Completion of the merger with Sampo P&C and earnings update
Following completion, a number of key steps have been taken. A fully pan-Nordic business area structure has been defined, and appointments of the top 50 managers have been made and announced. Today, Torbjörn Magnusson has been appointed President and CEO.
In line with the merger announcement on November 7, 2001, the shareholders on completion made capital contributions totalling SEK 2.9 billion. Varma-Sampo contributed EUR 174.0 million, corresponding to SEK 1.6 billion, via a directed primary share issue. Sampo, Skandia and Storebrand made cash injections of SEK 1.3 billion in total. SEK 2.4 billion is used to strengthen the equity capital. The remainder, MSEK 485, is used to reinforce the technical provisions, as agreed between the parties and will be charged to the income statement in Q4 2001.
In addition, If will post restructuring charges and related transactions cost of MSEK 148.
In Q4, the claims development was negative, including a number of sizeable large claims. Seasonal effects contributed to the claims development.
Q4 stand-alone excluding Sampo P&C is estimated to show an operating result of minus MSEK 950, including the above-mentioned items.
If will issue the full 2001 year-end report on February 12.
Solna, February 8, 2002
Torbjörn Magnusson
President and CEO
Questions: <br> <br>Media: Helena Dyrssen, +46-705-292 335 <br>IR: Susanna Halse, +46-8-788 24 28 <br>