MetLife’s Asian operating earnings grew 18% to $US330 million ($368 million) in the second quarter, driven by strong underlying business growth across the region.

Premiums, fees and other revenues gained 2% to $US2.5 billion ($2.8 billion) and total sales increased 3%, mainly on growth in Japan, China and India.

The US-based company says policyholder surrenders increased on some products in Japan, continuing a trend from the first three months of the year.

“This is a result of customers harvesting gains in foreign currency denominated fixed annuity products denominated in Australian and US dollars,” CFO John Hele told a briefing.

“We believe customers have shifted assets into equities, which continue to perform very well.”

The Asia division also includes operations in Australia, Hong Kong, Bangladesh, Nepal, Pakistan and South Korea.

MetLife’s overall net profit fell to $US471 million ($526 million) from $US2.26 billion ($2.52 billion) in the second quarter last year, because of derivative losses. Operating earnings grew 11% to $US1.59 billion ($1.78 billion).

The Americas retail business reported a 42% rise in earnings to $US581 million ($649 million) as premiums, fees and other revenues grew 6%. The gains included higher property and casualty premiums.

Net investment income was relatively unchanged at $US5.1 billion ($5.7 billion).