Profits rise at insurer MetLife

PROFITS at MetLife, the largest US life insurer, doubled in the second quarter following a huge gain on derivatives tied to falling interest rates.

The company has long had a substantial derivatives programme designed to hedge the risk of low interest rates. As rates dropped this quarter the company took a $1.4bn (£900m) gain on its derivatives positions and other items.

MetLife reported a total profit of $2.26bn compared with a net profit of $1.07bn for the same period last year.