STOCKHOLM, Sweden, Sept. 24, 2003 (PRIMEZONE) -- Skandia (Other OTC:SKNFF) (LSE:SDIAq): The report from the independent investigative panel and the assessments and conclusions presented in this have been considered by Skandia Liv's board. The board has issued the following statement in view of this report:
General comments
When Skandia Liv's current board decided in March to commission an independent investigation, the aim was to evaluate and shed light on transactions that have been questioned in recent years between Skandia Liv and its parent company, Skandia. The investigation was given an entirely open mandate with free access to documents and people. The board notes with satisfaction that "in its work, the investigative panel met full openness with respect to its requests for complementary records as well as in the interviews it conducted."
In their report, the investigators criticize Skandia Liv's former board and former management on several points. This criticism pertains in all essential respects to the past, in particular to the time from 1999 until spring 2002. No criticism is directed at the current board.
Skandia Liv's board agrees in all essential respects with the assessments and conclusions reported by the independent investigation.
Measures taken
Following the company's Annual General Meeting in summer 2002, the newly elected board has taken a number of measures to tighten up policies and routines so as in the future to prevent the type of transactions and procedures that have been criticized by the investigative panel. In this context, the board would in particular like to point to the following measures.
-- In May 2003 the board adopted strict and detailed guidelines for transactions and other relations between Skandia Liv and Skandia. In the opinion of the investigative panel these new guidelines are "good and appropriate." If the guidelines had applied and been practiced earlier, most of the events that were criticized by the investigative panel would never have occurred. -- In March 2003 the board adopted a new, strict set of rules for granting residential apartments included in Skandia Liv's real estate holdings. The rules entail that persons who are closely related to employees do not in any case have the opportunity to gain preference to apartments included in Skandia Liv's real estate holdings.
In view of the investigative panel's findings, Skandia Liv's board immediately decided to implement changes in its work procedures. These changes entail, among other things, that the stipulations on conflict of interest for board members (so-called representative conflict of interest) that apply pursuant to the Swedish Companies Act shall also apply for Skandia Liv's board for agreements within the Skandia group, even though these stricter rules of the Swedish Companies Act do not apply for agreements between group companies nor for stock insurance companies. Further, the routines for per capsulam meetings will be tightened up. The new, stricter rules pertaining to conflicts of interest and routines for per capsulam meetings have already been applied de facto by the board of Skandia Liv that took office in summer 2002.
Continued work
Skandia Liv's board will now continue the work that has been in progress for the past year on establishing and ensuring clear and transparent guidelines for the relations between Skandia Liv and Skandia. This work will be conducted in a goal-oriented manner and expeditiously, with focus on -- among other things -- principles and processes for internal pricing, and clear reporting to the board. Skandia Liv will also be developing new guidelines for its asset management activities. In its work on these guidelines the board will put special emphasis on the handling of investments in unlisted companies (private equity investments). The board will also continuously monitor application to ensure compliance with all new guidelines.
Comments by the Chairman
Lars Eric Ericsson, Chairman of Skandia Liv, has issued the following comments:
"The board work at Skandia Liv now works very well. All members of the current board are working on behalf of and in the interests of the policyholders. This applies to the independent directors as well as to the directors appointed by and with ties to Skandia. This is how it should be. Taking responsibility for the expertise and long-term focus of the work on safeguarding Skandia Liv's integrity in its assignment is a responsibility for the board as a whole.
"Hopefully we can now put the previous years' unfortunate events behind us and focus on the future. With the clarification that has been made of Skandia Liv's special role, with clear principles for how the relations are to be handled between the companies, I am convinced that Skandia Liv has good prospects for being able to develop in a positive manner for our policyholders. Skandia Liv's board will do its utmost to ensure this. Skandia Liv will once again be an insurance company that its policyholders and employees can be proud of."
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http://www.waymaker.net/bitonline/2003/09/24/20030923BIT00940/wkr0002.pdf