Länsförsäkringar Hypotek: Interim Report January-June 2004

8/30/2004 6:41 AM EST

"Länsförsäkringar's home mortgage operations continue to develop highly favorably, and our aim is to further strengthen our position in the Swedish mortgage market. Mortgage lending has more than quadrupled during the past two years, and we currently hold a market share of 2.4%. The lending volume increased by 69% and the number of mortgage customers rose by 41% to 62,000 compared with the corresponding period in 2003. Our hallmarks are price competitive mortgage offering and a strong local presence, where we quickly and simply provide our customers with good service, says Bengt Jerning, Managing Director, Länsförsäkringar Hypotek."

Summary:
· Operating income totaled SEK 16.4 M (23.8). The change is due to temporary effects of
the company's refinancing agreement with the parent company and to altered allocation
principles between the parent company and the subsidiary.
· Mortgage lending, which has more than quadrupled in two years, rose by 69% during
the period to SEK 20.5 billion (12.2).
· The market share for private homes and tenant-owned apartments increased to 2.4%
(1.5).
· The number of home mortgage customers rose by 41% and amounted to 62,000
(44,000).
· Capital adequacy was 10.1% (9.4) and the Tier 1 ratio 8.2% (8.8).
· New lending rose by 8% during the first six months of the year and amounted to
SEK 5.3 billion (4.9) for the period.
· Loan losses remain at a low level. Loan recovery exceeded losses by SEK 0.5 M.

Figures in parentheses pertain to January - June 2003.

You will find the report at www.lansforsakringar.se/info

For further information, contact:

Bengt Jerning, Managing Director Länsförsäkringar Hypotek +46 8 588 415 81
  +46 73 964 15 81

Christer Baldhagen, Senior Vice President Corporate Communications +46 8 588 415 01
  +46 70 579 70 66


Länsförsäkringar, with 24 independent regional insurance companies and the jointly owned Länsförsäkringar AB, is Sweden's only customer-owned and locally based banking and insurance group. Länsförsäkringar has Sweden's most satisfied customers and is the most competitively priced bank with the most loyal customers according to the Swedish Quality Index. Länsförsäkringar is the "Life Assurance and Non-life Insurance Company of the Year" according to the Affärsvärlden business weekly and was named "Bank of the Year 2002" by the Privata Affärer business magazine. Länsförsäkringar offers a broad range of insurance and financial services for companies and private individuals. Länsförsäkringar is the market leader in the Swedish non-life insurance segment, with a market share of 32%. The market share in life and pension assurance is 10.9% and 2.9% in banking. Länsförsäkringar also includes Agria Djurförsäkring (animal insurance). Länsförsäkringar manages assets of SEK 140 billion.