German regulators have launched an investigation into the country’s biggest financial company, Allianz, after the demise of some of its U.S. investment funds last year, people with direct knowledge of the matter told Reuters.
The move heightens the pressure on the insurer, which is already facing a slew of investor lawsuits over its Structured Alpha Funds and related investigations by the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC).
The German insurer is one of the world’s biggest money managers with 2.4 trillion euros ($2.9 trillion) in assets under management through bond giant Pimco and Allianz Global Investors, which managed the funds at the centre of the probes.
The investigation by Germany’s financial regulator, BaFin, is across multiple departments of the institution, several sources said, speaking on condition of anonymity as the investigation is ongoing.
BaFin officials are examining the extent to which Allianz executives outside the fund division had knowledge of, or were involved in, events leading up to the funds racking up billions of dollars of losses, the people said.
An Allianz spokesperson declined to comment on the BaFin investigation.