Like people, most companies have done something they regret. For Allianz, which reported mixed first quarter numbers last week, it was the purchase of Dresdner Bank in 2001. Allianz deserves some sympathy – the German insurer’s timing was bad and bancassurance models were all the rage. But Dresdner’s return on equity has been well below that of the group at a whole. Allianz’s share price has suffered as a result, underperforming its European peers by about 60 per cent since the purchase.

The logic of owning Dresdner remains weak. Allianz reckons that a banking network is needed to flog insurance products to clients. It might argue that its share of German non-life premiums is growing and new banking customers attracted from the Allianz client base are approaching 1m. But KBW estimates that, in 2006, cross-selling contributed less than 1 per cent to group earnings. Besides, other insurers distribute very effectively via partnerships, which also allow for more rapid expansion (Allianz’s banking presence is pretty much confined to Germany).