Länsförsäkringar Alliance, Year-end report 2005

“The Länsförsäkringar Alliance is reporting the best combined result in its history. The record earnings within non-life insurance means that many regional insurance companies are allocating their customers bonuses totaling nearly SEK 1 billion. The total return for the life assurance company was 14.9%, as a result of which the bonus is being raised to 9%. During the past 20 years, the bonus rate to our pension customers has averaged 9.6%. Few secure savings programs can match this return. An ever-increasing number of non-life insurance customers are becoming bank customers, which is a prerequisite for our bank venture. We have Sweden’s most satisfied customers in all categories. Our strategy with local and independent companies working in alliance has again proven its advantages. The results in 2005 are a fantastic foundation from which to pursue our growth and expansion objectives, says Tommy Persson, Managing Director Länsförsäkringar AB, the Alliance’s jointly-owned company. Summary • The technical result for non-life insurance improved to SEK 2,496 M (1,957). Operating profit amounted to SEK 7,027 M (3,213), which is the best result ever. Länsförsäkringar’s share of the non-life insurance market was 30.6% (32.3). • As a result of the favorable earnings, many of the regional insurance companies are paying a bonus to their customers. In total, the bonuses amount to nearly SEK 1 billion. • The total return in the life assurance company was 14.9% (6.4). The bonus rate was raised from 4 to 6% on October 1. On March 1, the rate will be raised to 9%. Earnings from life assurance operations totaled SEK 4,584 M (2,348). • Operating income from bank operations before loan losses and tax amounted to SEK 203 M (171) and SEK 154 M (127) after loan losses. Lending to the public rose 19% to SEK 47 billion (39). Deposits by the public increased by 9% to SEK 21 billion (19). Mortgage lending rose 30% to SEK 31 billion (24). • The combined ratio for non-life insurance improved further, amounting to 89% (93). Operating income for life assurance improved by SEK 76 M. • The Swedish Quality Index survey showed that Länsförsäkringar has Sweden’s most satisfied nonlife insurance, life assurance and bank customers in the private customer segment. The survey also showed that Länsförsäkringar is the leader in non-life insurance for corporate customers. • For the third year in a row, Länsförsäkringar was named “Non-life Insurance Company of the Year” by the Swedish magazine Affärsvärlden, based on a survey of Swedish businessmen and women, and “Pension Management Company of the Year” by Investment & Pensions Europe, also for the third consecutive year. Read the entire report: www.lansforsakringar.se/reports For further information contact: Tommy Persson, Managing Director Länsförsäkringar AB +46 8 588 400 00 Christer Baldhagen, Senior Vice President Corporate Communications Länsförsäkringar AB +46 8 588 415 01 +46 70 579 70 66 christer.baldhagen@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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