Oct 24 (Reuters) - Insurer Principal Financial Group

reported a rise in third-quarter adjusted profit on

Thursday, bolstered by robust returns on its investments and

higher premiums.

A strong labor market and increased confidence in soft

landing post Federal Reserve's rate cut last month have boosted

consumer willingness to spend more on their insurance policies.

The market rally, driven by growing optimism about averting

recession fears and expectations of more rate cuts before

year-end, has also helped insurers fetch higher returns on their

investments.

The Des Moines, Iowa-based company's net investment income

for the quarter reached $1.17 billion, compared with $989.2

million a year earlier.

Premium and fees from PFG's specialty benefits business,

which provides employee benefit plans to small- and mid-sized

businesses, rose 6% to $818.8 million.

Adjusted operating earnings, excluding impacts of

significant variances, came at $479.8 million or $2.05 per share

in the quarter ended Sept. 30, versus 446.4 million or $1.83 per

share a year earlier.