Oct 30 (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.