Skandia's Financial Effects Through March 2003


STOCKHOLM, Sweden, May 14, 2003 (PRIMEZONE) -- Skandia's (Other OTC:SKNFF) (LSE:SDIAq) result is affected by external factors such as changes in the stock market and interest rates. Future revenues, which are based on fund values, increase or decrease as a result of these factors. When the value of funds decrease, the company's tax situation is also affected in certain cases. Altogether this entails a one-time effect on the operating result. During the first quarter of 2003 the aggregate negative financial effect on the operating result is estimated to be in the range of SEK 250 -- 350 million.

Comparison figures pertaining to American Skandia

On 1 May 2003 it was announced that the agreement with Prudential Financial, Inc. (USA), under which Prudential Financial is acquiring American Skandia, has been completed. Since the transaction was completed in accordance with the agreed-upon terms, there is no result effect for the first quarter of 2003. To facilitate comparisons, the group overview for the first quarter (as in the 2002 Annual Report) will be presented excluding the USA, unless indicated otherwise. This format is shown in the appended table.

Skandia's interim report for the first quarter of 2003 will be released on 21 May 2003.

For further information, please contact: Harry Vos, Head of Investor Relations, tel +46 8 788 3643

Format for group overview in future interim reports


 GROUP OVERVIEW - QUARTERLY ANALYSIS

                                     2002    2002   2002  2002   2002
 SEK million                      12 mos.     Q 4    Q 3   Q 2    Q 1
 Sales 1)
 Unit linked assurance            53,967  13,391 13,185 13,638 13,753
 Mutual funds                     16,963   3,750  4,147 5,220  3,846
 Direct sales of funds             2,344     425    591   264  1,064
 Life assurance                    1,638     710    408   273    247
 Other businesses                    453     114     95   118    126
 Total sales                     75,365  18,390 18,426 19,513 19,036

 Result summary
 Unit linked assurance 
   (according to                   3,027     795    724   733    775
 the embedded value method)
 Mutual funds                       -291     -90    -56   -87    -58
 Life assurance                      119       5     35    20     59
 Other businesses                   -182     -41    -85   -69     13
 Group expenses                     -569    -179   -122  -159   -109
 Result of operations              2,104     490    496   438    680
 Financial effects, unit linked   -2,267    -457   -898  -792   -120
 assurance (according to the embedded
 value method)
 Items affecting comparability     1,566    -450      - 2,016      -

 Operating result                  1,403    -417   -402 1,662    560

 Other comparison figures
 Total annualized new sales, unit  9,176   2,318  2,064 2,361  2,433
 linked assurance 2), SEK million
 Profit margin new sales, unit 
  linked                            13.5    13.4   14.9  12.9   13.1
 assurance, %

 Profit and loss account (according
 to the Annual Accounts Act)
 Result after tax, including USA, 
  SEK                             -4,298  -4,505 -1,451 1,498    160
 million
 Result after tax, excluding USA,
    SEK                            2,555    -101    615 1,745    296
 million
 Earnings per share, 
  including USA,                    -4.20   -4.40  -1.42  1.46   0.15
 SEK
 Earnings per share, excluding USA,  2.50   -0.10   0.60  1.70   0.29
 SEK

1) Sales pertain to paid-in premiums and deposits in funds. 2) 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:

http://www.waymaker.net/bitonline/2003/05/14/20030514BIT00630/wkr0001.doc

http://www.waymaker.net/bitonline/2003/05/14/20030514BIT00630/wkr0002.pdf