Handelsbanken sells SPP to Storebrand

Handelsbanken2

The transaction

SPP Livförsäkring AB and related subsidiaries are being sold for SEK 18.0bn in cash. The following companies are also

included in the transaction SPP Fonder SPP Ireland(1)

Handelsbanken Varumärkes AB 50% share of Nordben

Capital gain of approx. SEK 4.0(2) bn

During a transitional period, SPP's assets will continue to be managed by Handelsbanken

Handelsbanken’s mutual funds will be part of Storebrand's range

Storebrand has an exclusive right, within a two-year period, to acquire Handelsbanken Liv's occupational pensions portfolio

(1) Only occupational pensions – the remainder stays with Handelsbanken Liv (2) Before any restructuring costs(3) Handelsbanken Life & Pension’s name is being changed to SPP Irland

Handelsbanken

SPP Livförsäkring ABHandelsbanken Liv

SPP Irland (3)

Handelsbanken Fonder AB

SPP Fonder AB

HandelsbankenVarumärkes AB

Nordben

Included in the transaction

50%

Handelsbanken3

A good deal for all parties

Access to a broader range of competitive and innovative solutions

Become customers of a Nordic occupational pensions company with a strong track record

Carefully selected purchaser

Will move to a group with an explicit focus on occupational pensions

Storebrand is one of the oldest life insurance companies in the Nordic region

Storebrand plans to invest in the Swedish operations

Will gain a strong position on the Swedish occupational pensions market

SPP is one of the leading insurance companies with a strong brand name and broad

distribution

Gains new and unique expertise

An attractive offer

Frees up resources

The Group's complexity, risks and volatility in the financial results will decrease

Customers

Handelsbanken

Employees

Storebrand

Handelsbanken4

Why Handelsbanken is selling SPP

Focus on core business

SPP's products are sold via different channels than the Bank's branches Handelsbanken Liv will continue to focus on long-term savings

An attractive offer- SEK 18.0 bn for SPP - values SPP at 14.5 times profits 06PF (2006 pro forma) (1)

Makes a capital gain of approx. SEK 4.0bn (1)

Positive impact on RoE and EPS compared with consensus estimates

Partnership with Storebrand benefits customers, employees and shareholders

Increased value for the shareholders

(1) Excluding Deferred capital contribution and hedge(2) Profit before possible provisions

Increased value

Reduced risk exposure

A good deal for all parties

Capital can be used for organic growth and buyback of shares

Tier 1 capital ratio rises by around 20bp before buybacks

Volatility in the Bank’s financial results reduced

Handelsbanken5

Why Handelsbanken is selling SPP

SEK m Q2-06 Q3-06 Q4-06 Q1-07

Q2-07

Value-at-Risk

1 774

955

259

218

110

Impact of interest shock -100 bp parallel shift

-1 886

-1 373

-30

286

144 Impact of equity shock -20%

-2 387

-1 544

-195

-313

-97

Impact of equity shock +20%*

1 394

288

-88

75

-19

*excl yield split

-600

-400

-200

0

200

400

600

800

1 000

1 200

2006 Q1 2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2

Reduced financial risks in SPP

Reduced volatility in Handelsbanken's income statement

Change in deferred capital contribution incl. hedges, net

The right time

Handelsbanken6

Why Handelsbanken is selling SPP

-1 100

-900

-700

-500

-300

-100

100

2002 2003 2004 2005 2006 2007 Q2

0

500

1 000

1 500

2 000

2 500

3 000

3 500

Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07

Premium income New premiums

* Excluding a major portfolio transfer of SEK 7.7bn.

Growth in premium income and new premiums, SPP

Improved administration result (incl. SPP Fondförsäkring)

The right time

Handelsbanken7

SPP over a six-year period – cash flow summary

Financed with Tier 2 capital

Acquisition2001

Other operations

NetDCC

AssetManage-ment

Yield split

Capital-isation

Total excl. subordinated loans

Taxeffects

SEK bn

- 7.1

- 7.8

- 2.6

Operations ~ + 1.5+ 0.7

- 15.3 18,0

Salesprice

+ 2.7

Handelsbanken8

Handelsbanken Liv – a vital part of Handelsbanken’s customer offering

Handelsbanken Liv: focuses on long-term savings

is fully integrated with the branch operations

is an important part of the Bank’s product range

– insurance is necessary in order to offer a complete range of products

will in future be reported within the Asset Management business area

Handelsbanken9

Lower volatility - reduced risk

Handelsbanken moves from traditional insurance to a higher proportion of unit-

linked insurance

Life expectancy risks are reduced

Exposure to asymmetric market risks (yield split/DCC) is reduced

Key figures 30 June 2007

Handels-

banken

Liv

SPP and

subsidiaries

Share

Assets managed (SEK bn)

of which:

64.5

125.5

- Unit-linked (SEK bn) 36.3 56% 31.0 25%

- Traditional (SEK bn) 28.2 44% 94.5 75%

Profit after tax (SEKm) 223 487

Share

Handelsbanken10

Financial effects of the transaction

Profit Volatility substantially reduced following the sale of SPP

Earnings per share expected to increase from 2008 relative to consensus estimates

Capital

Capital can be used for organic growth and/or buyback of shares

Tier 1 capital ratio goes up by around 20bp before buyback of shares

Return on equity

Equity is re-invested in operations with higher return or returned to the shareholders

Return on equity is expected to increase from 2008 relative to consensus estimates

Handelsbanken11

Appendix: Key figures, pro forma

Handelsbanken Liv SPP and subsidiaries

30 Jun 2007 31 Dec 2006 30 Jun 2007 31 Dec 2006

Balance sheet

Assets managed

(SEK bn)

64.5 58.9 125.5 112.1

Subordinated loans

(SEK m)

1 129 1 129 1 600 1 600

Income statement (SEK m)

Premium income 4 627 8 465 4 916 8 170

Administration result

77 124 70 43

Risk result 104 218 127 352

Financial result

Of which DCC and hedges

35

-4

212

-3

-2

-54

1 579

+1 045

Profit after tax 223 558 487 2 056