SKANDIA’S MARKET POSITION IN SWEDEN

Tomorrow the Swedish Insurance Federation will be publishing the industry’s quarterly statistics for the fourth quarter of 2004. These statistics also include information about Skandia’s sales development. Consequently, in respect of the stock exchange listing agreement, Skandia is today releasing sales information for the fourth quarter of 2004. Skandia’s market position in the Swedish market stabilised during the latter part of 2004, from a low level at the start of the year. This stabilisation reflects an improved work approach and contact interface with our distributors and customers. The fee reduction for unit linked assurance that was carried out in November has still not had any effect on new sales as per the fourth quarter. The effect of the improvements that have been carried out is expected to begin showing during 2005. Sales and new sales increased during the fourth quarter. Some of this increase is seasonal, however, it can also be credited to greater interest in Skandia’s products. Market shares for the full year Skandia’s market share of new business for life and unit linked assurance decreased during the full year 2004 to 19.6%, compared with 25.1% for the full year 2003. Compared with the third quarter (on a moving 12-month basis), the decrease was 0.7%. For Skandia Unit Linked Assurance, the market share was 18.0% in 2004, compared with 25.9% for the full year 2003. The corresponding market share for Skandia Liv in the traditional life segment was 21.6% (24.3%). Market shares for individual quarters The quarter-on-quarter trend shows that Skandia’s market share reached its lowest level during the first quarter of 2004, at 16.1% for life and unit linked assurance. The market share during the fourth quarter was 23.4%. For Skandia Unit Linked Assurance, the market share increased from 16.6% during the first quarter to 21.2% during the fourth quarter. Skandia Liv showed an increase from 15.5% to 25.8%. Sales during fourth quarter Combined sales (excluding Skandia Liv) decreased by 2% during the fourth quarter compared with the same quarter a year ago, to SEK 2,541 million (2,607). Compared with the third quarter of 2004, sales rose 17% Unit linked assurance Sales of unit linked assurance decreased by 6% during the fourth quarter compared with the same quarter a year ago, to SEK 1,893 million (2,019). Compared with the third quarter of 2004, sales rose 6%. New sales of unit linked assurance decreased by 19% during the fourth quarter compared with the same quarter a year ago. Compared with the third quarter of 2004, new sales rose 44%. As previously reported, discontinued savings in the form of premium reductions and conversions of several-year contracts to paid-up policy status have been at a high level. This level stabilised gradually in 2004 and began subsiding toward the end of the year. Conversion of contracts to paid-up policy status is still at a high level compared with the assumptions that form the basis of the embedded value calculations. Therefore, the outcome compared with operative assumptions in the embedded value calculations will remain negative during the fourth quarter. As in previous years, in its year-end accounts for 2004 Skandia will be adapting the assumptions used in the embedded value calculation. During the year, extensive measures were carried out to create the conditions for a permanent improvement in Skandia’s market position in Sweden. For the Swedish operations, this will give rise to an adjustment of – among other things – the assumptions on surrenders (including paid-up policies), changes in the cost level and fee structure, and asset management charges. With respect to the Swedish operations, this adjustment is expected to be negative for a combined total of SEK 450- 550 million during the fourth quarter. Skandia Liv Sales in 2004 amounted to SEK 12,170 million (12,865). Skandia Liv’s sales for the fourth quarter were unchanged compared with the same quarter a year ago, at SEK 3,489 (3,513). Compared with the third quarter of 2004, sales rose 32%. New sales decreased by 30% in 2004. During the fourth quarter, new sales decreased by 14% compared with the same quarter a year ago. Compared with the third quarter of 2004, new sales rose 8%. Investment income was favourable in 2004. The collective funding ratio was 101% as per 31 December 2004. Skandia Liv will be raising its bonus rate to 4% as from 1 March 2005. For further information, please contact: Gert Engman, Executive Vice President, Skandia, and General Manager, Skandia Sweden, tel. +46-8-788 25 00 Harry Vos, Head of Investor Relations, Skandia, tel. +46-8-788 36 43 Urban Bäckström, President and CEO, Skandia Liv, tel. +46-8-788 21 41 Skandia Sweden Sales, SEK million Q4 2004 Q4 2003 Unit linked assurance 1,893 2,019 Mutual funds 34 84 Direct sales of funds 479 380 Other 135 124 Total (excl. Skandia 2,541 2,607 Liv) 2004 2003 Unit linked assurance 8,243 8,567 Mutual funds 300 344 Direct sales of funds 2,010 2,681 Other 552 484 Total (excl. Skandia 11,105 12,076 Liv) New sales, unit linked assurance Fourth quarter 443 544 Full year 1,668 2,292 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 2004, 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.