Denmark-based insurer Topdanmark has posted a gain of DKK268m ($45.4m) for the first quarter, up from DKK35m in the same period last year. The result was ahead of an analyst consensus, apparently because Denmark, or, at least, Topdanmark, was not hit quite as severely by weather-related claims this past winter as was its neighbour Sweden. "Both the level of winter-related claims was lower and the investment return higher than assumed", the insurer said. However, the weather impact was still significant. The technical result was a loss of DKK32m compared with a gain of DKK233m in the same period last year. The combined ratio rose to 102.8% from 91.4%. There was a return to normality in the fire claims sector, down to DKK158m in Q1 2010, from DKK250m in the first quarter of last year. But this was of no help to Topdanmark's bottom line, because the fall-off was in the area of exceptionally high claims, while the trend in the Personal Lines fire claims sector was up. This meant that reimbursement from reinsurers fell year on year, and the total claims burden rose 1.9pp. The non-life gain rose from DKK80m to DKK199m, while the gain in life rose to DKK144m from DKK13m. Part of the improvement in the life sector was because Topdanmark can now include as income an allowance for risk in both of Topdanmark's Life operations, Life I and Life V. A fall in non-life premium income by 3.5% to DKK2.09bn was attributed mainly to a DKK58m fall in workers' comp premium income. Topdanmark said that the overall decline reflected the company's greater than average share of the small- to medium-sized enterprise market, which was disproportionately affected by the recession. Total earned premiums, including Life, were DKK3.08bn, down from DKK3.14bn. The improvement in Topdanmark's bottom line was solely the result of a turnaround in its investment performance, which swung to a gain of DKK230m from a loss of DKK153m in Q1 2009. For FY 2010, Topdanmark is predicting a combined ratio in the range of 94% to 95%, and a post-tax gain of between DKK950m and DKK1.05bn. This compares with a previous forecast combined ratio of 95% to 96%, and a previous forecast of a gain of DKK800m to DKK900m. However, total premium growth was reduced to zero, from a previous estimated growth of 1% to 2%. In a later telephone interview reported by Reuters, CEO Christian Saglid said that he expected the Danish economic crisis to bottom out in 2010, and that he anticipated premium growth in the second half compared with H1. Underlying profitability was now close to target, he said, and Topdanmark would now focus on top-line growth.

Tokio Marine Group has reported a recurring profit of ¥203.41bn ($2.25bn) for the financial year to March 31 2010, up from a loss of ¥15,13bn the previous year. Premiums rose to ¥3.57trn from ¥3.50trn. The company predicted premiums of ¥3.36trn for the financial year 2010/11, with recurring profits of ¥180bn. Tokio Marine Group consists mainly of non-life insurer Tokio Marine & Nichido Fire. Foreign business generated premiums of ¥503.4bn, with a net gain of ¥68.9bn, about 70% of its net profit of ¥128.4bn. The company stated that it would be resuming a share buyback, with ¥25bn in buybacks targeted. Meanwhile, the Japanese motor insurance sector is to begin offering drivers of hybrid and electric cars insurance discounts of up to 3%. From July, Tokio Marine & Nichido Fire and Sompo Japan are to offer 3% discounts to drivers of such cars if they have been registered for 13 months or less. Mitsui Sumitomo Insurance has been offering discounts for vehicles registered for 25 months or less since 2003. It will expand the discounts in October for hybrid and electric cars. It will raise the discount from 11% to 12% on liability coverage and insurance for drivers and passengers. The discount for covering car repairs will be raised to 8% from 7%.

Danish insurer TrygVesta has fallen to an unexpected first-quarter loss of DKK102m ($17.2m), compared with a profit of DKK470m in the same period last year. Gross premiums earned rose 12.9% to DKK4.65bn, but gross claims rocketed to DKK4.135bn from DKK2.86bn. This pushed the technical result into a loss of DKK354m, compared with a gain of DKK437m in Q1 2009. The combined ratio soared to 108.4%, from 90.9% in Q1 2009. TrygVesta said that its numbers were "significantly affected" by winter weather claims, which came to DKK750m gross, adding 16.1pp to the loss ratio. TrygVesta said that, adjusted for the unusually high winter claims, the combined ratio was 93.3%, still 2.4pp higher than the same period last year. TrygVesta also reported that claims in commercial business had risen to an unprofitable level, despite premium increases and risk-reducing initiatives. As a result the company intends to introduce further rate rises. A brighter note was sounded on the investment side, which TrygVesta said had exceeded expectations, yielding gross returns of about DKK400m for the quarter, equal to an annualized 4.0%. The insurer said that the extraordinary level of winter claims in Q1 would impact the full year result "significantly". The technical result is expected to decline to between DKK300m and DKK700m, from last year's DKK1.55bn. Pretax profit is expected to be between DKK600m and DKK1bn, down from a previously anticipated range of DKK1.4bn to DKK1.8bn. The expected combined ratio for the full year is now between 97% and 99%, up from a previously expected range of 96% to 98%. Premium growth forecast was maintained at between 3% and 4%. Return on Equity is expected to be in the region of 5%.

Allianz UK is intent on gaining what CEO Andrew Torrance called "sensible" rate rises in commercial lines, after Allianz UK posted a gross operating profit of £36.7m for Q1 2010, down £4.4m on the same period last year. The decline was due mainly to higher weather-related claims and a deterioration in investment returns. Gross written premiums in the UK were up 4.4% to £411.3m. Commercial business rose 5.3% year on year to £237.3m, while retail business was up 3.3% to £174m. The combined ratio fell to 96.5% from 96%, with retail falling by 1pp to 101.7%. Commercial combined ratio rose 2pp to 92.6% Mr Torrance said that, providing there were no further major weather catastrophes this year, Allianz UK was well placed to deliver its profit plan for 2010. Achieving rate rises in the commercial lines market remained the insurer's primary focus. "We are not there yet," said Mr Torrance. "All of our commercial underwriters are very focused on this goal and we want our broker partners to work with us to ensure that the rates put to policyholders reflect the exposures we are taking on." Mr Torrance said that price rises were being pushed through on the "unprofitable" broker motor account, but admitted that household cover was "regrettably...not yet hardening in the same way". Rates were failing to reflect the more frequent significant weather events, such as the Cumbrian floods and the UK winter freeze, now being experienced, he said.