Skandia Interim Report for the period January--September 2004(*)


STOCKHOLM, Sweden, Nov. 18, 2004 (PRIMEZONE) -- Skandia:

Comparisons excluding discontinued operations

THIRD QUARTER

- New sales of unit linked assurance rose 13% in local currency.

- Total sales rose 29% in local currency, to SEK 24.1 billion.

- During the fourth quarter of 2004 a provision for restructuring costs will be made for a total amount of approximately SEK 350 million, of which approximately SEK 300 million pertains to the Swedish operation (see also p. 10).

- The result before tax (according to Swedish GAAP) improved to SEK 375 million (-244).

- Result and return measurements according to the embedded value method:

- The result of operations was SEK 756 million (493).

- The operating result was SEK 696 million (234).

- The calculated profit margin for new sales of unit linked assurance was 18.3%, compared with 17.8% for the second quarter of 2004.

- Cash flow from operating activities was SEK -0.3 billion, compared with SEK -0.3 billion during the second quarter of 2004.

JANUARY--SEPTEMBER

- Sales and funds under management:

- Sales rose 33% (11%) in local currency, to SEK 72.9 billion.

- New sales of unit linked assurance rose 13% (3%) in local currency.

- Funds under management increased to SEK 368 billion (SEK 309 billionat the start of the year).

- Result according to Swedish GAAP:

- The result before tax increased to SEK 1,017 million (-183).

- Earnings per share were SEK 0.84 (-0.21).

- Result and return measurements according to the embedded value method:

- The result of operations was SEK 2,366 million (1,595).

- The operating result increased to SEK 2,551 million (1,496).

- The calculated profit margin for new sales of unit linked assurance was 17.5%. The profit margin for the full-year 2003, recalculated to new assumptions, was 19.6%. Markets with below-average profit margins showed stronger growth (see section C).

- The operational return on net asset value before tax for unit linked assurance increased to 12.0%, compared with 11.3% for the full-year 2003 (excluding one-time effects).

- Cash flow from operating activities was charged with one-time payments of SEK -0.8 billion, as reported previously, and amounted to SEK -1.7 billion (-1.5).

- The group's financial position strengthened:

- Net asset value rose 8% to SEK 32.9 billion.

- Shareholders' equity increased by 11% to SEK 17.1 billion.

- Borrowings decreased to SEK 3.3 billion (SEK 4.0 billion at the start of the year).

- The sale of If was completed on 6 May 2004, entailing a liquidity improvement of SEK 4.5 billion.

Significant post-balance events

- On 26 October 2004 Skandia announced that ongoing investigations by regulators in the US regarding market timing are likely to lead to proceedings and/or settlement. It is currently not possible to estimate what financial impact this will have on Skandia.

- On 29 October 2004 it was announced that Skandia and former Skandia Executive Vice President Ulf Spang have reached a settlement during the on going arbitration process.


 JANUARY--SEPTEMBER
 Including discontinued operations

In 2004 discontinued operations pertain to the Japanese operation, while in 2003 they also pertain to the US operation and the banking operation in Switzerland.

- Sales through September amounted to SEK 72,862 million (66,780), of which discontinued operations accounted for -- (SEK 12,553 million).

- The result after tax (according to Swedish GAAP) was SEK 1,695 million (-217). The result includes SEK 834 million (3) in items affecting comparability and the result for discontinued operations. The gain on the sale of the Japanese operation was SEK 834 million.

- Earnings per share, before dilution, were SEK 1.66 (-0.21).

(*) Does not include Livforsakringsaktiebolaget Skandia, which is run ona mutual basis. All return measurements for shareholders' equity, netasset value and capital employed as per September 2004 pertain to movingtwelve-month figures. All comparison figures pertain to September 2003unless stated otherwise.


 For further information on this interim report, please contact:
 Jan Erik Back, Chief Financial Officer, tel. +46-8-788 3720

 Harry Vos, Head of Investor Relations, tel. +46-8-788 3643

 For information on disputes under section F, please contact:
 Bjorn Bjornsson, Vice Chairman, tel. +46-8-788 2500

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Interim Report 3Q 2004


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