ZURICH, Switzerland—ACE Ltd.’s profitability has improved over its performance last year, according to third quarter earnings the Zurich, Switzerland-based company filed Tuesday.

The firm’s net income for the nine months ending Sept. 30, 2009, was $1.60 billion, a nearly 36% increase over the $1.18 billion it reported for the same period in 2008.

ACE reported $14.66 billion in gross premiums written for the first nine months of 2009, compared with $14.92 billion for the 2008 period, a nearly 2% drop.

The insurer’s property/casualty combined ratio for the period was 87.8%, an improvement over its 90.4% combined ratio for the same period in 2008.

For the third quarter of 2009, ACE reported profits of $494 million, compared with $54 million in the same period last year, and gross premiums of $5.01 billion, down from $5.22 billion in the 2008 period.

Evan G. Greenberg, chairman and chief executive officer said the insurer’s third quarter results benefited from “positive prior-period reserve development and light catastrophe losses.”

However, revenues were affected by “recessionary conditions, a strong U.S. dollar, and a competitive insurance market,” he said in a statement.