Skandia’s premiums and deposits in Sweden

The second quarter of 2005 showed a strong upswing compared with a year earlier both in terms of total premiums and new sales of unit linked assurance in the Swedish market. Total premiums and deposits (excl. Skandia Liv) rose 31% compared with the same quarter a year ago, to SEK 3.3 billion (2.5). During the first half of 2005 premiums and deposits (excl. Skandia Liv) rose 15%, to SEK 7.3 billion (6.4). Unit linked assurance Unit linked premiums written totalled SEK 2.8 billion (2.0) during the second quarter of the year, which is 40% higher than the same period a year ago. Premiums written during the first half of the year amounted to SEK 5.4 billion (4.6). New sales during the second quarter amounted to SEK 0.5 billion (0.4), an increase of 27% compared with 2004. New sales rose for the third quarter in a row. This is the first time in a long time that new sales exceeded the corresponding year-earlier period. New sales to Private customers rose 75%, mainly attributable to the new “kapitalpension” product. In the most important segment, Commercial customers, new sales rose 13%, which is a sign that the completed action programme is yielding results. New sales during the first half of the year amounted to SEK 1.0 billion, compared with SEK 0.9 billion for the first half of 2004, an increase of 7%. Surrenders exceeded underlying assumptions, mainly due to changed inheritance- and gift tax legislation and the introduction of the new “kapitalpension” savings form. The effect of these market changes is expected to taper off during the rest of 2005. Conversion of policies to paid-up status decreased compared with the first quarter, but is still higher than underlying assumptions. Mutual fund savings products Mutual fund deposits during the second quarter were level with the preceding year, at SEK 0.4 billion (0.4). Deposits during the first half amounted to SEK 1.6 billion (1.5). Private Healthcare and Group Insurance Premiums written for Private Healthcare and Group business amounted to SEK 0.3 billion during the first half, an increase of 5% compared with the same period in 2004. Market shares The Swedish Insurance Federation will be publishing quarterly statistics, including market share data, for the traditional life market in late August /early September 2005. In connection with this, Skandia will publish comments on its market positions in Sweden. Skandia Liv Premiums written for Skandia Liv in Sweden amounted to SEK 3.3 billion during the second quarter of the year, compared with SEK 2.9 billion during the corresponding period in 2004. New sales during the second quarter amounted to SEK 0.5 billion, which is 16% higher than in 2004. As with unit linked assurance, the increase is mainly attributable to the new “kapitalpension” product. Premiums written during the first half of the year amounted to SEK 6.3 billion (6.0). New sales during the first half of the year totalled SEK 1.1 billion, compared with SEK 1.0 billion during the first half of 2004. The recent strong rise in the stock markets has led to an increase in the company’s collective funding ratio, to 105% as per 30 June 2005. For this reason, the yield on policyholders’ savings – the so-called bonus rate – was raised to 4.5% with effect from 1 August 2005. Skandia Liv’s solvency as per 30 June 2005 was 153%, compared with 145% for the corresponding period a year ago. For further information, please contact: Gert Engman, Head of Nordic Division, tel. +46-8-788 17 81 Bengt-Åke Fagerman, Acting CEO of Skandia Liv, tel. +46-8-788 21 50 Harry Vos, Head of Investor Relations, tel. +46-8-788 36 43 Gunilla Svensson, Press Manager, tel. +46-8-788 42 97 PREMIUMS AND DEPOSITS Sweden 2005 2004 2005 2004 SEK billion 6 mos. 6 mos. Q2 Q2 Unit linked assurance 5.4 4.6 2.8 2.0 Mutual fund savings products 1.6 1.5 0.4 0.4 Other 1) 0.3 0.3 0.1 0.1 Total 7.3 6.4 3.3 2.5 1) Includes Life assurance and “Other businesses”. NEW SALES, UNIT LINKED ASSURANCE Sweden 2005 2004 2005 2004 SEK billion 6 mos. 6 mos. Q2 Q2 Single premiums 2.1 1.1 1.2 0.4 Annual premiums 1) 0.8 0.8 0.4 0.4 Annualised new sales 2) 1.0 0.9 0.5 0.4 1) Regular premiums recalculated to full-year figures. 2) New sales pertain to single premiums and regular premiums from contracts written during the period. 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.