• 1962 Storebrand initiates a new wave of acquisitions and mergers by acquiring Norrøna, which was experiencing financial problems.
In 2008, it was decided that all external funds would be monitored in relation to
’respect the Norwegian authorities recommending not to ship phosphates from Western Sahara’, and promised to check up the issue further”
The primary principle under the new body of regulations is that prices will be established with final effect and be paid in advance.
Earnings performance The Storebrand group produces its consolidated accounts in accordance with the EUapproved International Financial Reporting
In consequence of this, the owners’ profit is less affected by the trends in the financial markets than had previously been the case.
During the course of 2008 a new retail market strategy was prepared with a primary emphasis on customer growth, cross-selling and increased deposits. In the corporate customer market segment the bank has a strong position with the professional real estate market, including property developers and owners. The work of expanding the product line to the corporate customers has continued during 2008. Storebrand Bank wants to be a complete provider of financial services to property investors in key districts.
Capital situation Storebrand places an emphasis on adapting the level of equity and debt in the company on an on-going basis and according to plan.
Employee benefits, such as flexi-working, extending full salary for sick leave to include attending to children or parents, and full salary during maternity leave, are seen as important measures in encouraging gender equality.
Based on the company‘s earnings, capital situation and dividend policy, the Board of
As a listed company Storebrand must produce a report in line with the most recent recommendations in the Norwegian Code of
Board of Directors (CoP section 8) The 2008 AGM decided to change the articles of association so that the Board can consist of 9 or 10 members. The Board’s members are elected for one year. In 2008, the Board consisted of 10 members. Six, or possibly seven, members are elected by the Board of Representatives after considering recommendations made by the Election Committee.
Each business area carries out an annual strategy and planning process used to produce a rolling three-year plan for the group, including detailed targets, strategies and budgets. The Board of Storebrand ASA is involved throughout the strategy and planning process.
The financial services markets are undergoing rapid change, which accelerated thanks to the market instability in 2008. The introduction of the new insurance act in 2008 and the continued development of the pensions reform are impacting customer composition, the competition situation and the regulatory framework. In recent years Storebrand has positioned itself to meet these challenges and take advantage of new opportunities in the market. The principal strategy remains the same, and in our core activities we have focused on the following: • Ensuring a satisfactory financial situation
Ethics and corporate responsibility will be introduced as mandatory themes in training modules for sales staff and managers throughout the group in 2009.
Storebrand Fondene AS and Storebrand Eiendom AS. Other activities comprise the holding company Storebrand ASA and Storebrand
percent and thus exceeded the internal target. Measures were taken to strengthen the life insurance business’ capital base in 2008. These included an injection of capital from Storebrand ASA, and taking out perpetual subordinated loans and issuing perpetual subordinated bonds in the market. Storebrand Bank’s capital adequacy was 10.8 percent at year-end 2008.
The price charged for the guaranteed return will depend on factors such as the level of buffer capital associated with the policy, the level of exposure to equities in the portfolio, the level of the guaranteed return, and the current market situation, including the level of interest rates. Before 2008, there was no
NOK 244 million in 2007. The result for the year was affected by the dissolution of the security fund and transfer to the risk equalisation fund in total amounting to NOK 197 million. Compared to last year, the risk result, excluding the effect of the dissolution of the security fund, improved for all segments in addition to public sector group pension insurance due to the better disability result.
The above table follows from the new insurance act and the figures are therefore not comparable with the 2007 figures.
Soliditetskapital 78 percent of the assets under management from customers with investment choice (defined contribution pensions and unit-linked)
employed the same investment principle for all traditional insurance contracts’ total capital, regardless of the various contracts’
Storebrand’s asset management activities produced an overall pre-tax profit of NOK 215 million in 2008 compared to NOK 138 million in 2007. Compared with 2007 the result was pushed up by strong income from Storebrand
Operating margins in asset management activities improved further in 2008. As the graph below shows income is increasing, driven by a good contribution from the real estate activities. Costs and the assets under management were almost stable during the period.
Including dividends/group contributions from subsi-1 diaries. Including elimination of dividends/groups contributions 2 from subsidiaries.
Storebrand Compass is based on balanced scorecard management principles, with the value drivers divided into the areas of finance, customers and processes, as well as learning and growth. The table on page 56 shows, as examples, selected parameters in the categories of finance and customers together with an evaluation of the company’s performance in these areas in 2008.
the market’s expectations concerning future interest rates. Expected return on the portfolios for the next few years is calculated to be between 5 percent and 7 percent. Continuous active risk management, together with hedging transactions, reduce the likelihood of a low investment return. If the investment return is insufficient to meet the guaranteed interest rate in Norway or market movements are such that the current value of the pension liabilities in Sweden increases more than assets, the shortfall will be met by using buffer capital built up from previous surpluses. The owner is responsible for meeting any remaining shortfall if the built up buffer capital is insufficient. The average guaranteed interest rate in Norway and Sweden is expected to fall in future years since new contracts are subject to a lower guaranteed interest rate than the average of the current portfolio. The guaranteed rate on new contracts in Norway and Sweden is 2.75 percent and 2.5 percent, respectively.
Presentation currency and currency conversion for foreign companies The group’s presentation currency is the Norwegian krone (NOK). Foreign companies included in the group that use a different functional currency are translated to NOK by converting the profit and loss account at the average exchange rate for the accounting year and converting the balance sheet at the exchange rate at close of the accounting year. Any conversion differences are booked directly to equity.
03 New layouts for the profit and loss account and balance sheet
The situation in the financial markets means that the proportion of financial instruments that can be valued on the basis of observable prices or assumptions has declined compared with earlier periods. Storebrand has assessed the appropriateness of previously used price sources and valuation techniques, and has chosen to continue using these.
The Board’s Remuneration Committee The Board of Storebrand ASA has had a special Remuneration Committee since 2000. The Remuneration Committee is tasked with providing recommendations to the Board concerning all matters to do with the company’s remuneration of the CEO. The Committee shall remain informed about and suggest guidelines for the fixing of remuneration for senior employees in the group. In addition the Committee is the advisory body for the CEO in relation to remuneration regimes that cover all employees in the Storebrand Group, including Storebrand’s bonus system and pension scheme.
Loans to and due from financial institutions, amortised cost 333.7 333.7 374.1 374.1
Credit derivatives -103.4 -103.4 - Derivatives earmarked for hedge accounting 427.4 427.4
Hedging effectiveness – retrospective for hedging contracts at Storebrand Bank ASA 96% 108%
Total revenue and costs for the period 3.0 -394.1 -2,228.0 -2,622.1 11.5 -2,607.6
Pension liabilities in respect of own employees The company uses the Norwegian standard for pensions accounting NRS 6A, which permits the use of IAS 19 (International Financial Reporting Standards).
The Board’s declaration The Board of Storebrand ASA will submit a statement to the 2009 annual general meeting on the salaries and other remuneration of senior employees. cf. Section 6-16a of the Public Limited Liabilities Companies Act. based on the group’s previously adopted guidelines concerning the remuneration of senior employees in Storebrand.
NOK million 0–6 months 6–12 months 1–3 years Total value value