Zurich Financial Services has reported a third-quarter operating profit of $US1.2 billion ($1.18 billion) and net income of $US751 million ($740 million).

While the group described the profit result as “part of a solid operating performance”, it’s an 18% drop on the result from the corresponding period last year.

Analysts say the result was affected by a $US295 million ($290.7 million) lawsuit settlement involving its US general insurer Farmers, a $US330 million ($325.2 million) provision for bank loan losses and higher claims for weather-related damage and natural disasters.

CEO Martin Senn says Zurich’s core businesses “continued to deliver a robust operating performance in spite of the difficult economic environment in our major markets”.

“In general insurance, we are managing the business with a strong focus on protecting profit margins, as demonstrated by our successful efforts to implement targeted underwriting actions.”