Allianz Group CEO Oliver Bäte expressed concern that economic risk has been accumulating for a significant period but has yet to be fully incorporated into market prices. He highlighted this sentiment during a CNBC panel ahead of the 2026 World Economic Forum Annual Meeting in Davos, Switzerland. Bäte emphasized that a core focus for Allianz is ensuring customer safety.
In response to these perceived risks, Allianz has been strategically de-risking its operations. Bäte cited an example of hedging net cash flow in US dollars forward, which helped the company avoid losses that some observers had anticipated. This approach is part of Allianz's long-standing strategy of carefully optimizing diversification.
Bäte also addressed the renewed focus on tariffs, acknowledging them as a risk that needs to be managed. He noted that tariffs are primarily political tools, emphasizing the importance of distinguishing between "noise" and "signal" in such developments. Regarding US assets, Bäte explained that Allianz has been preparing for potential shifts, closely monitoring the implications if confidence in these assets erodes, especially given Europe's significant exposure to the US dollar. He described himself as a "careful optimist," not foreseeing a materialization of the biggest risk: a loss of fundamental trust in the US financial system.
