STOCKHOLM, Sweden, March 5, 2003 (PRIMEZONE) -- Alecta 2002:
-- Collective solvency reserve on December 31, 2002 amounted to
SEK 31.7 billion (2001: 60.8). The collective solvency margin was
113 percent (124) and the solvency ratio was 6.8 (13.1). Due to the
considerable downturn in stock markets, a number of actions were
taken in October to improve the company's solvency. These actions
resulted in an immediate increase of approximately SEK 15 billion
in solvency reserve and are expected to make an annual contribution
of SEK 5 billion.
-- Premium income rose 16 percent to SEK 22.2 billion (19.1).
Single premiums rose by 31 percent.
-- A loss of SEK 31.3 billion (loss: 4.4) was reported after tax.
The weaker earnings were due mainly to return on capital, which
deteriorated by SEK 31.9 billion to a loss of SEK 35.7 billion.
-- The total return on investments was minus 11.0 percent (minus 1.0).
The market value of investments on December 31, 2002 was SEK 285.7
billion (334.2), corresponding to a decrease of SEK 48.5 billion
during the year. Cash repayments of client company funds totaling
SEK 10.0 billion adversely affected the value of assets. Net
investments were made in Swedish fixed-income securities, while
net divestments were made in other types of assets, particularly
foreign shares.
-- As of 2003, the discount on premiums for retirement and family
pensions was removed, as were premium reductions on risk policies.
-- Operating expenses for insurance operations amounted to SEK 592
million (549). The expense ratio was 2.7 percent (2.9) and the
administrative expense ratio was 0.25 percent (0.21).
-- Of the provisions for repayments of client company funds of SEK
66 billion that were posted as a result of the surplus solvency
that arose during 1994-1998, SEK 11 billion remained for allocation
to client companies at the end of December.
For more information:
Lars Otterbeck, President
+46 8-441 66 60, 070-510 00 36
Kerstin Stenberg, Senior Vice President, Finance & Administration
+46 8-441 61 40, 070-581 61 40
Cecilia Schon Jansson, Senior Vice President, Corporate Communications
+46 8-441 93 50, 070-526 93 50
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