Demutualisation of Länsförsäkringar Liv postponed

On November 12, 2009, the Swedish Financial Supervisory Authority announced that there was no longer any obstacle to Länsförsäkringar Liv being restructured to a profit-distributing life-assurance company on January 1, 2010 (demutualisation). The Financial Supervisory Authority’s standpoint comes as the result of Länsförsäkringar changing its opinion on the central issue of crediting (distributing profits to policyholders) and now sharing the Authority’s principle standpoint. However, it will not be possible to meet the time schedule for demutualisation on January 1, 2010 and, accordingly, Länsförsäkringar has postponed the process.

“After the Financial Supervisory Authority rejected our application on October 7, we studied the issue and concluded that we share the Authority’s principle standpoint on crediting. Since our analysis has already taken an additional number of weeks, what we have now done is review the practical possibility of implementing the demutualisation on January 1, 2010. The demutualisation process requires valuations of the life-assurance company’s assets that must be performed by an independent assessor and many other preparations. Another review of the requirements of the demutualisation process will subsequently be required based on these valuations. In addition, clarifications are needed in the issues pertaining to the future regulatory framework of Solvency II that have arisen during the autumn. The combination of all of these elements requires more working days than we have left until the end of the year; there are not enough working days to ensure that the demutualisation process is qualitative and stable,” says Jörgen Svensson, President of Länsförsäkringar Liv. Accordingly, Länsförsäkringar has decided to postpone the demutualisation process. In accordance with current regulations, this will mean that a new application has to be submitted and a new vote taken by customers. “Although these were not our original plans, it gives us time to make careful preparations to pursue the process further, and ensure that the interests of our life-assurance customers are suitably protected,” says Jörgen Svensson. The schedule for the continued demutualisation process is expected to be in place in the spring of 2010. For further information, please contact: Jörgen Svensson, President, Länsförsäkringar Liv, +46 73 964 06 08 Christer Baldhagen, Senior Vice President Corporate Communications, Länsförsäkringar AB, +46 70 579 70 66