Unum Group’s debt ratings have been upgraded by Standard & Poor’s Rating Services, as it cited the insurer’s continued strength in market share and profitability.

However, a federal court in Las Vegas has returned a civil verdict against UnumProvident Corp., now Unum, and subsidiary Paul Revere Life Insurance Co. and awarded $60 million in punitive damages. The Chattanooga-based company said it will appeal.

In upgrading Unum’s debt rating, S&P analyst Shellie Stoddard said the insurer’s turnaround strategy since 2003 is apparent in its improved risk profile and increased financial flexibility.

“Management has focused on lowering the risk in the company’s investments and businesses while growing key strategic businesses such as life, supplemental and voluntary insurance products.”

Tom White, Unum’s senior vice president for investor relations, said the ratings upgrade “acknowledges and validates all the things we’ve done in the last four years.”

The upgrade removes the debt from high-end “junk” status and will lower the cost of borrowing for the company, he said.

“It’s a nice symbolic move,” Mr. White added.

Meanwhile, the Nevada federal court jury returned the civil verdict in a case in which the companies were sued by claimant G. Clinton Merrick, who cited improper claims handling practices.

Unum spokeswoman Mary Clark Guenther said the case dates to the late 1990s. It was originally tried in 2004, the company appealed and the case was retried, she said.

“Based on the facts, we’ll eventually see results in our favor or certainly a reduction in the damages,” she said.

Earlier this decade, Unum was accused of failing to pay legitimate claims, which it denied. In 2004, regulators in Tennessee, Maine, Massachusetts and New York reached an agreement with then UnumProvident for a review of many of its past claims.

In May, Tennessee’s insurance regulator said Unum Group is paying $676.2 million in added benefits to consumers as a result of the insurer’s review of its claims handling operations.