Skandia Financial effects 2003


STOCKHOLM, Sweden, Feb. 19, 2004 (PRIMEZONE) -- Skandia's 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.

According to information presented in conjunction with the interim report for the third quarter of 2003, a 1% increase in the stock market would have a one-time effect on the operating result of SEK +60 million and a 1% decrease would have a one-time effect on the operating result of SEK -57 million.

Through the third quarter of 2003, financial effects were positive in the amount of SEK 384 million. Financial effects for the fourth quarter are expected to be positive and are estimated to be in the range of SEK 600 million to SEK 700 million.

Comparison figures

To facilitate comparison, the group overview presented in connection with the 2003 Year-End Report (as in the 2002 Annual Report) will be presented exclusive of the result of discontinued operations. This format is shown in the appended tables on pages 2 and 3. By discontinued operations is meant American Skandia, the banking operation in Switzerland, and Skandia Japan.

On 11 February it was announced that Sampo has made a bid for the shares in If P&C Insurance. In accordance with the applicable accounting rules, as a result of this the holding in If will be revalued by SEK 1.5 billion during the fourth quarter of 2003. This revaluation will be included in investment income and thus also in the result of operations. However, the result of the sale of the Japanese operation, which was completed on 2 February 2003, will be reported during the first quarter of 2004.

Skandia's year-end report for 2003 will be released on 27 February 2004.


For further information, please contact:
Harry Vos, Head of Investor Relations, tel. +46-8-788 3643

Comparison figures 2002 for group overview


 GROUP OVERVIEW - QUARTERLY ANALYSIS

                                   2003   2003   2003   2002    2002
 SEK million                        Q 3    Q 2    Q 1    Q 4 12 mos.
 Sales 1)
 Unit linked assurance            12,451 13,351 12,081 12,023  47,801
 Mutual funds                      5,219  4,368  3,323  3,750  16,963
 Direct sales of funds               296    632  1,373    423   2,341
 Life assurance                      244    253    276    710   1,638
 Other businesses                     98    116    146    114     453

 Total sales                      18,308 18,720 17,199 17,020  69,196


 Result summary
 Unit linked assurance 
  (according to                      627    845    609    800   2,959
 the embedded value method)
 Mutual funds                        -30    -54    -68    -90    -291
 Life assurance                        5      7     32      5     119
 Other businesses                     41     50     -7     14     -18
 Group expenses                     -150   -177   -135   -179    -569

 Result of operations                493    671    431    550   2,200
 Financial effects, unit linked      130    409   -203   -345  -2,056
 assurance (according to the embedded
 value method)
 Items affecting comparability      -389    -46      -   -450   1,566

 Operating result                    234  1,034    228   -245   1,710


 Other comparison figures
 Total annualized new sales, unit  1,988  2,176  2,009  2,155   8,463
 linked assurance 2), SEK million
 Profit margin new sales, unit 
  linked                            14.5   15.0   14.5   14.1    14.0
 assurance, %

 Profit and loss account (according
 to Swedish GAAP)
 Result after tax, incl. 
  discontinued                      -300    -43    127 -4,505  -4,298
 operations, SEK million
 Result after tax, excl. 
  discontinued                      -217    -37     35   -107   3,037
 operations, SEK million
 Earnings per share, incl.         -0.29  -0.04   0.12  -4.40   -4.20
 discontinued operations, SEK 3)
 Earnings per share, excl.         -0.21  -0.04   0.03  -0.10    2.97
 discontinued operations, SEK 3)

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.

3) Earnings per share, after dilution.

Specification, discontinued operations


 Operating    2003   2003  2003    2002   2002    2002     2002   2002
 result,       Q 3    Q 2   Q 1   12 mos.  Q 4     Q 3      Q 2    Q 1
 SEK million

 American    0     125    0    -10,848  -6,718  -2,268   -1,472  -390
 Skandia
 Skandia 
  Bank     -109    -93   -50    -164      -55     -50      -22    -37
 Switzerland
 Skandia     36     94    -56    -143     -117     -39      -17    30
 Japan

 Result before  2003  2003   2003    2002   2002    2002    2002  2002
 tax,            Q 3   Q 2    Q 1  12 mos.   Q 4     Q 3     Q 2   Q 1
 SEK million

 American     0    125     0    -9,145   -6,545  -1,921   -438  -241
 Skandia
 Skandia
  Bank      -109   -93    -50    -164      -55     -50     -22   -37
 Switzerland
 Skandia 
  Japan      26    -37    142    -312      64     -146    -117  -113

 Result after   2003  2003   2003    2002   2002    2002    2002  2002
 tax,            Q 3   Q 2    Q 1  12 mos.   Q 4     Q 3     Q 2   Q 1
 SEK million

 American      0    125     0    -6,853   -4,405  -2,066   -247  -135
 Skandia
 Skandia 
  Bank       -109   -93    -50    -169      -56     -51     -25   -37
 Switzerland
 Skandia 
  Japan       26    -38    142    -313      63     -146    -116  -114

This information was brought to you by Waymaker http://www.waymaker.net

The following files are available for download:

http://www.waymaker.net/bitonline/2004/02/19/20040219BIT00050/wkr0001.doc

http://www.waymaker.net/bitonline/2004/02/19/20040219BIT00050/wkr0002.pdf