Property and casualty insurer ING Canada Inc. reported a drop in third-quarter profit as turbulence in global stock markets resulted in investment losses.

Profit for the quarter ended Sept. 30 was $57 million, or 47¢ a share, down from $92 million, or 74¢ a share, in the year-earlier period.

The average estimate of earnings per share for the third quarter among the analysts that follow the company was 85¢.

Included in the Toronto-based insurer’s results for the quarter were $62 million worth of losses from declining investments as stock markets around the world tumbled.

Net operating income — underwriting, interest, dividend and corporate income after taxes — increased 11.5% to $106.4 million, the company said.

Total revenue fell to $1.05 billion, compared to $1.09 billion in the same time period last year.

“The Canadian economy is weakening under the pressures of the global financial crisis and reduced commodity prices,” the company said in a statement.

“However, the property and casualty insurance industry tends to be less sensitive to economic slowdown than many other sectors.”

“Our operating performance continues to improve, with a significant increase in the profitability of our auto and commercial insurance activities during the quarter,” said president and CEO Charles Brindamour.

“This improvement resulted from numerous underwriting and pricing initiatives taken over the last twelve months to address the increased costs in claims in personal insurance, and our strategy to concentrate on the most profitable segments of commercial insurance.”

Brindamour added that during the quarter, the company sold $260 million worth of its equities holdings and reinvested the proceeds in Canadian government treasury bills to reduce its exposure to market volatility.

ING Canada is a subsidiary of Dutch bank and insurance giant ING Group.

IE