MILAN (Bloomberg) — Assicurazioni Generali SpA, Italy’s biggest insurer, said third-quarter profit gained 23 percent, helped by an increase in non-life premiums and emerging-market sales. The company also raised its full-year profit forecast.Net income advanced to 538 million euros ($687 million) from 437 million euros a year earlier, the Trieste, Italy-based company said in a statement distributed by the Italian exchange.

That beat the 515 million-euro median estimate of eight analysts surveyed by Bloomberg News.

Chairman Antonine Bernheim has merged units in Italy to cut costs, raised the company’s stakes in foreign subsidiaries and entered the insurance markets in Serbia, Bulgaria and Ukraine this year as it competes with larger rivals Allianz SE and Axa SA. The insurer wants to strengthen its partnership with Banca Intesa SpA to expand in its home market.

“Their strategy in Italy and abroad is paying off because margins are growing thanks to investments in emerging markets,” said Claudio Morsenchio, who helps manage the equivalent of $750 million, including Generali shares, at Banco Emiliano Romagnolo SpA in Bologna.

“With the minorities buyouts they’re bringing home a bit more money.”

Gross written premiums advanced 1.4 percent to 13.6 billion euros, helped by life contributions in Germany and emerging markets. Total life premiums fell 0.1 percent to 9.35 billion euros as Italian sales fell 5.1 percent because of a drop in contributions from bank partnerships.

Property and casualty premiums gained 3.7 percent to 3.9 billion euros.

The insurer said yesterday it expects 2006 profit to be at least 2.3 billion euros, which compares with a previous forecast of 2.2 billion euros. The outlook for the fourth quarter is “positive,” chief executive officer Giovanni Perissinotto said yesterday.