Financial effects 2003

Financial effects 2003 Skandia's result is affected by external factors such as changes in the stock market and interest rates. Future revenues, which are based on fund values, increase or decrease as a result of these factors. According to information presented in conjunction with the interim report for the third quarter of 2003, a 1% increase in the stock market would have a one-time effect on the operating result of SEK +60 million and a 1% decrease would have a one-time effect on the operating result of SEK -57 million. Through the third quarter of 2003, financial effects were positive in the amount of SEK 384 million. Financial effects for the fourth quarter are expected to be positive and are estimated to be in the range of SEK 600 million to SEK 700 million. Comparison figures To facilitate comparison, the group overview presented in connection with the 2003 Year-End Report (as in the 2002 Annual Report) will be presented exclusive of the result of discontinued operations. This format is shown in the appended tables on pages 2 and 3. By discontinued operations is meant American Skandia, the banking operation in Switzerland, and Skandia Japan. On 11 February it was announced that Sampo has made a bid for the shares in If P&C Insurance. In accordance with the applicable accounting rules, as a result of this the holding in If will be revalued by SEK 1.5 billion during the fourth quarter of 2003. This revaluation will be included in investment income and thus also in the result of operations. However, the result of the sale of the Japanese operation, which was completed on 2 February 2003, will be reported during the first quarter of 2004. Skandia's year-end report for 2003 will be released on 27 February 2004. For further information, please contact: Harry Vos, Head of Investor Relations, tel. +46-8-788 3643 Comparison figures 2002 for group overview GROUP OVERVIEW - QUARTERLY ANALYSIS 2003 2003 2003 2002 2002 SEK million Q 3 Q 2 Q 1 Q 4 12 mos. Sales 1) Unit linked assurance 12,451 13,351 12,081 12,023 47,801 Mutual funds 5,219 4,368 3,323 3,750 16,963 Direct sales of funds 296 632 1,373 423 2,341 Life assurance 244 253 276 710 1,638 Other businesses 98 116 146 114 453 Total sales 18,308 18,720 17,199 17,020 69,196 Result summary Unit linked assurance (according to 627 845 609 800 2,959 the embedded value method) Mutual funds -30 -54 -68 -90 -291 Life assurance 5 7 32 5 119 Other businesses 41 50 -7 14 -18 Group expenses -150 -177 -135 -179 -569 Result of operations 493 671 431 550 2,200 Financial effects, unit linked 130 409 -203 -345 -2,056 assurance (according to the embedded value method) Items affecting comparability -389 -46 - -450 1,566 Operating result 234 1,034 228 -245 1,710 Other comparison figures Total annualized new sales, unit 1,988 2,176 2,009 2,155 8,463 linked assurance 2), SEK million Profit margin new sales, unit linked 14.5 15.0 14.5 14.1 14.0 assurance, % Profit and loss account (according to Swedish GAAP) Result after tax, incl. discontinued -300 -43 127 -4,505 -4,298 operations, SEK million Result after tax, excl. discontinued -217 -37 35 -107 3,037 operations, SEK million Earnings per share, incl. -0.29 -0.04 0.12 -4.40 -4.20 discontinued operations, SEK 3) Earnings per share, excl. -0.21 -0.04 0.03 -0.10 2.97 discontinued operations, SEK 3) 1) Sales pertain to paid-in premiums and deposits in funds. 2) Periodic premiums recalculated to full-year figures plus 1/10 of single premiums during the period. 3) Earnings per share, after dilution. Specification, discontinued operations Operating 2003 2003 2003 2002 2002 2002 2002 2002 result, Q 3 Q 2 Q 1 12 mos. Q 4 Q 3 Q 2 Q 1 SEK million American 0 125 0 -10,848 -6,718 -2,268 -1,472 -390 Skandia Skandia Bank -109 -93 -50 -164 -55 -50 -22 -37 Switzerland Skandia 36 94 -56 -143 -117 -39 -17 30 Japan Result before 2003 2003 2003 2002 2002 2002 2002 2002 tax, Q 3 Q 2 Q 1 12 mos. Q 4 Q 3 Q 2 Q 1 SEK million American 0 125 0 -9,145 -6,545 -1,921 -438 -241 Skandia Skandia Bank -109 -93 -50 -164 -55 -50 -22 -37 Switzerland Skandia Japan 26 -37 142 -312 64 -146 -117 -113 Result after 2003 2003 2003 2002 2002 2002 2002 2002 tax, Q 3 Q 2 Q 1 12 mos. Q 4 Q 3 Q 2 Q 1 SEK million American 0 125 0 -6,853 -4,405 -2,066 -247 -135 Skandia Skandia Bank -109 -93 -50 -169 -56 -51 -25 -37 Switzerland Skandia Japan 26 -38 142 -313 63 -146 -116 -114 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/02/19/20040219BIT00050/wkr0001.doc http://www.waymaker.net/bitonline/2004/02/19/20040219BIT00050/wkr0002.pdf