Increase in Premiums and Deposits(1)

Stockholm, SWEDEN


STOCKHOLM, Sweden, Aug. 9, 2005 (PRIMEZONE) -- Premiums and deposits during second quarter 2005 Skandia's total premiums and deposits rose during the second quarter to SEK 32.8 billion, compared with SEK 23.4 billion during the same period in 2004. The increase corresponds to 40% in Swedish kronor and 39% in local currency. Unit linked premiums written rose 44% in local currency, to SEK 22.6 billion (15.7). New sales of unit linked assurance rose 25% in local currency, to SEK 3.0 billion (2.3). Mutual fund deposits increased to SEK 9.5 billion (7.2). Premiums and deposits during first half of the year Skandia's total premiums and deposits rose during the first half of the year to SEK 59.9 billion (48.7). The increase corresponds to 23% in Swedish kronor and 24% in local currency. Unit linked assurance premiums and deposits rose 29% in local currency, to SEK 41.5 billion (32.6). New sales of unit linked assurance rose 22% in local currency, to SEK 5.7 billion (4.7). Mutual fund deposits increased to SEK 17.1 billion (15.1). UK, Asia Pacific & Offshore Premiums and deposits in the UK (including Royal Skandia) totalled SEK 33.4 billion (27.1) during the first half of the year, an increase of 25% in local currency. Of this total, unit linked assurance accounted for SEK 28.0 billion (21.6), while mutual funds accounted for SEK 5.4 billion (5.4). New sales of unit linked assurance rose 27% in local currency during the first half of the year, to SEK 3.5 billion (2.8). The trend from previous periods continues, with robust sales of single premium unit linked bonds and pension products. Royal Skandia continues to note success in the area of new inheritance tax solutions.

In Australia, mutual fund deposits decreased by 3% in local currency during the first half of the year. Deposits during the second quarter reached were on a par with the same period a year ago. Europe & Latin America Total premiums and deposits rose during the first half of the year to SEK 13.7 billion, an increase of 27% in local currency compared with the same period a year ago. Unit linked premiums written totalled SEK 6.3 billion, an increase of 16% in local currency. This is mainly attributable to a larger customer base in Germany, which is generating a higher share of regular premium business, and greater premium income derived from the strong growth in France. New sales of unit linked assurance rose 16% in local currency during the first half of the year. Demand, which affected sales during the fourth quarter of 2004 and first quarter of 2005, was exceptional in the German operation, in association with a change in Germany's tax legislation. As a natural result of this, new sales were down sharply during the second quarter. This entails that the German operation is moving into a transitional period, initially with substantial overcapacity in relation to the lower level of new sales. France continues to make a positive contribution to the increase in new sales. Mutual fund deposits rose a full 39% in local currency during the first half of the year, to SEK 6.5 billion (4.5), mainly attributable to Spain and Colombia. In Spain, two major distributors began selling Skandia's fund products, contributing to strong growth during the second quarter. Nordic Combined premiums and deposits for the Nordic division (excluding Skandia Liv) amounted to SEK 7.7 billion (6.6) during the first half of the year. Unit linked premiums written rose 20% in local currency, to SEK 5.7 billion (4.8). New sales of unit linked assurance were up 7% in local currency during the first half of the year as a result of strong new sales in Sweden during the second quarter of 2005, which rose 27%. The completed action programme is beginning to yield results. Introduction of the new ``kapitalpension" product also made a strong contribution to the favourable sales trend. Skandia's interim report for the first half of 2005 will be released on 22 August 2005. For further information, please contact: Harry Vos, Head of Investor Relations, tel. +46-8-788 36 43



 Premiums and deposits for the first half and second quarter of 2005


 PREMIUMS AND DEPOSITS


              Unit linked                          Other
             assurance     Mutual Funds         1)               Total
             2005    2004    2005    2004    2005    2004    2005    2004
 SEK
 billion   6 mos.  6 mos.  6 mos.  6 mos.  6 mos.  6 mos.  6 mos.  6 mos.
 UK, Asia
 Pacific &
 Offshore*   29.5    22.4     9.0     9.1       -       -    38.5    31.5
 Europe &
 Latin
 America**    6.3     5.4     6.5     4.5     0.9     0.7    13.7    10.6
 Nordic***    5.7     4.8     1.6     1.5     0.4     0.3     7.7     6.6
 Total       41.5    32.6    17.1    15.1     1.3     1.0    59.9    48.7
 *Of
 which, UK
 incl.
 Royal
 Skandia     28.0    21.6     5.4     5.4       -       -    33.4    27.0
 ** Of
 which,
 Germany      1.8     1.3     0.1     0.2       -       -     1.9     1.5
 *** Of
 which,
 Sweden       5.4     4.6     1.6     1.5     0.3     0.3     7.3     6.4
              Unit linked                          Other
             assurance     Mutual Funds         1)               Total
             2005    2004    2005    2004    2005    2004    2005    2004
 SEK
 billion       Q2      Q2      Q2      Q2      Q2      Q2      Q2      Q2
 UK, Asia
 Pacific &
 Offshore*   16.3    11.0     5.1     4.7       -       -    21.4    15.7
 Europe &
 Latin
 America**    3.4     2.6     4.0     2.1     0.5     0.3     7.9     5.0
 Nordic***    2.9     2.1     0.4     0.4     0.2     0.2     3.5     2.7
 Total       22.6    15.7     9.5     7.2     0.7     0.5    32.8    23.4
 * Of
 which, UK
 incl.
 Royal
 Skandia     15.5    10.6     3.1     2.8       -       -    18.6    13.4
 ** Of
 which,
 Germany      0.9     0.6     0.0     0.1       -       -     0.9     0.7
 *** Of
 which,
 Sweden       2.8     2.0     0.4     0.4     0.1     0.1     3.3     2.5
 1)Includes life assurance and ``Other business".


 NEW SALES UNIT LINKED ASSURANCE


                       Single        Annual premium     Total annualised
                 premium                1)                  new sales 2)
                2005      2004      2005       2004       2005       2004
 SEK
 billion      6 mos.    6 mos.    6 mos.     6 mos.     6 mos.     6 mos.
 UK, Asia
 Pacific &
 Offshore*      24.9      18.1       1.2        1.1        3.7        2.9
 Europe &
 Latin
 America**       4.0       3.5       0.6        0.5        1.0        0.9
 Nordic***       2.2       1.2       0.8        0.8        1.0        0.9
 Total          31.1      22.8       2.6        2.4        5.7        4.7
 * Of
 which, UK
 incl.
 Royal
 Skandia        23.7      17.6       1.1        1.0        3.5        2.8
 ** Of
 which,
 Germany           0         0       0.4        0.3        0.4        0.3
 *** Of
 which,
 Sweden          2.1       1.1       0.8        0.8        1.0        0.9

                       Single        Annual premium     Total annualised
                 premium                1)                 new sales 2)
                2005      2004      2005       2004       2005       2004
 SEK
 billion          Q2        Q2        Q2         Q2         Q2         Q2
 UK, Asia
 Pacific &
 Offshore*      14.0       8.9       0.6        0.5        2.0        1.5
 Europe &
 Latin
 America**       2.3       1.6       0.2        0.3        0.4        0.4
 Nordic***       1.2       0.5       0.4        0.4        0.6        0.4
 Total          17.5      11.0       1.2        1.2        3.0        2.3
 * Of
 which, UK
 incl.
 Royal
 Skandia        13.4       8.6       0.6        0.5        1.9        1.4
 ** Of
 which,
 Germany           0         0       0.1        0.2        0.1        0.2
 *** Of
 which,
 Sweden          1.2       0.4       0.4        0.4        0.5        0.4
 1) Periodic premiums recalculated to full-year figures.
 2) Single and regular premiums from unit linked contracts written during
 the period. According to industry practice, new sales are defined as
 regular premiums recalculated to full-year figures plus 1/10 of single
 premiums during the period.


 EXCHANGE RATES
                                                 2005                2004
 Currency                                     30 June             30 June
 EUR                  Closing rate               9.45                9.16
 EUR                  Average rate               9.16                9.18
 GBP                  Closing rate              14.00               13.66
 GBP                  Average rate              13.35               13.56

(1) All comparative figures pertain to the corresponding period a year earlier, unless otherwise stated.

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