DOW JONES NEWSWIRES

Unum Group's (UNM) third-quarter profit more than doubled as business improved from a year earlier, when the life and disability insurer posted big investment losses.

Chief Executive Thomas Watjen said the environment likely will remain challenging but "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."

Unum, which largely dodged the billions of dollars of investment losses that hurt some rivals because it has no exposure to subprime securities, has picked up profitable business and beat earnings expectations for more than two years. It raised $350 million in a notes sale in September to boost liquidity.

For the latest quarter, the company, which also runs employee training programs, reported a profit of $221.1 million, or 66 cents a share, up from $108 million, or 32 cents a share, a year earlier. Operating income, which excludes net realized investment gains and losses and other items, was flat at 64 cents.

Revenue rose 3.1% to $2.52 billion.

Analysts' estimates were for per-share operating earnings of 64 cents on revenue of $2.56 billion, according to a poll by Thomson Reuters.

Earnings grew 15% in the U.S. business despite a 1.9% decrease in premium income, as the benefit ratio--a measure of claim payouts versus premiums--improved to 85.3% from 89.3%.

Profit fell 36% in Unum's U.K. business. The segment's benefit ratio improved to 50.2% from 52.4% on lower general inflation on claim reserves and a decline in the level of claim incidence in the group long-term disability line.

Shares of Unum, which reiterated its 2009 earnings target, fell 0.3% to $20.14 in after-hours trading. The stock is up 20% in the past year.

-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com

(END) Dow Jones Newswires

11-03-09 1634ET