Skandia Liv Avoids Reallocation

Stockholm, SWEDEN

STOCKHOLM, Sweden, April 14, 2005 (PRIMEZONE) -- Skandia Liv's collective funding ratio in March was 102%. Accordingly, Skandia Liv has met the Financial Supervisory Authority's requirement of a collective funding ratio of at least 100% for two consecutive quarters. This means that a reallocation is now no longer being considered.

Urban Backstrom, President and CEO of Skandia Liv comments: "It is very gratifying to note that Skandia Liv currently does not need to conduct a reallocation. We are proud about this, and it shows that our asset management has worked very well.

"The major stock market decline that began in 2000 has forced a number of other life companies to reallocate, i.e., write-down the value of policyholders' balances. Skandia Liv has managed the problems created by the stock market bubble on its own strength."

Skandia Liv's funding policy steers how investment returns are apportioned among the policies. When the funding ratio is within the interval of 95%--115%, the return is apportioned to policies in accordance with the yield on the insurance capital. When the funding ratio falls below 95%, the insurance capital is reduced to bring the funding ratio up to 100%. When the funding ratio exceeds 115%, the policyholders' insurance capital is increased to bring the funding ratio down to 110%.

An additional rule exists as well: If the collective funding ratio has been lower than 100% for more than 36 months, the insurance capital is reduced to bring the funding ratio up to 105%.

Aside from the company's own funding policy, the funding ratio is subject to the Financial Supervisory Authority's rules. These prescribe that the funding ratio must amount to at least 100% for two consecutive quarters.

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Urban Backstrom, President and CEO, Skandia Liv +46-8-788 21 41 
Gunilla Svensson, Press Manager, +46-8-788 25 00