Boss of scandal-hit Skandia quits

Skandia is Sweden's oldest listed company

Bengt Braun, the chairman of Swedish insurance giant Skandia, has resigned.

His departure came as Skandia announced that an independent inquiry had uncovered financial misconduct at the company.

Skandia said some former senior managers had carried out "unsuitable, unethical, and in some cases, probably illegal acts."

The inquiry centred on bonus payouts to senior bosses, but did not attach any blame to Mr Braun.

"Mr Braun has notified the owners and the board that he will not consider re-election, and that consequently, he finds it natural to leave his assignment with immediate effect," the company said.

Refurbishment

Skandia, the oldest company listed on the Swedish stock exchange, has been dogged by reports of financial irregularities for weeks.

The Swedish fraud police have launched an investigation into the firm, while the country's media have reported that the firm paid bonuses worth three billion kronor ($396m) to senior managers.

It has also been reported that three senior bosses renovated luxury apartments using the company's money.

Skandia said it would direct damages claims against former chief executive Lars-Eric Petersson, former finance chief Ulf Spang, and Ola Ramstedt, the former head of its life insurance arm Skandia Liv.

Skandia has called an extraordinary shareholders meeting on 28 January to discuss the appointment of new board members and auditors.