UPDATE 1-Aspen posts wider-than-expected Q3 loss

* Q3 oper loss $1.02/shr vs loss est $0.83

* Results hit by catastrophe and investment losses

* Combined ratio rises to 123.3 pct

* Investment income falls 73.3 pct

Oct 29 (Reuters) - Property and casualty insurer Aspen Insurance Holdings Ltd (AHL.N) posted a wider-than-expected quarterly loss, hit by a higher combined ratio due to hurricanes Ike and Gustav and a slump in investment income. [ID:nWNAB4299]

The company said it revised its combined ratio outlook to a range of 92 percent to 96 percent for the full year, due to the hurricane-driven loss activity in the third quarter.

Aspen also cut its investment income outlook to a range of $160 million to $205 million from its earlier view of $230 million to $265 million, expecting losses of between $40 million and $70 million from investments in hedge funds.

Hurricanes Ike and Gustav reduced earnings by $1.91 a share in the third quarter, the company said.

Net loss was $116.7 million, compared with a net profit of $117.2 million in the same period last year. The Bermuda-based company recorded other than temporary impairment charges of $44.5 million pre-tax for the quarter.

Net investment income fell 73.3 percent to $19.3 million, while net earned premiums rose 3.5 percent to $434.2 million.

Combined ratio, the percentage of premiums an insurer has to pay out in claims and expenses, rose to 123.3 percent from 84.5 percent last year.

Shares of the company closed up 7 percent at $22.20 Wednesday on the New York Stock Exchange. (Reporting by Amiteshwar Singh in Bangalore; Editing by Deepak Kannan)