* Q3 group profit beats expectations on investment gains
* Sees positive developments going forward
OSLO, Oct 27 (Reuters) - Norwegian insurance company Storebrand bounced back into profit on Wednesday with forecast-beating third-quarter group earnings of 709 million Norwegian crowns ($122.2 million).
Storebrand said the turnaround followed a market recovery in the July-September period, during which the benchmark Oslo Stock Exchange index rose 20 percent.
The company also said it expected continued growth in its core markets going forward.
Eleven analysts in a Reuters poll forecast a third-quarter group profit of 679 million Norwegian crowns ($117.9 million).
Profit, led by life insurance division investments, trailed the 908 million crowns posted in the third quarter of 2009.
The group lost 39 million crowns ($6.72 million) in the second quarter when the Oslo benchmark index dipped 13 percent.
(Reporting by Oslo newsroom; Editing by David Cowell)