Skandia: Interim Report January -- March 2005


STOCKHOLM, Sweden, May 31, 2005 (PRIMEZONE) -- Improvement in Result According to IFRS



 -- Profit before tax rose to SEK 386 million (186).
 -- Revenues rose 12%, to SEK 3,803 million (3,399).
 -- Expenses rose 6%, to SEK -3,417 million (-3,213).
 -- Profit for the period totalled SEK 423 million (1,211).
    Profit for the same period a year ago was favourably affected
    in the amount of SEK 834 million from the sale of the Japanese
    operation.
 -- Earnings per share before dilution were SEK 0.41 (1.19, of which
    0.81 pertained to discontinued operations), and the return on
    shareholders' equity was 13% (11%).
 -- All comparison figures have been recalculated in accordance with
    International Financial Reporting Standards (IFRS), which took
    effect on 1 January 2005. Shareholders' equity as per 1 January
    2005 has decreased by SEK 504 million due to an adjustment for
    own shares in certain funds which according to IFRS must be
    consolidated.

STRONGER EMBEDDED VALUE RESULT



 -- The group's result of operations (excluding financial effects)
    amounted to SEK 973 million (873).
 -- The present value of new business for unit linked assurance
    increased by 65% in local currency, to SEK 646 million (396).
 -- The calculated profit margin for new sales increased to 23.9%
    (16.5%). All divisions contributed to the improved
    profitability of new sales.
 -- Net asset value per share increased to SEK 30.88, compared with
    SEK 29.44 at year-end.

OPERATIONS SHOWED GOOD GROWTH AND IMPROVED PROFITABILITY



 -- Premiums and deposits rose 9% in local currency, to SEK 27,022
    million (25,315). New sales rose 15% in local currency.
 -- The U.K. showed continued growth, despite an exceptionally
    strong first quarter in 2004.
 -- Premiums and deposits in Sweden were stable. The market share
    decreased, but the sales trend shows a slight recovery.
 -- Other countries in Europe are characterised by strong growth
    and very good profitability.
 -- Funds under management grew by 8% in local currency, to SEK
    424,055 million, thanks to a larger inflow and favourable
    growth in value.
 -- Cash flow from operating activities (excluding changes in
    deposits and lending in the banking operation) amounted to
    SEK 0.4 billion (-1.1).

(a) Livforsakringsaktiebolaget Skandia is not consolidated and is therefore not included in the interim report. All comparison figures pertain to the corresponding period in 2004, unless indicated otherwise.

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