Munich - Europe's biggest insurer Allianz AG said Tuesday its first-quarter earnings declined after its Dresdner Bank offshoot was forced to write down almost 900 million euros (1.4 billion dollars) as a result of the global financial crisis.

Munich-based Allianz said net profit slumped in the three months of the year by 66 per cent to 1.1 billion euros, also warning that the financial fallout from the US subprime market crisis could place at risk targets for next year.

The news send Allianz shares down 1.4 per cent to 128.92 in early trading in Frankfurt.

At the same time, the giant insurer said operating profit dropped to 1.8 billion euros during the first three months of the year compared to 2.9 billion euros in the same period of 2007.

The group released its preliminary results ahead of the publication of its full first-quarter figures on May 9.

"We consider our medium-term targets for 2009 to be still feasible even though this will become harder, the longer the financial crisis will last," said Allianz board member Helmut Perlet. (dpa)