ZURICH (Bloomberg) — Zurich Financial Services AG, Switzerland’s largest insurer, raised its profit forecast after third-quarter earnings almost tripled to a record amid a dearth of storm claims since Hurricane Katrina.Net income climbed to $1.3 billion, or 11.06 Swiss francs a share, from $457 million, or 3.98 francs, a year earlier, the Zurich-based company said yesterday, beating analysts’ estimates.

Zurich Financial joins rivals such as Germany’s Allianz SE in reporting higher third-quarter profit, helped by a drop in claims for disasters since Katrina struck the US Gulf Coast last year. Chief executive officer James Schiro, 60, said Zurich Financial has “aggressive targets” and aims to add $2 billion to profit in the next three years by improving its underwriting and risk models.

“The fact the company has such confidence in publishing targets for 2007, 2008 and 2009 tells you the outlook is quite good,” said Spencer Horgan, an analyst at Deutsche Bank in London who rates Zurich Financial’s shares a “buy.”

Zurich Financial raised its target for profit gains next year to $700 million from $500 million, Schiro said. About one-third of the gains will come from the insurer’s US operations.

The shares rose as much as 1.9 percent and traded 0.8 percent higher at 325.50 francs at 2 p.m. in Zurich, their highest since December 2001. They’ve gained 16 percent this year compared with 13 percent for the Bloomberg European Insurance Index, raising its market value to 47.1 billion Swiss francs ($37.7 billion).

Zurich Financial said its general insurance unit paid out 11 percent less in claims for damages in the quarter. Loss expenses fell to $5.11 billion from $5.74 billion a year earlier.

This year’s Atlantic hurricane season, which started in June and ends this month, hasn’t resulted in major storm losses for the industry. Insurance damages from 2005’s catastrophes, including Katrina, were $94 billion, according to reinsurer Munich Re.

Munich-based Allianz, Europe’s largest insurer, last week raised its forecast for 2006 profit after earnings doubled on fewer claims from storms.

American International Group Inc., the world’s largest insurer, said earnings more than doubled and Minnesota- based St. Paul Travelers Cos. reported a six-fold surge in profit.

The insurer is “profiting at the moment from lower claims for damages,” said Georg Marti, an analyst at Zuercher Kantonalbank.

In addition, buoyant markets “are equally advantageous” for Zurich Financial, which invests policy-holders’ reserves in equities, bonds and other assets, Marti said.

Net earnings premiums and policy fees rose 2.8 percent to $9.88 billion. Zurich Financial’s property and casualty unit reported pre-tax profit of $1.04 billion compared with a loss of $15 million a year earlier. That beat analysts’ $881 billion forecast.

The unit spent less of its premium income on claims and costs. The combined ratio, a measure of profitability, improved in the first nine months to 94.8 percent from 100.9 percent a year ago.

Third-quarter earnings at the life unit slid 8.8 percent to $268 million.

The US-based Farmers Management Services division reported a 4.1 percent decline in pretax profit to $304 million.

Farmers was weaker due to marketing spending “which will hopefully lead to higher profitability,” Deutsche’s Horgan said.

The company also said it put aside about $500 million in the third quarter to cover “an uptick” in asbestos-related claims in the UK. The insurer released $78 million from reserves in the first nine months.

Schiro refused to comment on whether Zurich Financial is considering acquisitions. He said he’s reviewing its capital requirements and plans to announce a dividend for 2006 on February 17.

“We will not retain surplus capital,” Schiro said on a call with analysts. The company may return capital through a dividend, share buybacks or a combination, he added without giving details.