STOCKHOLM, Sweden, May 5, 2004 (PRIMEZONE) -- Skandia: First quarter sales SEK 25.3 billion (17.2) 1)
Sales increased to SEK 25.3 billion (17.2), corresponding to a rise of 47% in Swedish kronor and 48% in local currency.
Sales of unit linked assurance in local currency rose 43%, to SEK 17.0 billion (12.1). New sales of unit linked assurance rose 21% in local currency. Sales of mutual fund savings products in local currency rose 107%, to SEK 6.9 billion (3.3).
UK
Sales in the UK (including Offshore and Royal Skandia) rose 79%, to SEK 13.7 billion (7.8). Sales of unit linked assurance in local currency rose 76%, to SEK 11.0 billion (6.4). New sales of unit linked assurance rose 71%. Sales of mutual fund savings products rose 93%, to SEK 2.6 billion (1.4).
The sales trend was strong both in the UK and for the Offshore unit. Innovative product development has contributed to favourable growth in many product areas. The growth can also be credited to rising interest in multi-manager products, where Skandia is well-positioned
Sweden
Combined sales (excluding Skandia Liv) increased by SEK 1.2 billion compared with the preceding quarter. Sales decreased compared with the first quarter of 2003, to SEK 3.9 billion (4.2), due to lower direct sales of funds pertaining to PPM pensions.
Sales of unit linked assurance rose 29% compared with the preceding quarter and were unchanged compared with the first quarter of 2003. Sales amounted to SEK 2.6 billion (2.6). New sales of unit linked assurance decreased by a combined total of 7% compared with the preceding quarter and by 22% compared with the first quarter of 2003.
Sales by Skandia Liv decreased to SEK 3.1 billion (3.5).
The Swedish market is characterized by fierce competition, particularly in the corporate segment. The attention surrounding Skandia has also affected interest in the company's products. Despite this, new sales of unit linked assurance in the private market rose 7% compared with the preceding quarter and 9% compared with the first quarter of 2003. The competitive situation is expected to remain tough, and the work in the Swedish market on restoring confidence is expected to continue for some time.
Extensive work is being carried out to address the market situation and restore confidence. Activities in the Swedish operations, mainly in Skandia Liv, SkandiaLink, SkandiaBanken and Skandia Lifeline, are now being coordinated in a separate division. The aim is to achieve better coordination between the Swedish businesses and make it possible for customers to deal with one Skandia in a convenient manner. New products and services are being developed from an integrated perspective.
Other markets
Sales for the Europe & Latin America division rose 34%, to SEK 5.7 billion (4.3). Sales increased in most markets. Sales of unit linked assurance rose 16%, while sales of mutual fund savings and related products rose 77%. New sales of unit linked assurance were essentially unchanged. The sales trend was especially positive in Spain. Sales in Germany rose 17%.
The sales success in Australia continued and sales of mutual fund savings products more than quadrupled, to SEK 1.7 billion (0.4).
Forthcoming reports
Skandia's interim report for the first quarter of 2004 will be released on 26 May 2004. On Tuesday, 18 May 2004, Skandia will report on financial effects for the first quarter of 2004.
1) All comparison figures pertain to the corresponding period a year earlier, unless otherwise indicated.
This information was brought to you by Waymaker http://www.waymaker.net
The report with tables is available for download:
http://www.waymaker.net/bitonline/2004/05/05/20040505BIT00050/wkr0001.doc
http://www.waymaker.net/bitonline/2004/05/05/20040505BIT00050/wkr0002.pdf