July 31 (Bloomberg) -- MetLife Inc., the largest U.S. life insurer, said second-quarter profit soared 79 percent as joint ventures drove investment income. The company raised its forecast for the year.

Net income rose to $1.16 billion, or $1.48 a share, from $650 million, or 80 cents, a year earlier, New York-based MetLife said in a statement today. Profit excluding changes in the value of holdings was $1.72 a share, beating the $1.33 average estimate of 16 analysts compiled by Bloomberg.

``These results are at risk of being diminished when the money for private equity dries up,'' said Mayiz Habbal, managing director of the Securities and Investments Group at Boston-based research firm Celent LLC. ``MetLife recognized that.''

MetLife continued to reap benefits from joint ventures, which include leveraged buyout funds, earning about $220 million more than it expected, before taxes, through so-called variable investments. Chief Financial Officer William Wheeler said last month that MetLife has been ``over-earning'' on LBO funds and would devote more to hedge funds, startup companies and even timber.

Total investment income, including interest on bond holdings, rose 16 percent to $4.84 billion. In the first quarter, the company earned almost twice what it expected from the LBO funds that made up the bulk of its $4.4 billion in alternative investments, helping beat analysts' profit estimates by 10 percent.

Full-year earnings, excluding investment gains or losses, will reach $5.65 to $5.80 a share, compared with a prior projection of $5.05 to $5.30, MetLife said.

International Earnings

International earnings surged 83 percent to $117 million in the second quarter, led by gains in Latin America and Asia. MetLife is two years into an international expansion that began with the $11.8 billion purchase of Travelers Life & Annuity, which included operations in Europe, Asia and Latin America.

``International is a huge growth opportunity for this company,'' Chief Executive Officer Robert Henrickson said at an institutional client conference last month. ``We are essentially everywhere we need to be geographically today.''

Earnings from MetLife's institutional business, which includes group life insurance and retirement products such as 401(k)s, rose 15 percent to $521 million, excluding investment gains and losses, as premiums revenue climbed 8.4 percent to $3.07 billion.

MetLife released earnings after the closing of regular trading in U.S. markets.

Shares were unchanged today in New York Stock Exchange composite trading at $60.22. They gained 2.1 percent this year, compared with the 4.9 percent decline of the 24-member KBW Insurance Index. MetLife gained as much as 2.2 percent more in after-market trading.

To contact the reporter on this story: Josh P. Hamilton in New York at jphamilton@bloomberg.net

Last Updated: July 31, 2007 21:28 EDT