We are talking about front wheel bearings here right? If so then I'd say he is a little over the top.

List price on the bearing/hub assembly on your car is about $200.00 apiece (actually a little less but close enough) the max I could see charging for that is 5 hours, that would be 2 hours per side and an hour to diagnose it. That, in my opinion, would be pretty much the rape rate. Something in the area of 3.5-4 hours total would be a more realistic rate. I charge $70.00 an hour in my shop so do the math. $350.00+$400.00=$750.00, if you are in So. Cal come by my shop and I will do them for an even $1000.00, what a bargain, huh? Seriously though, unless there is something we are not seeing here his estimate is a bit on the high side I'd have to say. Is he a Volvo tech or just a general auto tech? Is he somehow operating under the premise that he thinks he is going to have to press bearings in and out of the old hubs? I would give him a call and/or get a second opinion.
Another thing, not that it cannot happen but I have never had an opportunity to replace BOTH the front wheel bearings at the same time. In fact I have few to no cars in my data base that I can recall off of the top of my head that have had both of them done seperately. Those bearings are good to go until something gets in there and starts rusting them out. Here in So. Cal it really is not an issue, if you live in a nastier climate then it may very well be an issue.

Mark