June sales SEK 13.0 billion

June sales SEK 13.0 billion 1) Total sales were level with the preceding month. New sales through June New sales of unit linked assurance increased outside the USA by 11 per cent compared with the same period a year ago, due to strong development for unit linked assurance with annual premium. The decline in new sales, including the USA, was therefore limited to 15 per cent. Sales through June Skandia's sales through June amounted to SEK 77.8 billion (113.5). Sales are reported exclusive of paid-in premiums to Skandia Liv, totalling SEK 7.7 billion (5.9), and discretionary management inflows for Skandia Asset Management. Of total sales, SEK 51.3 billion (76.9) pertain to unit linked assurance, SEK 20.2 billion (32.5) to mutual fund savings products, and SEK 4.9 billion (3.0) to direct sales of funds. USA In the USA, sales of variable annuities through June totalled USD 2.2 billion (5.1), and sales of mutual funds totalled USD 1.3 billion (2.6). Sales of variable annuities during the second quarter were on the same level as during the first quarter. Other markets In the UK, sales totalled GBP 1.5 billion (2.1). In Sweden, SkandiaLink's sales amounted to SEK 6.1 billion (5.8). Sales in New Markets totalled SEK 8.4 billion (8.9). Recalculated to average exchange rates, sales from January through June were favourably affected by currency movements in the amount of SEK 7.5 billion. In order to achieve accurate recognition of income and expenses, Skandia has been using the embedded value method since 1989 for business control as well as for external reporting according to the group overview. Skandia's result measurement is described in the 2000 Annual Report, which also includes a sensitivity analysis describing the impact of various factors on the result. The trend in the stock markets is significant for the result. Since contracts in force span long periods of time, sharp swings in the financial markets during a short period of time have a major impact on the present value of future profits. The sensitivity analysis presented in the Annual Report shows that a one per cent increase or decrease in the stock market affects the result by +/- SEK 176 million, respectively. The negative trend in the stock markets during the first half of the year entails that the trend for the indexes that are relevant for Skandia is expected to be in the range of minus 15- 17 per cent, compared with anticipated fund growth of 3.0 per cent during the first half of the year. The combined result impact during the first half is thereby estimated to be 18-20 per cent. The negative result effect of the above is an expression of the impact of the stock market during the first half in relation to Skandia's assumptions for fund growth, and will be permanent only under the condition that the stock market does not recover. As stated in Skandia's Annual Report, p. 11, Skandia's long-term assumption for fund growth is approximately 6 per cent per year. The interim report for the second quarter will be released on 8 August 2001. Sales for the month of July will also be presented on 8 August 2001. For further information, please contact: Harry Vos, Head of Investor Relations, tel. +46-8-788 3643 Definitions of sales Sales Sales pertain to paid-in premiums and deposits in funds from Skandia's customers. New sales New sales pertain to single and regular premiums from unit linked contracts entered into in 2001, recalculated to full-year figures. According to industry practice, new sales are defined as regular premiums recalculated to full-year figures plus 1/10 of single premiums during the period. Appendix: Sales per month and exchange rates in 2001 and 2000 Sales per month Insurance and mutual Direct sales of funds Total (SEK billion) funds 2001 January 12.3 0.7 13.0 February 11.6 0.4 12.0 March 13.3 0.4 13.7 April 12.2 0.9 13.1 May 12.0 1.0 13.0 June 11.5 1.5 13.0 Total 72.9 4.9 77.8 Sales per month Insurance and mutual Direct sales of funds Total (SEK billion) funds 2000 January 16.7 0.7 17.4 February 18.7 0.4 19.1 March 23.9 0.6 24.5 April 18.5 0.5 19.0 May 17.4 0.4 17.8 June 15.3 0.4 15.7 Subtotal 110.5 3.0 113.5 July 14.1 0.5 14.6 August 14.6 0.6 15.2 September 14.0 0.6 14.6 October 15.5 1.5 17.0 November 14.9 1.6 16.5 December 14.0 1.5 15.5 Total 197.6 9.3 206.9 Exchange 2001 2001 2001 2000 2000 2000 2000 rates 30 31 May 31 31 30 31 May 31 June Mar. Dec. June Mar. SEK EUR Closing 9.22 9.13 9.15 8.86 8.41 8.36 8.30 rate EUR Average 9.08 9.04 9.00 8.45 8.39 8.40 8.50 rate GBP Closing 15.31 15.29 14.82 14.22 13.38 13.46 13.82 rate GBP Average 14.69 14.51 14.22 13.86 13.70 13.80 13.82 rate USD Closing 10.89 10.77 10.39 9.54 8.81 9.00 8.67 rate USD Average 10.26 10.03 9.74 9.17 8.73 8.73 8.61 rate JPY Closing 0.087 0.091 0.083 0.083 0.083 0.084 0.082 rate JPY Average 0.085 0.084 0.083 0.085 0.082 0.082 0.080 rate 1.)All comparison figures pertain to the corresponding period a year earlier, unless otherwise indicated. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/07/24/20010724BIT00290/bit0001.doc http://www.waymaker.net/bitonline/2001/07/24/20010724BIT00290/bit0001.pdf