UPDATE 1-Aflac posts higher 3rd quarter net, exceeds view

(Adds operating net, analyst estimates and comments, share movement)

NEW YORK, Oct 23 (Reuters) - Aflac Inc (AFL.N), the world's largest seller of supplemental disability insurance, said on Tuesday its net income rose 14 percent in the third quarter, helped by higher premium income in the United States.

Columbus, Georgia-based Aflac said net earnings were $420 million, or 85 cents a share, up from $367 million, or 73 cents a share, a year earlier.

Aflac said operating earnings, which analysts use to measure performance because it excludes investment gains and losses, rose 18 percent to $417 million, or 85 cents a share.

Analysts on average had expected the insurer to earn 82 cents a share on that basis, according to Reuters estimates.

In the year-ago quarter, the largest writer of long-term disability insurance in the United States and Japan had operating earnings of $363 million, or 72 cents a share.

Total revenues rose 5.1 percent to $3.9 billion, as premium income at its Japanese division, which represents more than 60 percent of the company, rose 4.2 percent. In the United States, premium income increased 10.7 percent.

Analysts had previously warned that increased competition from Japanese-based insurers could cut into revenue, but Aflac said cancer product sales there were strong and it had just introduced a new medical product.

"They are still selling in Japan and premiums are up in the U.S.," said Morningstar analyst Matt Nellans. "You can't ask for more."

Aflac Chief Executive Daniel Amos said in a statement that he is "confident" Aflac will increase operating earnings per share by 15 percent to 16 percent in 2007, excluding currency translation, and expects to report operating net of $3.28 to $3.31 a share for the full year.

Analysts, on average, expect the company to earn $3.29 in operating net, according to Reuters estimates.

In extended trading, Aflac shares fell 1.2 percent to $58.39 a share from a $59.10 close on the New York Stock Exchange, giving up most of the 89 cents it gained during the regular trading day. (Reporting by Ed Leefeldt)