Allianz CEO on low interest rates and M&A: Financial Times
In the current market, insurers need to be able to price risks very well
Low rates can also force “many people with fixed liabilities to take on risks, and more and more risks over time,” he says. “And then asset bubbles build, particularly as we see it now in credit markets, that eventually have to burst.”
It can also drive M&A activity and while Bate won’t comment on other companies’ investment decisions, he suggests “buying something just to get bigger” isn’t a sound choice.