ZURICH (Reuters) - Zurich Insurance Group recorded a bigger-than-expected fall in third-quarter net profit after a blow to its German general insurance business, sending its shares to a three-month low on Thursday.
A reassessment of the German operation's loss reserves drove down net profits by $400 million, while a weak investment result and crop losses caused by drought in the United States also took their toll.
Insurance claims, such as cases involving long-term illness or medical negligence, are sometimes not made for years after a policy has expired. Zurich's German arm had to set aside more money to cover these so-called “long tail” liabilities.
Zurich's third-quarter net profit fell 62 percent to $477 million, below an average estimate of $756 million in a Reuters poll of analysts.
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