Allianz SE (ALV.XE), Europe's largest insurer, Tuesday said it is reorganizing its asset management business to give better visibility to its two main brands, Pimco and Allianz Global Investors, and enable Pimco to sell its products worldwide.

Pimco is Allianz's global fixed-income securities business, while Allianz Global Investors groups the company's equity investment. The two will be paired up in a new holding company called Allianz Asset Management AG with EUR1.4 trillion in assets.

Allianz spokesman Hanno Strube stressed that "no sale or initial public offering of either of the two brands is planned," and said there would be no change to Pimco's management team or its standing as an independent entity within the group.

Newport Beach, Calif., based Pacific Investment Management Company LLC, or Pimco, is the world's biggest bond fund manager. It has been part of the group since 2000 and until now has been a unit of Allianz Global Investors of America L.P.

Pimco is --and will continue to be-- headed by founder Bill Gross and Chief Executive Mohamed El-Erian, Allianz said. Gross and El-Erian are Pimco co-chief investment officers and renowned investment professionals in the asset management world.

Allianz Global Investors' management team is being strengthened by the reorganization, Strube said.

The new structure will be effective Jan. 1, when Jay Ralph will succeed Joachim Faber as head of asset management on Allianz's management board.

Strube said Faber and Ralph jointly developed the new structure to move away "from a family of boutiques model to a clear two-pillar structure." The new structure also reflects the shift towards a customer-oriented businesses rather than just brands, the Allianz spokesman said.

Pimco will assume sole responsibility for distributing its products and funds globally, similar to the development that began in the U.S. market last year when the distribution of Pimco and Allianz Global Investors was separated and Pimco became responsible for distributing its products to clients in the U.S. and to institutional clients globally. Pimco will now distribute its products--global investment solutions across asset classes--in Europe and Asia.

"Entrusting us with this additional operational autonomy reflects the strength of the relationship with Allianz and the mutual respect that exists," said El-Erian.

-By Ulrike Dauer, Dow Jones Newswires; +49 69 29725 500; ulrike.dauer@dowjones.com