The old saying that insurance and banking don’t mix appears to be holding true at German insurance giant Allianz, which looks set to offload its under-performing Dresdner Bank.

Allianz paid more than $US20 billion ($20.6 billion) to acquire the business in 2001, and it has been a problem ever since. The insurer is facing pressure from investors to offload the banking division.

Reports in European media say Allianz held discussions last week with executives of Commerzbank and Santander about a possible sale.