Please also note that no portion of this conference call may be reproduced or rebroadcast in any form without the prior written consent of Chubb. Replay of this webcast will be available through November 18, 2011. Those listening after October 20, 2011 should please note that the information and forecast provided in this recording will not necessarily be updated and it is possible that information will no longer be current.Now, I'll turn the conference over to Mr. Finnegan. John D. Finnegan Thanks for joining us. This afternoon we reported our results for the third quarter and for the first 9 months of the year, both periods of large catastrophe losses for Chubb and the property and casualty insurance industry. Notwithstanding these cat losses and other industry headwinds included in the sluggish economy, margin compression and lower reinvestment yields on fixed maturity investments, we reported operating income of $252 million for the third quarter and $1 billion dollars for the first 9 months. Operating income per share for the third quarter was $0.88, reflecting a $0.95 impact of catastrophes. In last year's third quarter, operating income was $1.69 but the impact of cash was only $0.12. The third quarter combined ratio was 102.6% in 2011, compared to 86.2% in 2010. That x cat combined ratio for the third quarter was 88.2 in 2011, compared with 84.1 one last year. For the first 9 months, operating income per share was $3.50 and the combined ratio was 97.1. Including an 11.7 point impact of cats. The x cat combined ratio of 85.4 for the first 9 months of 2011 compares with 83 in the first 9 months of last year. During the third quarter, our investment portfolio produced a net realized gain before tax of $71 million or $0.16 per share after tax, bringing our net income to $298 million or $1.04 per share. At September 30, our net unrealized appreciation before tax stood at $2.3 billion, which is an increase of about $200 million as of June 30. Reported book value per share at September 30, 2011, was $56.23, 7% higher than a year ago. Despite the significant cat losses that we incurred in the third quarter, we maintained the pace of our share repurchases and expect to complete our current program by the end of January 2012.
We're also pleased with the continued firming in the market. It's best evidenced by the 4% rate increase we achieved in the third quarter in our standard commercial business, while maintaining strong retention levels. In the second, Paul will talk more about the market environment in detail. As we announced in our press release today, we're reducing our 2011 calendar year operating income per share guidance to $5.10 to $5.20 from $5.55 to $5.85. This reduction is largely due to the far higher level of cats we experienced in the third quarter than we had assumed in our July guidance. Ricky will elaborate on our updated guidance in his remarks.Let me now turn it over to Paul, who will talk about our commercial and specialty insurance results. Paul J. Krump Thanks, John. The Chubb Commercial Insurance net written premiums for the third quarter were up 9% to $1.2 billion. The combined ratio was 101.1 versus 89.1 in the third quarter of 2010. Excluding the 11.2 point impact of catastrophes, CCI's third quarter combined ratio was 89.9, compared to 87.1 in the third quarter of last year. We are encouraged that CCI's average renewal rates were up 4% in the United States, up from the 2% renewal increase we reported in the second quarter of this year. And even more encouraging sign is that month over month, average rate increases accelerated through July, August and September. Retention for the third quarter was 85% and our new-to-lost business ratio was 1:1, both are down moderately from the second quarter. With respect to CCI's United States renewal rates, more good news is that we're seeing increases not only in property but across-the-board, including general liability, workers compensation, excess umbrella, package and commercial auto. Approximately 80% of the CCI business we renewed in the United States in the third quarter was flat or had positive rate increases. That compares to about 70% in the second quarter of this year and 60% in the first quarter. Read the rest of this transcript for free on seekingalpha.com