The solvency margin in the life insurance activities is, due to successful risk management and injections of capital from Storebrand ASA in Q1 and Q3, satisfactory at 160 percent.
A high level of customer satisfaction provides a foundation for further growth and profitability.
to apply IFRS to the holding company’s unconsolidated accounts. The Storebrand group reports an operating profit prior to amortisation and write-downs of NOK 1,310 million for 2008 compared with NOK 2,020 million for 2007. After amortisation and write-downs the group profits were minus NOK 1,716 million compared with NOK 2,020 million in 2007. New computations of the added values connected with the acquisition of SPP, where the present volatility of the financial markets is taken into consideration, have led to the intangible assets associated with the added value of the insurance contracts being written down by NOK 2.5 billion. The group profit was affected positively in consequence of altered discounting for obligations within
The underlying trend in claims excluding large claims is satisfactory. Other industries have satisfactory results. Insurance-related costs in relation to earned premium for own account comprised 53 percent in 2008 compared with 110 percent in 2007. The positive trend in the costs percentage is expected to continue in 2009 as earned premiums gradually increase.
229 billion in mutual funds, funds of funds and individual portfolios for asset management companies, insurance companies, pension funds, municipalities, institutional investors and investment companies. Storebrand
Europe that have a separate professional environment involving this area. Companies that contribute to breaches of human rights, corruption, serious environmental damage, production of landmines, cluster munitions, nuclear weapons or tobacco production are excluded from our investment universe.
Capital adequacy in % of customer funds exclusive additional statutory reserves and conditional bonus
With the Swedish framework for life insurance having been adjusted to a substantial degree to the European Solvency II code of regulations, where the level of interest rates affects the magnitude of the insurance obligation, SPP has another financial risk connected with movements in interest rates.
Storebrand Kredittforetak, long-term bonds were issued in 2008. Storebrand Bank is working on reducing its liquidity risk by increasing the average term.
Programme (YPP). The competency offerings for specialist and professional competencies have been expanded and strengthened in close co-operation with the business areas.
Dividend policy Storebrand’s dividend policy shall contribute towards providing shareholders with a competitive return and optimising the company’s capital structure. The dividend to shareholders will normally represent more than 35 percent of the full-year profit after tax, but before amortisation costs. The Board wishes to have a dividend policy with a long-term horizon, and will aim for stable year-on-year growth in dividend per share.
(AGM), based on a proposal put forward by the Board. Storebrand ASA has only one class of shares, and Norwegian legislation does not permit shareholders to accumulate votes from one matter in order to cast additional votes for another matter (cumulative voting).
ASA is a legal requirement, and has 18 members, of which 12 are elected by the AGM and six by the group’s employees. Members are each elected for a two-year term of office so that half the members retire each year. It is a statutory requirement that the members elected by the AGM shall reflect the company ’s interest groups, customer structure and its function in society. A broad cross-section of shareholders is represented through elections to the Board of Representatives.
Committee held five meetings in 2008. The external and internal auditors participate in the meetings.
Bank and Storebrand Investments are drawn from the group’s senior employees, employee representatives, and external members with expertise relevant to the business of the company in question where this is required.
Ethics Storebrand has established ethical rules for the group and its employees. Ethics are a standard feature of seminars for all new employees and are integrated into all managerial training modules. Employees can seek advice on ethical issues directly from the chairman of Storebrand ASA’s Audit Committee (socalled “whistle blowing”), and in 2009 we will launch a specific question and answer service on our intranet that will enable employees to seek advice on ethics questions anonymously.
5. ANDerS røeD (40), Chief Marketing Officer. Master’s degree in economics and business administration, Norwegian School of Management (BI) and Ecole Supérieure de Commerce de Paris (ESCP). 2004–2007 Marketing Director, Storebrand ASA. 2000–2004 Marketing Director, TINE BA. 1998–2000 Marketing Manager, TINE BA. 1996-1998 Marketing Manager, Kellogg’s Norway.
With the acquisition of SPP in 2007 Storebrand made an important strategic choice to become a Nordic player within long-term savings and insurance. Storebrand’s vision is: “to be the leading and most respected institution in the Nordic market for long-term savings and insurance”. Storebrand took some important steps on the road to achieving the group’s long-term vision in 2008.
Its strategic priorities can be summarised as follows: • Increased profitability
Sweden. A good network of contacts has been established with relevant agencies, and work on producing good adaptations to the regulations will continue up to their implementation. Storebrand and SPP are actively participating in various quantitative studies being conducted for the entire European insurance sector (QIS) to ensure they are well prepared for, and understand the implications of, Solvency II.
In addition to actively reducing our CO2 emissions and developing products and services that increase awareness of climate challenges and lower emissions, Storebrand chose to buy UN certified climate quotas matching the group’s direct emissions. In January 2008, Storebrand therefore became the first climate neutral financial institution in the
Group profit before amortisation and write-downs 1 1,310 2,020 1,585 1,453 2,555
This was due to the fact that long-term savings that are tied up until retirement age appeared less attractive as the financial crisis developed, and the fact that the tax rules for the product can appear unpredictable to savers.
are invested in equity funds and combination funds, compared to 79 percent at year-end 2007. The returns on the recommended investment choices for defined contribution pensions were minus 5.8 percent for a careful profile, minus 22.3 percent for a balanced profile, and minus 35.5 percent for an aggressive profile, respectively.
Storebrand Investments continuously monitors the savings market and tries to identify emerging customer needs. Storebrand wants simplicity, security and transparency to be reflected in both new and existing savings products. Products that do not meet a clearly defined customer need will be discontinued.
Demanding financial market 2008 was a demanding year in the financial markets. This affected Storebrand Bank’s results. The financial results were primarily weakened by increased loan losses, weak results in Ring Eiendomsmegling, a halt to the sale of structured savings products, and unrealised losses in the liquidity portfolio.
The economic situation at the start of 2009 is very uncertain. There is a great deal of volatility and uncertainty in the financial markets and leading economic indicators are negative. It is therefore likely that the losses of
Storebrand Bank regards its credit portfolio as good and is monitoring developments vis-à-vis non-performance, loss exposure and loan losses very closely.
ASA reported profit before tax in accordance with IFRS of NOK 512 million for 2008 compared with NOK 1,057 million for 2007.
Note 7: Holding company’s shares in subsidiaries and associated companies 134
Financial liabilities: - Liabilities to financial institutions 42,44 8,677.4 - Deposits from banking customers 42,44 18,291.5
Derivatives Derivatives are defined as follows: A derivative is a financial instrument or other contract within the scope of IAS 39 and which has all three of the following characteristics: • its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable (sometimes called the ‘underlying’)
Fee-based products (group defined benefit pensions): The administration result, as well as any negative risk result not covered by the risk equalisation fund and negative financial result (booked) not covered by additional statutory reserves, are allocated in their entirety to the owner. The owner receives the premiums for the guaranteed interest rate, as well as any profit margin for risk, administration and management. A positive financial result is allocated to the customer; a positive risk result is allocated to the customer or possibly the risk equalisation fund.
Total fee and commission income from financial instruments not at fair value totalled NOK 55.6 million in 2008. Total fee and commission expenses on financial instruments not at fair value totalled NOK 22.4 million in 2008.
Real estate 15 years 15 Tangible fixed assets – operational leasing Minimum future payments on operational leases for fixed assets are as follows: NOK million
Transferred financial assets consist of swap agreements with the state through the Ministry of Finance concerning the posting of financial collateral (see note 33). The swap agreements are entered into through auctions that are administrated by Norges Bank. In the swap arrangement, the state sells state treasury bills to the bank through a time/restricted swap for covered bonds. The bank can either keep the state treasury bill and receive payment from the state when the swap falls due for repayment, or it may sell the treasury bill in the market. When the bills become due within the term of the swap agreement, the bank must purchase new bills from the state at the price that is determined by the market price for treasury bills. This roll/over will be on/going throughout the entire term of the agreement. Upon expiry of the swap agreement, the bank is obligated to purchase the covered bonds back from the state at the same price that the state purchased them for. Storebrand Bank ASA will receive the returns on the transferred covered bonds. All risk concerning the covered bonds continues to lie with Storebrand Bank ASA.
Indirect investments in commercial paper and bonds through funds managed by Storebrand 1,109.7 3,664.8 4,774.5 4,774.5 -1,821.4
Profit and loss account items: Group contribution and dividends from subsidiaries 146.7 672.2
Norway, including standards on auditing adopted by Den norske Revisorforening. These auditing standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
Customers Percentage of error-free queries in the internet service 98% 98% 98% 98%