Allianz Group has reported a net income of E1.15 billion for the first quarter of 2008, representing a decline of 64.6% when compared with the corresponding quarter of 2007.

The decline in net income was mainly a result of Allianz’s decision to not realize gains from capital investments due to unfavorable stock markets. This is in strong contrast to the first quarter of 2007, when Allianz recorded net realized gains of E2 billion from investments.

Total revenues decreased by 5.7% to E27.7 billion compared to E29.3 billion posted for the same period of 2007.

Helmut Perlet, CFO of Allianz, said: Although we are seeing somewhat lesser tension in US residential mortgage prices as well as cautiously rebounding equity markets, it is hard to predict when the stormy weather will end. While 2008 will remain a challenging year, the longer this environment persists the harder it will also be to achieve our medium term outlook.