Annual Review 2006

A summary of the 2006 banking and insurance year for 24 regional insurance companies in alliance.

- Länsförsäkringar focuses on growth. Growth will take place organically, in a product-broadening manner and structurally. In 2006, the number of customers engaged in all three core businesses – non-life insurance, life assurance and banking – increased by slightly more than 10%. Our healthcare venture has made us the market leader in medical insurance. In banking, we see both organic and structural growth as the way to establish Länsförsäkringar as the preferred alternative and the player to exert price pressure with respect to the four large banks. Our approach is long-term and not steered by any stock market price. This gives us the necessary leeway to continue to challenge the competition via attractive prices and terms. The ambition is to be among the largest players on the mortgage market within three years. The financial results for 2006 and our current financial strength provide us the capacity to achieve the growth targets, says Tommy Persson, Managing Director Länsförsäkringar AB, the Alliance’s jointly owned company. 2006 in brief • The technical result for non-life insurance amounted to SEK 2,131 M (2,515). Operating profit was SEK 4,576 M (7,075). • As a result of the favorable earnings, 16 of the regional insurance companies are paying a bonus to their customers. In total, the bonuses amount to about SEK 1 billion. • The total return on investment in the life assurance company was 8.3% (14.9). The bonus rate was raised from 6% to 8% on December 1. • Operating income from bank operations before loan losses amounted to SEK 238 M (203) and SEK 201 M (154) after loan losses. Lending to the public rose 14% to SEK 54 billion (47) and deposits from the public increased by 15% to SEK 24 billion (21). Mortgage lending rose 18% and amounted to SEK 37 billion (31). • For the fourth consecutive year, Länsförsäkringar was named “Non-life Insurance Company of the Year” by the Swedish magazine Affärsvärlden. The Swedish Quality Index survey showed that Länsförsäkringar has Sweden’s most satisfied customers within life assurance, pension insurance and mortgage loan areas. Figures in parentheses refer to 2005. For further information contact: Tommy Persson, Managing Director Länsförsäkringar AB +46 8 588 400 00 Dag Rosander, Press Officer Länsförsäkringar AB +46 8 588 414 99 +46 73 96 414 99 dag.rosander@lansforsakringar.se

About Us

Länsförsäkringar is Sweden’s only customer-owned and locally established banking and insurance group. The customers in each of the counties in the country own their local and independent regional insurance company. The 23 regional bank and insurance companies cooperate in the jointly owned Länsförsäkringar AB, which conducts development and provides services within banking, life assurance, non-life insurance and animal insurance. Länsförsäkringar offers a broad range of insurance and banking services for individuals, companies and farming. All companies within the Länsförsäkringar Alliance are environmentally certified in accordance with ISO 14001.

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