(Reuters] – Prudential Financial Inc. beat Wall Street estimates Tuesday for its quarterly adjusted profit. This was due to a strong performance by the U.S. insurer’s life and annuity businesses offset by weakness in its investment division.

PGIM (NYSE: Prudential)’s asset-management arm reported a nearly 12% drop in adjusted operating income, to $327m, according to the company. Assets under management increased to $1.73 Trillion from $1.65 Trillion a year ago.

In the United States, individual life insurance segments posted an adjusted operating loss of $210 millions, up from $101 million in the previous year. This was due to higher net investments spread results.

The segment’s annuity income grew more than 22%, to $499 millions. An annuity allows consumers to have a stable income for retirement through a long-term contract of insurance.

The global life insurance companies are taking measures to reduce payouts following the COVID-19 pandemic. They have also been assisted by an increase in investment income and a decrease in non-medical claims such as dental.

Prudential’s U.S. group business insurance suffered a quarter-to-quarter loss due to less favorable underwriting results for the group life, and disability lines. This was partly caused by the pandemic.

The total after-tax adjusted operating profit rose to $1.49 Billion, or $3.78 per Share, in the third fiscal quarter that ended September 30, from $1.24 Billion, or 3.08 Per Share, one year ago.

Refinitiv data shows that analysts expected to make a profit at $2.74 per shill according IBES.