* Q3 pretax profit 122 mln euros, vs forecast 126 mln
* Life insurance drives earnings
* Confirms outlook, shares rise 0.6 percent
* Says considering subordinated bond
* Shares up 0.4 percent, in line with sector
(Adds detail, analyst, shares)
By Sylvia Westall
VIENNA, Nov 9 (Reuters) - Vienna Insurance Group, said demand from emerging Europe for life products will help it meet its next year targets, and said it was considering issuing a ($695 million) subordinated bond.
The company said on Tuesday it expected 2011 pretax profit to rise about 10 percent after cutting costs. It also expected profit this year to grow by at least that rate.
A rise in life insurance premiums, up 17 percent in the first nine months of the year, was the leading earnings driver.
The group has said its customers remain keen on conservative savings products -- similar to its peers which include Swiss Life, Allianz and Generali.
Third-quarter pretax profit rose 11 percent to 122 million euros compared with a forecast for 126 million in a Reuters poll.
"All round these are solid numbers and Vienna (Insurance) continues to deliver what management has targeted," Credit Suisse analysts wrote in a note to clients, adding that they expected growth to remain at the upper end of European peers.
Vienna Insurance, which said it had an equity ratio of 12.6 percent, said it might issue a subordinated bond "to continue optimising the future-oriented equity base and capital structure". It gave no further detail.
Strong business in emerging Europe also boosted earnings, it said, adding that the picture was still mixed in the former communist bloc.
"The trends in central and eastern Europe are not uniform," Chief Executive Guenter Geyer said in a statement.
"In Austria, the Czech Republic and Slovakia we observe great interest in life insurance, while in Poland there is mainly a strong demand for non-life insurance products."
Its stock was 0.4 percent higher at 38.99 euros by 0914 GMT, in line with the Stoxx European Insurers index.
The world's biggest reinsurer Munich Re raised its guidance for 2010 after beating forecasts with third quarter earnings on Tuesday. ($1 = 0.7193 euro) (Editing by Louise Heavens)