STOCKHOLM, Sweden, Sept. 24, 2003 (PRIMEZONE) -- After the Annual General Meeting in April this year, the Board of Skandia Insurance Company Ltd. (Other OTC:SKNFF)(LSE:SDIAq) commissioned an independent investigation to review Skandia's reporting and disclosure of embedded value. The outcome of this investigation still has to be finalized.
Simultaneously and in addition to the above, the Board initiated a review by Tillinghast-Towers Perrin ("Tillinghast") of Skandia's embedded value methodology, assumptions and calculations as at 30 June 2003. The review by Tillinghast shows that the embedded value numbers reported by Skandia are conservative in a number of areas. If this conservatism was eliminated, this would have increased the embedded value as per 30 June 2003 by approximately SEK 1.7 billion. In addition, bringing the risk discount rates closer to levels generally used by other companies publishing embedded value would add another SEK 0.6 billion.
As is Skandia's normal practice, embedded value assumptions will be reviewed at year-end, at which time the Board will consider appropriate adjustments taking into account the Tillinghast review.
The Board stands behind the embedded value method as an established and supplementary basis for reporting to shareholders. However, the Board has initiated steps towards achieving a better balance between statutory accounts and reporting of cash flow and embedded value, and intends to implement further such steps.
At present, the International Accounting Standards Board (IASB) is developing new accounting and reporting standards and, in parallel, embedded value reporting principles continue to evolve. The Board is following these developments closely, and Skandia is taking an active part in these processes.
A conference call on the outcome of the review will be held at 3 p.m. C.E.T. on Wednesday, 24 September 2003. To participate, call +44 (0)20 7162 0182 and request the Skandia conference call. Please call 10 minutes prior to the start of the conference call and use a quiet room. The conference call will start with a presentation accompanied by slides. The slides can be accessed at Skandia's website, www.skandia.com, where a link to the presentation will be available. After the presentation there will be time for Q&As.
There is also the option of calling later and listening to a taped version through 1 October 2003. To listen to this recording, call +44 (0)20 8288 4459 and indicate code 620 392. A taped version as well as an extended slide presentation will be available on Skandia's website: www.skandia.com/Investor Relations/Reports and Events/Other Events.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://www.waymaker.net/bitonline/2003/09/24/20030924BIT00050/wkr0001.doc
http://www.waymaker.net/bitonline/2003/09/24/20030924BIT00050/wkr0002.pdf