GERMANY – The proposed German insurance/banking powerhouse of Allianz and Dresdner Bank today outlined its future asset management plans with the creation of e1trn outfit Allianz Dresdner Asset Management (ADAM).
ADAM could begin marketing pension products under the new Riester law through its Dresdner Bank branches as early as July 1, according to Allianz board chairman Henning Schulte-Noelle, speaking at a press conference in Munich.
This would also involve the transfer of around 1,000 Allianz employees to Dresdner branches, the chairman noted.
Allianz also said the merger could result in cost savings of around e290m, increasing to over e1bn by 2006.
Schulte-Noelle said the new fund management group, which would include Dresdner RCM Global Investors and Allianz owned PIMCO and Nicholas Applegate, would make one of its main focuses private and company old-age provision both domestically and abroad.
“ The Allianz strategy was adjusted to take into account the changes in the framework conditions for fiscal and pension policy in Germany – our most important individual market. We anticipate similar changes to statutory provisions across the globe, particularly in the area of old age provision.
“ This was the motivating factor for our decision to join forces with Dresdner Bank.”
Dresdner Bank shareholders have until July 13 to accept Allianz’s takeover bid the group Allianz said today.