Zurich Financial Q3 profit rises six-fold

ZURICH - Swiss insurer Zurich Financial Services Group reported a third-quarter net profit of $909 million Thursday, an almost six-fold increase on the $154 million earned a year earlier, when it suffered massive writedowns and costly payouts for the 2008 hurricane season.

The result was its 27th consecutive quarterly net profit, Zurich said.

The company benefited from a recovery in the financial markets and recent acquisitions that include the purchase of 21st Century Insurance Group for $1.9 billion.

Zurich sold the group's 21st Century Insurance and Agency Auto units to U.S.-based personal insurer Farmers Exchanges for $1.4 billion. Zurich earns fees from managing the Farmers Exchanges trading platform.

Despite the improvements in the third quarter, analysts had expected an even better result, with most predicting net profit for the quarter would top $1 billion, and reaching $2.49 billion for the first nine months of the year. Actual net profits for the January-September period were $2.16 billion.

Profit margins rose strongly in Britain, Ireland, the United States and Australia, said Dieter Wemmer, Zurich's chief financial officer.

Chief Executive James J. Schiro, who retires from the post at the end of the year, said the company is on course to save $400 million in 2009.

Zurich shares closed 3.8 percent lower at 228.50 Swiss francs ($224.53) on the Swiss stock market.

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