Conseco Inc. (CNO) swung to a first-quarter profit amid smaller net realized investment losses, helped by profits at its three insurance businesses.

The company's shares were up 26% at $3.40 in recent premarket trading. The stock is down by roughly a three quarters since last year, though it has soared since hitting an all-time low in March.

The life-insurance sector has been hurt by the market turmoil, which has hurt many insurers' financial flexibility and decreased their ability to access the credit markets. In March, Conseco found some breathing space by amending its credit agreement. The new arrangement came after the company said its auditor had expressed doubts about its ability to continue as a going concern.

Chief Executive Jim Prieur said the quarter, a seasonally weak one for Conseco's earnings, saw records for new agent contracts in Conseco's wholly owned distribution channels. New agency appointments rose 73% in its independent channel, he said.

The company swung to a profit of $24.5 million, or 13 cents a share, from a year-earlier loss of $7.2 million, or 4 cents a share. The latest period included 4 cents in net investment losses, down from 15 cents a year earlier.

The quarter also included a $108.1 million write-down related to accounting standards.

Revenue rose 4.1% to $1.07 billion.

Analysts surveyed by Thomson Reuters forecast earnings, excluding items, of 20 cents a share on revenue of $1.14 billion.

In the Bankers Life business, which distributes insurance through career Bankers insurance agents, sales fell 18% as profits rose 54%.

Conseco's insurance group, which works through independent insurance agents, saw sales fall 10% as earnings rose 34%. Sales at Colonial Penn - which distributes insurance through television, Internet and direct mail - fell 29% while profit rose 38%.

In December, Conseco finished transferring many of its long-term care policies to a new state-supervised nonprofit trust, Senior Health Insurance Co. of Pennsylvania, allowing it to concentrate on its core business. The policies were a drag on earnings because they were underpriced and required continued capital infusions to meet policyholders' long-term needs.

-By Mike Barris, Dow Jones Newswires; 201-938-5658; mike.barris@dowjones.com