Storebrand helps people to fulfil their wishes for a financially secure future: Storebrand ASA Head office: Filipstad Brygge 1 P O Box 1380 Vika N-0114 Oslo Norway Tel: +47 22 31 50 50 www.storebrand.no/ir
Individual annuity, savings and insurance policies4) 311 000 Pension and annuity policies in payment 49 000 *) Not including Storebrand Helseforsikring (39) and Fair Forsikring (128)
Storebrand is committed to developing attractive and welltargeted savings products for the retail market. Our marketleading position in the corporate market means that we are already working with the most demanding customers, and this builds expertise that also benefits our retail customers.
Satisfied customers. All businesses depend on satisfied customers. We must understand what the customers want and meet their expectations, and our communications about products must be clear so that their decisions are based on realistic expectations. Customer confidence is the basis for good customer relationships, and we must do what we promise and meet expectations. If we fall short we must be ready to explain openly and honestly.
We also believe that how we run our business matters to our customers. As a stock exchange listed company in a competitive market, Storebrand must of course make profits and generate a competitive return for its customers and owners. But how we make a profit is also important, and surveys carried out among our customers confirm that they share this view. Storebrand
Storebrand Bank. The group has an ownership interest in non-life insurance through its participation in If Skadeförsäkring Holding AB.
Sampo Oyj for the sale of Storebrand’s shareholding in If Skadeforsikring. The sale will significantly strengthen Storebrand’s financial condition. As a result of the agreement with Sampo,
Starting with Storebrand’s first Environmental Report in 1995, corporate social responsibility has become not only an important part of Storebrand’s activities but also an important component in the group’s public profile. Storebrand’s CSR Action Plan 2003–2004 was awarded a prize for the best CSR report in 2003.
Erik G. Braathen, Jens P. Heyerdahl d.y., Per Øvrebø and Odd
The Commission’s report demonstrates that the current level of savings in its broadest sense, i.e. through the National
The company's risk capital is the total of the market value adjustment reserve, statutory additional reserves, core capital in excess of the regulatory minimum and accrued earnings.
Life insurance: profit to owner Un-hedged return on investment portfolio Hedged return on investment portfolio
Attitude of suppliers to Storebrand and its environmental requirements New target Survey in 2004
Insurance Administration, Storebrand provides training and expertise to help its customers achieve this.
Employers need to see their older employees as valuable members of the team, and this must be a real appreciation rather than just paying lip service to the idea. This will involve ensuring that people’s jobs make it attractive to stay on. Employees who are happy in their work take less sick leave, and less sick leave helps to reduce the incidence of longer-term health problems.
“EMPLOYERS MUST MAKE IT BOTH POSSIBLE AND ATTRACTIVE FOR EMPLOYEES TO RETIRE LATER.“
The major part of Storebrand’s sales to the retail market take place through the company’s own financial advisers. However sales through external distribution channels and direct sales to employees of companies that use Storebrand for their group pension schemes are on the increase. These channels will play an increasingly important role in product distribution alongside
Profit to the owner includes NOK 98 million from products not subject to profit sharing with policyholders. The allocation of profit to policyholders also means that pensions currently in payment and fully paid-up pension policies will be regulated.
increase in premium income in 2003, while premium income for group pension business was little changed from 2002.
NOK 995 million in 2003 as compared to NOK 917 million in 2002. The increase of NOK 78 million was caused mainly by increased commission payments on a higher volume of sales to the retail market, additional premises management costs in connection with change of tenants and higher performance related asset management fees to Storebrand Investments as a result of a strong investment return.
Storebrand Fondsforsikring. The total effect of changes to underlying assumptions, including the fall in interest rates, was very limited.
International product quality. The Norwegian asset management market attracts international competition. Storebrand
Building expertise. Specialisation and focus are key success factors for both value creation through active position taking and for the efficiency and precision in index tracking. This again demonstrates the need for highly competent specialists, and the professional challenge this represents plays an important role in making Storebrand Investments an attractive and forward -looking employer.
A combination of close attention to cost savings and improving the volume of sales per person has produced the intended results. Together with the improving conditions seen in the equity market, these were the main reasons for the better results achieved in the retail market in 2003.
NOK 830 million were sold to Storebrand Life Insurance in 2003 resulting in an overall increase in retail lending for the
The committee ensures that the group adheres to all relevant legislation and regulations, and that it operates in accordance with the articles of association and resolutions passed by the group’s corporate bodies. The committee is entitled to look into any matter, and has access to all relevant documentation and information. The Control Committee met eight times in 2003 and submitted two reports to the Board of Representatives.
General Meeting, and provides the Board of Directors with a written declaration of independence and objectivity. The external auditor participates in all meetings of the Audit Committee and the meetings of the Board of Directors that consider the interim and annual accounts, and provides views and evaluation of the company’s accounting principles and risk matters. The Board has approved specific guidelines for the use of the external auditor for consultancy work.
Internal Audit. The annual program for internal audit work is determined by the Board of Directors, based on the auditor’s recommendations and a risk evaluation carried out by the group’s senior management teams. Internal audit produces quarterly reports for the Board of Directors. Internal audit may carry out special investigations into possible breaches of ethical guidelines, reporting to the chairman of the Audit Committee, the Group
State Street Bank & Co. (NOM*) USA 12 186 762 4.38
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 day before the meeting. Shareholders who do not give notice of attendance will be able to attend, but not vote.
Net movement in cash and cash equivalent assets 16.5 -29.2 -7.2 -2 102.6 3 887.0 -851.3 Net movement from purchase/sale of companies -111.1 20.6 6.7 Cash and cash equivalent assets at start of the period 92.6 121.8 129.0 7 976.6 4 069.0 4 913.6 Cash and cash equivalent assets at the end of the period 109.1 92.6 121.8 5 762.9 7 976.6 4 069.0
RECONCILIATION: Tax paid in the period -13.9 4.0 -78.2 Gains/losses on sales of fixed assets 0.5 1.7
To the Annual General Meeting of Storebrand ASA Auditors’ Report for 2003
Shares held as current assets. Shares which are held as financial current assets are booked at market value. Market value is determined as the closing price on the Oslo Stock Exchange on the last trading day of the year, and the market price (last traded/bid price) in the case of shares listed on foreign stock exchanges. The market value of shares in other companies is determined on the basis of available information.
Market value adjustment reserve. The value of the market value adjustment reserve is equivalent to unrealised gains on financial current assets. Unrealised gains or losses on foreign exchange contracts are not transferred to the market value adjustment reserve with the exception of gains or losses on forward exchange contracts in respect of open currency positions. The market value adjustment reserve can never have a negative value. Unrealised losses are recognised to profit and loss on the basis of write-downs carried out on a portfolio basis.
Premium reserve in the insurance fund. The premium reserve represents the cash value of the company’s total insurance obligations in accordance with the individual insurance agreements after deducting the cash value of future premiums. The calculation principles are set out in the Insurance Activities Act. The calculations are made by an actuary.
In addition employers' social security contributions in respect of the uninsured scheme totalling NOK 0.2 million were charged to profit and loss in 2003. If the changed assumptions were applied to 2003, net pension cost in 2003 would be minus NOK 8.8 million.
+/-Changes in temporary timing differences 37.5 108.5 -347.3 Tax base for the year 294.8 -626.8 255.2 -Tax losses carried forward -294.8 Tax base for calculation of tax payable -626.8 255.2
DNH International Sarl – Redeemable conv. PECs 87 803 1.45% 17.6 16.1
Nominal Acquisition Book Market Amortisation NOK million value cost value value remaining Bonds held to maturity – Norwegian
Ownership sition value capital/ Share in value w-down value of NOK million interest cost 01.01 currency profit 31.12 goodwill goodwill
c) Real estate. IAS 40 allows companies to book investments in real estate at actual value and apply changes in value to the profit and loss account. The proposed changes to the Norwegian Accounting Act will allow investments in real estate to be carried at actual value in unconsolidated accounts. Real estate that is not held as an investment can also be valued at actual value in accordance with IAS 16, but in this case any upward revaluation must be applied directly to equity. This choice will only be available for consolidated accounts, as the proposed changes to the Norwegian Accounting Act do not allow upward revaluation of this type of property in unconsolidated accounts.
(but not an obligation) to buy or sell shares at a pre-determined price. Share options may be related to stock market indices as well as to specific individual stocks. The sale of share options implies the equivalent one-sided obligation. In the main exchange traded and cleared options are used.