Allianz SE announces resolution of U.S. governmental investigations concerning Structured Alpha

The Allianz Group announced on May 18, 2022 the resolution of the government and regulatory investigations related to the Structured Alpha funds in the US¹.

Allianz Global Investors US and the Allianz Group have agreed to plead guilty and jointly take responsibility for the fraud conducted by three members of the Structured Alpha team who acted in isolation. The US Department of Justice has investigated other parts of AGI US, which has cooperated proactively, and found no other issues.

The Allianz Group is outraged by the misconduct of these former employees who violated its policies as well as its values and culture of trust. The Group has agreed to pay $5.8bn in fines and penalties, with the majority of the money designated for compensating customers fairly and promptly. The amount has been provisioned for in 2021 and Q1 2022².

Allianz Global Investors will continue to strengthen its internal controls and implement new procedures to detect intentional misrepresentation as what occurred. Following the settlement with US authorities, AGI US intends to enter a strategic partnership with Voya Investment Management³. This partnership will allow for the continuation of service to customers in the US and globally and provide its client base with a broader range of complementary investment strategies and enhance accessibility to AGI US offerings.  

The Structured Alpha Funds are specific to the US, and mutual funds currently distributed or proposed to be distributed by Allianz PNB Life through its variable unit linked insurance products, with Allianz Global Investors are not impacted. Allianz PNB Life is confident to navigate current and future challenges and deliver on its long-term value proposition for clients. The company has generated positive business growth across asset classes and regions and is the fastest growth life insurance company in the Philippines for a second consecutive year. Details of its performance can be found in the dummy 2021 Annual Report.

Contact for queries:
Gino Riola ([email protected])
CMO and Head of Communications