Handelsbanken sells SPP to Storebrand

Handelsbanken is selling SPP to Storebrand for SEK 18 billion. The
capital gain will be approximately SEK 4 billion.

The transaction means that Storebrand and SPP together will be the
leading player on the Nordic occupational pensions market. At the
same time, Handelsbanken and Storebrand will initiate collaboration
in the field of occupational pensions."This is an excellent deal for all parties," comments Handelsbanken's
CEO, Pär Boman.

It was vital for the transaction that it is Storebrand who will
become the new owner of SPP, according to Pär Boman:"Our customers' financial security when they retire is something
which must be handled with the greatest care. The right purchaser was
therefore more important than any other factor. The best interests of
our customers always have priority for Handelsbanken."

Storebrand is one of the largest and most financially sound
occupational pension companies in the Nordic region. It was founded
in 1767 and today is a modern, innovative and for-profit life
insurance company. Like SPP in Sweden, Storebrand is regarded as the
Norwegian market's leading specialist in occupational pensions. For
the past four years, Storebrand has also had the highest levels of
customer satisfaction on the Norwegian market."This deal doesn't take away anything the customers have at present.
On the contrary, it brings added value: more choices, more
competitive solutions and even greater expertise."

SPP and Storebrand will now form the largest occupational pensions
group in the Nordic countries:"SPP has a unique position in the Swedish occupational pensions
market. It is the only company with operations in all market
segments. There is in-depth and broad competence at SPP, and the
company's employees are therefore a vital factor in the deal. We
warmly welcome them to our Group where they will be a fantastic
advantage in our drive in the Swedish market," says Idar Kreutzer,
CEO of Storebrand.

During the six years, Handelsbanken has owned SPP, the company has
been completely changed. This includes a halving of its operating
costs. SPP has also become a for-profit life insurance company and
its products and offerings have been comprehensively developed.

At the same time, the market for occupational pensions has
increasingly moved towards solutions sold via brokers and major"cross-in-the-box" pension selections. The battle for market share is
more and more frequently conducted via representatives of the
companies and large, centralised advertising campaigns."So the areas of contact which existed between SPP and our branches
when we bought the company have become fewer with time. At
Handelsbanken it is, of course, our branches that do business in
close and direct relationships with every customer. Central marketing
is therefore rare since each customer offering is unique," says Pär
Boman.

Having two such different marketing approaches in the same corporate
group is not the optimal situation for either party, he thinks:"I won't go as far as to say that we have got in each other's way,
more that we have moved in different directions. So when SPP was
fully equipped, stronger than ever before and ready to go on the
offensive, we were faced by a choice: either to separate SPP from the
rest of the Group or to find a partner with the same focus and
working methods. Storebrand made this choice simple. This will be a
really good deal for both companies, their customers and employees."

Pär Boman also sees clear advantages for Handelsbanken."It is always easier to have one point of focus rather than two. We
can now put all our efforts and resources into what is really
Handelsbanken's unique feature: our strong, decentralised branch
operations - which are now growing more quickly than ever before."

According to Ulf Riese, CFO of Handelsbanken, the transaction will
also reduce the volatility in the Bank's results:"When SPP became a for-profit company, we distributed SEK 2.8 billion
to the policyholders and subsequently assumed a large part of all the
risks and deficits that the policyholders had previously been
responsible for alone. We are also still the only owner among the
Swedish life insurance companies that has contributed its own funds
and covered deficits on policyholders' accounts. New capital adequacy
and solvency regulations mean that SPP has tied up more capital than
anyone could have foreseen and also led to a form of central
risk-taking on a large scale that we normally do not have in our
decentralised business model. We will now have greater stability -
and the shareholders, who have ultimately been responsible for the
risk, will get back their money in the form of improved return on
equity and higher earnings per share."

The deal with Storebrand does not mean Handelsbanken is leaving the
occupational pensions market, according to Michael Zell, head of
Handelsbanken Pensions & Insurance:"We are now starting collaboration with Storebrand in the area of
occupational pensions - including product development and risk
management. Handelsbanken's mutual funds will also be part of
Storebrand's occupational pensions offering on the Swedish and
Norwegian markets."

Handelsbanken Liv will continue to sell its occupational pension
solutions via Handelsbanken's branches."Handelsbanken Liv's products and solutions have long been well
integrated at the branches, not least the capital-guaranteed
products, private pension solutions and other types of long-term
savings. Handelsbanken Liv will therefore now be linked more closely
to the branch office operations and to Handelsbanken Asset
Management."

Pär Boman sums up:"We have sold a good company, at the right time and to the right
company. I know that people often talk about win-win situations but
this time it is really relevant - this is an excellent deal for
everyone concerned."


For further financial information about the transaction, see the
appendix.
Invitation to press conference

The media and analysts are invited to attend a press conference at
Handelsbanken today where Handelsbanken's CEO, Pär Boman will present
the transaction.

Time: 10.00 a.m. CET today
Place: Handelsbanken's head office, Kungsträdgårdsgatan 2, Stockholm.
(Please report to the reception)

The presentation from the press conference will be available on
Handelsbanken's website (www.handelsbanken.se) from 10.00 a.m. today.


Handelsbanken, SPP and Storebrand will hold a joint press conference
later today.
Time: 2 p.m. CET today.
Place: China theatre, Berzelii Park 9, Stockholm. (Please give your
name at the entrance).


Phone conference

At 4.30 p.m. CET, Handelsbanken will hold a phone conference for
analysts. Participants from Handelsbanken are Ulf Riese, CFO and
Bengt Ragnå, head of investor relations.
Phone: +46 8-50 52 01 14   From outside Sweden: +46-8-50 52 01 14



For further information, please contact:

Pär Boman, president and group chief         +46 8 - 22 92 20
executive
Michael Zell, head of Handelsbanken Pensions +46 8 - 22 92 20& Insurance
Ulf Riese, CFO                               +46 8 - 22 92 20

Johan Lagerström, press officer              +46 8 - 701 1395,
                                             Mobile: +46 70 - 2658014
Bengt Ragnå, head of investor relations      +46 8 - 701 1216,
                                             Mobile: +46 70 - 5671216