Länsförsäkringar Alliance Interim Report January – June 2007:

Länsförsäkringar growing rapidly on the bank and pension markets

“This has been a six-month period with major market success and extraordinarily strong earnings in all operations. The capture of market shares has accelerated sharply for bank and life assurance. The mortgage operations were highly successful with new lending of more than 10% of the market. The basis of the market activities is non-life insurance customers, which is the reason that we are now reporting a substantial increase in the number of full-service customers. The recent stock-market uncertainty has clearly indicated the value of well-functioning hedging strategies. The strategies Länsförsäkringar is works with when we invest savers’ assets protect against major declines in the stock market and in interest rates. This also provides us with a high level of flexibility in our long-term activities on the market and in our choice of risks. Combined with our favorable key figures, this has benefited our savers through providing the highest return on the market,” says Tommy Persson, Managing Director of Länsförsäkringar AB, the Group’s jointly-owned company:

Summary:

* Continued strong profitability within non-life insurance operations. Operating income amounted to SEK 4,664 M (944) and the technical result amounted to SEK 1,162 M (1,326).

*Länsförsäkringar is grow rapidly on the Swedish pension market and its market share rose from 8.3% to 11.2% according to the preliminary half-yearly statistics from the Swedish Insurance Federation.

* Länsförsäkringar had the best total return on investments assets for traditional management of all Swedish life-assurance companies during the first six months of 2007. The return amounted to 7.2% (neg: 0.3).

* The banking operations are continuing to grow in all areas. Mortgage lending by the subsidiary Länsförsäkringar Hypotek rose by 23% and the market share of new lending in the mortgage market is now approximately 11% (7).

* Länsförsäkringar became an eligible manager for both traditional insurance and unit-linked insurance in the new ITP plan and in the new FTP plan (occupational pension for insurance employees).

* The number of customers in the regional insurance companies after the first half of the year was 3,202,000, an increase of 17,000 during the first six months of the year. An increasing number of customers are choosing to become full-service customers, with the increase in private full-service customers amounting to approximately 10%.

Figures in parentheses pertain to January – June 2006.

Read the entire report at: www.lansforsakringar.se/rapporter

For further information, please contact:
Tommy Persson, Managing Director, Länsförsäkringar AB
+46 8 588 400 00
tommy.persson@lansforsakringar.se


Christer Baldhagen, Senior Vice President Corporate Communications, Länsförsäkringar AB
+46 8 588 415 01, +46 70 579 70 66
christer.baldhagen@lansforsakringar.se