Review of strategic alternatives for General Insurance activities and Change in business organisation and management

Review of strategic alternatives for General Insurance activities Nordea is reviewing the strategic alternatives for its General Insurance activities, which in the second quarter of 2002 in accordance with the planned changes in the group legal structure, will be reorganised as a separate legal subgroup. As a consequence of the review Nordea has decided to invite the former majority owner of the Tryg-Baltica Group, Tryg i Danmark smba (formerly named Tryg-Baltica smba) to enter into a dialogue aiming at exploring the possibilities for a change in the ownership structure, meaning that Nordea in the future will be the minority owner of the General Insurance parent company. A key consideration for Nordea in any new ownership structure is that Nordea, in order to be able to provide a full range of insurance products and services to Nordea's customers and to provide bank and life insurance and pension products through the General Insurance network, can continue to operate within a mutual strategic partnership with the new General Insurance group, including a shareholders' agreement between Nordea and Tryg i Danmark smba as shareholders regarding the future ownership relationship in the new group. It is the aim to conclude an agreement regarding a new ownership structure and strategic partnership before the end of the first quarter 2002. Change in business organisation and management Following the strategic initiative regarding the Group's General Insurance activities the business structure and management will be consolidated into three main business areas and a single executive management team. The changes will take effect 1 November 2001. Retail Banking As a part of the Group's announced structural cost cutting initiatives Retail Banking will advance the realisation of the second wave of merger synergies by completing the integration of business development and business support functions as well as work procedures and back office functions. Retail Banking is aiming at a Nordic business model with a strong regional and local position. Retail Banking's customer and product responsibilities and market coverage will remain unchanged. During December 2001 the representation of Retail Banking in Group Executive Management will be increased to better reflect the weight of this business area in the Group. Lars G Nordström continues as Head of Retail Banking and member of Group Executive Management. Wholesale Banking In order to improve Nordea's commercial banking and investment banking product and service offer to large corporate and institutional customers the present business areas Corporate and Institutional Banking and Investment Banking will form a new business area, Wholesale Banking. Investment Banking will continue to operate under the Nordea Securities name and will as planned form a separate legal entity. Markku Pohjola will be Head of Wholesale Banking and continues as a member of Group Executive Management. Asset Management and Life The present business areas Asset Management and Life Insurance and Pensions will form a new business area, Asset Management and Life in order to further realise synergies in the growing long-term savings market. The competencies needed, the products offered and the distribution channels used are converging and combining these two business areas creates scope for additional synergies across the value chain and improved customer service. The new organisation is expected to be fully in place 1 January 2002. Christian Clausen will be Head of Asset Management and Life and a member of Group Executive Management. The present head of Life Insurance and Pensions Ib Mardahl-Hansen will assist Christian Clausen with the integration of the two business areas. In the beginning of 2002 Ib Mardahl-Hansen has decided to leave the Nordea Group. After very successfully having orchestrated the integration of the business area Life Insurance and Pensions Ib Mardahl-Hansen wishes to have a job closer to customers and daily operations than his current position allows him to. General Insurance General Insurance will continue as a separate business area until conclusion of the ownership structure dialogue with Tryg i Danmark smba. Hugo Andersen continues as Head of General Insurance reporting to Group CEO but will leave Group Executive Management. Group Staffs A new executive management position as Head of Group Staffs is established with responsibility of Group IT, Group HR, Group Identity and Communications and Group Legal. Head of Group Staffs in addition will lead cross-organisational IT and business restructuring projects, including the further cross-organisational structural cost cutting initiatives which are now to start. Tom Ruud will be Head of Group Staffs and continues as a member of Group Executive Management. Group Corporate Centre Financial accounting and control, credit and risk control, treasury and investor relations activities continue in Group Corporate Centre. Major second wave of integration projects in this area will include the implementation of a new planning and performance management model based on balanced scorecard, rolling financial forecast and internal service level agreements as well as the establishment of a uniform accounting system and shared service centres. Arne Liljedahl continues as Head of Group Corporate Centre, Group CFO and member of Group Executive Management. Carl-Johan Granvik continues as Head of Group Credit and Risk Control and member of Group Executive Management. Group Executive Management Following the restructuring of the business organisation and the change of management all business areas, Group Staffs and Group Corporate Centre will be represented in the new Group Executive Management from 1 November 2001 Group CEO Thorleif Krarup Retail Banking Lars G Nordström Wholesale Banking Markku Pohjola Asset Management and Life Christian Clausen Group Staffs Tom Ruud Group Corporate Centre Arne Liljedahl (Group CFO) Carl-Johan Granvik Group Management will be dissolved. "Today's announcements form an important step forward in further developing, integrating and streamlining the leading financial services group in the Nordic and Baltic Sea region" says Thorleif Krarup, Group CEO. "The review of the strategic alternatives for the General Insurance activities is aiming at creating a "win-win" situation. With the intended agreement Nordea also in the future will provide a full range of financial products and services while maintaining the possibility of cross-selling bank products to the large insurance customer base. At the same time the Group's use of capital will be more efficient. From a General Insurance point of view a change in the ownership structure will provide new opportunities for participating in the ongoing consolidation in the insurance industry". The Group's organisational structure as per 1 November is shown below [REMOVED GRAPHICS] Further information: Thorleif Krarup, Group CEO, +46 8 614 79 01 Erik Evrén, Group Media Relations, +46 8 614 8611 Nordea is the leading financial services group in the Nordic and Baltic Sea region and operates through six business areas: Retail Banking, Corporate and Institutional Banking, Asset Management, Investment Banking, Life Insurance and Pensions and General Insurance. The Nordea Group has nearly 10 million customers, 1,260 bank branches and 125 insurance service centres in 22 countries. The Nordea Group is a world leader in Internet banking, with 2.5 million e-customers. The Nordea share is listed in Stockholm, Helsinki and Copenhagen. www.nordea.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/30/20011030BIT00450/bit0002.doc http://www.waymaker.net/bitonline/2001/10/30/20011030BIT00450/bit0002.pdf