Länsförsäkringar Fondförvaltning becomes subsidiary of Länsförsäkringar Bank

12/22/2003 4:12 AM EST

Länsförsäkringar Fondförvaltning becomes subsidiary of Länsförsäkringar
Bank

Länsförsäkringar Bank is acquiring Länsförsäkringar Fondförvaltning AB
from Länsförsäkringar AB. Länsförsäkringar Bank is a subsidiary of
Länsförsäkringar AB. The purchase consideration amounts to SEK 115 M.

"There is a natural connection between the banking and fund operations.
Consequently, this transaction is fully in line with our strategy. As a
result of the acquisition of the fund management company, the bank's
earnings will be strengthened," says Tomas Johansson, President,
Länsförsäkringar Bank.

Transfer
The transaction is being implemented as a non-cash issue, which results
in an increase in the share capital in Länsförsäkringar Bank of SEK 115
M. The acquisition is intended to occur as of January 1, 2004 and is
dependent upon the necessary approvals of the authorities.

Key figures September 30, 2003
Länsförsäkringar Bank
Return on equity 3.1
Capital adequacy ratio, % 8.55
Tier 1 ratio, % 8.06
Total assets, SEK M 29,256
Income, SEK M 34.6
Rating, Standard & Poor's K 1/BBB+


Key figures Länsförsäkringar Fondförvaltning September 30, 2003
Assets under management, SEK M 31,679
Income, SEK M 11.9

Pro forma Bank Group, including Länsförsäkringar Fondförvaltning

Income statement, Jan. 1, 2003-Sep. 30, 2003 SEK M
Net interest income 497.8
Commission, net 130.1
Other revenues 87.6
Total operating revenues 715.5
Personnel expenses 107.9
Other expenses 293.7
Total expenses 401.6
Profit before loan losses 72.5
Loan losses, net 33.6
Profit from banking business 38.9
Profit from insurance business 3.1
Total operating profit 42.0
Tax -2.1
Income for the period 39.9

Balance sheet, Sep. 30, 2003 SEK M
ASSETS
Lending to the public 27,899
Bonds 649
Tangible and intangible assets 223
Assets in the insurance business 5
Other assets 653
Total assets 29,429
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits and borrowing from the public 18,546
Securities issued 6,756
Debt in insurance business 6
Other liabilities 2,106
Subordinated debt 180
Shareholders' equity 1,835
Total liabilities and shareholders' equity 29,429


For further information, contact:

Tomas Johansson, President +46 (0)8-588 419 82
Länsförsäkringar Bank +46 (0)73-964 19 82
 

Christer Baldhagen, +46 (0)8-588 415 01
Senior Vice President
Corporate Communications, +46 (0)70-579 70 66
Länsförsäkringar