Allianz hires former Pru high-flier to take charge of ailing funds division Pimco

Jackie Hunt, who replaces Jay Ralph, will also take on Allianz’s US life business

The German insurer Allianz has hired a former Prudential executive to oversee Pimco, its struggling funds division and the former home of bond king Bill Gross.

Jackie Hunt, who ran the Pru’s UK and European life business for two years, has been appointed to lead Allianz Asset Management, which owns Pimco.

She will replace Allianz Asset Management’s current boss, Jay Ralph, who is stepping down in June. She will also take on the firm’s US life business.

Allianz boss Oliver Bäte said: “Jay Ralph adeptly implemented the two-pillar strategy in our Asset Management segment and will be missed after almost 20 years in the company.

“I am delighted to welcome Jackie Hunt, a highly respected and accomplished professional, to Allianz.”

Günther Thallinger has been promoted to lead Allianz’s investment management and global life and health teams and will join the board next year. He takes on the new responsibilities from Maximilian Zimmerer, who is retiring from the board.

Ms Hunt left the Pru in October, months after missing out on the top spot. She had been one of the contenders to succeed Tidjane Thiam, who left to run Credit Suisse.

The top job went to the head of the Pru’s US division, Mike Wells, who took over the helm at the insurer in June 2015.

John Foley, a long-serving company man, has since taken charge of the UK and Europe division.

Ms Hunt will move to Munich in her new role but she faces a tricky challenge at Pimco, which has been hurt by a string of high-level departures.

The fund division has come unstuck recently after Mr Gross left following an acrimonious split with staff. It was best known in its heyday for running the world’s biggest bond fund, the Pimco Total Return Fund. The trouble started when Mohamed El-Erian, the chief executive, left in early 2014 after a split with Mr Gross.

The California-based funds firm – led in London by Andrew Balls, brother of the former shadow Chancellor Ed Balls – is being sued by Mr Gross for wrongful dismissal. Pimco says the lawsuit has no merit.

Mr Gross now spends his time at Janus Capital, running a much smaller bond fund.

Investors have fled the group after a downturn in performance at the flagship fund. The fund was $293bn in size in April 2013 but had shrunk to $88bn at the last count, with investors continuing to pull out cash.

Pimco had about $1.4trn in funds under management at the end of December 2015.