(Reuters) - Insurer Prudential Financial reported a fall in third-quarter adjusted profit on Wednesday, hurt by weakness in its international business due to less favorable underwriting results and higher expenses.

Facing rising claim costs and evolving market pressures, the insurance industry is increasingly tightening policy terms and raising premiums to manage heightened risk.

The Newark, New Jersey-based company's international businesses posted an adjusted operating income of $766 million for the third quarter, compared to $811 million in the year-ago quarter.

Its life planner unit - housed within the broader international segment - was also affected by weaker underwriting results, increased expenses and adverse foreign currency exchange impacts.

Adjusted operating income of the unit fell to $464 million in the quarter, compared to $527 million a year earlier.

However, PGIM, Prudential's global investment management business, reported an adjusted operating income of $241 million in the quarter, up from $211 million a year ago, driven by higher asset management fees.

Assets under management climbed to $1.56 trillion in the third quarter, compared with $1.36 trillion a year ago.

The insurer has been looking to shift its business model away from market-sensitive segments and towards more stable and recurring sources of income such as underwriting.

The company's after-tax adjusted operating income came in at $1.26 billion, or $3.48 per common share, in the three months ended Sept. 30, compared with $1.33 billion, or $3.62 per share, a year earlier.