NEW YORK (Bloomberg) — MetLife Inc., the biggest US life insurer, led rivals higher in New York trading yesterday after a boost in its cash investments helped to ease concerns that losses could trigger a liquidity crunch.

MetLife climbed $1.97, or 6.6 percent, to $32 in New York Stock Exchange composite trading. No. 2 Prudential Financial Inc. rose 50 cents, or 1.8 percent, to $28.64 and Hartford Financial Services Group Inc. advanced 29 cents, or two percent, to $15.15.

Life insurers met with investors at conferences in recent days, providing details on their ability to fund losses on corporate debt and mortgage securities amid a deepening US recession. New York-based MetLife said on Monday it boosted cash holdings 35 percent to $27 billion through two months of this quarter. Last week, Hartford raised its capital estimates, and Prudential announced the sale of a stake its brokerage venture.

"Their capital and their liquidity positions are stronger than the market had been anticipating," Rob Haines, a New York- based analyst at CreditSights Inc., said in an interview. MetLife, Prudential and Hartford "did a good job of dispelling the fear that there is a solvency risk".