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%.