UPDATE 2-Chubb beats views, expects Australia losses

* Q4 EPS $1.69 vs. analysts' estimate of $1.57

* Sees 2011 net written premiums flat to up 2 percent

* Warns of first-quarter flood losses in Australia (Adds background on sector)

NEW YORK, Jan 27 (Reuters) - Property insurer Chubb Corp (CB.N) easily beat Wall Street expectations for the fourth quarter, but warned of substantial losses in the first quarter because of flooding in Australia.

The company also said net written premiums would be flat to slightly higher this year, while operating income would fall compared with 2010.

On Tuesday, Travelers Companies (TRV.N) surpassed analysts' estimates for the fourth quarter. [ID:nSGE70N0D3]

Both companies had been expected to miss estimates, according to Thomson Reuters StarMine, which weights estimates based on analysts' historical accuracy.

Chubb reported a net profit of $620 million, or $2.02 per share on Thursday, compared with a year-earlier profit of $695 million, or $2.03 per share.

Losses and loss expenses rose slightly, as did operating costs. Catastrophe costs also ate into the bottom line, after having been negligible a year earlier.

Some analysts had expected property insurers to have a bad quarter because of unusually heavy storm activity, including hail storms in Arizona, floods in California and a blizzard in the Northeast in late December.

Operating income, which excludes investment gains and losses, was $1.69 per share. Analysts polled by Thomson Reuters I/B/E/S on average expected earnings of $1.57 per share.

In the current quarter, Chubb expects pretax losses of $75 million to $100 million for flooding in and around Brisbane, Australia.

For this year, Chubb said it expected net written premiums to be flat to up 2 percent. It predicted operating income of $5.35 to $5.75 per share, down from the $5.90 per share in 2010. Analysts had expected earnings of $5.67 per share.

Chubb also said it expected its share count to decline further in 2011, with an average for the year of 291 million shares outstanding. Chubb, one of the largest repurchasers of shares in the industry, ended 2010 with 297.3 million shares outstanding.

Chubb shares dipped to $59.15 in after-hours trade from a $59.33 close on the New York Stock Exchange. (Reporting by Ben Berkowitz. Editing by Robert MacMillan)