German insurer Allianz has seen its profit slump in the third quarter due to the impact of share market turmoil on its investments and writedowns on Greek bonds.

But rival global insurer Zurich has good news, saying it has increased net profit by 34% to $US3.2 billion ($3.1 billion) for the nine months to September 30 despite reporting its worst catastrophe year since 2005.

Allianz reported a third-quarter profit of €196 million ($261 million) compared with €1.2 billion ($1.6 billion) on revenue that was steady at €24 billion ($32 billion). Its nine-month profit was down 47% to €2.05 billion ($2.7 billion).

CFO Oliver Bate blamed uncertain capital markets, but added: “Because of our solid operating results and unwavering capital strength, Allianz is well able to withstand this adversity.”

Operating profit from property and casualty for the quarter was steady at €1 billion ($1.3 billion), with higher premiums in the UK, US, Australia and Asia-Pacific region.

Life and health profit fell 20% to €520 million ($694 million) on lower investment income and the asset management division increased profit by 3% to €537 million ($717 million).

Zurich CEO Martin Senn says underwriting discipline in the past nine months has contributed to an improvement in the group’s underlying loss ratio for the general insurance division while maintaining the same level of gross written premium.

The nine-month profit from the general insurance division fell 12% to $US1.7 billion ($1.6 billion) and gross written premium rose 6% to $US27 billion ($26 billion), although it was flat on a local currency basis.

The group says this has been the worst year for natural disaster loss since Hurricane Katrina hit New Orleans in 2005.

Mr Senn says the life business is continuing to diversify into higher growth markets and has so far this year increased premiums by 2% to $US17 billion ($16.4 billion).

But operating profit in the life business fell by 8% to $US1 billion ($97 million). Zurich’s US subsidiary Farmers Insurance increased operating profit by 15% to $US1.1 billion $1.06 billion).