(Reuters] – U.S. insurance MetLife Inc (NYSE) surpassed Wall Street expectations for third-quarter profits on Wednesday as strong investment gains offset a hit caused by coronavirus related claims.

Adjusted profit was $2.1 billion or $2.39 per shares, as compared with $1.6 billion or $1.73 per sharing a year ago. Based on Refinitiv data, analysts expected an average profit of $1.74 per shares.

The global life insurance industry has been able to take advantage of a rise in investment income. This is helping offset the increased payouts due to the recent health crisis. From a year ago, total variable investment income increased more than twice to $1.41 trillion.

MetLife had another great quarter. In a statement, Michel Khala stated that outstanding variable investment income outperformed the higher COVID claims …”.

New York-based insurance company, having previously said the worst of pandemic had passed, announced an 18% increase in net investment income, to $5.57 Billion, attributed to strong private equity returns.

Rival Prudential Financial Inc. (NYSE) had also reported solid quarterly adjusted profit. This was due to strong performances at U.S. insurers’ life- and annuity unit.

Metlife’s U.S. operations saw adjusted earnings drop 1%. However, Asia posted a 22% rise, which helped to offset Latin America’s weakness due to higher COVID-19 related claims.

In the third quarter ending Sept. 30, it reported net derivative losses in excess of $218 millions. To hedge against volatility in the market, the insurer has a portfolio of derivatives.

However, these gains don’t reflect actual company performance. They are a result of accounting rules.