(RTTNews) - Disability insurance products provider Unum Group (UNM: News ) 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.

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