GENERAL Accident Insurance Company didn’t manage to post underwriting profit — earnings from underwriting insurance — in its third quarter.

As a result, higher investment income during the three months to September 30 — $73 million compared to $46 million in the corresponding quarter in 2012 — was not enough to keep profit from falling.

Net profit for review quarter was $45.1 million, down from $73.9 million during the corresponding period last year.

“These improvements in our investment returns are as a result of increases in our investment float and the more active efficient management of our capital,” said General Accident its latest financial statements.

Underwriting profit, which is the income generated from the company’s core business of underwriting insurance, was down from $30 million during the corresponding period last year to a loss of $23.5 million during the period under review.

The insurer’s gross written premiums actually grew by eight per cent during the third quarter, increasing from $521 million to $562.6 million, while net premiums written were five per cent higher, up from $214.7 million during the corresponding period last year.

But claims expense soared from $127.9 million during the corresponding period last year to $186.7 million during the review period, or by 49 per cent.

Commissions expense grew by 15 per cent, moving from $55.3 million during the comparative period last year to $63.8 during the period under review.

Commission income earned from reinsurers also grew 23 per cent to $57.1 million during the third quarter this year, up from $46.4 million during the corresponding period last year.

“The Jamaican economy remains weak, this is likely to continue to suppress the demand for insurance services in the near-term,” said the company. “In the face of this challenge, General Accident will continue to serve our policy holders and manage our risks prudently.”