UPDATE 1-Delphi Financial sees strong 2009 profit, shares up

Feb 12 (Reuters) - Employee-insurance provider Delphi Financial Group Inc (DFG.N) forecast 2009 operating earnings above analysts' estimates, sending shares up as much as 15 percent.

On a conference call with analysts, the company said it expects 2009 operating earnings, which exludes investment gains and losses, of $3.20 to $3.50 per share.

Analysts on average expected the company to earn $3.12 cents a share, before special items, according to Reuters Estimates.

The company said it has realigned its investment portfolio by reducing its exposure to assets that are mark-to-market through the income statement, bringing it to less than half of the level at the start of 2008 and redeploying cash into its traditional fixed income asset classes.

"We believe our investment portfolio repositioning has set the stage for higher levels of investment income and approved earnings for Delphi in 2009," Chief Executive Robert Rosenkranz said.

The company also said it expects to sustain the strong underwriting results of its insurance businesses that it achieved this year.

On Wednesday, the company posted second-quarter operating earnings a cent below analysts' consensus estimate. [ID:nBNG171747]

Shares of the company, which competes with Conesco Inc (CNO.N), Stancorp Financial Group Inc (SFG.N) and American Equity Investment Life Holding Co (AEL.N), was trading up $1.40 at $15.30 Thursday afternnon on the New York Stock Exchange. (Reporting by Archana Shankar in Bangalore; Editing by Amitha Rajan)