* Q3 net profit beats forecast
* Company raises full-year profit forecast
* Mild weather, high return on investments boost result (Adds details, CEO comment)
By Johan Ahlander
COPENHAGEN, Nov 13 Danish insurance company Topdanmark beat profit forecasts and raised its guidance for full-year earnings as mild weather led to fewer claims and as the return on its investments rose.
Weather-related claims fell to just 12 million in the third quarter, compared to 140 million last year when a rainstorm hit the Copenhagen area.
Return on investments rose to 413 million Danish crowns ($70.39 million) in the quarter, compared to a loss of 119 million last year.
The company raised its full-year net profit guidance to between 1.55 billion and 1.65 billion Danish crowns instead of a previously guided range of 1.30 billion to 1.40 billion crowns.
Net profit in the third quarter surged to 523 million Danish crowns ($89.14 million) from a loss of 53 million in the corresponding period last year, beating forecasts of 345 million crown profit in a Reuters poll of analysts.
Shares in the company fell 2.8 percent at 1250 GMT, underperforming the Copenhagen benchmark index which was down 0.4 percent.
The company kept its full-year outlook for premium growth unchanged in the life insurance unit at around 1-2 percent but trimmed its combined ratio outlook.
It said it expected 2012 combined ratio - a measure of insurers' profitability - of around 89 percent instead of a previous forecast of around 90 percent. A figure below 100 means underwriting is profitable. The lower the figure the better.
Third-quarter combined ratio improved to 88.9 percent from 91.8 percent a year ago.
The company also expanded its buy-back programme for 2012 by 250 million crowns to 1.7 billion crowns.
Last week, Danish rival Tryg also reported forecast-beating quarterly profits helped by mild weather and cost cuts. ($1 = 5.8670 Danish crowns) (Editing by Louise Heavens)