Agreement reached between Skandia Insurance Company Ltd and Lars Ramqvist

Skandia Insurance Company Ltd (“Skandia”) and its former chairman, Lars Ramqvist, reached an agreement on 31 January 2005. Under the terms of the agreement, Ramqvist has offered to repay all fees he received as chairman of Skandia’s board, its audit committee and its nominating committee during the years 2000 and 2001, totalling SEK 2,216,667. Ramqvist has entered into this agreement without admission of guilt or other impropriety. As far as has been learned, neither Ramqvist nor other company directors were aware of or approved the removal of the cap for the Wealthbuilder bonus programme in 2000 by Lars-Eric Petersson, which resulted in higher costs for Skandia than what would have been the case if the Board’s decision had been respected. However, this event took place during Ramqvist’s term as chairman of Skandia’s board. Because of this and in the best interest of the company, Ramqvist is prepared to accept his responsibility in accordance with this agreement. Skandia’s acceptance of the settlement amount takes into account the fact that Ramqvist did not have any participating interest in the disputed bonus programmes. Björn Björnsson, Vice Chairman of Skandia’s board, comments on Skandia’s decision to hold Lars Ramqvist liable for damages and the agreement that has been reached: “Many people have asked the question of whether Skandia’s board at that time, and the chairman in particular, had any responsibility for the gigantic bonus payments. The legal investigation that Skandia commissioned in autumn 2004 shows that there are conditions to demand liability for damages from the former chairman. However, a long drawn-out legal process would hardly benefit Skandia, which is why a settlement of this kind is good. The settlement that will now be submitted to the Annual General Meeting for approval entails that Lars Ramqvist has accepted his responsibility. The compensation that Lars Ramqvist will pay to Skandia is reasonable given the situation at hand.” Lars Ramqvist comments on the agreement: “Both I and other directors on Skandia’s former board trusted the information provided by the former executive management of the company and the information provided by the auditors in their examination of the bonus programmes. In retrospect, this information has proved to be incorrect. Neither I nor the other directors can accept any blame for this. It is therefore contestable that there may be any grounds for liability. However, as chairman of Skandia during the period in question, I am willing to accept my moral responsibility for the events that occurred and have therefore – in the best interest of the company – agreed to this settlement.” This agreement conclusively settles all dealings between the parties. To be valid, the agreement will require the approval of Skandia’s Annual General Meeting on 14 April 2005. For further information, please contact: Björn Björnsson, Vice Chairman, Skandia, tel.: +46-8-788 25 00