Allianz AG Finishes Its Takeover of Pimco Advisors

Germany’s Allianz AG completed the $3.3-billion purchase of 70% of Newport Beach money manager Pimco Advisors Holdings on Friday. The all-cash acquisition makes Allianz, Europe’s second-biggest insurer, the world’s sixth-largest money manager, with $650 billion worth of investments under management. Pimco manages the world’s biggest bond mutual fund, the $29-billion Pimco Total Return Fund. Pimco Advisors will operate as a subsidiary of the Munich company’s U.S. arm and will remain based in Newport Beach. Allianz offered key Pimco employees, including fund manager William Gross, profit-sharing and retention bonuses. Pacific Life Insurance Co., which owns the remaining 30% of Pimco, has declined Allianz’s standing to purchase those shares. The offer is necessary because rating agencies require Pacific Life to maintain liquidity levels--assets that could be sold quickly in case of severe financial need.