Apollo CEO Rowan warns of market correction, slams rival insurers

Apollo Global Management CEO Marc Rowan on Wednesday warned investors that he is preparing his giant asset management firm for a potential market downturn and sharply criticized what he called the “egregious” practices of some rival insurers.

The current solid economic backdrop — which helped Apollo report a banner quarter, in which the firm reached $1 trillion in assets under management and record fee-related earnings — is masking a growing risk of what he called “out of the box” shocks.

“Everything we see in front of us is actually quite strong,” Rowan said. But there is “a much greater chance, in our opinion, of out-of-sideline results.”

Rowan, who co-founded Apollo in 1990 and oversaw its transformation into an alternative asset and insurance giant, said he is now more concerned about outside factors derailing the economy than at any time in his four decades on Wall Street.

His comments, which come as the U.S. stock market is trading near record highs, add to concerns voiced by financial executives including JPMorgan Chase CEO Jamie Dimon.

Rowan put the odds of an exogenous shock at somewhere between 30% and 35%, far higher than the usual level of risk, he said.

A convergence of forces could destabilize markets, according to Rowan, including a “total geopolitical reset,” policies that could prove inflationary by restricting labor and trade, and the sweeping artificial intelligence cycle reshaping jobs and economic growth.

“Almost everything we’re doing, whether intentional or not, has the potential to be inflationary,” Rowan said, an apparent reference to President Donald Trump’s tariff and U.S. immigration policies.

“Restricting the supply of goods, restricting the supply of labor and the free movement of goods and labor — maybe for good and valid reasons that need to be done — are all inflationary in the short term, even if we are not seeing signs of it,” he said.

On AI, Rowan predicted socioeconomic upheaval: “Almost every job will be enhanced or replaced. We’re going to see a complete flip — blue-collar ascendancy and white-collar stress.”

The balance sheets of companies and consumers remain strong, while governments’ finances are strained, he added.