Alecta to reduce ITP charges

3/6/2001 6:49 AM EST

Alecta, formerly Försäkringsbolaget SPP, ömsesidigt, has decided to reduce
ITP charges by approximately 15 percent in order to reduce the continued
growth in its surplus funds.

"With this decision Alecta is taking a step towards reducing the surplus
and simplifying its procedures. As a result of the Swedish Financial
Supervisory Authority's partly new application of the rules, we can now
reduce these charges to the benefit of our client companies and their
employees," says Lars Otterbeck, President of Alecta.

For many consecutive years Alecta has created a surplus in its managed
pension assets in the ITP Plan. At the end of 2000 this surplus amounted
to SEK 71.9 billion.

"Basically a surplus provides confirmation that an insurance company has
managed its assignment well," Lars Otterbeck states. "But the surplus must
also be in balance with pension commitments."

Alecta has completed the previously decided evaluation of the surplus
funds policy which was originally adopted in December 1998. The evaluation
has resulted in a decision by Alecta's Board to change the spread and
reduce premiums. Otherwise the policy remains unchanged. The Board may
consider further changes to the surplus funds policy at a later date.

The spread for the normal solvency margin, i.e. the buffer that is
required over and above the estimated value of future pension payments,
will be increased from 10 - 20 percent to 10 - 30 percent of pension
commitments. This is being done to make the system more secure despite
rising fluctuations in investment return and to meet new accounting
requirements in the Swedish Insurance Business Act.

At year-end 2000, the collective solvency margin was 127 percent. No new
allocation of surplus funds will be made at present.

At the same time, a review is being started at Alecta of the rules and
routines for repayment of funds out of the accumulated surplus.

For additional information:
Lars Otterbeck, CEO, +46 8 441 66 60
Cecilia Schön Jansson, Senior Vice President, Corporate Communications,
+46 8 441 93 50 or +46 70 526 93 50

Alecta develops, offers and manages collectively agreed pension plans. The
company's core business is the occupational pension ITP, which is based on
a collective agreement between the Swedish Employers' Confederation (SAF)
and the Federation of Salaried Employees in Industry and Services (PTK).
Alecta is the largest manager of pension assets in the Nordic region with
SEK 350 billion in assets under management. In recent years Alecta has
developed extensive competence in the area of health and rehabilitation.
Alecta has 600 employees who provide service to 28,000 client companies
and administer 1.4 million insurance contracts. Annual premium income
amounts to more than SEK 15 billion.