March 6 (Reuters) - Insurance company Folksam says:
* Will sell 25.6 million stocks in Swedbank, 2.3 percent of Swedbank stock capital, in a bookbuilding process aimed at institutional investors.
* Says will own 7.0 percent of stocks in Swedbank after sale.
* Says ownership in Swedbank remains at a long term basis, but now is the right time to reduce ownership. Further company coverage: (Reporting By Johan Sennero)