UPDATE 1-Vienna Insurance Q3 pretax profit down 7%, in line

* Q3 pretax profit 110 million euros, vs forecast 110 mln

* Austrian hailstorm damages undo better financial result

* Expects "smooth development" for the rest of 2009

(Adds detail, background)

VIENNA, Nov 10 (Reuters) - Vienna Insurance Group (VIGR.VI) met forecasts with a 7 percent decline in third-quarter pretax profit on Tuesday, as claims from hailstorms that hit Austria in August more than offset higher investment income.

July-September pretax profit came in at 110 million euro

($165 million) while gross written premiums rose 3 percent to 1.85 billion, slightly more than expected.

Analysts polled by Reuters had expected pretax profit of 110 million euros and gross written premiums of 1.82 billion. Vienna Insurance, the biggest insurer in emerging Europe, said the hailstorms drove up costs for damages the third quarter, resulting in an 8 percent rise in expenses for claims and benefits.