Apollo CEO Rowan Warns of Market Correction, Slams Rival Insurers

Apollo Global Management CEO Marc Rowan warned Wednesday that markets face a sharply elevated risk of unexpected shocks, CNBC reported, as he positioned his firm defensively and took aim at what he called “egregious” practices at competing insurers.

Rowan placed the probability of a major exogenous shock at 30% to 35%, well above what he described as normal baseline risk levels. He cited a sweeping geopolitical realignment, trade and labor policies with inflationary consequences, and the broad disruption triggered by the artificial intelligence cycle as the core threats converging on markets.

Signs of Strength Masking Deeper Risk

Apollo delivered a record quarter alongside the remarks, crossing $1 trillion in assets under management and posting peak fee-related earnings. Rowan acknowledged the economy appears sturdy on the surface, with corporate and consumer balance sheets in decent shape. Government finances, however, are stretched, he added. Despite the strong results, he said the firm is not complacent about what could come next.

On AI, Rowan offered a pointed prediction about labor markets. He argued that nearly every role would be either augmented or displaced by the technology, forecasting a reversal in which blue-collar workers gain relative standing while white-collar workers face growing pressure.

Defensive Repositioning

To prepare for a potential market correction, Apollo has shifted its fixed-income portfolio toward higher-quality credit, according to CNBC’s reporting. The firm has also cut back exposure to riskier sectors, including software, and accumulated roughly $40 billion in cash within its insurance operations. Rowan said the goal is to preserve capital and remain positioned to deploy it when dislocation occurs.

Background: Apollo’s Insurance Roots

Apollo entered the insurance business in 2009 through Athene, an annuity and retirement products provider, a move that gave it a large and stable pool of investable capital. The model echoes the insurance float strategy long associated with Warren Buffett‘s Berkshire Hathaway. That foundation is now central to Apollo’s broader strategy, which makes Rowan particularly attuned to risks building across the sector.

Contagion Concerns Aimed at Rivals

Rowan did not identify specific firms but said not all insurers are managing their businesses responsibly. He warned that stress at weaker players could spread through the industry, potentially forcing regulatory or central bank intervention to protect policyholders and retirees. His comments echo warnings made by other major financial executives, including JPMorgan Chase CEO Jamie Dimon, who has also cautioned about mounting macroeconomic fragility in recent months.

Rowan co-founded Apollo in 1990 and has overseen its evolution into one of the world’s largest alternative asset managers over more than three decades on Wall Street.