Handelsbanken Liv

Annual Report

2002 Summary

Highlights of the year – Handelsbanken Liv Annual Report 2002

02Highlights of the year

JANUARY 2002.Handelsbanken Liv demutualises Traditional life insurance (with a guaranteed return) and unit-linked insurance are placed in the same company. A preliminary bonus rate is replaced by actual returns. The collective risk reserve is discontinued. Owners rather than policyholders are now responsible for risk capital.

APRIL 2002. Handelsbanken Liv introduces transfer rights for private customers and contractual pensions.Transfer rights allow our private and contractual pen-sion customers to transfer their capital to another life insurance provider or to change management form within Handelsbanken Liv.

SEPTEMBER 2002.Launch of Garantikapitalspar – the first new product in the demutualised company.This is an endowment insurance with a guaran-teed return and repayment cover. Can be taken out for three different purposes: investment, savings, or inheritance and gift.

OCTOBER 2002.Handelsbanken Liv acquires property.Handelsbanken Liv acquires the property adja-cent to the head office on Torsgatan in Stock-holm and thus becomes owner of the entire Läkaren block. A multi-year rental contract is signed with the property’s previous owner, Arla.

Contents – Handelsbanken Liv Annual Report – 2002

Contents

Highlights of the year 1

President’s comments 2

Strategic direction 4

Five-year summary 5

Report of the Board of Directors 6

Profit and loss account 9

Balance sheet 10

The Board of Directors 12

Executive management 13

KEY FIGURES

Premiums written, SEK million 2002 2001 2000 1999 1998

Guaranteed rate 2,490 2,350 2,260 2,194 1,818

Unit-linked insurance 2,758 3,528 6,735 4,689 3,248

Total 5,248 5,878 8,995 6,883 5,066

Managed assets, SEK million

Guaranteed rate 18,761 20,003 20,264 19,862 16,034

Unit-linked insurance 12,693 16,733 16,951 13,456 6,395

Total 31,454 36,736 37,215 33,318 22,429

Total return, % –7.4 –2.1 0.2 21.6 18.7

(Insurance with guaranteed return)

Average total return1998-2002: 6.2%.

• The market share of new endowment insurance business to 12.7% (10.6). The overall market decreased by 40%.

• The market share for new private pension insurance business increased to 13.4% (13). The overall market decreased by 25%.

In the state employees’ new pension agreement, PA03, Handels-banken Liv was selected by 9.7% of those who made active selections. This put Handelsbanken Liv in third place among the companies chosen.

In terms of the value of new business, Handels-

banken Liv, together with its sister company

SPP, is the second-largest insurance company

in Sweden, with a market share of 18%.

This document is an abbreviated version of Handelsbanken Liv’s complete Annual Report for 2002 published in Swedish.

Head office:Handelsbanken LivTorsgatan 12Box 1325SE-113 83 Stockholm, SwedenTelephone: +46 8 613 20 00Fax: +46 8 613 21 01

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President’s comments – Handelsbanken Liv Annual Report 2002

On 1 January 2002, Handelsbanken Liv Försäkringsaktiebolag

and Handelsbanken Liv Fondförsäkringsaktiebolag were com-

bined to create the first demutualised life insurance company

in Sweden.

On 1 April, Handelsbanken Liv also became the first com-pany in Sweden to allow its private customers and custo-mers with contractual pensions to transfer insurance capital to another insurance provider. At the same time, private and corporate customers were given the right to transfer their insurance capital between unit-linked insurance and insurance with a guaranteed return. This marked the end of the conversion process that began when the new Insurance Business Act came into effect on 1 January 2000.

Fairness through demutualisationThe severe decline in the stock market during 2002 led to a decrease in the value of life insurance companies’ assets. The consequences of this will be long term. When the stock market starts to recover, policyholders who save in mutual companies will have to forego a significant portion of their returns over a long period so that the collective risk capital can be rebuilt.

According to our new model, each customer’s insurance capital is individual and develops entirely in line with the total return, but with the guaranteed capital as a lower limit. So our customers need not relinquish any portion of future returns to rebuild the collective risk capital. Such capital will not be required. Instead, our owner, Handels-banken, has contributed SEK 1.5 billion in shareholders’ equity and is thus responsible for the required solvency in the company. This, together with the freedom of choice and products we can offer, has impressed the market. In the past year we saw a 6% increase in premiums for insurance with a guaranteed rate, while the market declined by 10%.

Severe stock market declineDespite the heavy falls in the stock market, total return for 2002 remained at –7.4% (–2.1). This is a return that stands strong compared to the industry average of –9.7% (–2.7). So we also achieved our objective of having a return that outperformed the industry average. Our negative return was limited by significant re-weighting from equities to bonds and short fixed-income instruments. During the autumn, we also increased our real estate holdings by acquiring the Arla property on Torsgatan in Stockholm, with an annual yield of more than 7%.

Rising disability insurance costsDifficulties in 2002 were not confined to the stock market. The year also saw a substantial rise in long-term sick leave in Sweden. The costs of the social insurance system are now showing a steep and rising curve. Obviously, this is a major social problem, but it also has a very tangible impact on our costs in Handelsbanken Liv. For example, the result for

President’s comments

“Increased co-operation with SPP will

cut costs and result in a more efficient

sales organisation in 2003”

President, Barbro Johansson

3

President’s comments – Handelsbanken Liv Annual Report 2002

the risk business deteriorated significantly. This will lead to substantial increases in disability insurance premiums in 2003. Another reason for the negative risk result is that the number of death benefit claims paid by the group life insurance business grew appreciably. This is because the average age in the group has increased and this is a process that has accelerated in recent years. Earlier, we used a steady, flat-rate premium so that, in principle, poli-cyholders paid the same premium regardless of age and gender. This translated to high premiums for younger age groups and excessively low premiums for those who are a little older. To create sound, balanced disability and life insurance business, these premiums will be re-aligned to a natural premium in 2003. A natural premium means that individual premiums will be set based on age and gender.

Lower costs and higher efficiencyThe administrative result for the year as a whole was negative: SEK –16 million. Among other things, this is due

to costs for finalising conversion to a profit-distributing, demutualised company and to the introduction of transfer rights.

A positive operating result is an important factor for long-term development of operations. This requires lower costs which can only be achieved through more efficient systems and routines and higher volumes. In 2003, we will therefore increase our co-operation with our sister company, SPP, in terms of sales and administration. I am convinced that this co-operation will cut costs and result in a more efficient sales organisation for both companies in 2003.

Simplicity creates satisfied customers.Managing policyholders’ capital and making it grow is a major responsibility. Moreover, traditionally our industry has been unnecessarily complicated for our customers to assess. Knowing where you should purchase your insu-rance and from which company has not been easy. The changes we implemented in 2002 make it easier and clearer for customers to choose Handelsbanken Liv and to give us their continued confidence. Satisfied customers are critical for the company’s growth, which is why we value customer index surveys. We are proud that the 2002 survey custo-mers placed Handelsbanken Liv at the absolute top level.

A company is nothing without its customers, but it totally depends on its employees. Our reorganisation during the year would have been impossible without their excellent efforts.

Stockholm, February 2003

Barbro Johansson

4

Strategic direction – Handelsbanken Liv Annual Report 2002

Strategic direction

Insurance is an important growth area for the Handels-

banken Group. This is due to changes in the national

pension system and in the occupational pension sector,

which generate greater savings in the competitive segment

of the insurance market. In addition, endowment insurance

is a natural and important part of investment and wealth

management.

Together with SPP, Handelsbanken Liv is responsible for

insurance business within the Group. Together we cover the

needs of current and potential customers for wealth mana-

gement solutions, occupational and private pension savings,

and risk insurance in competition with other insurance com-

panies in the market.

OUR OBJECTIVESPositive contribution to profitability.Handelsbanken Liv is part of the Handelsbanken Group where life insurance is a core business. Similarly, the objectives, policies and organisation in Handelsbanken also make up the basis of our operations.

Handelsbanken Liv’s objective, as a demutualised com-pany that is fully consolidated in the Group, is to make a positive contribution to the Group’s profitability. This will be achieved through satisfied customers, good cost control and a satisfactory total return.

Cost effectivenessThe Swedish life insurance market is becoming increa-singly competitive. Our cost levels are important for our ability to offer our customers competitive terms. A well-managed, cost-effective company has more satisfied custo-mers. So one of our objectives is to have lower operating expenses than our competitors.

Good profitability in Handelsbanken Liv, and good growth of our customers’ insurance capital, require the company’s total return on insurance with guaranteed rates to exceed the guaranteed commitment. The objective is that our total return should exceed the average for other life insurance companies in Sweden.

Simplicity, a personal approach and freedomIn order for us to create growth and profitability, our customers must be satisfied with our performance. Besides

good growth of customers’ insurance capital, this also requires customer focus. Our core values, simplicity, a personal approach and freedom, must permeate our work and form the foundation on which we build our customer relations. We want our customers to feel they get a little more than they expected from a contact with Handelsban-ken Liv. Our aim is to have the highest number of satisfied customers of any life insurance company in Sweden.

Stimulating working environmentFor Handelsbanken Liv to succeed in its efforts, the com-pany must have competent, committed employees. So an important objective is to create a working environment and atmosphere in which all employees are encouraged to think independently, take the initiative and seek further development.

As in the rest of the Group, Handelsbanken Liv will work in a decentralised way with clearly defined responsi-bilities and authority. Financial control and follow-up are required to support this.

OUR STRATEGIESA full-range companyTogether with SPP, Handelsbanken Liv will offer a full range of life insurance products. Handelsbanken Liv’s products and services are offered primarily to the Bank’s existing and future customers, and sales are made in co-operation with the branch offices.

Joint organisationWith the aim of raising efficiency and broadening exper-tise within the Group’s insurance operations, the integra-tion between Handelsbanken Liv and SPP will continue, and a new organisation will be established in early March 2003. The basis of the new organisation will be a joint sales organisation that builds on close co-operation with Handelsbanken’s branch offices.

Part of the universal bank conceptThe Nordic countries are the home market of the Han-delsbanken Group. For Handelsbanken Liv, this means that we are part of a universal bank concept that extends to the other Nordic countries. Since the build-up of our operations is co-ordinated with the Bank’s development in each country, the product range is not always as fully developed as in Sweden.

Five-year summary

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Five-year summary – Handelsbanken Liv Annual Report 2002

SEK million 2002 2001 2000 1999 1998

EXTRACT FROM PROFIT AND LOSS ACCOUNT

Premiums written 5,248 3,528 6,735 4,689 3,248

Investment income –1,060 344 197 142 105

Claims incurred –3,120 –1,301 –1,099 –715 –343

Balance on the technical account, life insurance business 160 213 259 109 40

Net profit/loss for the year –222 –78 106 57 15

FINANCIAL POSITION

INVESTMENTS

Buildings and land 1,320 – – – –

Shares and participations 3,543 17 124 102 75

Bonds and other fixed-income securities 13,561 456 251 124 117

Other financial investments 28 – – – –

Total investments 18,452 473 375 226 192

Investments for which the life insurance policyholders bear the risk 12,651 16,733 16,951 13,456 6,395

Technical provisions for life insurance where the policyholders bear the risk 12,863 16,733 16,951 13,456 6,395

Technical provisions 18,590 – – – –

FUNDING CAPITAL

Shareholders’ equity 2,494 1,261 338 231 177

Deferred tax 461 335 6 12 6

Total funding capital 2,955 1,596 344 243 183

KEY RATIOS

Expense ratio, % 6.9 2.4 0.9 1.3 1.8

Administrative expense ratio, % 1.0 0.5 0.4 0.6 1.2

Total return, savings insurance with guaranteed rate, % –7.4

As of 1 January 2002, the traditional, demutualised life insurance operations and the unit-linked insurance operations were combined in the same company. Previously, traditional insurance operations were conducted in a separate company. Comparative figures for 1998-2001 apply solely to the unit-linked insurance operations. It is impossible to recalculate comparative figures for 1998-2001 to show results for the mutually operated traditional insurance operations as a demutualised entity during this period.

Report of the Board of Directors

The Board of Directors of Handelsbanken Liv Försäkrings-

aktiebolag (publ), corporate identity number 516401-8284

(Handelsbanken Liv) hereby submits the annual report for

2002, the company’s twelfth financial year.

GeneralThe company is a wholly owned subsidiary of Svenska Handelsbanken (publ), corporate identity number 502007-7862 (Handelsbanken).

With effect from 2002, the company conducts both life insurance operations with management in securities funds and life insurance operations with guaranteed rates.

Policyholders’ unit-linked insurance savings are mainly invested in Handelsbanken’s funds. The company’s name is being changed from Handelsbanken Liv Fondförsäkrings AB to Handelsbanken Liv Försäkrings AB.

Handelsbanken Liv purchases IT and asset manage-ment services from Handelsbanken in accordance with agreements.

The life insurance market in SwedenPremiums written in Sweden for new life insurance busi-ness amounted to SEK 28 billion (39) in 2002. This is a reduction of 28% compared with 2001. Total premiums written, including renewals, amounted to SEK 94 billion (104).

Handelsbanken Liv’s total premiums written in Sweden amounted to SEK 4,928 million (5,676). Measured in pre-miums written, market share was 5.3% (5.4).

Other Nordic countriesWithin the framework of Handelsbanken’s universal bank concept, life insurance is a natural part of the Bank’s pro-duct range in the Nordic region. Sales of savings insurance products are conducted through the subsidiary SHB Liv Forsikringsaktieselskab (SHB Liv) in Denmark. SHB Liv conducts operations through branch offices in Finland and Norway. Sales of risk insurance in Norway are conducted via a branch office, while sales in Denmark and Finland are handled as cross-border operations from Sweden and comprise various group life insurance solutions.

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Report of the Board of Directors – Handelsbanken Liv Annual Report 2002

Premiums written in other Nordic countries amounted to SEK 320 million (203), of which Norway accounted for SEK 266 million (173), Finland for SEK 53 million (30) and Denmark for SEK 1 million (0).

Portfolio transferAn amended Swedish Insurance Business Act came into affect on 1 January 2000. Under the new act traditional life insurance companies can be converted into demutuali-sed operations, and unit-linked and traditional life insuran-ce operations can be conducted within the same company. The act also gives insurance customers transfer rights.

In autumn 2000, Handelsbanken Liv Försäkrings AB, corporate identity number 516401-8326, wrote to all its customers with voting rights, approximately 260,000, and explained the consequences of demutualisation. The reply rate was high with approximately 80% of all customers showing an active interest by voting. 97.8% of these were in favour of the proposed demutualisation. In April 2001, the Swedish government approved the company’s conver-sion into a demutualised, profit-distributing life insurance company.

On 1 January 2002, Handelsbanken Liv Försäkrings AB transferred its entire insurance portfolio to Handels-banken Liv Fondförsäkringsaktiebolag which has subse-quently conducted insurance with guaranteed rates and unit-linked insurance in the same company.

Transfer rightsOn 1 April 2002, Handelsbanken Liv introduced transfer rights for its private savers and contractual pension custo-mers. At the same time all customers were given the right to switch management form between unit-linked insurance and insurance at guaranteed rates and vice versa.

Asset managementAsset management is conducted in two different portfo-lios. The portion of investments attributable to savings customers’ assets at a guaranteed rate is placed in a port-folio made up of fixed-income securities, equities and real estate. The allocation between the different asset classes is

decided on the basis of liabilities and confidence in deve-lopment in the financial markets.

The portion of investments not attributable to savings customers’ assets at a guaranteed rate or unit-linked insu-rance is mainly placed in fixed-income securities.

Savings customers’ investmentsTotal return amounted to –7.4% (-2.1). The average total return over the last five years amounted to 6.2%.

2002 was characterised by severe stock market down-turns while interest rates fell. For this reason, in the sum-mer and early autumn Handelsbanken Liv significantly reduced the proportion of equities in the portfolio in favour of fixed-income securities. In anticipation of a negative development for the US dollar, all currency expo-sure was phased out. Within fixed-income management the foreign fixed-income portfolio was sold and replaced with Swedish fixed-income investments. In equities mana-gement, all positions in foreign currency were hedged.

There was concern that the Swedish Financial Super-visory Authority would reduced the highest permitted dis-count rate used when calculating life insurance provisions which would have tangible effects on all life insurance companies. At the same time, believing that market inte-rest rates will rise, Handelsbanken Liv chose relatively short durations for its fixed-income investments.

In late autumn, equity exposure was cautiously increased again when signs of recovery could be detected in the market. Hedging of investments’ currency effect continued.

At the beginning of October 2002, Handelsbanken Liv purchased Arla’s property, Läkaren 9, on Torsgatan in Stockholm and signed a ten-year rental agreement with Arla. Handelsbanken Liv already owns the adjacent pro-perty where the company has its head office. The real esta-te portfolio consists of properties located in Stockholm’s inner city.

SPP As a step towards a future joint organisation for Han-delsbanken Liv and SPP, the companies co-ordinated their asset management activities through the formation of a joint organisation tasked to monitor and reallocate the two companies’ investments.

This integration will continue in 2003. On 1 March 2003, Handelsbanken Liv and SPP formed a joint organi-sation that reflects Handelsbanken’s decentralised organi-sation. The sales organisations are being merged and seven regional managers will be appointed. The regional mana-gers will be responsible for all operations in their regions. Two new units are being started to support the regions: Business Support Private and Business Support Corporate. The companies’ development units and administrative functions will also be merged.

Handelsbanken Liv’s subsidiary Handelsbanken Varu-märkes AB (HVA) owns the rights to the SPP brand. In 2001 and 2002 SPP paid a licensing fee for the use of the brand. Transactions between mutual life insurance compa-nies and their owners have been the subject of discussion recently. Although the brand fee is of a completely diffe-rent nature, HVA will no longer debit others for use of the SPP brand.

TaxThe company pays a standard yield tax on the assets managed on behalf of policyholders. Return on equity and the surplus result for risk insurance are taxed with regular corporate tax of 28%. The Group’s tax expense amounted to SEK 313 million (164).

ResultsThe loss after tax rose from SEK –78 million to SEK –222. The less favourable result was largely due to the fact that Handelsbanken Liv covered policyholders’ guaranteed values with more than SEK 100 million. This was due to

7

Report of the Board of Directors – Handelsbanken Liv Annual Report 2002

8

Report of the Board of Directors – Handelsbanken Liv Annual Report 2002

the negative total return. The deterioration in earnings was due to the negative result in the risk business.

In 2003 premiums for disability insurance will be rai-sed by an average of 65%. A new premium structure has been introduced for group life insurance where premiums are based on age and gender. A flat-rate premium was previously applied.

SolvencyThe solvency ratio for the parent company amounted to 1.26 at 31 December 2002. In conjunction with the portfolio transfer on 1 January 2002, Handelsbanken provided SEK 1,100 million in the form of a shareholders’ contribution. The size of the contribution was determined on the basis of the company itself being able to cope with financial strain, and being able to increase sales, without the need for additional shareholders’ equity. The target for the solvency ratio is 1.3.

Total return (%)

Fixed-income 7.1

Equities –36.8

Real estate 6.1

Other –

Total –7.4

The total return pertains to assets managed for savings customers with a guaranteed rate.

Return is calculated according to the principles for time-weighted return. These calculations are performed in accordance with Global Investment Performance Stan-dards (GIPS). The basis used in the calculation is the value development of all holdings adjusted for cash flows. The calculation is performed on a daily basis. Return is calcu-lated after deduction for asset management charges.

9

Profit and loss account – Handelsbanken Liv Annual Report 2002

Profit and loss account

Group Parent company

SEK thousand 2002 2001 2002 2001

TECHNICAL ACCOUNT, LIFE INSURANCE BUSINESS

Premiums written (net of reinsurance) 5,247,942 3,527,849 5,009,368 3,362,671

Investment income 1,525,553 344,135 1,511,255 340,388

Unrealised gains on investments 232,083 – 231,583 –

Other technical income 89,567 50,000 – –

Claims incurred (net of reinsurance) –3,119,876 –1,301,466 –3,076,840 –1,271,194

Change in technical provisions 5,027,815 287,850 5,013,610 313,056

Operating expenses –341,728 –80,831 –327,175 –69,764

Investment charges –1,607,930 – –1,607,894 –

Unrealised losses on investments –1,210,053 – –1,210,053 –

Decrease in value of investments where investment risk is borne by the policyholders –5,563,914 –2,489,710 –5,355,027 –2,383,366

Other technical charges –156,483 –125,000 –6,483 –

Investment income transferred to finance business 36,726 – 36,726 –

Balance on the technical account, life insurance business 159,702 212,827 219,070 291,791

NON-TECHNICAL ACCOUNT

Balance on the technical account, life insurance business 159,702 212,827 219,070 291,791

Investment income 58,562 19,115 55,354 17,149

Unrealised gains on investments 12,641 8,774 11,911 8,149

Investment income transferred from life insurance business –36,726 –36,726

Investment charges –102,465 –155,559 –12,219 –31,373

Appropriations 10,541

Profit before taxes 91,714 85,157 237,390 296,257

Tax –313,219 –163,599 –350,985 –220,439

NET PROFIT/LOSS FOR THE YEAR –221,505 –78,442 –113,595 75,818

10

Balance sheet – Handelsbanken Liv Annual Report 2002

Balance sheet

Group Parent company

SEK thousand 2002 2001 2002 2001

ASSETS

Intangible assets

Other intangible assets 2,725,000 2,875,000 – –

Investments

Land and buildings 1,320,000 – 341,000 –

Shares and participations in group companies 1,451,280 34,915

Loans to group companies 140,000 –

Shares and participations 3,543,422 17,142 3,542,937 11,834

Bonds and other fixed-income securities 13,561,247 455,503 13,547,457 442,020

Other loans 267 – 267 –

Derivatives 33,666 – 33,666 –

18,458,602 472,645 19,056,607 488,769

Investments for the benefit of life insurance

policyholder who bear the investment risk 12,651,137 16,733,242 11,819,323 15,925,700

Reinsurers’ share of technical provisions

Claims outstanding 57,122 – 57,122 –

Receivables

Receivables arising out of direct insurance operations 18,019 – 18,019 –

Receivables arising out of reinsurance operations 6,930 – 6,930 –

Other receivables 529,828 1,479,359 113,803 107,812

554,777 1,479,359 138,752 107,812

Other assets

Tangible assets 9,856 23 9,845 0

Cash at bank and in hand 2,136,635 150,153 2,058,680 102,193

Other assets – 684 – 684

2,146,491 150,860 2,068,525 102,877

Prepayments and accrued income

Accrued interest income 222,251 275 222,245 61

Deferred acquisition costs 34,150 40,790 34,150 40,790

Other prepayments and accrued income 8,328 1,546 6,170 –

264,729 42,611 262,565 40,851

Total assets 36,857,858 21,753,717 33,402,894 16,666,009

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Balance sheet – Handelsbanken Liv Annual Report 2002

Group Parent company

SEK thousand 2002 2001 2002 2001

SHAREHOLDERS’ EQUITY, PROVISIONS AND LIABILITIES

Shareholders’ equity

Share capital, 100,000 shares par value of SEK 1,000 100,000 100,000 100,000 100,000

Statutory reserve 20,000 20,000 20,000 20,000

Reserve for unrealised gains 108,253 5,537 108,253 5,537

Other restricted reserves 1,115,156 859,437 – –

Profit brought forward 1,372,410 354,471 1,284,722 210,955

Net profit/loss for the year –221,505 –78,442 –113,595 75,818

2,494,314 1,261,003 1,399,380 412,310

Technical provisions(gross)

Life insurance provisions 17,849,544 – 17,849,544 –

Provisions for claims outstanding 740,752 – 740,752 –

18,590,296 – 18,590,296 –

Provisions for life insurance where the investmentrisk is borne by the policyholder

Conditional bonuses 170,553 – 170,553 –

Unit-linked insurance commitments 12,692,729 16,733,241 11,858,799 15,925,700

12,863,282 16,733,241 12,029,352 15,925,700

Provisions for other risks and charges

Provisions for taxes 489,527 473,626 31,327 140,188

Liabilities

Liabilities arising out of direct insurance operations 144,685 – 144,685 –

Liabilities arising out of reinsurance operations 39,423 – 39,423 –

Derivatives 6,858 – 6,858 –

Other liabilities 2,174,481 3,238,643 1,126,549 154,023

2,365,447 3,238,643 1,317,515 154,023

Accruals and deferred income

Other accruals and deferred income 54,992 47,204 35,024 33,788

Total shareholders’ equity, provisions and liabilities 36,857,858 21,753,717 33,402,894 16,666,009

Pledges and comparable collateral for own liabilities and for commitments for provisionsAssets for which policyholders have beneficiary rights 32,551,133 15,937,534 31,718,835 15,937,534

Other pledged assets and comparable collateral Cash account pledged as collateral for option deals via OM – 4,016 – 4,016Shares out on loan 80,697 – 80,697 –

Other commitments 1,798,548 – 1,798,548 –

The Board of Directors

Björn C Andersson

Björn C Andersson born 1946 ChairmanExecutive Vice Presidentof HandelsbankenHead of Handelsbanken Asset ManagementMember since 1990

Ingvar Lessnert born 1950Employee representative

Ann Christine Hutton Forsbergborn 1957Head of AdministrationOdlander, Fredrikson & Co AB,Elected by the Swedish Financial Supervisory AuthorityMember since 2001

Thommy Mossinger born 1951Executive Vice Presidentof HandelsbankenHead of Southern SwedenRegional BankMember since 2001

Robert Ihse born 1967Employee representative

Stefan Nilsson born 1957President of SPPMember since 1998

Barbro Johansson born 1944President of Handelsbanken LivMember since 1990

Magnus Uggla born 1952Executive Vice Presidentof Handelsbanken Head of Stockholm CityRegional BankMember since 2002

Stefan Nilsson

Barbro JohanssonAnn Christine Hutton Forsberg Robert Ihse

Magnus UgglaThommy MossingerIngvar Lessnert

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The Board of Directors – Handelsbanken Liv Annual Report 2002

Barbro Johansson

Lennart Olsson

Bernt Lönegren Elisabeth Norberg

Göran Holgerson

Catharina Rådsten

Johan Lagerström

Bo Engström

Anders Nehrman

Stefan Jansson

Executive management

Bo Engström born 1955Head of AdministrationEmployed in the company since 2001

Johan Lagerström born 1961Head of Corporate CommunicationsEmployed in the company since 2002

Göran Holgerson born 1960Executive Vice PresidentEmployed in the company since 1995

Bernt Lönegren born 1946Chief ActuaryEmployed in the company since 1996

Lennart Olsson born 1953 Head of Operations Employed in the company since 1995

Barbro Johansson born 1944President of Handelsbanken LivEmployed in the company since 1998

Anders Nehrman born 1945 Head of Legal AffairsEmployed in the company since 1979

Catharina Rådsten born 1946Head of Human ResourcesEmployed in the company since 1985

Stefan Jansson born 1965Head of Business DevelopmentEmployed in the company since 2000

Elisabeth Norberg born 1950Head of Operations Employed in the company since 1990

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Executive management – Handelsbanken Liv Annual Report 2002

Photography: Elisabeth Ohlson-Wallin

Handelsbanken Livwww.handelsbanken.se/liv

Handelsbanken Liv was demutualised on 1 January 2002.

This gives our customers greater security, freedom and

fairness.

Greater security because our owners, rather than the

policyholders themselves, are responsible for the risk capital.

Greater freedom because both private and contractual

pension customers have transfer rights. Greater fairness

since we do not have a shared risk reserve that must be

maintained by requiring policyholders to forego returns.

We offer long-term savings and insurance products in the

private market. Customers can choose between insurance

with a guaranteed return or unit-linked insurance.

Policyholders’ capital in a guaranteed insurance plan

grows at a guaranteed rate. This provides basic financial

security. There are also opportunities for additional bonuses.

These are calculated individually for each policyholder. If the

total return is higher than the guaranteed rate, the surplus is

divided so that the policyholder receives 90 % and the com-

pany 10 %.

Long-term savings can be combined with various types of

risk insurance such as survivorship protection. The advantage

here is in having insurance protection while capital is built up.

We sell our products via Handelsbanken’s branch offices

supported by our insurance advisers. This means that our

customers have their insurance contact at their local Handels-

banken branch which gives them access to insurance advice

as part of the personal financial advice offered by the Bank.

Since Handelsbanken has a network of some 450 branches

throughout Sweden, customers can obtain this service close

to home.