Assumptions for investment activities

The outlook for the return on investment activities for 2008 is based on the following assumptions with respect to investment assets. The return outlook for 2008 is based on an assumed proportion of equities of 4% against previously 12-14% as TrygVesta cut back the proportion of equities to around 4% in January 2008. The proportion of bonds was increased correspondingly from around 82% to 90%. The outlook for 2008 is based on the level of interest rates prevailing at 31 January 2008.

Bonds are thus expected to account for around 90% of total investment assets and to yield a return of 4.7% based on interest rates at 31 January 2008. Equities are expected to account for around 4% of total assets and to yield a return of 7.0% including dividends, but this may vary considerably between periods. Finally, the portfolio of real property is expected to account for 6% of assets and to yield a return of 6.1%. Real property returns correspond to annual rental income less administrative expenses and do not incorporate any appreciation or depreciation of real property values. In 2007, bonds, equities and real property yielded returns of 3.7%, 2.0% and 6.1% (10.4% including value changes), respectively.