Continued Positive Performance for Skandia Liv in First Quarter of 2005(1)

Stockholm, SWEDEN

STOCKHOLM, Sweden, May 12, 2005 (PRIMEZONE) -- Skandia Liv:

New business(2) increased by 2% and amounted to SEK 289 million, while premiums written decreased from SEK 3.1 billion to SEK 3.0 billion.

New sales(3) increased by 7% compared with the same period last year while cancelled annual premiums decreased by 22%.

At 31 March 2005, Skandia Liv's managed assets amounted to SEK 252 billion. On the same date a year ago assets totalled SEK 243 billion.

The total return on Skandia Liv's investments in the first quarter amounted to 1.9% compared with 3.8% in the same quarter last year. This return does not include the capital gains from the recent sale of unlisted shares.

Mats Andersson head of investment management at Skandia Liv comments: ``The lower return during the first quarter compared with the same period last year is mainly explained by a fall of over 2% in the US stock market during the first quarter. On the other hand we benefited from a continued positive price trend on the Stockholm Stock Exchange as well as falling interest rates which increased the value of the bond portfolio."

Operating expenses amounted to 0.60% in relation to managed assets compared with 0.59% in the first quarter of 2004.

The collective funding ratio on 31 March was 102% compared with 98% on the same date last year. This means that Skandia Liv has met the Swedish Financial Supervisory Authority's requirement that the funding ratio may not be less than 100% for more than three years. Skandia Liv has now had a funding ratio of at least 100% for two consecutive quarters. This means that a reallocation is now no longer required.

The bonus rate was raised on 1 January 2005 to 3.5% for all savings and was raised again from 1 March to 4%.

Solvency amounted to 149% as per 31 March 2005 compared with 147% a year ago.

The most recent Customer Satisfaction survey carried out by Skandia Liv (private customers) shows a substantial improvement for Skandia Liv. Customers' overall approval of the company has improved from 56% at year-end 2004 to 70% today.

(1)Pertains to Skandia Liv Sweden. The group also includes Skandia Liv's subsidiaries in Denmark and Finland.

(2) New business is measured according to the industry definition: single premiums divided by 10 plus annual premiums.

(3) New sales consist of new business and extensions to existing insurance contracts.

This information was brought to you by Waymaker

The following files are available for download: