ZURICH (Bloomberg) — Ace Ltd., the Zurich-based insurer with operations in more than 50 countries, said third-quarter profit rose ninefold from a year ago on fewer claims tied to catastrophes.

Net income rose to $494 million, or $1.46 a share, from $54 million, or 16 cents, in the year-earlier period, the insurer said yesterday in a statement distributed by Business Wire.

Operating income, which excludes some investment results, was $2.07 a share, beating the $1.91 average estimate of 15 analysts surveyed by Bloomberg.

Catastrophe losses fell 89 percent to $45 million from $411 million in the same quarter last year. Only one named system, Tropical Storm Claudette, touched the US this year. In 2008, hurricanes Dolly, Gustav and Ike contributed to a $9.9 billion net loss for the industry by the end of September, Verisk Analytics Inc. said.

"You didn't have any hurricanes, which means the earnings are going to be strong," Michael Paisan, an analyst at Stifel Nicolaus & Co., said in an interview before results were released.

Ace fell 16 cents to $53.27 during in New York Stock Exchange composite trading yesterday. It has gained 20 percent in the past year compared with the 14 percent increase in the 97-company MSCI USA Financials Index.

The insurer spent 88.1 cents per every premium dollar on claims and expenses, compared with 97.9 cents a year earlier when Ike and Gustav struck.

Book value, a measure of assets minus liabilities, climbed to $55.71 a share from $49.27 in the second quarter. Policy sales dropped 3.7 percent to $3.16 billion from $3.28 billion in the year-earlier period. Premium revenue fell six percent to $3.39 billion.

"Premium revenue growth was impacted in the quarter by recessionary conditions, a strong US dollar and a competitive insurance market," chief executive officer Evan Greenberg said in the statement.

"We expect meaningfully stronger revenue growth in the fourth quarter regardless of foreign exchange."

Ace is competing for business as corporations cut costs by eliminating staff and job sites, reducing the need for coverage.

US commercial rates fell 4.9 percent in the second quarter and have dropped in every quarter since 2004, the Council of Insurance Agents and Brokers said in July.

"Because of the economic slowdown, there is less to insure, and written premiums are taking a beating," Dave Bradford, an executive vice president at Advisen Ltd., said this month in a statement.

Chubb Corp.'s third-quarter profit doubled from the year-earlier period to $596 million. Travelers Cos. said net income quadrupled to $935 million from the previous year's third quarter. Liberty Mutual Group Inc.'s third-quarter net income surged to $265 million from $6 million in the year-earlier period, the Boston-based insurer said yesterday.