Allianz, Europe's biggest insurer by gross premiums and the owner of Dresdner Bank AG, said it earned 665 million euros ($974.62 million) in the October-December period, down by more than half from nearly 1.4 billion euros a year earlier. The company blamed the slip on a bad quarter for Dresdner.

Revenue rose 4 percent gain to 25.9 billion euros ($37.9 billion) in the fourth quarter compared with 24.8 billion euros in the same quarter a year earlier.

Allianz shares rose 3 percent to 121.03 euros ($177.38) in Frankfort.

Allianz's U.S. units include Bill Gross' Pimco, one of the world's largest bond managers; Fireman's Fund; Oppenheimer Capital; and fund managers Nicholas-Applegate and RCM Capital.

For the year, the company confirmed its preliminary figures released last month, earning 8 billion euros ($11.7 billion), up 13 percent from 7 billion euros it earned in 2006. Revenue also rose to 102.6 billion euros ($150.4 billion) in 2007 compared with 101.1 billion euros in 2006.

"Despite challenging conditions in 2007, we were able to further improve our operating efficiency and profitable growth, and to achieve a record result for the year," said chief executive Michael Diekmann.

He said the results, despite the fourth-quarter narrowing, came because of "the well-diversified business activities of the group" which meant "we were less vulnerable to shocks and cycles in individual markets and segments."

Though the company's core insurance operations, including health and life insurance, as well as property and casualty insurance, were improved, the overall results were pulled lower by Dresdner, Germany's third-biggest bank, and its investment banking arm, Dresdner Kleinwort.

For the year, the bank's operating profit came in at 730 million euros ($1 billion), or about half the 1.4 billion euros it earned in 2006.