Apollo CEO Rowan warns of market correction, slams rival insurers
CNBC • • business
Key Points:
- Apollo Global Management CEO Marc Rowan warned investors about preparing for a potential market downturn despite the current strong economic conditions and record earnings, citing a 30-35% chance of an "out of the box" economic shock.
- Rowan highlighted risks from a possible geopolitical reset, inflationary pressures due to restricted labor and trade policies, and the transformative impact of artificial intelligence on jobs and economic growth.
- To safeguard against market volatility, Apollo has improved credit quality in its fixed income portfolio, reduced exposure to riskier sectors like software, and accumulated about $40 billion in cash within its insurance business.
- Rowan sharply criticized some rival insurers for using "egregious" practices such as offshore Cayman structures, complex collateralized loans, and aggressive credit assumptions, warning that these could pose systemic risks and lead to regulatory intervention.
- Emphasizing transparency and long-term capital strength, Rowan stressed Apollo's commitment to prudent management and higher ratings to withstand potential economic corrections.
