26 April: Ex dividend 2 May: 1st quarter results 2007 8 August: 2nd quarter results 2007 17 October: 3rd quarter results 2007
Branch offices in Norway (inc. insurance agents) Tromsø, Finnsnes, Harstad, Narvik, Bodø, Mo i Rana, Namsos, Steinkjer, Trondheim, Orkanger, Kristiansund, Ulsteinvik, Ålesund, Molde, Førde, Sogndal, Isdalsø, Bergen, Stord, Haugesund, Bryne, Sandnes, Stavanger, Flekkefjord, Kristiansand, Mandal, Bø, Skien, Porsgrunn, Sandefjord, Hokksund, Drammen, Hønefoss, Asker, Sandvika, Lysaker, Oslo, Lillehammer, Hamar, Elverum, Gjøvik, Jessheim, Skjetten, Ski, Sarpsborg, Fredrikstad and Stockholm in Sweden
The Nobel Peace Prize is divided equally between Prof. Muhammad Yunus and Grameen Bank for their efforts to create economic and social development from below. Lasting peace cannot be achieved unless large population groups find ways in which to break out of poverty. Micro-credit is one such means. Development from below also serves to advance democracy and human rights.
The market’s most satisfied customers Competitive products, easy-to-use systems and good customer service helped to ensure that, for the third year in a row, Storebrand was again the highestscoring company in the Norsk Kundebarometer survey of customer satisfaction and loyalty in the corporate pensions market. This research-based independent survey is carried out annually.
Companies can satisfy the minimum requirements for occupational pensions that came into force in 2006 through either defined contribution or defined benefit arrangements. However, the great majority of companies setting up pension schemes to meet the new requirements have chosen the defined contribution alternative at the minimum level: 2% of each employee’s salary (calculated on salary between 1 and 12 times the current National Insurance Scheme basic 'G' amount). Over 600,000 employees became members of defined contribution pension schemes in 2006 as a result of the introduction of mandatory employers’ pensions.
Strengthened distribution Storebrand operates fewer branch offices than most of its competitors. This has meant that the company has placed considerable emphasis in recent years on strengthening its distribution apparatus.
Energy consumption (managed properties) 285 kwh/m2 Reduced by 9% Reduce by 5%
Involving stakeholders We involve stakeholders in our work on developing the corporate responsibility report and action plan by arranging a stakeholder conference. Dialogue with the various stakeholders affected by our business plays a crucial role in developing our commitment to corporate responsibility. Communication with customers, employees, the investor market and other stakeholders gives us valuable feedback and new ideas.
Note 18: Net income analysed by class of financial instrument 78
Barbara Rose Milian Thoralfsson (47), Director, Fleming Invest AS. Columbia University, Graduate School of Business, New York. MBA . 2001­2005 CEO NetCom AS. 1995­2001 CEO Midelfart & Co. AS. 1998­1995 EVP sales and marketing Midelfart & Co AS. 1987­1988 product manager AS Denofa and Lilleborg Fabrikker. 1984­1987 product manager General Foods Corp., New York. 1983, marketing Pepsi Cola Company, New York. 1981­1983 marketing, General Foods Corp., New York. 2006­, board member SCA AB. 2006­, board member Storebrand ASA. 2006­, board member Norfolier AS. 2006­, board member Tandberg ASA. 2005­, board member Stokke AS. 2005­, counsel member SOS Barnebyer. 2005­, board member Fleming Invest AS. 2003­, board member and member of audit committee Electrolux AB. 2002­, board member Rieber & Søn ASA. 2000­2005 member of Board of Representatives Storebrand ASA.
In the fourth quarter of 2006, Storebrand Bank ASA launched the company Storebrand Optimèr ASA, a new investment product that combines investment in shares and real estate. This product was also well received by the market. Storebrand Bank established a stockbroking operation in the second quarter of 2006. The business has so far focused on executing orders for Storebrand Investments, and reports a good performance.
At the end of 2004, the Norwegian parliament approved a number of major changes to the Insurance Activities Act. One important aspect of the changes is that insurance companies must, for certain product areas, charge the cost of the interest rate guarantee included in products to the customer in advance. The new operational rules come into effect from 1 January 2008. The allocation of financial assets follows the company’s investment policy. The investment policy establishes guidelines for the composition of financial assets by setting limits and rules for the company’s risk management. The policy also includes limits and guidelines for credit and counterparty exposure, foreign exchange risk and the use of derivatives. The objective of active risk management is to maintain sound risk bearing capacity and to continuously adjust financial risk exposure to the company’s solidity, while at the same time creating the potential for a good investment return.
Human resources and organisation: Employment in the group totalled 1,429 full time equivalent positions at the year-end as compared to 1,295 at the start of 2006. Employment is virtually equally split between male and female employees. The average age of the group’s employees is 42 years, with an average length of service of 10 years. All Storebrand employees are treated equally, regardless of gender, age, disability, faith, cultural differences or sexual orientation. With effect from 2006, Storebrand has included the following statement in all its recruitment advertising: “We are committed to diversity, and encourage applications from all qualified candidates regardless of age, gender, disability or cultural background”.
insurance for the retail market has proved successful, and is expected to lead to significant growth in customer numbers in the future.
On 1 January 2006, new rules came into force in Norway for the taxation of dividends and gains on shares held by private individuals. The new rules are termed the "shareholder model" and replace the previous RISK and tax credit systems. Under the new shareholder model, the amount of a dividend, less a standard deduction, is taxable, currently at 28%. If shares are sold, any standard deduction not utilised can be deducted from the gain on sale. The standard deduction is calculated on the basis of the cost price of the share multiplied by the average three-month interest rate on treasury bills, which is effectively the risk-free rate of interest. The interest rate for calculating deductions in 2006 is set at 2.1%.
General meetings Storebrand has one class of shares, each carrying one vote. The company holds its AGM each year before the end of June. Shareholders who wish to participate in a general meeting must notify the company no later than 16.00 hours 3 business days before the meeting. Shareholders who do not give notice of attendance will be able to attend, but not vote.
Hans Henrik Klouman (45),Executive Vice President, General Counsel. Law Graduate, University of Oslo. 1993–1994 Lawyer, Oslo Stock Exchange. 1990–1993 Lawyer, Thommessen, Krefting, Greve & Lund. 1989–1990 Assistant Judge. 1987–1989 first consultant Kredittilsynet.
Group structure and management reporting The chart below shows the legal structure of the group’s main subsidiaries, which is also the basis for the group’s accounting structure: The merger of Storebrand Fondsforsikring AS and Storebrand Livsforsikring
Companies must contribute at least 2% of each employee's salary (on salary between 1 and 12 times the current National Insurance Scheme basic amount), starting no later than 1 July 2006. The employer must also meet the administration and management costs of the pension scheme.
Non-life insurance (products provided within the life insurance regulatory framework) also showed good growth, with a 42% increase.
Storebrand Life Insurance incurred operating costs of NOK 1,755 million in 2006 compared to NOK 1,457 million in 2005. The increase of
Rente+ was the best performing money market fund in Norway in 2006 , and the fund attracted net inflows of NOK 1.7 billion in the year.
Risk management: Life insurance Storebrand assumes risk in the ordinary course of its business activities. The major risk factor for Storebrand Life Insurance is financial risk. Financial risk arises through the process of investing customers'
Lending to corporate customers over a certain limit requires the approval of a credit committee chaired by the bank’s managing director, or by the bank’s board of directors. Credit risk is monitored through a risk classification system that ranks each customer by ability to pay, financial condition and collateral.
Net receipts/payments on sale/purchase of fixed assets etc. -104.1 -40.9 14.4
Payments on redemption of bond loans and other long term funding -0.1
The premium reserve transferred includes the policy’s share in additional statutory reserves, the market value adjustment reserve and the year’s profit. Transferred additional statutory reserves are not shown as part of premium income but are reported separately as changes in insurance reserves. Transfer amounts are classified as current assets/liabilities until such time as the transfer takes place. Interest arising in the time taken to complete transfers is recognised as part of the item ‘other insurance related income and expenses’.
11 Remuneration of senior employees and elected officers of the company
The following amounts are included in the profit and loss account: Rental income from investment properties 1 246.8 977.4 825.0
Other fund units outside EEA 4 035.2 4 435.9 4 435.9 2 810.5 2 810.5 26 Bonds and other fixed-income securities
Commercial paper, bonds and bond funds, fair value 4 194.5 45 443.7 49 638.2 1 144.5 50 782.7 57 539.3
into the elements of death, accident and disability. The development of risk result is followed throughout the year. For each type of risk, the ordinary risk result for a period represents the difference between the risk premiums the company has collected for the period and the sum of provisions and payments that must be made for insured events that occur in the period. The risk result takes into account insured events that have not yet been reported but which the company, on the basis of its experience, assumes will have occurred.
Payments to third parties for goods and services -92.1 -143.6 -62.2
Board of Directors including the Chairman 2 360 2 075 1 707
Institute of London Underwriters (ILU)1 USD Unlimited 0 1 Counter indemnity of Oslo Reinsurance Company ASA, which is 100% owned by Storebrand Skadeforsikring AS.
Company as of 31 December 2006, and the results of its operations and its cash flows for the year then ended, in accordance with good accounting practice in Norway
Return on capital: Return on capital shows net realised income from financial assets and changes in the value of real estate, expressed as a percentage of the year's average total assets in accordance with rules set by the Financial Supervisory Authority of Norway. Value-adjusted return on capital shows the total of realised income from financial assets, changes in the value of real estate and the year's change in unrealised gains or losses, expressed as a percentage of the year’s average total assets at market value.