(Reuters) – Alliance CEO Oliver Baete said on Thursday that the financial world was becoming more dangerous, not safer, which set an ominous tone for investors. Baete, who oversees one of the world's largest insurance companies and asset managers, pointed to high valuations in the automotive and technology sectors, "accidents" such as failures at the finance company Greensill and the hedge fund Archegos, and weaker bank regulation.
"All the lights on risk management are flashing red," he told an investor conference.
"The financial system will not be more secure. It will be more dangerous again," he added. of the world's largest money managers with more than 2.5 trillion euros ($ 2.84 trillion) in assets under management through the bond giant Pimco and Allianz Global Investors.
In describing the risks, Mr. Baete did not comment on the loss of any of Allianz & # 39 ;s own funds last year. The so-called Structured Alpha group of funds fell in value after the coronavirus pandemic caused markets to go bankrupt.
In the aftermath, Allianz faces a number of investor processes and related investigations by the U.S. Department of Justice and the Securities and Exchange Commission.
Mr. Baete criticized regulators for banning the insurance industry from paying dividends in 2020 because of the uncertainty it created for investors, which resulted in rising capital costs.
"It was a disaster for our industry, and it should not happen again," he said. han.