The beating being experienced by Germany’s once-impregnable financial services giants is showing signs of abating, with Allianz reporting its first profit in more than a year.

Helped by higher premium income, cost-cutting and a tax credit, Europe’s largest insurer made a net profit of $1.06 billion, well up on its 2001/02 loss of $603 million. But its banking subsidiary Dresdner Bank continued to bleed money, losing $740 million to add to the $1.8 billion lost last year.

The bank, which Allianz bought two years ago as a new channel for its financial services products, is cutting its staff by 15,700.