Concern was mounting yesterday over Allianz' financial strength, after Standard & Poor's lowered the long-term ratings of the Munich-based insurer.
In a separate move the rating agency placed Allianz on a negative outlook following a £1.2bn fall in profits.
Standard & Poor's Wolfgang Rief said: "The negative outlook reflects Standard & Poor's concerns about the challenges that Allianz faces in restructuring and improving earnings for subsidiary Dresdner Bank."
Justifying the downgrade, analysts highlighted concern over the performance of Allianz foreign casualty businesses. S&P added the results have hampered Allianz' overall growth.
Rief added: "Allianz's operating performance, although historically very strong, has deteriorated recently, reflecting the very unsatisfactory performance of key foreign insurance subsidiaries."
Calling for progress on Dresdner's integration into the insurer, S&P urged Allianz to improve its capitalisation.
Rief added that ratings could be lowered of there was a "further improvement" for the combined ratios of its French casualty business.
"Further rating development closely depends on Allianz achieving sustainable improvements in these areas," added Rief.
