(RTTNews) - Disability insurance products provider Unum Group (UNM) said Tuesday that its third quarter profit increased from last year, due to the absence of investment losses incurred in the year-ago period. Looking ahead, the company reaffirmed its earnings outlook for the full year 2009.

The Chattanooga, Tennessee-based company posted net income of $221.1 million or $0.66 per share for the third quarter, up from $108.0 million or $0.32 per share in the prior year quarter.

Results for the quarter included net realized after-tax investment gains of $9.5 million or $0.02 per share, compared to net realized after-tax investment losses of $108.9 million or $0.32 per share in the third quarter of 2008.

Excluding items, earnings were $211.6 million or $0.64 per share, compared to $216.9 million or $0.64 per share in the year-ago quarter. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.64 per share for the third quarter. Analysts' estimates typically exclude special items.

Third quarter total revenue increased to $2.52 billion from $2.44 billion in the same quarter last year. Analysts had a consensus revenue estimate of $2.56 billion for the third quarter.

"I am pleased with our results for the third quarter, as well as our continued strong position in our markets, in what remains a challenging economic environment," said Thomas Watjen, president and chief executive officer of Unum.

Unum US reported operating income of $197.1 million, up 14.9% from the previous year quarter.

Operating income from Unum UK declined 36.5% to $58.7 million in the third quarter of 2009, hurt by currency fluctuation. In local currency, operating income decreased 26.9% to ??35.8 million from ??49.0 million in the third quarter of 2008.

Colonial Life reported operating income of $70.4 million, a 6.3% increase in the third quarter of 2009.

The Individual Disability - Closed Block segment operating income soared to $7.2 million from $2.5 million in the prior year quarter.

The Corporate and Other segment reported an operating loss of $13.7 million, compared to $7.2 million in the year-ago quarter, due to lower net investment income resulting from lower levels of assets and lower interest rates on short-term investments as well as an increase in pension costs.

For the nine-month period of 2009, Unum reported net income of $653.2 million or $1.97 per share, compared to $511.4 million or $1.48 per share in the previous year period.

Total revenue for the period declined to $7.59 billion from $7.66 billion in the prior year period.

For the full year 2009, Unum continues to expect operating earnings of $2.50 to $2.60 per share. The Street currently estimates earnings of $2.56 per share for the year.

Watjen said, "While we expect the environment will remain challenging, we are well positioned to profitably grow our business as general business conditions improve and, in the meantime, continue to generate solid results and maintain a strong balance sheet and capital position."

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