some very strong views about how the business is run,” said Ben Cohen, analyst at Canaccord Genuity in London.

Additional reporting by Reuters