Allied World Assurance Company Holdings last night reported net income of $219.6 million for the third quarter and comfortably beat analysts’ expectations.The Switzerland-based re/insurer with substantial operations in Bermuda posted operating earnings of $79.2 million, or $2.16 per share, beating Wall Street’s predictions of $1.15 per share by a full dollar.Profit was down from the same period in 2011, when Allied reported net income of $86.2 million.Underwriting operations were profitable with a combined ratio of 88.1 percent in the quarter, compared to 83.9 percent in the July through September period of last year.The loss and loss expense ratio was 58.7 percent up year over year from 55.4 percent in 2011. The loss ratio was impacted by $40 million of crop insurance losses and $5 million in losses related to Hurricane Isaac.President and chief executive officer Scott Carmilani said: “The aftermath of Hurricane Sandy is in our minds, both personally and professionally, as we issue our third quarter results. While it’s too early to estimate the losses to Allied World, it is not too early to understand the significant impact this storm has had on the families and communities throughout the Atlantic states. Our hearts and minds go out to everyone affected.“With regard to our third quarter results, we believe we have demonstrated how Allied World’s size and diversity allows it to withstand a major industry loss event while still producing strong returns and significant book value growth for our shareholders.“Despite having recorded $40 million of crop-related losses, the company is reporting net income of $220 million, or $6 per diluted share, for the quarter driven by gains in our investment portfolio and by strong overall underwriting results.“Diluted book value per share grew by 6.3 percent for the quarter, to $93.82 at September 30, and is up 17 percent for the first nine months of the year.”Gross premiums written were $504.4 million in third quarter of 2012, a 13.9 percent increase compared to $442.7 million in the third quarter of 2011.As of June 30, 2012, Allied’s total shareholders’ equity was $3.43 billion, compared to $3.14 billion as of the end of last year, while diluted book value per share was $93.82, an increase of 17.1 percent compared to $80.11 as of December 31, 2011.During the third quarter, the company repurchased 605,898 of its common shares through its share repurchase programme in the open market at an average price of $78.54 per share for an aggregate cost of $47.6 million.