Skandia: Interim Report March 2003

STOCKHOLM, Sweden, May 20, 2003 (PRIMEZONE) -- Skandia (Other OTC:SKNFF) (LSE:SDIAq):

For the period January - March 2003 (1)

On 1 May 2003 it was announced that the agreement with Prudential Financial, Inc. (USA), under which Prudential Financial is acquiring American Skandia, has now been completed. To maintain comparability, all information in this interim report pertains to operations excluding the USA, unless otherwise indicated.

A. BUSINESS DEVELOPMENT

- Sales amounted to SEK 17,693 million (19,036). The sales decline is mainly attributable to currency movements

- Sales in local currency decreased by only 1%, and new sales of unit linked assurance decreased by 11%

- The net inflow in funds under management was SEK 10.0 billion (10.7)

B. OPERATING RESULT (according to the embedded value method)

- The group's operating result according to the embedded value method was SEK 123 million (560). Negative financial effects increased to SEK - 283 million (-120)

- The profit margin for new business for the year for unit linked assurance increased to 13.5% (13.1%)

C. PROFIT AND LOSS ACCOUNT (according to Swedish GAAP)

- The result before tax was SEK 164 million (474)

- Earnings per share were SEK 0.12 (0.29)

- The return on shareholders' equity was 17% (-2%). Excluding items affecting comparability, the return was 9% (-2%)

D. CASH FLOW AND BALANCE SHEET

- Cash flow from operating activities was SEK -0.3 billion (0.4)

- Borrowings including the USA decreased by SEK 0.3 billion, to SEK 9.3 billion

- Net asset value amounted to SEK 26,654 million (27,033 at year-end 2002)

- Shareholders' equity amounted to SEK 15,216 million (15,238 at year- end 2002)

(1) Does not include Livforsakringsaktiebolaget Skandia, which is run on a mutual basis. All return measurements for shareholders' equity, net asset value and capital employed as per March 2003 pertain to moving twelve-month figures. All comparison figures pertain to March 2002 unless stated otherwise.



For further information, please contact: 
Jan Erik Back, Chief Financial Officer, tel. +46-8-788 3720
Harry Vos, Head of Investor Relations, tel. +46-8-788 3643

Skandia: Interim Report March 2003

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