The predictions were dire but the third quarter of 2006 proved to be relatively disaster-free, and that’s had quite an effect on international insurers’ results.

Property and casualty underwriters have reported strong surges in profit – at least compared with the hurricane-ravaged results of last year’s September quarter.

AIG was one of the market leaders. It raised its premiums going into the 2006 hurricane season but did not experience any increase in claims.

Its insurance operating income was $US2.63 billion ($3.42 billion) for the three months to September 30 – which compares very favourably with the $US137 million ($178 million) loss recorded last year.

Overall, AIG enjoyed a $US4.22 billion ($5.5 billion) profit for the first nine months, compared with the $US1.75 billion ($2.27 billion) earned last year.

CEO Martin Sullivan says the strong overall performance was led by the general and life insurance businesses.

“We continue to execute our growth strategies by capitalising on our unique global franchise and product and distribution capabilities that distinguish AIG from our competitors,” he said.

Across the Atlantic, the “so far, so good” hurricane season is also doing wonders for European underwriters. Switzerland’s largest insurer, Zurich Financial Services, has reported a near 300% improvement in its third-quarter result.

The $US1.3 billion ($1.7 billion) profit leaves last year’s $US457 million ($595 million) – recorded in the immediate aftermath of Hurricane Katrina – for dead.

Axa Europe is also increasing its revenue base. It reported 4.5% more in premiums over the first nine months of the year – a total of €15.3 billion ($25.6 billion). Personal insurance premiums were up 5% over the same period.

Overall revenue for the first nine months increased 8% to €17.9 billion ($29.9 billion) on the back of increased demand for life insurance and savings products.