The quarter rounded out a first half that was "marked by exceptionally high natural catastrophe losses," a statement quoted chief executive Michael Diekmann as saying.
The group said the fall also stemmed from "a low level of harvesting" compared with the same period a year earlier, when Allianz booked a high level of gains on investments in stocks, debt securities and real estate.
It reported a gain of €181 million for that line this year, against €959 million in the second quarter of 2009.
Allianz's operating profit this year gained 22.7 percent, however, to €2.19 billion, while sales were 14.5 percent higher at €25.4 billion, it said.
For the first six months of 2010, the insurer made an operating profit of €3.9 billion, allowing Diekmann to confirm its full-year forecast.
"We are confident that we can achieve our outlook for operating profit for the entire year of around €7.2 billion, with a fluctuation range of plus or minus €500 million," he said.
Breaking down the data, Allianz said second-quarter gross premiums, the industry's term for sales, in its property and casualty division had gained 4.5 percent on the year to €10 billion.
Claims from natural disasters in the quarter amounted to €255 million meanwhile.
Sales in the life and health insurance division gained 20 percent to €14.1 billion.
The group's asset management unit more than doubled its operating profit to €516 million from €246 million a year earlier.
Division chief Oliver Bäte said: "With positive net inflows for six consecutive quarters, we are succeeding in growing our asset management business into a real performance engine.
"The contribution of this business to Allianz Group net income has grown significantly over time and accounted for 21.2 percent in the second quarter."