Zurich’s Q3 profit drops on investments

*** CLARIFICATION/CORRECTION***

This item clarifies and corrects information contained in an item posted on Nov. 14.

Zurich Financial Services has posted a Q3 net income after tax of US$154 million, marking a dramatic drop from the profit of US$1.5 billion quarter-over-quarter. Before taxes, it posted a Q3 loss of US$119 million, as compared to a profit of US$1.9 billion in 2007 Q3. The company’s general insurance segment posted a quarterly loss of US$285 million, as compared to the profit of US$982 million posted in 2007 Q3. Net earned premiums and policy fees for the General Insurance Group was US$7.96 billion in the third quarter, compared to US$7.62 billion in the same period of last year. The group’s combined operating ratio climbed to 103.9% in 2008 Q3 versus 97.5% in 2007 Q3, a release says. Zurich’s North American Commercial segment posted a combined ratio of 105.0%, an increase over 2007 Q3’s 97.9%. Net capital losses and impairments on the General Insurance Group’s investments was US$623 million for the quarter, compared to a profit of US$143 million in the same period of last year. Zurich Financial Services reported US$1.38 billion in consolidated losses and impairments, compared to a profit of US$580 million in 2007 Q3. The company also reported a loss of US$595 million from hurricanes Gustav and Ike.