Statement from Skandia

Statement from Storebrand and Skandia concerning Pohjola's decision on cooperation in If Pohjola's Extraordinary General Meeting today decided to unilaterally break the legally irrevocable and binding agreement that has been entered into between Storebrand, Skandia and Pohjola on the establishment of the Nordic property & casualty insurance company If. In a joint statement, Hans Henrik Klouman and Jan-Mikael Bexhed, General Counsels of Storebrand and Skandia, respectively, said: "It is very unfortunate and surprising that a major, listed company like Pohjola, which is also under public supervision, refuses to adhere to a binding agreement. In the situation that has arisen, we must take advantage of all legal opportunities to safeguard the interests of Storebrand's and Skandia's shareholders in the best manner possible. Storebrand and Skandia will therefore initiate arbitration proceedings against Pohjola in accordance with the agreed-upon dispute resolution mechanism. In the arbitration proceedings, Storebrand and Skandia will, among other things, demand payment of very substantial damages." Against this background, it is judged that this situation will not have any effects on Storebrand's or Skandia's position. If's Nordic strategy is not affected by Pohjola's action. For further information, please contact: Jan-Mikael Bexhed, General Counsel, Skandia, tel. +46-8-788 37 22 Birgitta Hammarström, Press Manager, Skandia, tel. +46-8-788 27 55, +46-70-378 27 55 Hans Henrik Klouman, General Counsel, Storebrand, tel. +47-22-31 29 07 Egil Thompson, Communication Manager, Storebrand, tel. +47-22-48 95 86, +47-93 48 00 12 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/16/20000516BIT01030/bit0001.doc http://www.bit.se/bitonline/2000/05/16/20000516BIT01030/bit0002.pdf