STOCKHOLM, Sweden, March 11, 2005 (PRIMEZONE) -- Skandia: Two typing errors have been discovered on page 31 in the Q4 2004 results press release, which was released on 28 February 2005.
The correct numbers for Return on equities for Euro Countries for the period to 31 Dec, 2004 is 6.20-6.30%
The correct number for Test M in the Sensitivity to changes in other assumptions `Effect using actual solvency rate at beginning of period' for the Value of business in force is -392.
Please find the amended page 31 attached. All amendments have been made in the results materials available on our website, www.skandia.com.
We regret any inconvenience this may have caused.
For further information, please contact:
Jan Erik Back, Chief Financial Officer, tel. +46-8-788 3720
ASSUMPTIONS FOR CALCULATING SURPLUS VALUES OF
UNIT LINKED BUSINESS IN FORCE
Long-term govt.
bond rate Return on
equities
2004 2003 2004 2003
% 31 31 31 31
Dec. Dec. Dec. Dec.
UK 4.54 4.79 6.97 7.24
Sweden 3.97 4.78 6.47 7.28
Euro 3,66- 4,28- 6,20- 6,78-
countries 3,80 4,40 6,30 6,90
Inflation Discount rate
2004 2003 2004 2003
% 31 31 31 31
Dec. Dec. Dec. Dec.
UK 4.00 3.90 7.00 7.30
Sweden 2.80 3.10 6.50 7.30
Euro 2,50- 2,50- 6,20- 6,80-
countries 3,50 3,40 6,30 6,90
SENSITIVITY ANALYSIS, UNIT LINKED ASSURANCE
SEK million
Effect on operating result for unit linked assurance (before tax) of a
one percentage point increase in interest-rate, growth and inflation
assumptions applied in valuing the in-force business
Test A Test B Test C Test D
Discount Equity Bond Expense
Total
Exposure 1) rate return return inflation effect
Value of business in force at 31
Dec. 2004
UK 12,368 -636 +325 +123 -40 -228
Sweden 7,766 -686 +435 -25 -99 -375
Other markets 7,332 -416 +203 -35 -173 -421
Total in 27,466 -1,738 +963 +63 -312 -1,024
force
Present value of new business for the
year, unit linked
UK 662 -157 +192 +72 -15 +92
Sweden 377 -61 +35 -1 -10 -37
Other markets 831 -118 +53 -4 -54 -123
Total new 1,870 -336 +280 +67 -79 -68
business
Present value
Value of of new
business
Sensitivity to changes in business for the year,
other assumptions
Test in unit linked
force
E One-time effect of a 1% decrease -120
in stock market 2)
F One-time effect of a 1% increase +105
in stock market 2)
G 10% increase in internal -514 -116
maintenance expenses
H 10% increase in internal -174
acquisition costs
I 10% increase in surrender -773 -153
assumptions
J Increase of 5 b.p. in distribution +725 +109
compensation for funds under
management
K 10% increase in mortality rates +7 +3
for ages greater than 65
L Impact of using end-of- - -38
period assumptions
M Effect using actual solvency rate -392 -34
at beginning of period
1) Value of business in force is based on end-of-period
assumptions. Present value of new business for the year, unit
linked, is based on assumptions at the start of the year. Before
deduction of taxes and deferred acquisition costs.
2) The difference in the one-time effect is due to a
change in the tax situation for Skandia Life UK.
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