STOCKHOLM, Sweden, Oct. 10, 2001 (PRIMEZONE) - Skandia (SSE:SDIA) Sales in September
Sales amounted to SEK 8.4 billion, compared with SEK 9.7 billion in August 2001. Since the stock markets in the U.S.A. were closed for nearly a week in September, no trading could be conducted in funds containing American stocks, which affected sales negatively in most of our markets.
New sales of unit linked assurance through September
New sales of unit linked assurance decreased by 19 percent compared with the same period a year ago. New sales outside the U.S.A. increased by 2 percent, due to a higher portion of unit linked assurance business with annual premium.
Sales through September
Skandia's sales through September amounted to SEK 106.9 billion (157.9). Sales are reported exclusive of paid-in premiums to Skandia Liv, totaling SEK 10.9 billion (9.1), and discretionary management inflows for Skandia Asset Management.
Of total sales, SEK 71.8 billion (108.8) pertain to unit linked assurance, SEK 27.9 billion (43.5) to mutual fund savings products, and SEK 6.0 billion (4.7) to direct sales of funds.
U.S.A.
In the U.S.A., sales of variable annuities through September totaled $3.0 billion (6.9), and sales of mutual funds totaled $1.7 billion (3.3).
Other markets
In the U.K., sales totaled GBP 2.1 billion (3.0). In Sweden, SkandiaLink's sales amounted to SEK 8.1 billion (8.1). Sales in New Markets totaled SEK 12.5 billion (12.5).
Recalculated to average exchange rates, sales from January through September were favorably affected by currency movements in the amount of SEK 10.3 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. 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 half-year interim report shows that a one percent increase or decrease in the stock market affects the result by +/- SEK 213 million, respectively. In advance of the interim report, Skandia will publish on October 18, 2001 the development of the indexes that are relevant for Skandia through the third quarter 2001.
The interim report for the third quarter will be released on 1 November 2001.
The full Press release including tables is available to download from the enclosed link: http://reports.huginonline.com/836282/95210.pdf
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.