STOCKHOLM, Sweden, Feb. 4, 2003 (PRIMEZONE) -- Skandia's result is affected by various external factors, such as changes in the stock market and interest rates. Future revenues that are based on fund values increase or decrease as a result of these changes. In certain cases, decreases in fund values also affect the tax situation. Altogether these factors cause a one-time effect on the operating result. During the fourth quarter of 2002 the aggregate negative financial effect on the operating result outside the USA is estimated to be in the range of SEK 0.4 billion to SEK 0.6 billion.
Up until the third quarter, financial effects outside the USA were negative in the amount of SEK 1.8 billion. The aggregate result charge in 2002 outside the USA is thus estimated to be in the range of SEK 2.2 billion to SEK 2.4 billion.
Effects of the sale of American Skandia
On December 20, 2002 an agreement was reached with Prudential Financial, Inc. (USA), under which Prudential Financial will acquire American Skandia. In connection with this, a SEK 6.1 billion charge will be taken against the operating result for the fourth quarter of 2002, while the result after tax will be negatively affected by SEK 4.1 billion. To facilitate comparison, in connection with the year-end report, the group overview will be presented in accordance with the appended table.
Information to the stock market
Starting in 2003, Skandia's reporting of sales information will be adapted to conform to current practice in the savings market. Accordingly, Skandia will discontinue its monthly reporting of sales. Skandia will continue to issue the usual quarterly information on financial effects that arise as a result of the trend in the financial markets. This information will be provided approximately one week before the respective quarterly reports.
Skandia's 2002 year-end report will be released on February 12, 2003.
For further information, please contact:
Harry Vos, Head of Investor Relations, tel +46 8 788 3643
Format for group overview in future year-end reports
GROUP OVERVIEW -- QUARTERLY ANALYSIS
2002 2002 2002 2002 2001
SEK million 9 mos. Q 3 Q 2 Q 1 12 mos.
Sales
Unit linked assurance 40 576 13 185 13 638 13 753 53 494
Mutual funds 13 213 4 147 5 220 3 846 14 012
Life assurance 928 408 273 247 1 276
Direct sales of funds 1 919 591 264 1 064 3 781
Businesses 339 95 118 126 414
Total sales excluding USA 56 975 18 426 19 513 19 036 72 977
USA 35 331 10 981 12 436 11 914 60 827
Total sales including USA 92 306 29 407 31 949 30 950 133 804
Total annualized new sales,
unit linked assurance excluding 6 858 2 064 2 361 2 433 10 819
USA (1)
Total annualized new sales,
unit linked assurance including 9 657 2 980 3 338 3 339 15 038
USA (1)
Result summary
Unit linked assurance 2 232 724 733 775 3 397
Mutual funds -201 -56 -87 -58 -105
Life assurance 114 35 20 59 111
Businesses -141 -85 -69 13 41
Group expenses -390 -122 -159 -109 -469
Result of operations excluding 1 614 496 438 680 2 975
USA
Financial effects unit linked -1 810 -898 -792 -120 -525
assurance
Items affecting comparability 2 016 -- 2 016 -- --
Operating result excluding USA 1 820 -402 1 662 560 2 450
USA -4 129 -2 267 -1 472 -390 -3 539
Operating result including USA -2 309 -2 669 190 170 -1 089
(1) Periodic premiums recalculated to full-year figures plus 1/10 of
single premiums during the period.
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The following files are available for download:
www.waymaker.net/bitonline/2003/02/04/20030204BIT00530/wkr0001.doc
www.waymaker.net/bitonline/2003/02/04/20030204BIT00530/wkr0002.pdf