Moody's downgrades the issuer rating of Länsförsäkringar AB - still best in the Nordic region

6/30/2003 9:03 AM EST

Moody's downgrades the issuer rating of Länsförsäkringar AB - still best
in the Nordic region

Moody's Investors Service has downgraded the issuer rating of
Länsförsäkringar AB from A1 to A3 with a negative outlook. According to
Moody's, this is a result of the net asset value declining and a weak
level of profitability in non-life insurance business.

"I'm not surprised that we have received a reduced rating, considering
how the insurance market and the financial markets have developed in
recent years. However, Länsförsäkringar remains strong. We have the
highest net asset value in the industry and we still have the highest
issuer rating among non-life insurance companies in the Nordic region,"
says Sten Dunér, Group Controller at Länsförsäkringar AB.

For further information, please contact:

Sten Dunér,
Group Controller, Länsförsäkringar AB +46 8 588 411 15
  +46 73 96 411 15

Mikael Östlund, +46 8 588 418 50
Chief Communications Officer, Länsförsäkringar
 

Länsförsäkringar, with 24 independent regional insurance companies and
the jointly owned Länsförsäkringar AB, is Sweden's only customer-owned
locally established banking and insurance group. Länsförsäkringar offers
a broad range of policies and financial services for companies and
private individuals. Länsförsäkringar is a leader in the Swedish market
for non-life insurance. Its share of the market amounts to slightly more
than 29 per cent. Its share of the market for life insurance and pension
insurance amounts to 10.5 per cent, with a 2.6 per cent of the bank
market. Länsförsäkringar includes Agria Djurförsäkring (Animal
Insurance). The Alliance manages assets totalling SEK 100 billion.
Premium income in 2002 amounted to approximately SEK 20 billion.