CARMEL, Ind. – Conseco Inc., the parent of Banker’s Life and Casualty and Colonial Penn Life Insurance, on Friday posted a fourth-quarter profit, reversing last year’s loss, as sales rose 18 percent and the company lost less on investments than during the market downturn.

Conseco reported net income of $18.2 million, or 9 cents per share, compared with a net loss of $453.3 million, or $2.45 per share, in the 2008 fourth quarter.

The 2009 quarter included $13.8 million of net realized investment losses and other items, while last year’s results included a $486.7 million in such losses.

Net operating income, or income before investment gains and losses, was $32 million, or 15 cents per share.

Analysts polled by Thomson Reuters, on average, expected a profit of 20 cents per share.

Bankers Life had pretax operating earnings of $84.6 million, more than double the $40 million of a year earlier. Net annualized premiums, or the amount of new business written, was up 28 percent at $92.8 million.

Colonial Penn’s pretax operating earnings were $5.9 million, down from $6.7 million the prior year. Net annualized premiums slid 22 percent to $8.4 million.

Conseco Insurance Group had pretax operating earnings of $6.7 million, versus $31.5 million the prior year. Net annualized premiums rose 4 percent to $18.8 million.

For the year, Conseco Inc. reported a profit of $85.7 million, or 45 cents per share, compared with a loss of $1.13 billion, or $6.13 per share, for 2008. Net operating income for the year was $164.6 million, or 86 cents per share, compared with $137 million, or 74 cents per share, in 2008.

In afternoon trading, Conseco shares slid 38 cents, or 7.2 percent, to $4.95. The stock has changed hands between 26 cents and $7.04 in the past 52 weeks.