INTERIM REPORT for the period January-September 2004*)

Comparisons excluding discontinued operations THIRD QUARTER • New sales of unit linked assurance rose 13% in local currency. • Total sales rose 29% in local currency, to SEK 24.1 billion. • During the fourth quarter of 2004 a provision for restructuring costs will be made for a total amount of approximately SEK 350 million, of which approximately SEK 300 million pertains to the Swedish operation (see also p. 10). • The result before tax (according to Swedish GAAP) improved to SEK 375 million (-244). • Result and return measurements according to the embedded value method: - The result of operations was SEK 756 million (493). - The operating result was SEK 696 million (234). - The calculated profit margin for new sales of unit linked assurance was 18.3%, compared with 17.8% for the second quarter of 2004. • Cash flow from operating activities was SEK -0.3 billion, compared with SEK -0.3 billion during the second quarter of 2004. JANUARY–SEPTEMBER • Sales and funds under management: - Sales rose 33% (11%) in local currency, to SEK 72.9 billion. - New sales of unit linked assurance rose 13% (3%) in local currency. - Funds under management increased to SEK 368 billion (SEK 309 billion at the start of the year). • Result according to Swedish GAAP: - The result before tax increased to SEK 1,017 million (-183). - Earnings per share were SEK 0.84 (-0.21). • Result and return measurements according to the embedded value method: - The result of operations was SEK 2,366 million (1,595). - The operating result increased to SEK 2,551 million (1,496). - The calculated profit margin for new sales of unit linked assurance was 17.5%. The profit margin for the full-year 2003, recalculated to new assumptions, was 19.6%. Markets with below-average profit margins showed stronger growth (see section C). - The operational return on net asset value before tax for unit linked assurance increased to 12.0%, compared with 11.3% for the full-year 2003 (excluding one-time effects). • Cash flow from operating activities was charged with one-time payments of SEK -0.8 billion, as reported previously, and amounted to SEK -1.7 billion (-1.5). • The group’s financial position strengthened: - Net asset value rose 8% to SEK 32.9 billion. - Shareholders’ equity increased by 11% to SEK 17.1 billion. - Borrowings decreased to SEK 3.3 billion (SEK 4.0 billion at the start of the year). - The sale of If was completed on 6 May 2004, entailing a liquidity improvement of SEK 4.5 billion. Significant post-balance events • On 26 October 2004 Skandia announced that ongoing investigations by regulators in the US regarding market timing are likely to lead to proceedings and/or settlement. It is currently not possible to estimate what financial impact this will have on Skandia. • On 29 October 2004 it was announced that Skandia and former Skandia Executive Vice President Ulf Spång have reached a settlement during the on going arbitration process. JANUARY–SEPTEMBER Including discontinued operations In 2004 discontinued operations pertain to the Japanese operation, while in 2003 they also pertain to the US operation and the banking operation in Switzerland. • Sales through September amounted to SEK 72,862 million (66,780), of which discontinued operations accounted for – (SEK 12,553 million). • The result after tax (according to Swedish GAAP) was SEK 1,695 million (-217). The result includes SEK 834 million (3) in items affecting comparability and the result for discontinued operations. The gain on the sale of the Japanese operation was SEK 834 million. • Earnings per share, before dilution, were SEK 1.66 (-0.21). *) Does not include Livförsäkringsaktiebolaget Skandia, which is run on a mutual basis. All return measurements for shareholders' equity, net asset value and capital employed as per September 2004 pertain to moving twelve-month figures. All comparison figures pertain to September 2003 unless stated otherwise. For further information on this interim report, please contact: Jan Erik Back, Chief Financial Officer, tel. +46-8-788 3720 Harry Vos, Head of Investor Relations, tel. +46-8-788 3643 For information on disputes under section F, please contact: Björn Björnsson, Vice Chairman, tel. +46-8-788 2500