Zurich third-quarter net profit slips on lower reserve releases

(Reuters) — Zurich Insurance Group Ltd. posted a bigger-than-expected 16% fall in third-quarter net profit on Thursday, but said it was confident it would pay an attractive dividend for 2014.

Fewer natural catastrophes helped profit in the company's largest business of general insurance, but only partly offset a decline in money released from reserves set aside to pay off claims.

Zurich finance chief George Quinn said releases of the reserves — funds set aside to cover claims losses that are no longer needed — were just under 1% for the third quarter, whereas they were "strongly positive" in the prior-year period.

Net profit for the insurer fell to $928 million, below an average forecast for $1.06 billion in a Reuters poll of seven analysts.

Zurich said its combined ratio, an insurance industry measure of profitability that weighs payouts against premium income, was 97.7% in the third quarter, compared with a 95.7% poll estimate.