Allianz 1Q Net Profit Falls 98 Percent

Perlet said the company is strongly capitalized, the investment portfolio is of high quality and liquid, and that Allianz' operating profitability proves resilient.

"There is a mix of goods and bads in the Q1 results released today by Allianz, but there is certainly no surprise," said Nicolas Michellod an analyst at Celent insurance consultants in Paris.

"Unsurprisingly the Dresdner Bank sale has hurt, but Allianz has managed to stay in the black numbers. Like its peers, the insurer can hope now that some stability will prevail in the international financial markets if it wants to post better results in the coming quarters," Michellod said.

Investors however, weren't convinced by the report and Allianz shares closed down 7.2 percent at euro70.30 in Frankfurt.

Allianz said first quarter premium revenues in the life and health insurance business rose nearly 6 percent, to euro13 billion from euro12.3 billion, as consumers returned to buying insurance.

Operating profit for the life and health insurance business fell, to euro400 million from euro600 million a year earlier. However, the first quarter result is much better than in the fourth quarter of 2008, when life and health insurance posted a euro300 million operating loss as customers avoided buying insurance as the economic downturn gathered pace.