© Reuters. FILE PHOTO: The emblem of Allianz is seen on a constructing in Paris, France, April 30, 2020. REUTERS/Charles Platiau
By Tom Sims and Alexander Hübner
FRANKFURT (Reuters) -Allianz introduced on Friday large bonus cuts for its CEO and board, and a settlement with the “overwhelming majority” of buyers, because it braces for the result of U.S. regulatory investigations right into a multibillion-dollar buying and selling debacle at its funds arm.
Talking at a information convention, CEO Oliver Baete mentioned the difficulty would have a major influence on compensation for himself and all board members, however declined to offer particulars. Baete’s pay in 2020 totalled 6.39 million euros ($7.27 million).
He additionally mentioned the German insurer and asset supervisor had settled U.S. lawsuits with the “overwhelming majority of buyers,” with out giving particulars of the settlement.
However the fallout continues, with investigations by the U.S. Division of Justice and the Securities Trade Fee underway, and settlements nonetheless pending with different buyers.
“Ongoing governmental and litigation issues stay at a delicate stage,” Baete mentioned.
The difficulty centres round Allianz (DE:) funds that used complicated choices methods to generate returns however racked up huge losses when the unfold of COVID-19 triggered wild inventory market swings in February and March 2020.
The matter has forged a shadow over Allianz, one in all Germany’s most useful firms and one of many world’s largest cash managers with 2.6 trillion euros of belongings underneath administration.
On Thursday, Allianz introduced that it could earmark 3.7 billion euros to take care of investigations and lawsuits within the wake of the funds’ collapse and mentioned extra bills have been doubtless. The corporate additionally posted a fourth-quarter loss.
Traders within the so-called Structured Alpha set of funds have claimed some $6 billion in damages from the losses in a slew of instances filed in the US.
The $15 billion set of funds catered particularly to usually conservative U.S. pension funds, from these for labourers in Alaska to lecturers in Arkansas to subway staff in New York.
Baete declined to specify which buyers had settled.
Allianz shares have been down 1.6% at 0940 GMT.
($1 = 0.8794 euros)
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