S&P Puts Skandia on CreditWatch/Negative Following Bid from Old Mutual

September 6, 2005

Standard & Poor’s Ratings Services announced that it has placed its “A” long-term counterparty credit rating and “A-” long-term senior unsecured debt rating on Sweden’s Skandia Insurance Co. Ltd. (Skandia) on CreditWatch with negative implications.

“This action relates solely to the announcement on Sept. 2, 2005, by U.K.-based financial services group Old Mutual PLC of a formal offer for the entire issued share capital of Skandia,” stated S&P credit analyst Mark Button.

S&P said the “CreditWatch placement reflects the uncertainties surrounding the transaction, including whether the offer will be accepted. Furthermore, the impact on Skandia of a successful bid remains unclear.”

The rating agency said it would continue to monitor developments and update its rating opinion as further details emerge.

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