The CEO of Swedish financial-services group Skandia, Hans-Erik Andersson, faced with the recent success of Old Mutual’s R38-billion takeover of the company, has emphasised Skandia’s improved operations and his belief in the soundness of its current business model in his comments regarding Skandia’s 2005 annual results on Tuesday.
Skandia reported a loss according to International Financial Reporting Standards (IFRS) of 765-million Swedish kronor (SEK) for the year, compared to earnings of SEK 197 000 in 2004. Revenues rose 16% to SEK 16,6-billion from SEK 14,4-billion a year earlier, while expenses increased by 4% to SEK 14,8-billion.
The loss per share before dilution came in at SEK 0,76, compared to earnings of SEK 0,24 in 2004, of which SEK 0,63 pertained to discontinued operations and SEK 1,11 to the write-down of goodwill in Bankhall. The return on shareholders’ equity was -1%, versus -4% the previous year.
Andersson, who is being replaced as CEO by Old Mutual’s Julian Roberts following two years at the helm of the troubled Swedish insurer, said he saw two years ago — and still sees — major improvement potential by trimming and by better coordinating the large and “somewhat sprawling” geographic organisation that has developed during Skandia’s most expansive years.
“As I now leave my assignment as CEO of Skandia in connection with the extraordinary general meeting … I can affirm that Skandia’s business model is truly sound and that Skandia is once again the successful company it deserves to be,” he commented.
“The confidence that our customers show for Skandia is the main proof of our success. It is also in this light that I feel we should look at Old Mutual’s acquisition of Skandia. Its keen interest in acquiring Skandia is a testimony to our success.
“In other words, Skandia is a group with a very bright future that has obtained a new, principal shareholder, a new board and a new CEO. As I proudly hand over the baton to my successor, Julian Roberts, I wish him all the best, as he will now have the privilege of leading a company like Skandia.” — I-Net Bridge