Independent investigation finds no criticism of Länsförsäkringar

12/19/2003 4:44 AM EST

Summary
The investigation report shows that there is no grounds for criticism
regarding how the internal transactions between the life assurance and
non-life insurance collectives was carried out and that no collective
benefited at the other's expense. The investigating group has no remarks
criticizing the agreement with ABN AMRO, the sale of the unit-linked
life company, cooperation with Nordic Alternative Investment Advisors,
internal cost distribution, internal loans, remuneration to the regional
insurance companies or remunerations to senior executives. Neither was
there any criticism of Länsförsäkringar's allocation of apartment
leasing contracts or administration of renovation costs.The
investigating group determined that the asset management agreement
between Länsförsäkringar Liv (life assurance) and Länsförsäkringar Sak
(non-life insurance) has a three-month notice period and contends that
the short notice period is not well conceived, neither for
Länsförsäkringar Sak nor Länsförsäkringar Liv.

At the same time, the report points out possibilities for improvements.
The Board of Directors of Länsförsäkringar Liv and Länsförsäkringar AB
took this into consideration and decided that:

·The insight and influence of the life assurance policyholders
are being enhanced through a policyholders' association that has been
formed. The members are chosen by the customers based on proposals from
the policyholders' association's nominating committees.

·To ensure independence and integrity in relation to the owner,
in the future Länsförsäkringar Liv's Board of Directors will comprise a
majority of independent members. Two of the independent members will be
appointed by Länsförsäkringar Liv's policyholders' association and the
remainder by the owner, Länsförsäkringar AB.

·The Chairman of Länsförsäkringar Liv will continue in the
future to be a person appointed by the owner, Länsförsäkringar AB.

·The Board of Directors of Länsförsäkringar Liv internally
appoints a Vice Chairman from among the independent members.

·Guidance and follow-up of the life assurance operations will be
strengthened through overview of central control documents and internal
audits as well as the establishment of new control and auditing
functions.

·To achieve better balance in the total contract structure, the
contract period of the management assignment between Länsförsäkringar
Liv and Länsförsäkringar Sak will be renegotiated with the aim of an
extension in return for certain annual financial compensation to
Länsförsäkringar Liv.

·Information to life assurance policyholders is being improved further.
·
For further information, contact:

Hans Jonsson, Chairman Länsförsäkringar AB +46 (0)8-588 415 72
  +46 (0)73-964 15 72
Tommy Persson
Chairman Länsförsäkringar Liv and
President Länsförsäkringar AB +46 (0)8-588 417 90
  +46 (0)73-964 17 90
Anne-Marie Pålsson, Vice Chairman Länsförsäkringar Liv+46 (0)70-879 13 93
 
Hans Benndorf, President Länsförsäkringar Liv+46 (0)8-588 408 14
  +46 (0)73-964 08 14
Christer Baldhagen, Senior Vice President
Corporate Ccommunications Länsförsäkringar AB+46 (0)8-588 415 01
  +46 (0)70-579 70 66