Higher market shares for Skandia in Sweden

The Swedish Insurance Federation today published the industry's quarterly statistics for the first quarter of 2006. Market shares are expressed in terms of new business* and written premium. Moving twelve-month basis Skandia's market position in the overall life assurance market increased for the fourth consecutive quarter. Skandia has thereby strengthened its position as the largest player in the Swedish life market with respect to newly written business. Skandia's market share in the life assurance market on a moving twelve-month basis was 22.5% as per the end of the first quarter, compared with 21.2% a quarter earlier – an increase of 1.3 percentage points. Skandia has also retained its leading position in the life assurance market with respect to written premium. Skandia Unit Linked Assurance reports a market share of 18.7%, which is as high as a quarter earlier. New business increased in both the corporate and private segments, by 31% and 25%, respectively, over the first quarter of 2005. The key corporate segment accounts for more than two-thirds of new business. Skandia Liv's market share increased by 4.0 percentage points compared with the preceding quarter. Skandia Liv's market share during the first quarter was 28.5%, compared with 24.5% a quarter earlier, placing Skandia Liv 13.8 percentage points ahead of the second largest player in the market. Skandia Liv's strong position can be credited primarily to very strong growth in the private segment and in sales of the "Kapitalpension" product, where Skandia Liv dominates the overall market for traditional life management. Skandia's total market share for "Kapitalpension" expressed on a moving twelve-month basis was 26.6%. First quarter alone Skandia's market share in the life assurance market on a quarter-by-quarter basis was 18.8% for the first quarter of 2006, compared with 14.4% for the first quarter of 2005. In unit linked assurance, Skandia's market share for the first quarter alone was 15.1%, compared 14.3% during the same period in 2005. The corresponding figures for Skandia Liv were 24.9% and 14.5%, respectively. Premiums Rank, moving 12 New business written mos Moving Quarter-on- Moving New Premiums 12 months quarter 12 months business written 2006 2005 2006 2005 2006 2005 2006 2006 Q1 Q4 Q1 Q1 Q1 Q4 Q1 Q1 Unit linked assurance 18.7% 18.7% 15.1% 14.3% 16.7% 17.3% #2 #3 Traditional life assurance 28.5% 24.5% 24.9% 14.5% 22.1% 21.9% #1 #1 Total life assurance 22.5% 21.2% 18.8% 14.4% 19.4% 19.6% #1 #1 * New business sales are measured according to the industry definition: single premiums divided by 10 plus annual premiums.