Skandia/Old Mutual - Statement by the Second Swedish National Pension Fund/AP2

If the amount of the current offer is not increased, the proportion of minority shareholders in Skandia will be significant. The Second Swedish National Pension Fund/AP2 is coordinating the activities of large minority shareholders during negotiations with Old Mutual plc (“Old Mutual”), concerning a joint ownership of Skandia Insurance Company Ltd (publ.) (“Skandia”) as an exchange-listed company. This is to ensure that clients of both Skandia and Skandia Liv shall continue to retain full confidence in these two companies and to enable minority shareholders to participate positively in Skandia’s ongoing development. There are three primary requirements: - that no less than three of the eight members of the board of directors elected by the Annual General Meeting shall be nominated by the minority shareholders and approved by the principal owner. All members of the board shall satisfy the norms customarily imposed with respect to commitment, integrity and relevant knowledge. - shareholders shall be provided with complete data on all future transactions between Old Mutual and Skandia; decisions shall be subject to approval by 90 percent of the votes at a general meeting. - shareholders shall be provided with complete data on all significant future structural changes in Skandia; decisions shall be subject to approval by 90 percent of the votes at a general meeting. “In the current situation, it is important to all minority shareholders, foreign and domestic institutional investors and small shareholders that the ground rules are clearly established,” says Petter Odhnoff, CIO, Second Swedish National Pension Fund.