UPDATE 1-Tower Group Q1 profit beats Street, hikes dividend

* Q1 oper EPS $0.84 vs est $0.81

* Net premiums earned jump to $168.1 mln

* Revenue up 81 pct at $200.3 mln

* Sees FY 2009 EPS $3.10-$3.30 vs est $3.21

* Raises dividend by 40 pct to $0.07/shr

May 7 (Reuters) - Insurer Tower Group Inc (TWGP.O) posted an adjusted quarterly profit that beat market estimates, as net premiums earned more than doubled, and raised its quarterly dividend by 40 percent.

The company raised its quarterly dividend to 7 cents a share, payable June 26 to stockholders of record as of June 15. Its earlier dividend payout was 5 cents a share.

For the first quarter, the company earned $18.0 million, or 53 cents a share, compared with $14.9 million, or 64 cents a share, last year.

Excluding items, the company earned 84 cents a share.

Revenue rose 81 percent to $200.3 million.

Analysts were expecting earnings of 81 cents a share, before special items, on revenue of $243.7 million, according to Reuters Estimates.

Net premiums earned rose to $168.1 million from $68.4 million last year.

The company expects second-quarter operating earnings of 72 cents to 77 cents a share, below analysts' view of 78 cents a share.

Shares of the company closed at $26.98 Wednesday on Nasdaq. (Reporting by Kunal Raina in Bangalore; Editing by Anne Pallivathuckal)