Moody's revises Skandia's outlook to stable from developing

    Moody's revises Skandia's outlook to stable from developing

Moody's Investors Service announced today that it had revised the rating
outlook for Skandia Insurance Company Ltd to stable from developing.
Separately, Moody's assigned an insurance financial strength rating of
A3/stable outlook to Skandia Insurance Company Ltd.

Moody's said that the revision of Skandia's outlook from developing to
stable reflects the completion of the group's strategic review, the
group's improved leverage and risk profile following the sale of
American Skandia, and the prospects for greater stability in the group's
earnings following extensive cost cutting and product redesign, as
demonstrated in the stabilizing profit margin. Moody's also noted the
positive sales volumes in the UK and selective European operations.
These factors are likely to translate into tangible benefits in the
coming year, in Moody's opinion.

Offsetting these positives, Moody's also notes that the Skandia Group's
cash flow has been negative for the first nine months of 2003, in part
due to one -off items. However, Moody's expects that Skandia's cash flow
will move into balance during the course of 2004.

Moody's said the rating is also supported by the low risk profile of the
business written, good liquidity, and Skandia's leadership position in
the market with 29% market share in the domestic unit linked insurance
market.

For further information, please contact:
Jan Erik Back, Chief Financial Officer, tel. [phone]
Harry Vos, Head of Investor Relations, tel. [phone]