Skandia announces sale of Japanese operations

    Skandia announces sale of Japanese operations
After the acquisition by Millea Holdings Skandia will be able to
further develop its international businesses
                                    
Skandia announced today that it has reached a definitive agreement with
Millea Holdings, under which The Tokio Marine & Fire Insurance Co. Ltd.
will acquire 100 per cent of the shares of Skandia Japan. The
transaction, valued at 20 billion YEN (approximately 1.4 billion SEK),
is subject to Japanese regulatory approval and will further improve
Skandia's liquidity position. In comparison with Skandia's report as per
30 September 2003, the transaction will have a positive impact on
shareholders' equity of approximately 0.8 billion SEK, net of expenses
and before provision for taxes. The impact on net asset value will be
positive by approximately 0.5 billion SEK.

Current policyholders of Skandia Japan, and their policies, will be
unaffected by this sale.

The transaction results from a strategic review by Skandia of its
Japanese business, and demonstrates the resolve of Skandia's Board to
implement findings from that review. This decision does not have
implications on any of Skandia's other international operations.

The strategic review highlighted Skandia's relative competitive position
in Japan and concluded that sale of the Japanese operation to a
strategically well-suited company with solid resources would best serve
the interests of Skandia's shareholders, as well as the needs of its
local employees, distribution partners, and policyholders. Skandia
focused on potential buyers that would be better able to reap the
rewards of Japan's rapidly growing variable insurance market.

Leif Victorin, Chief Executive Officer of Skandia, said, "While Japan
has substantial growth potential in the variable insurance market, our
relative competitive advantage would not enable us to fully exploit the
growing opportunities in this country." He added, "The sale of our
Japanese operation enables us to best concentrate our capital, financial
resources, and management attention in markets where Skandia maintains
stronger and more advantageous competitive positions."

Skandia said it views the Millea Holding Group as an ideal fit for the
future of the Japanese business. Employees, distributors, and
policyholders will benefit from the Millea Holding Group's considerable
scale in Japan. As Japan's leading non-life insurance provider, Millea
Holdings is in an ideal position to leverage both the growing
opportunities in alternative financial institution distribution channels
as well as the introduction of a new category of life products to its
diversified customer base. Mr. Victorin said, "We are particularly
gratified by the importance the Millea Holding Group places on the
acquired operation as a strategically vital new business stream going
forward."

HSBC served as financial advisors to Skandia.

Impact on other Skandia operations
The transaction will have no effect on Skandia's operations in countries
other than in Japan, or on relations between customers or other parties
and any company in the Skandia Group.

About Skandia
Skandia is an international long-term savings and pension provider.
Founded in 1855, Swedish-based Skandia currently operates in over 20
countries, with the United Kingdom and Sweden as its largest markets.
Skandia is one of the largest providers of investment products to the
independent financial adviser channel worldwide. Additional information
on Skandia can be found at www.skandia.com

About Millea Holdings
Millea Holdings was established in 2002 as the holding company of The
Tokio Marine and Fire Insurance Co., Ltd. and The Nichido Fire and
Marine Insurance Co., Ltd., whereby the managements of the two direct
non-life operations had been integrated.

Life insurance subsidiaries of Tokio Marine and Nichido Fire merged to
form The Tokio Marie & Nichido Life Insurance Co., Ltd. on October 1,
2003.

Millea Group is the largest non-life insurance group in Japan as well as
one of the largest in the world, and is listed on the Tokyo Stock
Exchange, Osaka Stock Exchange and Nasdaq.
Foreign media inquiries in Japan:
Jason Kendy or Deborah Hayden
Gavin Anderson & Company Japan, [phone]

Japanese media inquiries:
Minako Hattori or Yoko Kato
Gavin Anderson & Company Japan, [phone]

Investor inquiries and media outside Japan:
For further information, please contact:
Jan Erik Back, Chief Financial Officer, Tel [phone]
Harry Vos, Head of Investor Relations, Tel [phone]