Major insurers in South Korea reported weaker third-quarter net profits despite improved insurance operations, as rising market interest rates and volatile financial markets caused valuation losses on bonds, securities and derivatives. KB Property and Casualty Insurance’s net profit fell 27.3% quarter-on-quarter and 3.1% year-on-year to 202.3 billion Korean won, while its insurance profit rose 17.0% to 301.5 billion Korean won. Its investment result swung from a 127.4 billion Korean won gain to a 31.6 billion Korean won loss, a 159 billion Korean won quarterly deterioration. Shinhan Life Insurance also posted higher insurance profit but saw financial profit turn from a 143.2 billion Korean won gain to a 15.4 billion Korean won loss, sending net profit down 31.3% to 128.8 billion Korean won. NongHyup Property and Casualty Insurance and NongHyup Life Insurance recorded similar investment reversals, with NongHyup Life posting a 28.2 billion Korean won net loss and a 96.8% year-on-year decline in cumulative nine-month profit to 6.8 billion Korean won. Insurers invest customer premiums in assets such as bonds, whose values generally fall when interest rates rise. Fourth-quarter earnings remain uncertain as the Bank of Korea Monetary Policy Board could raise the base rate further, while winter respiratory illnesses, icy-road accidents and fires may increase insurance payouts.