STOCKHOLM, Sweden, April 05, 2004 (PRIMEZONE) -- Skandia and Skandia Liv have made an agreement in principle that the matter of any prohibited profit distribution in connection with Skandia's sale of its asset management business to Den norske Bank will be adjudicated by an arbitration board.
The parties are also in agreement that it is important that the process is carried out in such a way that high standards of jurisprudence and high ambitions for openness can be observed.
At the same time, the work on increasing cost effectiveness and on creating even better customer offerings through collaboration with Skandia Liv and other Skandia businesses in Sweden will continue with undiminished strength.
Skandia's chairman, Bjorn Bjornsson, says:
"Skandia Liv's asset management agreement has been reviewed and approved by the Financial Supervisory Authority and by all three of Skandia Liv's auditors, including the auditor appointed by the Financial Supervisory Authority. Nothing has emerged from this review that indicates it entailed prohibited profit distribution. Nor has anything new emerged that changes this judgement, and Skandia's position is unchanged: that Skandia Liv's claim is groundless. It is good, however, that Skandia Liv has specified its claim so that the matter can be adjudicated in a way that cannot be refuted, and the legal review can be allowed to take its course. The Skandia group will now funnel all its strengths on its mission for the future -- to give its customers products with favourable returns at a reasonable cost."
Skandia Liv's CEO, Urban Backstrom, says:
"It is good that this matter can now be resolved in a serious and legally proper manner. The Skandia group will be a model for the industry in handling the relationship between savers' and shareholders' interests, and in dealing with shortcomings of the past. This is a necessary step in that ambition."
The asset management agreement that will be examined was entered into in early 2002 in connection with Skandia's sale of its asset management business to Den norske Bank. The agreement was reviewed by Skandia's and Skandia Liv's boards at the time, and was examined without remark by the Financial Supervisory Authority and Skandia Liv's auditors. In 2003 the agreement was also reviewed by the independent examiners Jan Ramberg (Professor Emeritus), Ulla Nordin Buisman (Authorized Public Accountant) and Lennart Laftman (B.Sc. Econ.) -- commissioned by Skandia Liv -- and Otto Rydbeck (attorney) and Goran Tidstrom (Authorized Public Accountant) -- commissioned by Skandia. Both of these investigations came to the conclusion that there were no grounds to the claim that Skandia had improperly profited at the expense of Skandia Liv.
In addition to this, Skandia Liv's board has obtained a statement from former Minister of Justice Hans Danelius and Jan Ramberg. Attorney Stefan Lindskog, who was appointed by the Swedish Consumer Agency, has come to the conclusion that there are legal grounds for Skandia Liv to direct a claim against Skandia. A further analysis performed on behalf of Skandia Liv by Professor Jan Kleineman also maintains that there are legal grounds for Skandia Liv to direct claims against Skandia with respect to the asset management agreement.
Skandia Liv has now stipulated its claim at SEK 2,250,000,000.
Skandia contests this claim and maintains that nothing has come to light that provides any support to the claims of prohibited profit distribution.
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http://www.waymaker.net/bitonline/2004/04/05/20040405BIT00070/wkr0001.doc
http://www.waymaker.net/bitonline/2004/04/05/20040405BIT00070/wkr0002.pdf