(Reuters) – MetLife Inc (NYSE 🙂 saw its fourth quarter profit rise nearly 7%, surpassing Wall Street estimates Wednesday. This was due to strong investments that offset the impact of higher pandemic claims in certain parts.

According to Refinitive data, the adjusted profit for U.S. insurers was $2.17 per share compared to $2.03 last year. Based on Refinitiv data, analysts expected to earn $1.47 per share.

MetLife, New York’s private equity investment company, saw its net investment income rise by 7% to $5.2 Billion.

Globally, insurance companies have reported rising investment returns in the past year due to markets continuing to recover from a slump caused by the pandemic. It has also helped offset an increase in claim payouts due the coronavirus crisis.

Insurance companies were hoping that vaccine rollouts would ease their burden, but the high-infectious Delta variant raised COVID-related claim to $5.5 Billion in just nine months, which is much higher than 2020’s total.

Insurance companies reported higher COVID-related death rates last year than they did in 2020. The deaths occurred mainly among elderly people, who are less likely to take out insurance.

Group benefits saw 95% earnings decline in quarter due to unfavorable underwriting in group life as a consequence of COVID-19.

The insurer’s U.S. operations suffered a 37% drop in adjusted earnings to $640m due to unfavorable Underwriting. However, Asia saw a 19% increase thanks to increased investment income.

Latin America saw an increase in adjusted earnings of $125 million, compared to $14 million in the prior quarter. This was due to lower COVID related claims.

MetLife lost $196 Million from net derivatives. The loss was driven by stronger equity markets and forex rate changes. They are used as a hedge against market volatility.