SOLNA, Sweden, Aug. 14, 2002 (PRIMEZONE) -- The owners of If have today committed to inject in total the equivalent of SEK 1.6 billion into If, whereof SEK 1.0 billion as equity capital to If P&C Holding Ltd. (publ) and the equivalent of SEK 0.6 billion as subordinated debt to If P&C Insurance Company Ltd.
The background is the weak development on equity markets, which has deteriorated the group's capital position, despite recent improvements in underwriting performance.
The owners making the commitment are Sampo PLC, Storebrand, Skandia, Varma Sampo and Skandia Liv. The contribution of equity capital and underwriting of subordinated debt will be made pro rata based on ownership and without changes to the shares of votes.
The capital thus committed will be paid into If as soon as practicable. The hybrid capital issuer, If P&C Insurance Company Ltd, is rated A- minus (insurer financial strength) by Standard & Poor's and A2 (insurance financial strength) by Moody's Investors' Service.
As a result of the capital contributions, the solvency ratio of the Group, pro forma as of June 30, and including hybrid capital, increases from 57.5 per cent to 62.5 per cent.
Comments from Torbjorn Magnusson, CEO: "I am of course very pleased that the owners have made this commitment. With the new capital, we can focus solely on continuing the work of improving long-term profitability by achieving fair pricing, good risk selection and cost efficiency."
Solna, Sweden, August 14, 2002
Torbjorn Magnusson President and CEO
For questions please call:
Torbjorn Magnusson, CEO tel: +46 8 788 11 07
Nils Henriksson, CIO tel: +46 8 788 12 82
Investor relations:
Elisabeth Wisen tel: +46 8 788 24 28
Press contacts:
Marianne Ahlgren tel: +46 8 788 23 63
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