Länsförsäkringar Alliance: Interim report, January – September 2007:

- The strong earnings indicate the financial strength and stability of the Länsförsäkringar Alliance. The investment focus of the regional insurance companies is highly diversified with a high percentage of equities. A high percentage of equities can be held in companies with strong balance sheets. The risk of a fall in the stock markets is taken into account in our comprehensive share hedging program. Growth in the banking operations is continuing, lending rose by slightly more than 20% and amounted to SEK 63 billion. The increase in the number of full-service customers also broke records during this period and now exceeds
20%. A steadily rising number of non-life insurance customers are becoming both bank and pension customers at Länsförsäkringar, says Tommy Persson, Managing Director of Länsförsäkringar AB, the Alliance’s jointly-owned company.

The period in brief:

• Very strong financial results in both the non-life insurance and life-assurance operations. The allocation to Asia and developing countries made a major contribution to the favorable results. Successful hedging strategies safeguarded savers’ assets against sharp stock-market falls and declines in interest rates.

• Continued strong profitability in the non-life insurance operations. Operating income
amounted to SEK 4,718 (3,111) M and the technical result amounted to SEK 1,715 (1,873) M.

• Länsförsäkringar continues to have the best total return on investments assets for traditional
management of all Swedish life-assurance companies. The return amounted to 7.5% (3.2).

• Business volumes in the banking operations continued to grow and mortgage lending rose by 25% to SEK 44 billion (35). The refinancing operations functioned well and liquidity in the banking operations is highly favorable, as is the quality of the loan stock. The banking operations have Sweden’s most highly satisfied bank customers in the private market.

• An increasing number of customers are choosing to become full-service customers. The
number of private customers with non-life insurance, life assurance and bank commitments
rose by 20% during to the period. The number of customers in the regional insurance companies at the end of the third quarter was 3,210,000, an increase of 27,000.

Figures in parentheses pertain to the corresponding period in 2006.