Henning Schulte-Noelle, head of Germany insurance giant Allianz, has stepped down after one of the most disastrous years in the company's history.

The company named Michael Diekmann, currently head of the firm's American insurance operations, as Mr Schulte-Noelle's successor.

Mr Schulte-Noelle said he had decided to leave for personal reasons, and had timed his announcement so as to avoid a possible succession dispute.

Mr Diekmann is due to take over as chief executive in May next year.

Tough times

The management shake-up comes at the end of a year during which Allianz, once seen as a rock-solid bet for investors, crashed deep into the red as it struggled to turn around its loss-making Dresdner bank unit.

The insurer has also faced hefty payouts stemming from the 11 September attacks, flooding in central Europe, tumbling stock markets, and a rash of asbestos-related compensation claims.

The firm's mounting woes wiped about 75% off its market value in the 18 months to October this year, although its share price has since partly recovered.

Analysts broadly welcomed Mr Diekmann's appointment, saying he had little involvement in the company's decision to purchase Dresdner bank in April last year.

Comeback plans

They also credited him with a reputation as a hard-headed negotiator.

"At least he is not burdened by the Dresdner Bank takeover and its aftershocks," said Marc Thiele at Commerzbank.

Mr Diekmann said he aimed to press ahead with plans to create an integrated financial services provider by tying Dresdner bank into Allianz's own operations.

The company is planning to restore Dresdner bank to operating profitability next year in a major restructuring exercise likely to include job cuts.