STOCKHOLM, Sweden, May 12, 2005 (PRIMEZONE) -- Skandia Liv:
New business(2) increased by 2% and amounted to SEK 289 million, while premiums written decreased from SEK 3.1 billion to SEK 3.0 billion.
New sales(3) increased by 7% compared with the same period last year while cancelled annual premiums decreased by 22%.
At 31 March 2005, Skandia Liv's managed assets amounted to SEK 252 billion. On the same date a year ago assets totalled SEK 243 billion.
The total return on Skandia Liv's investments in the first quarter amounted to 1.9% compared with 3.8% in the same quarter last year. This return does not include the capital gains from the recent sale of unlisted shares.
Mats Andersson head of investment management at Skandia Liv comments: ``The lower return during the first quarter compared with the same period last year is mainly explained by a fall of over 2% in the US stock market during the first quarter. On the other hand we benefited from a continued positive price trend on the Stockholm Stock Exchange as well as falling interest rates which increased the value of the bond portfolio."
Operating expenses amounted to 0.60% in relation to managed assets compared with 0.59% in the first quarter of 2004.
The collective funding ratio on 31 March was 102% compared with 98% on the same date last year. This means that Skandia Liv has met the Swedish Financial Supervisory Authority's requirement that the funding ratio may not be less than 100% for more than three years. Skandia Liv has now had a funding ratio of at least 100% for two consecutive quarters. This means that a reallocation is now no longer required.
The bonus rate was raised on 1 January 2005 to 3.5% for all savings and was raised again from 1 March to 4%.
Solvency amounted to 149% as per 31 March 2005 compared with 147% a year ago.
The most recent Customer Satisfaction survey carried out by Skandia Liv (private customers) shows a substantial improvement for Skandia Liv. Customers' overall approval of the company has improved from 56% at year-end 2004 to 70% today.
(1)Pertains to Skandia Liv Sweden. The group also includes Skandia Liv's subsidiaries in Denmark and Finland.
(2) New business is measured according to the industry definition: single premiums divided by 10 plus annual premiums.
(3) New sales consist of new business and extensions to existing insurance contracts.
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://wpy.waymaker.net/client/waymaker1/WOLReleaseFile.aspx?id=97646&fn=wkr0001.pdf