US-based broking and consulting group Marsh & McLennan Cos (MMC) has closed the first nine months of the year with net income of $204m, swinging from a prior-year loss of $153m. The improvement was driven by a 17% drop in expenses to $7.24bn, which more than offset a 13% decline in revenues to $7.76bn. The turnaround was also driven by MMC's risk and insurance services division — which includes broker Marsh and reinsurance broker Guy Carpenter — where operating income grew 88% to $669m on revenues of $3.94bn, down 6%. The New York-based group's consulting division — including its Mercer and Oliver Wyman Group units — had operating income of $274m, down 42%, on revenues of $3.37bn, down 16%. Its risk-consulting & technology division saw its operating loss narrow to $292m from $480m on a 33% drop in revenues to $498m. For Q3, MMC swung to net income of $221m from a year-earlier loss of $8m on revenues of $2.52bn, down 10.5%. Adjusted Q3 earnings per share of 48¢ were 18¢ per share above analysts' forecast. President and chief executive  Brian Duperreault said that the group's Marsh unit "reported another excellent quarter" while Guy Carpenter "produced strong new business". Together, the two broking units generated Q3 operating income of $127m against a year-earlier loss of $28m.

US p/c group Allstate has closed the first nine months of the year with net income of $336m, swinging from a prior-year loss of $550 owing to improved underwriting and investment results. The group's core property/liability operation generated $551m in underwriting income, swinging from a loss of $79m and helped by a 44% decline in catastrophe-related losses to $1.74bn from a year ago, when hurricanes Gustav and Ike struck. Lower cat losses contributed to a 7.3% drop in overall claims losses to $14.30bn, offsetting a 3.1% drop in earned premiums to $19.68bn. The combined ratio improved to 97.2% from 100.4%. Allstate also benefitted from an 83% decline in realized capital losses to $550m, offsetting the 22% decline in investment income to $3.37bn. For Q3, Allstate swung to net income of $221m from a year-earlier loss of $923m, as it swung to underwriting profit of $346m from a loss of $865m and realized capital losses dropped 54% to $290m. Cat losses for the quarter fell 78% to $407m. Operating earnings of 99¢ a share were 2¢ a share below analysts' forecast.

UK-based insurer RSA has reported net written premiums of £5.03bn ($8.32bn) for the first nine months of the year, down 1% at constant exchange rates, but up 4% on the same period last year when the relative decline of sterling against a basket of other currencies is taken into account. Real growth came from the International sector of RSA's business. In Scandinavia premiums of £1.13bn were up 5%, helped by FX movements and "continued action on rating". Good growth was reported in Personal Lines in Norway and Sweden. In Canada, premiums of £744m were up 13% — 3% at constant exchange — helped by rate increases and strong retentions. Commercial lines, up 8% solely because of FX effects, worked against "a continuing competitive market". In "Other Europe". premiums were up 12% to £387m, but down 1% a constant exchange rates. Strong growth was recorded in Ireland, "driven by positive rate action across all lines of business and the benefit of prior-year acquisitions". This offset a reduction in personal motor and the withdrawal of capacity in Commercial Property in Italy. Emerging markets also benefited from exchange rate movements, up 7% to £575m, but down 4% at constant exchange rates. RSA said that "these markets remain attractive places to do business and we will continue to invest in the region". Hong Kong, Singapore, Oman and Saudi Arabia delivered double-digit growth, offsetting small reductions in other territories. In South and Central America premiums were up 5% — flat at constant exchange — with growth in Brazil, Colombia and Uruguay mitigating a move to six-month policies in Argentina and certain portfolio actions in Mexico. The Baltics showed the most deterioration, with premiums off by 10% (20% at constant exchange). RSA said that its associate in India continued to perform well. Foreign exchange movements also benefited the investment portfolio, up 7% since June 30 to £15.1bn, due mainly to foreign exchange movements. RSA said that it continued to expect a combined ratio of about 95% for the full year. CEO Andy Haste said that "while economic conditions remain challenging, we are now seeing some encouraging signs, particularly in International and Emerging Markets".

Switzerland's Zurich Financial Services has reported a business operating profit of $4.07bn for the first nine months of the year, representing a 3% decline on the $4.185bn generated in the same period last year. Non-life insurance gross written premiums were down 10% (3% in local currencies) to $26.3bn, while global life business rose 16% year on year to $17.4bn. Non-life business generated a gain of $2.51bn, down 3%, while life business reported a gain of $1.16bn, down 6%. The combined ratio improved 1.9 points to 96.9% reflecting, said Zurich, its continued focus on underwriting discipline, portfolio management and differentiated rate actions". These, it said, had proved successful "in marking a turning point in the underlying loss trend". In Europe, premiums were down 1% in local currencies, the underwriting result deteriorated and investment income was down. But in North America Commercial there was an improved underwriting result and profit, "reflecting improved rates and lower catastrophe losses". Global Corporate also posted an improved result, having managed an average rate increase of 5.8% through 2009 to date. Business operating profit at US subsidiary Farmers was up 14% to $1.13bn, with Farmers Re more than doubling its premium volume due to an increase of the existing All Lines quota share reinsurance treaty. Farmers Re's business operating profit rose to $141m. The group investment result declined 9% to $4.32bn. The return on equity for the nine months was down 2.9 points to 11.6%. Zurich noted that the decline in business operating profit was solely attributable to currency variations, with the result being an increase of 2% if measured in local currencies. Net income for the nine months was $2.2bn, down 24% year on year. This was partially caused by a business operating loss of $433m in the non-core business segment, which now includes the group's banking business as well as its insurance run-off operations. The loss resulted primarily from an increase "in certain life reserves predominantly addressing policyholders' behaviour and from increased loan loss provisions in the banking operations", Zurich said. William Hawkins of Keefe, Bruyette & Woods was downbeat in his early thoughts, noting that "the combined ratio is disappointing, with a sequential uptick in the attritional claims ratio and poorer positive reserve development, including a small asbestos charge. The life result is disappointing underlying, as is the Farmers performance".