Interview with Michael Diekmann: "The right framework"
Allianz AG announced that it will be merging with Ras and that in future it will be organized as a European Company (Societas Europaea). At the same time, insurance activities in Germany and in Italy will be brought more closely together. Questions on this subject to CEO Michael Diekmann.
News Feature
? Mr. Diekmann, does Allianz really need to have a totally new legal structure, in order to be an international organization? I mean, it has all functioned pretty well up until now, hasn't it?
Diekmann: I believe it was time for a change. We are an international group, but we have to become more so, particularly in the way we are managed. We need to make sure that the international aspect of our company is properly reflected in our Supervisory Board, Management Board and the way in which employees are represented. The European Company as legal entity was introduced last year, and gives us the right framework.
Michael Diekmann: "We are an international group, but we have to become more so"
? Isn't the European SE just an elegant way of getting round the German "Mitbestimmung", or worker representation, rules?
Diekmann: No, or at least, not in our case. There are indeed forms of the European SE without worker representation. However, a European SE with a legal base in Germany is to a large extent comparable to a German AG. We will retain the current high levels of worker representation protected under German law.
This was a deliberate decision, because we believe that the co-determination rights of our employees, based on equal representation, are just and important. The difference is that here also we are set to become more international: employee representatives will in future come from several different European companies.
This was a deliberate decision, because we believe that the co-determination rights of our employees, based on equal representation, are just and important. The difference is that here also we are set to become more international: employee representatives will in future come from several different European companies.
? Why did you keep your headquarters in Germany? As a European company, Allianz could simply shift its HQ to another European country.
Diekmann: That was never even on the agenda for us. Allianz started off on its path to international growth in Germany, and here, we remain the number one company in which people put their trust for their insurance and investment needs. We have our roots in Germany.
I believe our new structure is a pretty good reflection of our identity: the international dimension to our company, which has grown over the years, the great importance of our European home market and our anchoring in Germany.
I believe our new structure is a pretty good reflection of our identity: the international dimension to our company, which has grown over the years, the great importance of our European home market and our anchoring in Germany.
? Yet despite the great success of Allianz in Germany, you are announcing organizational changes here as well. The same is true for Italy. Why don’t you let your successful businesses just get on with the job?
Diekmann: Because our organization is often still too complex. Greater simplification and streamlining of our structures helps us serve our customers better in two ways: we become more flexible in meeting their needs, and because we become more efficient, we can give them better value for money.
We must especially think in these terms in markets like Italy and Germany if we wish to remain as successful as we currently are. We have to offer the best in terms of products, service and price, if we’re going to stay in pole position in these highly competitive markets. Our aim is to secure long-term profitable growth. Our organization has to support that.
We must especially think in these terms in markets like Italy and Germany if we wish to remain as successful as we currently are. We have to offer the best in terms of products, service and price, if we’re going to stay in pole position in these highly competitive markets. Our aim is to secure long-term profitable growth. Our organization has to support that.
? And thus the changes in Germany and Italy?
Diekmann: By bringing our insurance businesses more closely together, as we are doing both in Germany and Italy, we can significantly improve our customer focus. We are expending too much effort working in structures that have come into being in a piecemeal, historic fashion and could be much more clear-cut. So we’ve got to get on with the job.
? But that brings a phase of restructuring and insecurity for the employees that may not be very helpful, either.
Diekmann: Yes, I am very aware of this. The hardest thing at times of great change is the uncertainty until all the individual steps have been thought through and decided upon. It is only then that each employee finds out what it all means for him or her.
We will take great pains to ensure that each and every important decision will be communicated as soon as it has been reached. Still, there will be a lot of speculation. But that can’t be a reason to avoid making necessary changes.
We will take great pains to ensure that each and every important decision will be communicated as soon as it has been reached. Still, there will be a lot of speculation. But that can’t be a reason to avoid making necessary changes.
? In Germany, Allianz’s bank, asset management and insurance business are working closely together to provide integrated solutions for the client. So why don't you put all of the relevant companies in the German holding?
Diekmann: Ideally, that would seem the right thing to do. But the new processes we’ve put in place to promote cooperation between insurance, bank and asset management are working quite well already. Putting the bank and the asset management companies into the holding structure would at the moment add complexity rather than simplify matters, the reason being that the bank and the asset management businesses have international activities. There are also legal reasons which speak against this.
We will now work on the improvements we can make by bundling the insurance activities. But this will certainly give our efforts to provide integrated financial services a further boost.
We will now work on the improvements we can make by bundling the insurance activities. But this will certainly give our efforts to provide integrated financial services a further boost.
? Back to the European Company – what do you, personally, see as the main gain for Allianz?
Diekmann: I believe it will be a great deal easier for the board to concentrate on critical strategic issues – to take the right decisions and to execute quickly. The new structure as a European Company will make us a great deal more international and thus by definition more competitive on the world stage.
We are introducing clearer and more effective governance. This will also be conducive to our cooperation with our Group companies.
We are introducing clearer and more effective governance. This will also be conducive to our cooperation with our Group companies.
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
