STOCKHOLM, Sweden, May 14, 2003 (PRIMEZONE) -- Skandia's (Other OTC:SKNFF) (LSE:SDIAq) result is affected by external factors such as changes in the stock market and interest rates. Future revenues, which are based on fund values, increase or decrease as a result of these factors. When the value of funds decrease, the company's tax situation is also affected in certain cases. Altogether this entails a one-time effect on the operating result. During the first quarter of 2003 the aggregate negative financial effect on the operating result is estimated to be in the range of SEK 250 -- 350 million.
Comparison figures pertaining to American Skandia
On 1 May 2003 it was announced that the agreement with Prudential Financial, Inc. (USA), under which Prudential Financial is acquiring American Skandia, has been completed. Since the transaction was completed in accordance with the agreed-upon terms, there is no result effect for the first quarter of 2003. To facilitate comparisons, the group overview for the first quarter (as in the 2002 Annual Report) will be presented excluding the USA, unless indicated otherwise. This format is shown in the appended table.
Skandia's interim report for the first quarter of 2003 will be released on 21 May 2003.
For further information, please contact: Harry Vos, Head of Investor Relations, tel +46 8 788 3643
Format for group overview in future interim reports
GROUP OVERVIEW - QUARTERLY ANALYSIS
2002 2002 2002 2002 2002
SEK million 12 mos. Q 4 Q 3 Q 2 Q 1
Sales 1)
Unit linked assurance 53,967 13,391 13,185 13,638 13,753
Mutual funds 16,963 3,750 4,147 5,220 3,846
Direct sales of funds 2,344 425 591 264 1,064
Life assurance 1,638 710 408 273 247
Other businesses 453 114 95 118 126
Total sales 75,365 18,390 18,426 19,513 19,036
Result summary
Unit linked assurance
(according to 3,027 795 724 733 775
the embedded value method)
Mutual funds -291 -90 -56 -87 -58
Life assurance 119 5 35 20 59
Other businesses -182 -41 -85 -69 13
Group expenses -569 -179 -122 -159 -109
Result of operations 2,104 490 496 438 680
Financial effects, unit linked -2,267 -457 -898 -792 -120
assurance (according to the embedded
value method)
Items affecting comparability 1,566 -450 - 2,016 -
Operating result 1,403 -417 -402 1,662 560
Other comparison figures
Total annualized new sales, unit 9,176 2,318 2,064 2,361 2,433
linked assurance 2), SEK million
Profit margin new sales, unit
linked 13.5 13.4 14.9 12.9 13.1
assurance, %
Profit and loss account (according
to the Annual Accounts Act)
Result after tax, including USA,
SEK -4,298 -4,505 -1,451 1,498 160
million
Result after tax, excluding USA,
SEK 2,555 -101 615 1,745 296
million
Earnings per share,
including USA, -4.20 -4.40 -1.42 1.46 0.15
SEK
Earnings per share, excluding USA, 2.50 -0.10 0.60 1.70 0.29
SEK
1) Sales pertain to paid-in premiums and deposits in funds. 2) Periodic premiums recalculated to full-year figures plus 1/10 of single premiums during the period.
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http://www.waymaker.net/bitonline/2003/05/14/20030514BIT00630/wkr0001.doc
http://www.waymaker.net/bitonline/2003/05/14/20030514BIT00630/wkr0002.pdf