STOCKHOLM, Sweden, Feb. 28, 2005 (PRIMEZONE) -- Skandia Year-End Report 2004 (*):
FOURTH QUARTER
- New sales of unit linked assurance rose 24% in local currency. New sales reached their highest level for the year during the fourth quarter. Growth was strongest in Europe. In Germany new sales rose 217%. The UK showed continued strong growth, while new sales in Sweden showed signs of stabilisation.
- Total sales rose 20% in local currency, to SEK 25.2 billion.
- In view of the prevailing market conditions and Bankhall's result development, a goodwill write-down of SEK 931 million was made (see also p. 11).
- As previously disclosed, a provision of SEK 308 million for restructuring costs was made.
- As in previous years, adjustments have been made in the assumptions for embedded value calculations, resulting in a charge of SEK 545 million against the result of operations.
- The result before tax (according to Swedish GAAP) was SEK -1,156 million (1,163).
- Result and return measurements according to the embedded value method:
- The operating result was SEK -673 million (4,908).
- The result of operations was SEK -803 million (2,786).
- The present value of new business increased to SEK 642 million (343), mainly attributable to Germany.
- The calculated profit margin for new sales of unit linked assurance was 21.8%, compared with 18.3% during the third quarter of 2004.
- Cash flow from operating activities was SEK -0.5 billion, compared with SEK -0.3 billion during the third quarter of 2004. The increase is attributable to higher acquisition costs in connection with the rise in sales in Germany.
- The Board of Directors proposes a dividend of SEK 0.35 (0.30) (see also p. 22). The Board has decided to adjust Skandia's dividend policy starting in 2005. The dividend will reflect the group's long-term result development and amount to 25%-35% of profit for the year after tax and minority interests (as per the profit and loss account). The intention of this adjustment is to eliminate the effect on the dividend of the transition to International Financial Reporting Standards.
JANUARY-DECEMBER
- Sales and funds under management:
- Sales rose 29% (16%) in local currency, to SEK 98.0 billion.
- New sales of unit linked assurance rose 16% (6%) in local currency.
- Funds under management increased to SEK 390 (309) billion.
- Result according to Swedish GAAP:
- The result before tax was SEK -139 million (980).
- Earnings per share were SEK -0.16 (1.28).
- Results and return measurements according to the embedded value method:
- The result of operations was SEK 1,563 million (4,381).
- The operating result decreased to SEK 1,878 million (6,404).
- The calculated profit margin for new sales of unit linked assurance was 18.8% (19.6% for the full year 2003 using comparable assumptions). The present value of new business amounted to SEK 1,870 million (1,247) (see also section D).
- The operational return on net asset value before tax for unit linked assurance was 14.0%, compared with 12.5% for the full year 2003 (both years excluding operative assumptions).
- As previously announced, cash flow from operating activities was charged with one-time outgoing payments of SEK -0.8 billion and amounted to SEK -2.2 billion (-1.5).
- The group's financial position strengthened:
- Net asset value rose 5% to SEK 32.1 billion.
- Shareholders' equity rose 4% to SEK 16.0 billion.
- Borrowings decreased to SEK 3.1 billion (4.0).
- The debt-equity ratio decreased to 13.3% (19.1%).
- The sale of If was completed on 6 May 2004, entailing a liquidity improvement of SEK 4.5 billion.
JANUARY--DECEMBER Including discontinued operations
In 2004 discontinued operations pertain to the Japanese operation, while in 2003 they also pertain to the US operation and the banking operation in Switzerland.
- Sales through December amounted to SEK 98,031 million (88,827), of which discontinued operations accounted for - (SEK 13,462 million).
- The result after tax (according to Swedish GAAP) was SEK 674 million (1,246) and includes SEK 834 million (-68) from the result for discontinued operations. The gain on the sale of the Japanese operation was SEK 834 million.
- Earnings per share, before and after dilution, were SEK 0.66 (1.22 and 1.21, respectively).
(*) Does not include Livforsakringsaktiebolaget Skandia, which is run on mutual basis. All comparison figures pertain to the corresponding period in 2003 unless stated otherwise.
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