Year-end report 2006

“2006 was a strong and favorable year for Länsförsäkringar’s mortgage operations. We captured market shares and increased our net interest income despite increasingly intense competition. Our success was based on a strong total solutions offering combined with attractive prices and conditions. The Swedish Quality Index indicated that for the second consecutive year we have the most satisfied customers, which is the result of continuously challenging the market and contributing to increased competition. The mortgage market is undergoing a period of change with new conditions creating equal competition. We have been highly successful as a challenger. In 2007, we will intensify pressure on competitors now that we are able to compete under equal conditions”, says Anders Borgcrantz, President of Länsförsäkringar Hypotek.

Summary
*Lending increased by 18%, from SEK 31 billion to SEK 37 billion.
*The market share for mortgage lending to private homes and tenant-owned apartments rose from 2.9% to 3.0%.
*The share of new sales on the mortgage loan market amounted to approximately 5%.
*Operating income amounted to SEK 45 M (23).
*Net interest income increased by 19% to SEK 198 M (166).
*An unconditional shareholders’ contribution of SEK 200 M was received from the Parent Company.
*Capital adequacy was 11.2% (12.1) and the Tier 1 ratio 9.4% (10.0).
*The number of customers increased to 90,400 (83,000).
*For the second consecutive year, Länsförsäkringar’s mortgage customers were more satisfied
than other customers at other mortgage lenders according to the Swedish Quality Index (SKI).

Figures in parentheses pertain to 2005.

Find the full report at www.lanforsakringar.se/reports

For further information, contact:

Anders Borgcrantz,
President, Länsförsäkringar Hypotek AB
+46 (0)8-588 412 51
+46 (0)73- 96 412 51

Dag Rosander,
Press Officer, Länsförsäkringar AB
+46 (0)8-588 414 99
+46 (0)73-96 414 99

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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