(RTTNews) - Thursday, property and casualty insurance provider Chubb Corp. (CB: News ), reported a third-quarter profit that more than doubled year-over-year, reflecting a 63% surge in operating income and a benign hurricane season, notwithstanding a 7% decline in total net written premiums. As a result, the insurer raised its operating earnings outlook for fiscal year 2009.

The Warren, New Jersey based company's net income for the third quarter surged to $596 million or $1.69 per share from $264 million or $0.73 per share in the year-ago quarter.

Operating income, defined as net income excluding after-tax realized investment gains and losses, for the quarter was $552 million, up from $338 million in the prior-year quarter. On a per share basis, operating income increased 68% to $1.56 from $0.93 last year.

On average, 21 analysts polled by Thomson Reuters expected the company to earn $1.27 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

In the preceding second quarter, Chubb reported a net income that increased to $551 million or $1.54 per share from $469 million or $1.27 per share in the same quarter last year.

Total net written premiums for the recent third quarter decreased 7% to $2.70 billion from $2.90 billion in the comparable quarter last year. Excluding the effect of foreign currency translation, total net premiums declined 5%. Premiums dropped 7% in the U.S. and outside the U.S. respectively, while it increased 1% in local currencies. Analysts expected the company to report revenue of $2.83 billion for the quarter.
For the preceding second quarter, net premiums written declined 7% to $2.85 billion from $3.05 billion in the comparable quarter last year. Premiums, excluding the effect of foreign currency translation, were down about 3%. Premiums decreased 5% in the U.S. and premiums written outside the US fell 12%, while it increased 3% in local currencies.

Premiums earned for the third quarter under review were $2.84 billion, down from $2.96 billion in the prior year quarter.

Property and casualty income for the quarter was $801 million, up from $484 million in the previous year period. Property and casualty investment income after taxes for the quarter declined 3% to $317 million from $327 million in the year-earlier period. Underwriting income for the quarter surged to $423 million from $69 million in the year-earlier period.

Combined loss and expense ratio for the quarter was 85.4% , down from 98.1% in the year-earlier period. The impact of catastrophe losses in the third quarter of 2008 accounted for 0.8 percentage points of the combined ratio and was principally related to Hurricane Ike. Expense ratio was 31.2% in 2009 quarter and 30.2% in 2008.

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