MetLife posts higher Q2 profit on strength of group benefits unit

(Reuters) – MetLife reported better-than-expected second-quarter profit on Wednesday, boosted by a strong performance from its group benefits division.

Adjusted earnings in MetLife’s flagship group benefits business, which includes employee benefits, rose to $533 million, up 43% from a year earlier, driven by strong underwriting activity, particularly in life insurance.

MetLife’s net investment income rose to $5.21 billion in the three months ended June 30, compared with $5.07 billion in the same quarter a year earlier.

The insurance industry, which invests a portion of the cash it collects in premiums in low-risk assets and market-linked securities, has seen investment returns rise significantly as higher yields bolster fixed-income portfolios.

Meanwhile, broader stock markets also rose in the second quarter, led by gains in large-cap technology stocks.

Premiums, fees and other revenues were unchanged at $13.55 billion in the second quarter, compared with $13.59 billion a year earlier.

MetLife reported adjusted net income of $1.63 billion, or $2.28 per share, in the second quarter.

Analysts had expected earnings of $2.10 per share, according to LSEG.

(Reporting by Vedant Vinayak Vichare; Editing by Alan Barona)