Introduksjon 1. This is Storebrand 2. Customer relations 3. People 4. Keeping Our House in Order 5. Director´s report 6. Finansielle mål 7. Konsernets resultater 2020 8. Utbytte for 2020 9. Kapitalforhold 10. Rating 11. fremtidsutsikter 12. Risiko 13. arbeidsmiljø og HMS
Introduction 3 Facts and figures 2020 5 Letter from the Group Chief Executive Officer 7 Chairman’s foreword 1. This is Storebrand 10 About Storebrand 14 Executive management 15 Board of directors 2. Customer relations 19 Greater financial security and freedom 21 Engaging, relevant and responsible advice 22 Digital innovator in financial services 23 Simple and seamless customer experiences 24 Key performance indicators 3. People 26 A culture for learning 28 Engaged, competent and courageous employees 29 Diversity and equality 31 Key performance indicators 4. Keeping Our House in Order 33 Corporate governance and compliance
Privacy and combating financial crime 37 Responsible resource use 38 Sustainable practices throughout our value chain 40 Social responsibility 41 Key performance indicators 5. Director´s report 52 Official Financial Statements of Storebrand ASA
163 Income statement 163 Statement of total comprehensive income 164 Statement of financial position 165 Statement of changes in equity 166 Statement of cash flow 167 Notes 180 Declaration by member of the Board and the CEO
Facts and figures 1) Profit before amortisation 2) After tax, adjusted for amortisation of intangible assets 3) Including transitional rules 4) Solution companies, Green Bonds and real estate with Green Building Certificate
*) Returns based on comparable investment portfolios with moderate risk (ca. 50% equity exposure) for active Defined Contribution plans.
**) Returns based on comparable investment portfolios with moderate risk (ca. 50% equity exposure) for active pension plans in the accumulation phase with a guaranteed return.
The year 2020 ended up very different from what we had foreseen. Still, we are satisfied by solid results and progress in key areas across the organisation. We delivered value to customers, investors and employees, and we made significant progress in preserving our position as a leading player in sustainable finance.
partnerships, including with Huseierne and Coop. Both organisations represent a large number of members and strengthen our distribution and competitiveness towards retail clients all over Norway. The purchase of Insr strengthened our position in non-life insurance. The takeover of the Insr portfolio is well underway.
Storebrand’s ability to create value contributed to several new international agreements in asset management, including a mandate of NOK 5 billion in England. We currently manage over NOK 960 billion on behalf of our customers and have ambitions for further growth.
We are committed to ensuring that our sustainability work leads to real-world results, whether in cooperation with large international organisations to stop deforestation in Brazil, or through good returns in our specialised sustainability funds. In 2020, Storebrand was named the world’s most sustainable insurance company by Corporate Knights Global 100. In addition, the Dow Jones Sustainability Index included the Storebrand stock on its list of the 10 per cent most sustainable companies in the world. Both are important recognitions of our longterm work on sustainability, and on systematic reporting on targets and results. In 2020, we introduced a new climate policy for the whole group, a new climate strategy for Storebrand’s investments and a new purchasing policy with clear expectations for our suppliers.
Inspired by 2020, where developing new working habits were essential, we will, through the Future Storebrand project, further develop our workplace and practices so that they are adapted to the needs of individual teams and departments. The aim is to further develop Storebrand as a leading and future-oriented workplace.
For me, I will look back at 2020 as a year whereh we delivered on our social mission in demanding circumstances. We were there when our customers needed us most, and our employees, products and services helped create a future to look forward to for very many.
After a strong year in 2019, we had a good momentum coming into the new year. Unexpectedly, reports of a seriously infectious virus started spreading rapidly. We soon realised that the world was facing a new pandemic, but none of us could have predicted that the situation would prevail for so long. The health authorities have started vaccinating populations, but it will take time before we can put Covid-19 behind us. Lock-down, layoffs and bankruptcies in the business sector will probably be prevalent for years to come.
Storebrand provides products and services that are essential for the functioning of our ociety. The pandemic put us all to the test. I am very proud of our ability to handle the situation in a good way, both for our customers and each other. Customers, authorities and our auditors have given us feedback of a well-organised and effective emergency response. We handled the increased risk well, delivered good returns on the capital we manage on behalf of our customers, paid out pensions and insurance settlements, we issued loans and payment deferrals, and we provided extensive advice to our customers during a period of uncertainty. Most of the work was carried out while working from home. We adopted new ways of interacting and maintaining productivity, using digital tools and a spirit of collaboration. We implemented infection control measures quickly, which meant that we were fortunate enough to avoid outbreaks of infection in connection with work carried out in our premises throughout the year.
In the Norwegian public service pension market, we are the only challenger to KLP, which has had a monopoly for several years. Through our continuous efforts, we achieved several breakthroughs throughout the year with public enterprises, culminating in the agreement with Vestland County. This is an important step to realise business opportunities in the future.
In the market for defined contribution pensions, we have achieved the best return in the market for several of the last five years, which enhances our standing to new and existing customers. Our guaranteed products also had better returns than our competitors, both in Norway and Sweden. This was crucial to preserving financial solvency in a turbulent financial market. The results give us credibility as a professional asset manager and help secure the basis for further growth.
Our subsidiary in Sweden, SPP, succeeds in transferring almost 90 per cent of the customer stock to a new technological platform, and is now the fastest growing pension company in Sweden. We continue to focus on the Swedish market, with digitisation, sustainability and service development as our most important value propositions. In the private market in Norway, we established several solid
In 2020, the pandemic outbreak put all parts of society to the test. Storebrand was conscious of its responsibilities, both as a service provider and an employer. The Board would like to thank all employees for the all their contributions that enabled Storebrand to assist our customers when they needed us most. Everyone at Storebrand has shown great flexibility, ensuring that our critical tasks have been solved in an extraordinary situation.
To secure a future to look forward to, we must make good decisions today. We managed the pension and saving of around two million people in Norway and Sweden- and our decisions today will affect their future. In the following, I want to highlight some of the changes I believe will have the greatest impact on our customers, and for Storebrand, over the next few years.
In 2021, 1.5 million people will get access to individual pension accounts in Norway. Individual pension account means that pensions saved by current and former employers are collected in a separate pension account in the current employer’s scheme. The purpose is to give employees a better overview and control of their own pension and savings, and ultimately higher payouts. Workers can also choose freely to move the pension savings out of the employer’s pension scheme, to a provider of their choice. The individual retirement account is expected to increase competition, both to attract new customers and retain existing ones. Through this, margins in the industry will be ever more competitive. For Storebrand, this will require more costeffective services, and upholding our professional management. Our goal is to sustain our position as the leading provider of occupational pensions in the private sector.
Also, in Sweden we see that the competition is intensifying. The Swedish occupational pension market is fragmented, with mutual pension companies, bank-owned life and pension companies, and insurance providers.
To ensure healthy margins across our markets, we must continue to have cost-effective operations and foster digital innovation power. Digitisation of the entire value chain ensures good distribution and self-service solutions that provide increased flexibility for customers.
Customers in the retail market expect ever more individualised services, which we can deliver through customer insights, analysis capacity, valueadded services, and good advice from capable employees. Going forward, we will build on newly established partnerships to strengthen distribution possibilities and further develop our value proposal to existing and new customers within savings, insurance and banking. With long traditions, the breadth of our service offering, sustainable and innovative solutions, we are well positioned for further growth in the Norwegian retail market.
Storebrand’s business has a huge impact on the society we live in. We will manage this responsibility in a proper manner. Storebrand collaborates with the companies we are invested in, and express clear expectations towards our suppliers, to achieve changes that contribute to a more sustainable world. We also help our customers make informed choices through long-term savings solutions that provide good returns and positive social development.
Storebrand has 25 years of experience with sustainable investments, and is consistently ranked highly for our efforts, both nationally and internationally. Sustainable finance is high on the EUs agenda and hence important Storebrand and our stakeholders. The EU Action Plan for Sustainable Finance will be a clear premise for the financial industry in the years ahead. The Disclosure Regulation, which comes into force in March 2021, sets clear requirements for the disclosure of environmental aspects, social aspects and corporate governance (ESG) for fund managers and institutional investors. Storebrand has been working systematically on sustainability for decades and is well prepared to adapt to the new regulatory requirement.
In 2020, storebrand employees showed a fantastic ability to adapt, almost overnight, to a life consisting of home office, home school, closed kindergartens and limited social interaction. While still being there for our customers. The experience was demanding for both managers and employees, but contributed to new ways of working together across the organisation. The team spirit was strengthened, and many acquired new knowledge that will be very valuable going forward.
Board of directors 15 2. Customer relations 3. People 4. Keeping Our House in Order 5. Director´s report 6. Shareholder matters 7. Annual Accounts and Notes 8. Governance 9. Sustainability assurance 10. Appendix
Storebrand changes its logo and introduces “the link”. The name changes to The Storebrand Group Ltd
OUR DRIVING FORCE Storebrand is a financial group, headquartered in Oslo, Norway. We offer pension, savings, insurance and banking products to individuals, businesses and public enterprises. We work hard to understand our customers well enough to consistently meet their expectations. Customers should be confident that we put their needs first.
We’ve been a part of people’s lives for more than 250 years. Today we are one of the largest private asset managers in the Nordic region – with NOK 962 billion invested in more than 4,500 companies around the world. Over two million people in Norway and Sweden place their savings with us. This comes with clear obligations. . We are committed to managing our customers’ money effectively and responsibly, helping them to fulfil their dream of increased financial freedom and financial security for the future. Assets under management shall be invested according to best sustainable practices, ensuring good financial returns and a positive impact on society. We shall make it easy for our customers to make good choices, both for themselves and society.
Storebrand’ s driving force helps create a future to look forward to. We will be closest to the customer, in a simple and sustainable way, to deliver increased financial security and freedom. We do this by being courageous pathfinders and by leading the way in sustainable investments.
This includes other companies within the Storebrand Group, including small subsidiaries of Storebrand Life Insurance and SPP.
In 2019, the UN released the results of the most thorough planetary health check ever undertaken, the IPBES6) report on biodiversity and ecosystem services. The report is clear in its conclusion: Loss of biodiversity and ecosystems occurs to a extent that must be limited urgently so as not to entail irreversible consequences. The backdrop for the report is the 2018 UN Special Report on global warming of 1.5°C, which concluded that the transition to a low-emission society requires swift action. The transition represents both financial risks and opportunities for Storebrand as an investor and asset manager.
Sustainability in Storebrand Sustainability is integrated in our business strategy and implemented across the entire business, including investments, products and product development, procurement, employment policies and business management.
Keeping our house in order In our work, we rely on these sustainability principles: • We base our business activities on the UN Sustainable Development Goals.
• Our processes and decisions are based on sustainability outcomes – from the Board and management, who have the ultimate responsibility, to each employee who promotes sustainability in their respective business area.
We work actively towards equal opportunities and gender balance in work and economic life (target 5.5).
We aim to achieve decent work for all our employees, and equal pay for work of equal value (target 8.5).
Products and Services Storebrand is a leading financial player in the Nordic market and will be a pioneer in sustainable investments. We started with sustainable investments already in the mid-1990s. In 2005, we introduced minimum standards for all our investments through the Storebrand standard, and in 2010 we integrated sustainability into all our funds through a separate ranking methodology. In 2020, Prospera ranked us in first place in the sustainable investment category in both Norway and Sweden, and we achieved the highest score at Mercer within ESG. Furthermore, we scored best among the major financial institutions in the Ethical Banking Guide in Norway and were included on the Dow Jones Sustainability Index’s list of the world’s ten per cent most sustainable companies.
These are important recognitions of the work both with operationalization of sustainability throughout our business, and the integration of criteria for sustainability in our investment products. All our funds are managed according to the Storebrand standard. In addition, 9.6 per cent of our capital invested in what we call solutions – companies that contribute to the UN’s sustainability goals, green bonds, and certified green property investments. In addition, almost 40 per cent (379 billion NOK) of our assets under management at the end of 2020, were invested in fossil-free funds. All assets under management in our Swedish branch SPP Funds are invested in funds consisting of companies unaffiliated with the fossil sector.
We strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in our operations and in our investments (target 13.1).
We integrate climate change measures into our policies, strategies and planning (target 13.2).
From left: Karin Bing Orgland (Member of the Board), Fredrik Åtting (Member of the Board), Bodil Catherine Valvik (Employee Representative), Magnus Gard (Employee Representative), Karl Sandlund (Member of the Board), Laila S. Dahlen (Member of the Board), Didrik Munch (Chairman of the Board), Marianne Bergmann Røren (Member of the Board), Martin Skancke (Member of the Board), Hans-Peter Salvesen (Employee Representative).
Board of Directors The Board is ultimately accountable for management of the Storebrand Group. This means, amongst other things, that the Board will ensure responsible organisation of the business and establish plans, budgets and procedures. The Board oversees the administrative management of the Group, maintaining insight into the Storebrand Group’s financial position. In addition, the
Member (shareholder elected) Leiv Askvig, Nils Halvard Bastiansen Anders Gaarud, Margareth Øvrum
The dialogue with stakeholders is conducted through interviews, surveys and direct dialogue. We also extract information that is collected through interaction with stakeholders, such as general meetings, customer surveys and meetings, as well as participation in committees and initiatives aimed at solving a wide range of sustainability issues. Based on the materiality analysis, we identified four focus areas and
related material topics in 2020, and how we will work on these going forward. The four focus areas are: 1. Financial capital and investment universe 2. Customer relations 3. Our people 4. Keeping our house in order
G: Simple and seamless customer experiences, and K: Governance and compliance: privacy and combating financial crime. These are discussed in relevant chapters in the main part of the annual report. Common for all chapters is that they are divided into four parts; why it is important for Storebrand and for our stakeholders, goals and ambitions, our approach, and reults. The key figures for each focus area are reported to the group management on an ongoing basis, and to the Board of Directors annually.
This year’s report covers Storebrand’s operations in Norway and Sweden. The environmental data presented in the chapter keeping our house in order includes the head offices of Norway and Sweden as well as Skagen’s head office, representing the office premises of 95 per cent of the group’s employees. The figures do not cover the smaller, local offices or Cubera, as these are not considered material due to their size. See page 197 for more information about companies in the Storebrand Group.
Customer relations 19 Greater financial security and freedom 21 Engaging, relevant and responsible advice 22 Digital innovator in financial services 23 Simple and seamless customer experiences 24 Key performance indicators
Approach We provide information in an understandable manner and make good advice readily available to help our customers gain oversight of their personal finances. Development of digital tools and the improvement of digital communication are important instruments, both in the Norwegian and Swedish markets.
Results Almost half a million people have checked their pension on Storebrand’ s website in Norway in 2020. Throughout the year, more than 120,000 customers downloaded the “My Money” app, which was launched in a new version in 2020.
In Sweden, more than 410,000 customers logged into SPP’s website to attain information about their pension, while 10,000 corporate customers logged in to review and manage the company’s pension solutions.
Why Pensions and Insurance are often perceived as complicated. It can be difficult to understand which agreements and rights are collective and which are personal, as well as which conditions apply to the various agreements.
Goals and ambitions We aim to provide the customer with financial security and freedom through attractive products and services. Through professional management of capital adapted to the customer’s risk profile and time horizon, and through a wide range of products, we shall contribute to growth in our customers’ pension and savings capital. The goal is also to increase the number of products each customer has purchased through Storebrand.
In Norway, we have an ambition that 75 per cent of our advisors across savings, banking and insurance should be authorised at all times. In Sweden, certification8) is required for advisors to carry out counselling, and all our advisers are certified.
• Caring – I treat everyone individually, help them, and give advice.
The interaction between digital and physical customer service will become increasingly important. In Storebrand, teams work closely together for various forms of customer service to prioritise and develop initiatives.
In the market for banking we had a market share of 1.7 per cent in 2020.
Norway 8) The reason we do not have an ambition of 100 per cent is that there will always be some turnover in the Organization.
9) Free funds (retail market), individual pension, individual capital, pension capital certificate (PKB), and policy of investment choice (FMI). .
Why Technological development and digitalisation are among the changes that affect the industry the most. Technology affects customer behavior and expectations, our ability to deliver services to the customer, and is a prerequisite for automating and improving both distribution and customer experiences.
Goals and ambitions Our overall ambition is to increase the number of satisfied and loyal customers, and streamline the group, through the use of automation and digital services. Digital distribution and self-service enable us to serve our customers more efficiently. At the same time, customers are more satisfied when they can use self-service solutions at times and in channels that suit them.
We improved the health insurance app, “Get Healthy,” and added new partnerships during the year. In addition to physiotherapists, Eyr, online psychologist and digital self-help program, our customers now get access to Snapmed(dermatologists online), ExorLive(exercises and programs made by physiotherapists) and Home Doctors(home visits from a doctor). The proliferation and use of the “Dreams” app continued to increase in 2020, and the app cemented its position as one of the most popular savings services in Norway. The number of downloads increased from 200,000 in 2019 to more than 300,000 in 2020. By yearend, customers had saved more than 1billion NOK since the launch of the app in 2019. The new “Debt-free” service in the app helps more and more of our customers get rid of debt faster. Users of the service have reduced their repayment period by two years on average.
Why Customers’ requirements and expectations have changed noticeably in recent years, and the bar is raised continuously as different players offer solutions that improve customer experiences. Storebrand invests in technology, services, and concepts to deliver holistic customer experiences, adapted to the individual, across digital and serviced surfaces.
We are also working to develop holistic customer concepts based on different customer segments, life events and customer needs. In 2020, we established a separate unit with responsibility for developing concepts and holistic value suggestions for different customer segments in the retail market. Based on customer needs and commercial potential, Storebrand has chosen to prioritise people in the establishment phase, wealthy individuals, and people approaching retirement age. One of the concepts is “Smart pension”, a unique service in the Norwegian market. The service is for people who plan the transition to retirement, and makes it possible, among other things, to simulate different withdrawals of their own pension. Through pension advice and digital solutions, we aim to realise the potential of a customer group with unmet needs. We are also launching a dedicated concept for wealthy customers, with holistic follow-up and access to advice within the breadth of Storebrand’ s service spectrum. In addition, a new concept aimed at the general consumer market is under development and testing.
“Smart Pension” is increasingly successful in providing personal advice on pension withdrawals, which helps more people choose to continue their customer relationship after they retire. In 2020, customers placed over 500 million NOK of funds at Storebrand using the “Smart Pension” service.
Recognised for sustainable value creation (Retail Norway) New 2019 New 2019 #3 #5 Top 3 #1
Recognised for sustainable value creation (Corporate market Norway) New 2020 New 2019 #1 #4 #1 #1 10) We have stopped reporting on two indicators from 2019 on a) GDPR course (this is an important indicator for checking that new routines are Implemented, but we are confident that these routines work well and that all a lot of workers receive GDPR training as part of the introductory programme) and b) Sustainable Brand Index-sscores for the UK and Sweden (these indicators are replaced by others). In addition, complaints are now discussed under chapter 5 below.
People 26 A culture for learning 28 Engaged, competent and courageous employees 29 Diversity and equality 31 Key performance indicators 3Contents
«People first, digital always» is the title of Storebrand’ s HR strategy. The strategy is designed to enable our organisation to adapt to continuous changes in an increasingly digitised world and deliver on ambitious business targets.
Why To stay competitive in a rapidly changing industry, we must provide our employees with opportunities to learn throughout their employment. Greater breadth and diversity in employees’ competence will contribute to continued growth and ability to meet changing customer expectations, as well as development opportunities for our employees. Digital skills, knowledge of customer preferences and insight into market development are important success factors.
In 2020, we improved our efforts for coordinated customer dialogue in multiple channels through the introduction of a new customer engagement platform. This was also a competence boost, made possible by an interaction between internal forces, partners and the learning platform. Due to Covid-19, we also decided to digitise our annual Nordic training day, “the Storebrand Day”. Through the digital learning platform, we facilitated the day with a focus on the development of a customer centric culture: “Closest to the customer – closer to each other”.
Approach We recruit people who want to contribute to a future to look forward to for our customers and the society as a whole. It is important for us to give our courageous employees space and mandate to create unprecedented customer experiences. Employees are not only responsible for their own learning; by 2020 we stressed the importance of our shared responsibility to develop together, in line with the company’s needs. We do this by continuously acquiring new knowledge through collaboration in cross-functional teams and creating good customer experiences together.
Due to the pandemic, many of our new employees became acquainted with Storebrand and new colleagues primarily through digital channels. Already in April, we developed a new introductory programme for new employees. Through the program, “Smart Start”, new employees were included in a series of digital learning activities and joint meetings during their first month. In this way, they became well acquainted with each other and Storebrand, even though we could not meet physically at work. The managers closest to the new employees were invited to a group chat to enhance their introduction.
In September 2020, 23 employees with up to three years of experience, completed the “Storebrand future impact” program. The program was structured around the development of three skills: self-management, relationships and collaboration, and complex problem solving. The participants completed a project based on agile development principles and used tools from the program to solve global challenges in a responsible, ethical and
sustainable way. The aim of the program is to educate future leaders and change agents in Storebrand.
The Storebrand Academy for future leaders started up in April 2020 with 20 participants. The first two collections were conducted digitally.
Results In 2020, we offered 118 courses via the digital learning platform Campus Storebrand.
Storebrand was well equipped for the government-imposed home office situation initiated in March. By the end of 2020, more than 84 per cent of the workforce used Teams for digital meetings. The peakon employee survey showed that employee satisfaction with their own work tools increased from 7.8 to 8.1 on a scale of 1 to 10, where 10 is the highest score.
Ten students, out of 650 applicants, were accepted to our summer internship program in Norway, while five students participated in our summer program in Sweden. The participants consisted of nine women and six men, and they had backgrounds in economics, technology, psychology, development, entrepreneurship and design. The students were very pleased with the digital introduction they received. Therefore, the plan is to facilitate digital introduction for future participants as well.
Transparency is a prerequisite for motivation, trust, and security. All employees should experience that they can raise issues with management and others in the Group. Storebrand has its own ethical guidelines.
Employee surveys are conducted regularly (every two weeks or monthly) to measure workplace engagement and satisfaction with work, management, collaboration, sustainability, perceived self-determination, and freedom of opinion. The objectives are strategically anchored and followed up by the group management.
Our goal of being a smart and agile organisation is supported by the tool by allowing us to use real-time data for continuous improvement. In 2020, we strengthened the use of insights about the condition of the organisation to ongoing improvements.
At Storebrand, we encourage a good work-life balance for all employees. After the outbreak of the pandemic in 2020, we facilitated an increased flexibility in where and when you work. Although what you deliver is more important than where you are, we see great value in employees meeting physically. Going forward, we will look at the design of the workplace of the future to ensure and maintain a good balance between efficiency, interaction, creativity, competence development and engagement.
All members of the Board and senior management complete an annual course in ethics, anti-corruption, anti-money laundering and terror financing, and privacy and digital trust, as part of the Group’s risk management. More information about this can be found in the chapter: Corporate governance and compliance.
The score for Our driving force in the employee survey was 7,8 out of 10 in 2020. The overall score for engagement increased from 8,0 to 8,3 out of 10.
To strengthen adherence to our driving force, we completed leadership training for all group leaders in 2020. More than 70 per cent of all group leaders completed “Our driving force leadership training” during the year.
We are actively working to achieve a gender balance through targeted recruitment initiatives and by nominating an equal number of women and men for leadership positions and leadership development programmes. Candidates and employees should experience a transparent and inclusive recruitment process.
We offer permanent employees paid parental leave beyond the statutory requirements of Norway and Sweden and pay 100 per cent salary during parental leave.
Our sustainability work appeals strongly to young professionals seeking work. Storebrand was ranked 13th out of the top 50 companies onthe attractiveness ofthe Young Professional Attraction
External independent sustainability analyses also show that companies that focus on diversity are more innovative and profitable. Goals and ambitions
All employees at Storebrand shall be treated equally regardless of age, gender, disability, cultural background, religious belief, or sexual orientation, both in recruitment processes and throughout their employment. We have zero tolerance for harassment and discrimination.
“All Storebrand employees shall be treated equally, regardless of age, gender, disability, cultural background, religious beliefs or sexual orientation”
Index (YPAI) in 2020, and Storebrand was number one in banking and finance on the same index. The graduate program “Storebrand Future Impact” received more than 200 external applications for five positions. Among the individuals that were hired, there was a predominance of women.
Ten women from different parts of the group were included in the talent and leadership development program for women, “FiftyFifty” throughout the year. The program was initiated by Storebrand in cooperation with AFF and Flensby & Partners as part of our 250th anniversary in 2017. The programme is now led in its entirety by AFF. Together with 40 women from other companies, the participants work to develop initiatives that promote equality for themselves, their business and for society as a whole.
At the end of the year, the share of women among storebrand managers was 39 per cent. Three out of ten members (30 per cent) of the group management were women. Among the managers who reported directly to the group executive management, 38 per cent were women. 40 per cent of the Board members of Storebrand ASA were women.
The average age of an employee in the Storebrand Group was 43 years at the end of the year. The average tenure was eleven years in Norway and ten years in Sweden.
As of December 31, 2020, the Storebrand Group had a total of 1,824 employees.
No physical injuries were reported in the Storebrand Group in 2020.
Number (share) of women at executive level 3 50% 22 (46%) 50% 50%
All KPIs in this table include Skagen, Cubera and Værdalsbruket (100% of the groups employees).
Women on Board of Directors 5 of 9 4 of 9 4 of 10 40% 40%
Employees up to middle managers, women’s share of men’s salary per position category (Hay Grade 13-20) 99% 99% 97% 100% 100%
Keeping our house in order 33 Corporate governance and compliance: Privacy and combating financial crime 37 Responsible resource use 38 Sustainable practices throughout our value chain 40 Social responsibility 41 Key performance indicators
Key performance indicators 41 5. Director´s report 6. Shareholder matters 7. Annual Accounts and Notes 8. Governance 9. Sustainability assurance 10. Appendix
Approach Our Privacy Policy contains principles of digital trust, such as lawful and transparent processing, purpose limitation, data subject’s rights, and requirements for data protection by design. We work systematically with information security. Through an internal control system, we set requirements for, monitor, and continuously improve information security in our own operations, customer solutions and in cooperation with our partners.
The CEO of each of the legal entities in the Group is responsible for the processing of personal data, including ensuring that internal control procedures are implemented and reviewed regularly. All managers are responsible for ensuring that employees with access to personal data have the necessary expertise and are qualified to protect our customers’ privacy, as well as to follow our procedures and information security policies.
In 2020, 41 incidents related to the processing of personal data were reported. We reported six of these as discrepancies (documented substantiated complaints) to the Data Protection Authority, in accordance with the EU General Data Protection Regulation (GDPR).
All registered cases from 2020 have been handled properly and closed. The Norwegian Data Protection Authority did not issue any fines, warnings, or orders for improvements to Storebrand due to breaches of the GDPR in 2020.
For the seventh year in a row we conducted the Security Awareness Month in October, with several activities and digital presentations that achieved a high turnout from our employees.
Why Corruption is one of the major causes of poverty in many parts of the world, and work targeting this form of crime is highly relevant in Scandinavia as well. Corruption is prohibited in all countries where Storebrand operates. Corruption is a criminal offence both for the person on the giving end, and on the receiving end. Corporations can be penalised for not taken sufficient measures to avoid corruption. Corruption can result in reduced trust in Storebrand as a company, and to the financial and insurance industry in general. Corruption is detrimental to healthy competition in all industries.
All employees and board members shall complete the Group’s anticorruption program. Exceptions are made for employees on leave or long-term sick leave. The goal is that 100 per cent of our employees will complete the program each year. Consultants who have been assigned for more than six months shall also carry out the program but are not included in the results for this year’s measurement.
Approach Our expectations of employees, temporary staff and consultants are stipulated in our ethical guidelines, approved by the Board of Storebrand ASA and the Boards of all subsidiaries. We have additional guidelines specifically addressing anti-corruption, reviewed annually by the compliance team. The group’s compliance function is responsible for updating and disseminating material aimed at increasing anti-corruption competence and awareness.
We expect all employees and contractors to act in manner that builds trust for both the individual concerned and for the Storebrand Group. As a general rule, no one shall receive any benefits, including services, gifts and invitations, from Storebrand’s business associates. In situations where gifts can be received, our guidelines specify thresholds in the relevant country’s currency.
Gifts given on behalf of Storebrand are subject to the same threshold. No one must give or receive gifts with an expectation of reciprocity, or to achieve any form of advantage, privately, or for any Storebrand company.
We work systematically to ensure that our companies are not used for money laundering, terror financing or other forms of financial crime. All employees must carry out compulsory training each year.
Each company in the Group conducts an annual assessment of risks related to the possibility of money laundering, financial crime, and terror financing. We have established clear frameworks and procedures for managing such risks. These include procedures related to the establishment of new customer relationships as well as ongoing reviews of customers who are believed to pose a risk. We conduct internal audits and regular spot-checks to identify and report suspicious transactions or behavior.
Any activity that we suspect is in breach of the Norwegian Measures Against Money laundering and Terror Financing Act (2018) is reported to the police.
In 2020, 92 per cent of our employees completed the mandatory training course in anti-money laundering, financial crime and terror financing.14)
14) Figures do not include Cubera Private Equity, as this company has its own anti-corruption Program.
Approach As early as 2008, Storebrand became Norway’s first “climate neutral” financial group, through reducing emissions and purchasing carbon quotas to compensate for emissions related to our own operations. In 2020 we took this work further and decided on a new climate policy that applies to the whole group. We will impose strict requirements on ourselves and our suppliers and set specific targets to minimise our carbon footprint.
We use the precautionary principle when it comes to environmental management. Since 2009, Storebrand has been eco-lighthouse certified, and we report publicly on our environmental impact every year.
We encourage employees to use video conferencing for meeting activities to reduce the scope of businesstravel. More than half of all our meeting rooms are equipped with video conferencing equipment. Nevertheless, corporate air travel increased in 2019. Therefore, we introduced an internal carbon tax on flights of NOK 1 000 per tonne of CO2 in 2020. The cost is charged to the employee’s department and is followed up by management in a newly established system, which ensures increased insight into our travel habits. The funds from the carbon tax are used to buy climate quotas and for other climate-related projects. Due to Covid-19, the number of flights carried out by employees at Storebrand were reduced to a minimum in 2020. However,we updated our policies to encourage employees to assess the need for travel, and to use public transport in the event of necessary travel. In addition, we expanded our electric car and electric bike fleet. In 2020, employees were given the opportunity to buy private electric bikes at a discounted price with an interest-free loan from Storebrand.
In order to reduce unnecessary waste, we have decided to remove all disposable cups from our offices. However, the measure was postponed due to Covid-19. The decision means that all employees must bring their own cup. When using your own cup, you also receive a discount in the coffee shop at head office. In addition, we introduced environmental labelling of the food in the cafeteria in order to raise awareness among employees on emissions associated with different types of foods.
Emissions that we are incapable of reducing from our own operations are compensated by purchasing emission quotas.
Results Due to Covid-19, our internal emissions and the number of business trips were significantly reduced in 2020. Internal carbon pricing and new travel guidelines were introduced.
12.5 We aim to significantly reduce the amount of waste through prevention, reduction, recycling and reuse.
13.1 We strengthen our ability to withstand and adapt to climate-related hazards and natural disasters in our business and in our investments.
13.2 We incorporate action on climate change into our policies, strategies and plans.
15) So that the goal of limiting average global warming to 1.5 °C by 2050 reached, in accordance with the Paris Agreement.
Why Procurement is an area where we can have a major impact by influencing our suppliers towards more sustainable practices. In order to focus on what we are good at, and make our business as efficient as possible, we have increased the use of outsourcing. This requires proper procedures to monitor working conditions, safeguarding human rights, and managing environmental issues in the value chain.
8.8 We aim to protect workers’ rights and promote a safe and secure working environment for all employees, contractors and suppliers.
17) Eco-Lighthouse, EMAS, ISO14001 and Swan Mark 18) We work with our suppliers to stimulate emission reductions. Remaining emissions can be compensated through the purchase of climate quotas.
b9a72482/45359A%20Q3%20Liste%20over%20Storebrands%20utelukkelser_ENG.pdf 20) Among the governing documents are “Guidelines for outsourced activities”, “Guidelines for the award of powers of attorney”, “Rules for ethics”, “Guidelines for combating corruption”, “Guidelines for anti-money laundering, terrorist financing and financial crime measures”, “Guidelines for handling conflicts of interest”, “Guidelines for events”, “Information Security Management Document”, and “Governing Document for the Processing of Personal Data”.
Blant de styrende dokumentene er «Retningslinjer for utkontraktert virksomhet», «Retningslinjer for tildeling av fullmakter», «Regler for etikk», «Retningslinjer for bekjempelse av korrupsjon», «Retningslinjer for tiltak mot hvitvasking, terrorfinansiering og økonomisk kriminalitet», «Retningslinjer for håndtering av interessekonflikter», «Retningslinjer for arrangementer», «Styringsdokument for informasjonssikkerhet» og «Styringsdokument for behandling av personopplysninger».
We select - Sustainability is weighted at least at least 20% in our tender processes. Through the supplier mapping and evaluation, we give an advantage to suppliers that perform well on sustainability.
Goals and ambitions We will take social responsibility by providing financial support and knowledge in the area of sustainability. We also want to enable more employees to spend time on activities related to corporate social responsibility.
Approach We prioritise activities in three areas in terms of corporate social responsibility: Collaboration, financial support and voluntary efforts among employees. These activities will promote and raise awareness of sustainability and demonstrate the connection between sustainability and profitability.
Young Entrepreneurship (UE) is a nonprofit organisation that encourages young students to establish and run their own businesses. We have helped create a sustainability award to encourage students to learn more about how to run a sustainable business. In 2020, we continued the popular mentoring scheme where young students can discuss issues related to the establishment of their companies with employees in Storebrand. The Catalysts mentoring program: For the fourth year in a row, ten employees were given the opportunity to mentor a student from a minority background. Through monthly meetings at Storebrand, students gained insight into Norwegian working life, help to develop themselves, and advice on school and working life. The program is a collaboration between Storebrand and the nonprofit Catalysts. The aim is to prevent dropouts in upper secondary school.
Results 353 Young entrepreneurship start-ups competed in the sustainability award category. In 2020, CleanAir UB won the awardfor the developmentof DustBuster, a product that allows large vehicles to collect particulate matter from the roads where they operate. The youth company had thought about sustainability throughout the entire value chain.
E-learning conducted, ethics: total / share of man-years26) New New 89 % 91% 100 % 100 %
E-learning carried out, anti- corruption work: total / share of man-years 26) New New 87 % 90% 100 % 100 %
E-learning completed, privacy: total/share of man-years 26) New New New 85% 100% 100%
For detailed KPI definitions, see page 225. The environmental data in this table includes the head offices in Norway and Sweden as well as Skagen’s head office, representing the office premises of 95 per cent of the group’s employees.
21) Even though we achieved a higher purchasing volume from environmentally certified suppliers in 2020, the dynamics of our supply chain and market conditions still make the 60 per cent target challenging. Therefore, our aim is to work on maintaining a share of purchases from environmentally certified suppliers of over 60%.
26) From 2019, we started reporting for each course separately. Historical data for 2017 and 2018 is therefore not available. Data for 2019 shows the share of all permanent employees throughout the year. The deviation from the 100% target is mainly due to turnover and new hires.
27) The figures apply to our Norwegian enterprises, as these are complaints dealt with in the Financial Complaints Commission. SPP not included here.
43 Strategy 2021-23 44 Strategic highlights 47 Group Results 52 Official Financial Statements of Storebrand ASA 53 Outlook 57 A driving force for sustainable investments 66 Risk 68 Climate risks and opportunities 72 Working environment and HSE 73 Progress on our most material sustainability KPIs
Future Storebrand Growth focus in capital-light business areas in front book
Storebrand follows a two-fold strategy that provides an attractive combination of self-funded growth within what we call the “Future Storebrand”, and capital release from the guaranteed pensions business which is in run-off.
Storebrand aims to (A) be the leading provider of occupational pensions in both Norway and Sweden
(B) continue a strategy of building a Nordic powerhouse in asset management
(C) ensure rapid growth as a challenger in the Norwegian retail market for financial services.
The interaction between our business areas provides synergies in the form of capital, economies of scale, and value creation based on customer insight. As announced on the capital markets day in December 2020, our ambition is to deliver a group profit (before amortisation and tax) of approximately NOK 4 billion in 2023.
We believe the only way to secure a better future is to take part in creating it. We seek to actively use our position to lead the way in sustainable value creation and to differentiate ourselves from competitors.
Storebrand offers financial products, services, and customer experiences. Based on an increasingly advanced technology platform, we offer a fully digital business and distribution model. Our position as a digital frontrunner will be a critical success factor in strengthening our competitiveness in the years to come.
We aim to both grow the ordinary dividend from our earnings and to ensure capital-efficient management of older products with interest rate guarantees. Our goal is to release an estimated NOK 10 billion of capital by 2030.
Discusses market risk and effects on the profit to shareholders due to deviations from expectations in financial market prices or volatility. Also shows stress test incl. development in the most significant financial instruments for Storebrand’s investments.
Discusses market risk and effects on profit to shareholders due to deviations from expectations in valuation of investment property or volatility. Also shows stress test incl. development in value of investment property for Storebrand’s investments.
Describes the processes associated with valuation and sensitivities for investment property.
Despite the outbreak of the Covid-19 pandemic, Storebrand has been close to fully operational in 2020. Thanks to well defined contingency plans and adaptable staff, we executed on our strategic initiatives according to plan, despite it being an extraordinary year. We quickly adapted to new ways of working with digital processes and home offices for most of the year. Our first priority was to secure Storebrand’s critical operations and to support our customers when they needed our services most. During 2020, we helped a record number of customers with their travel insurance claims, refinanced mortgages, and adjusted repayment schedules. We also provided extensive business and investment advice for companies and individuals.
We entered the year with a solid solvency and buffer capital position. This contributed to our resilience towards the market shocks that occurred as the global crisis unfolded. Despite market volatility and declining interest rates, financial risks were therefore mitigated through measures within our normal risk management framework.
Strong growth in our core business throughout the year contributed to an increase in the group’s operating profit. However, turbulent financial markets in the first quarter led to significant unrealised investment losses in the beginning of the year. Throughout the remaining quarters, financial markets rebounded and the group ended the year with a positive financial result.
28) Measured in gross premiums as of Q3 2020. Source: Finance Norway.
29) Measured in gross premiums including transfers as of Q3 2020, but excluding Brummer Life. Source: Insurance Sweden
Over the past eight years, Storebrand has succeeded in transforming the business from capital-intensive products with guaranteed returns, to fast-growing and self-funding capitallight products. Total assets under management have more than doubled since 2012. At the end of the year, 71 per cent of the assets under management were related to capital-light business in the front book.
Leading provider of occupational pensions in Norway and Sweden The growth within Storebrand’s core product, defined contribution pensions, continued in 2020. Storebrand maintained its leading market position in Norway with a market share of 29 per cent28) . The average policyholder is about 50 years old, which means that premium payments received exceed pension payments made. Corporate customers in Norway also paid an excess of NOK 2 billion in insurance premiums in 2020.
To further strengthen our market position and growth, Storebrand re-entered the Norwegian market for public occupational pensions in 2020. In the first year, we won contracts worth NOK 9 billion in total assets – funds that will be transferred to Storebrand in 2021. Recent pension reforms have effectively re-opened the market for competition after having been dominated by a municipality-owned monopolist over the last years. Storebrand has a strong value proposition and is the only challenger in the market. Storebrand is also the only provider with a complete product offering within occupational pensions. The market is estimated at more than NOK 450 billion in total assets and NOK 35 billion in annual premiums, thus a larger market than the Norwegian private market.
Storebrand Asset Management is a world leader in sustainable investments and currently manages NOK 379 billion of fossil-free investments and NOK 93 billion in what we call “solution companies”. These are companies that are particularly well positioned to contribute to realising the UN Sustainable Development Goals. During 2020, Storebrand Asset management took a leading role in efforts to reduce deforestation and natural destruction. We also launched a new climate strategy for investments with innovative anti-lobbying criteria, and we committed to a new climate and infrastructure fund in cooperation with Danish fund managers.
Growing challenger in the Norwegian retail market Through our corporate pensions and asset management offering, we leverage both systems and solutions to deliver savings and insurance products in the retail market. Together with our retail bank, Storebrand offers a digital one-stop-shop with integrated value propositions and cross-selling opportunities. With 250 years of history, the Storebrand brand name stands strong in society. In Norway, 1.3 million people are customers of Storebrand through their pension savings. They are our main target group for additional financial services that enable them to achieve financial freedom and security. Growing our distribution capacity in the retail market was a main priority in 2020. During the year, written insurance premiums increased by 18 per cent. We entered new distribution partnerships with the Norwegian Homeowners Association and Coop, while also exploring new business opportunities with fintech companies such as Dreams, Aprilla Bank, and Finn.no. Storebrand also entered into an agreement with Insr to acquire the right and obligation to renew policies from Insr’s customer portfolios over the coming year.
Leadership in sustainability For the past 25 years, Storebrand has pioneered sustainable investments to increase value creation. We strive to create value beyond financial returns. Our sustainable investments and enhanced sustainability funds grew substantially in 2020. We believe that our leading position in sustainable value creation will increase value for our customers and create positive ripple effects for society. We are committed to the Paris Agreement throughout our value chain. Storebrand is determined to lead and develop the sustainability agenda within the financial industry in the years to come.
Our sustainability position has been highly recognised in 2020. Storebrand was included in the Dow Jones Sustainability Index, recognised among the top 10 per cent most sustainable companies in the world. Corporate Knights also rated Storebrand as the world’s most sustainable insurance company in its Global 100 ranking for a second consecutive year. Our employee satisfaction surveys show that Storebrand employees are proud to be a part of the company, and that our work on sustainability makes their job more meaningful. Our position on sustainability also attracts an increasing number of international talents.
At the beginning of 2020, Storebrand’s Board of Directors initially announced an ordinary dividend of NOK 3.25 per share to be paid for the financial year of 2019. The outbreak of the Covid19 pandemic led to clearly communicated guidelines from the Norwegian Ministry of Finance, the Norwegian Financial Supervisory Authority and EIOPA to suspend dividend payments until the great uncertainty regarding the economic development was reduced. Based on this, the Board of Storebrand ASA decided to withdraw the proposed dividend for the financial year 2019. However, throughout the year, the Board of Directors maintained that the company’s liquidity, solvency position, and result prognosis supported an ordinary dividend for 2019. The proposed dividend for 2020 is discussed below in separate section.
The Storebrand Group’s financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS). The Board of Storebrand ASA confirms that we meet the conditions for preparing financial statements on the basis of a going concern, pursuant to Norwegian accounting legislation. No significant incidents have occurred after the balance sheet date.
Operating expenses amounted to NOK -4,068 million (-4,015). Adjusted for costs related to acquired business, performance-based results and currency movements, operating expenses were NOK -3,780 million – in line with the target of keeping costs nominally flat at NOK 3.8 billion from 2018 to 2020.
Financial results Fee and administration income increased to NOK 4,392 million (NOK 3,996 million) as a result of strong underlying volume growth in Unit Linked and asset management. Increased competition contributed to moderate margin pressure for both the Norwegian and Swedish Unit Linked products. Excess returns in mutual funds with performance fees contributed NOK 249 million (NOK 203 million) to the income. A lower net interest income margin in the bank, due to declining interest rates during the year, resulted in a marginally lower contribution from the bank.
Operating expenses were NOK 10 million lower in 2020 than in 2019, explained by strong cost control and slightly lower market activity as a result of the Covid-19 pandemic.
Model-based provisions for loan losses in the bank contributed to a lower Financial items and risk result life of NOK -51 million (-11 million).
Balance sheet and market development Assets under management grew significantly in 2020.
Unit Linked reserves grew by 22 per cent to NOK 268 billion – driven partly by positive financial market developments, but also by 18 per cent growth in premiums, 46 per cent growth in new sales (measured in APE - Annual Premium Equivalent), and a positive net transfer balance of NOK 5.4 billion (NOK -0.2 billion). Total growth in assets under management within Storebrand Asset Management was NOK 131 billion (16 per cent), also driven by new mandates from external customers.
Insurance claims increased to NOK -3,506 million (-2,904 million). As a result of the Covid-19 pandemic and the decline in oil prices, Storebrand conducted a model-based review of the future development of the economic situation. The review led to reserve strengthening for all products with disability coverage of NOK 247 million in the 1st quarter. The total claims ratio for the year was 81 per cent compared to 74 per cent in 2019.
Operating expenses were kept nominally flat throughout the year until the 4th quarter when added staff, in connection with the takeover of Insr customers, increased the cost base. Total operating expenses for the year amounted to NOK -712 million (NOK -648 million), resulting in a decrease in the cost ratio to 16 per cent from 17 per cent in 2019.
The total combined ratio was 97 per cent (91 per cent) and total operating profit was NOK 113 million (NOK 357 million) for the year.
The financial result was NOK 91 million (NOK 83 million). The insurance investment portfolio amounted to NOK 9,0 billion at the end of 2020 (NOK 8,3 billion) and achieved a return of 3.25 per cent. The investments are primarily in high rated fixed income securities either booked at amortised cost or with short duration. Profit before amortisation amounted to NOK 204 million (NOK 439 million). The disability result lowered the result within all reported product segments, except for health insurance.
Balance sheet and market development The total growth in written portfolio premiums amounted to 18 per cent in 2020. The highest growth was within P&C and Individual Life (22 per cent), followed by Pension related disability insurance (17 per cent), and Health and Group Life (15 per cent). The written portfolio premiums at the end of the year amounted to NOK 5.6 billion, of which NOK 2.3 billion is in the retail market and NOK 3.2 billion in the corporate market.
Financial results The fee and administration income was in line with that of the previous year and amounted to NOK 1,455 million (NOK 1,475 million). Income is expected to gradually decline because the products are in longterm run off and essentially closed for new business. Following the closure of the last major Defined Benefit plan in Norway this year, the income in the product has been reduced while the income from paid-up policies has increased.
Operating expenses amounted to NOK -842 million (NOK -819 million). The marginal increase is due to the strengthened Swedish krone and costs associated with new initiatives in the public sector. The risk result life & pensions was NOK 17 million (NOK 215 million). The decrease in results is due to low reactivation levels of people in disability within the Norwegian Defined Benefit pensions. To improve the result, price adjustments have been made with effect in 2021.
Net profit sharing, after further buffer capital strengthening, amounted to NOK 144 million (NOK 157 million), driven by good returns in both Norwegian and Swedish products.
Capital situation We adapt the level of equity and debt in the Group continuously and systematically. The level is adjusted for financial risk and capital requirements. The growth and composition of business segments are important drivers behind the need for capital. Capital management is designed to ensure an efficient capital structure and maintain an appropriate balance between internal targets and regulatory requirements.
Rating Four companies in the Storebrand Group issue debt securities. All four companies are rated by the credit rating agency S&P Global. Storebrand Livsforsikring AS, the main operating entity, aims for at least an A- rating. In July 2020, the A- rating of Storebrand Livsforsikring AS and Storebrand Bank ASA was affirmed with a stable outlook. Storebrand Boligkreditt AS is rated AAA and the holding company Storebrand ASA is rated BBB.
Storebrand ASA is the holding company in the Storebrand Group, and the financial statements have been prepared in accordance with the Norwegian Accounting Act, the generally accepted accounting policies in Norway and the Norwegian Regulations relating to annual accounts for insurance companies.
Storebrand ASA reported a pre-tax profit of NOK 2,975 million in 2020, compared to NOK 3,125 million in 2019. Group contributions from investments in subsidiaries amounted to NOK 3,028 million, compared to NOK 3,230 million the year before.
Sustainable finance The EU Action Plan for Financing Sustainable Growth will, among other things, help meet the commitments set out in the Paris Agreement on reduced carbon emissions. The regulations on sustainable finance follow up the action plan and shall contribute to increased investments in sustainable activities and strengthen the financial system’s ability to manage climate risk.
The Financial Supervisory Authority of Norway has prepared proposals for a new law on sustainability reporting that incorporates the disclosure regulation and the classification regulation (taxonomy) in Norwegian law. A consultation period for the proposal was held until 8 January 2021. In Sweden and other EU countries, the disclosure regulation comes into force on 10 March 2021. The taxonomy came into force on 12 July 2020 in the EU, but the requirements will only apply from 2022 to the first two sustainability goals (climate change mitigation and climate change adaptation), and from 2023 for the other four (sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems).
Norwegian regulations Individual pension accounts The Individual Pension Account will be introduced in Norway in 2021. The reform applies to Defined Contribution pensions in the private sector. The aim is to give workers a better overview of their pension, and to facilitate more efficient administration and management of pensions.
Workers wishing to opt-out can do so between 1 February and 30 April 2021, in a joint portal provided by Norsk Pensjon. It will also be possible to move to the provider of own choice from 1 February.
To facilitate an efficient implementation of the reform, the industry has collaborated on the development of a new common digital infrastructure. A separate company, Pensjonskontoregisteret AS, has been established to operate this.
A key aim of the reform is to reduce the costs associated with the administration of pension contributions from previous employers. Regulation stipulates that individuals shall pay the same fee for former earning from pension capital certificates transferred to the Individual Pension Account as the employer pays for current contributions. This will lead to significantly lower income related to former earnings for the providers. The impact for Storebrand is described in more detail below under financial results.
Storebrand expects a positive net transfer of pension capital certificates with the introduction of Individual Pension accounts. At the same time, workers will be able to move the pension funds (both past and present earnings) to providers of their own choice. All the major labour unions have launched offerings for selfselected Individual Pension Accounts for their members.
The other proposals that the Ministry will now consider include: • The ability for companies to build additional statutory reserves separately for individual contracts.
• A new buffer fund model. The Financial Supervisory Authority has primarily proposed merging additional statutory reserves and market value adjustment reserves into a new customerdistributed buffer reserve that can also cover negative returns. As an alternative, a continuation of additional statutory reserves and market value adjustment reserves is proposed, but with the possibility for additional statutory reserves to also cover negative returns.
We expect the proposed legislation to be presented in early 2021.
Changes in IFRS A new accounting standard for insurance contracts, IFRS 17, is expected to be implemented in 2023. Storebrand will also implement IFRS 9 for financial instruments at the same time. The new standards will lead to changes in the valuation of insurance contracts and how profits are recognised. Estimated effects for Storebrand will be presented closer to the implementation date.
In 2020, it was decided that a body under the Swedish Pension Authority shall be responsible for managing the new fund market and for qualifying funds. The Pension Authority shall also be responsible for dissolving the current fund market and for deciding how pension funds shall be transferred to funds on the new fund market.
New transfer market regulation A new regulation with the purpose of increasing the transferability of pensions policies came into force in January 2020. The new rules limit the amount of fees that can be charged upon transferring pensions rights to competing providers. In accordance with the new regulation, SPP adjusted its transfer fees. SPP favours increased transfer rights and welcomes the new regulation.
SPP supports a more transparent and clearer framework for transfers of pensions and hopes full transfer rights will apply to policies established even before 2007. Today, this is voluntary for insurance companies, and something the SPP already allows. We believe that the ability for employees to choose a provider of their own choice should not be affected by how many years they have saved for their pension.
In the coming years, Storebrand is looking to leverage customer, product and capital synergies by expanding our insurance offering to corporate clients within P&C. The gradual transfer of contracts from the newly acquired Insr portfolios is expected to support growth within this area in 2021.
In Sweden, SPP has become a significant result contributor to the Storebrand Group, driven by earnings growth and ongoing capital release. Growth is expected to continue, driven by an edge in digital and ESG-enhanced solutions, and a strong market position. The market is expected to grow about 8 per cent annually, supported by increasing transfer volumes. Going forward, SPP expects to grow 14-16 per cent annually – twice the overall market growth – through capturing the largest share of transfers.
alternative assets in the Nordic region, asset classes offering prospects of higher margins. In combination with a strong track record with ESG-enhanced mutual funds, Storebrand is aiming to capitalise on these two trends. The overall ambition is to grow assets under management by NOK 250 billion in the coming three years, while maintaining a stable fee margin.
The retail market has evolved into and increasingly larger part of Storebrand and accounted for 21 per cent of the group’s profits in 2020. The individualisation of the pension and savings market is expected to increase further and may be reinforced by the introduction of Individual Pension Accounts in Norway. Non-life insurance, particularly P&C insurance, is an important growth area, and the acquisition of insurance customers from Insr will contribute positively in 2021. The ambition is to grow more than 10 per cent annually within savings, mortgage lending and insurance.
Our ambition is to report a Group profit (before amortisation and tax) of NOK 4 billion in 2023. Strong cost discipline will be a critical success factor. Adjusted for acquisitions, currency effects and performance related costs in funds with performance fees, the Group has reported flat nominal costs since 2012. Storebrand will continue to reduce underlying costs, but it will also be necessary to make selective investments to facilitate growth. The acquisition of the Insr portfolio, as well as accelerated digital investments, are expected to increase costs in 2021 by NOK 400m.
In the past few years, the debate on sustainability has mainly considered the importance of reducing the world’s greenhouse gas emissions and limit global warming. The climate crisis remains a central issue today, but in the environmental and climatic areas there is an increasing focus on the importance of avoiding largescale losses of biodiversity and ecosystems.
We contribute in the debate on sustainable investments and develop methods and frameworks. In 2019, we were one of the founders of the UN-backed NetZero Asset Owner Alliance (NZAOA).35) The aim of the alliance is to harness the role as active owners to reduce emissions in investment portfolios. Members of the alliance report openly on progress towards intermediate targets, in line with Article 4.9 of the Paris Agreement.
By cooperating with portfolio companies, members are committed to ensure that the portfolio companies succeed in their transition to production methods and energy use from sources that diminish their CO2emissions over time. In 2020, Storebrand chaired the working group of NZAOA and developed a document suggesting methods for how investors can set climate targets in line with the Paris Agreement’s 1.5°C target. The framework includes active ownership, portfolio targets, sector targets and solutions. Investors must set targets every five years on their path to a carbon-neutral investment portfolio by 2050.
In line with the scenarios of the Intergovernmental Panel on Climate Change, we aim to reduce emissions by 32 per cent for investments in equities, bonds and real estate by 2025, with a baseline year in 2018. We intend to do this through real-world changes, rather than excluding companies with high emissions. Therefore, we are actively working with the 20 largest emitters in our portfolio to reduce their emissions. In 2021, we will set specific targets for the sectors that account for most of the emissions in our portfolio.
Throughout 2020, Storebrand’ s CEO continued to engage in several initiatives to promote sustainable business practices and share knowledge and experience with other companies. The Norwegian climate initiative Skift, and the Nordic initiative Nordic CEOs for a Sustainable Future, are two examples. In both working groups, we led work-streams on climate that resulted in all members committing to set targets in line with the Paris Agreement and report public and transparent climate data.
Solutions Part of our investment strategy is to move capital to what we call solution companies. These are companies that actively work to contribute to the UN Sustainable Development Goals and do not substantially hinder achievement of other sustainability goals, or the Paris Agreement. Our whitelist of solution companies is updated continuously, used in investment decisions and is part of Storebrand’ s ranking of companies based on sustainability criteria. Below we describe how the investment strategy for solution companies contributes directly to realising different sustainability goals.
Alternative investment opportunities By diversifying our investments, Storebrand sees great opportunities in reducing risks while at the same time contributing to sustainable development. For instance, by diversifying investments in alternative asset classes such as real estate, private equity and infrastructure.
Infrastructure In 2020 Storebrand teamed up with two of Denmark’s largest pension funds, PKA and PenSam, to establish a new climate and infrastructure fund. Together, we are committed to investing a total of up to NOK 45 billion, making the fund one of the largest of its kind in the Nordic region. This marked the start of Storebrand’ s investments in infrastructure and will further enhance our ability to contribute to the transition to a low-carbon society.
Real estate investments Storebrand is a significant player in direct real estate investments with property investments of NOK 49 billion, which accounts for 5 per centof our assets under management. Our experience is that the integration of sustainability aspects int real estate has a positive effect both for society and our tenants, while providing higher returns on property investments. We integrate sustainability throughout our property portfolio and aim to be the Nordic region’s leading player in sustainable management of real estate investments.
We increased the share of environmentally certified buildings from 41 per cent in 2019 to 43 per cent in 2020. In addition, we reduced emissions from our real estate investments from 9.1 kg CO2e per m2 in 2019 to 7.9 in 2020. This is affected by reduced activity in a number of our properties due to the Covid-19 pandemic. Our target for next year is therefore somewhat higher than the result for 2020. As a result of our long-term and systematic sustainability work, four out of five funds with direct real estate investments have achieved a 5-star rating from the Global Real Estate Sustainability Benchmark (GRESB).
Active ownership Active ownership is a vital tool in Storebrand’ s approach to sustainable investments. The main objectives of reducing risk, and safeguarding and creating value on behalf of shareholders, are closely related to ESG risks. The aim of our engagements with the various companies is that we will influence them to move in a more sustainable direction. Therefore, we prioritise active ownership with companies where we see the greatest potential to foster change through our engagement efforts. We get involved in companies with a long-term perspective for change and collaborate with other investors to exert greater influence. We concentrate our resources on activities that can raise the standards for entire industries, rather than focusing on individual initiatives for each company in our portfolio.
We invest in companies that promote energy efficiency and enable increased production, distribution and use of renewable energy in the global energy mix. We are increasing investments in infrastructure, energy grids and storage and clean energy technology.
We exercise active ownership towards the companies we are invested in, mainly through investor cooperation, direct dialogue with the management and board of directors, and by voting at general meetings, including by proxy voting. We prioritise direct dialogue when we believe this is the most effective way to influence ESGrelated decisions. We have experienced that we have the greatest impact when working with other investors. This is one of the reasons why we participate in investor cooperation through the UN-backed Principles for Responsible Investment (PRI) network, and Climate Action 100+ to achieve dialogue with companies on climate change and deforestation, among other things.
Deforestation and biodiversity Protecting and restoring forests and other natural ecosystems can contribute as much as a third of what is needed to prevent irreversible climate change. Deforestation is driven by demand for agricultural land and natural resources. Raw materials and products associated with deforestation are part of thousands of global value chains. As one of the world’s first investors, Storebrand launched in 2019 a separate policy on deforestation, committing to deforestation-free investment portfolios by 2025. Therefore, Storebrand has stepped up its work on active ownership and been in dialogue with companies with activities that pose a high risk of deforestation.
Exclusions All companies in our investment portfolio must satisfy the Storebrand Standard. This stipulates minimum requirements to human rights and international law, corruption and financial crime, climate and environmental damage, controversial weapons and tobacco. It applies to all funds and pension assets in the Storebrand Group and ensures that customers’ money is invested in companies that comply with international norms and conventions. In case of serious violations of the Storebrand Standard, we use our role as owner to suggest improvements in dialogue with the company. If our engagement is not successful, the company is excluded from our investment portfolio.
We are taking steps to avoid corruption and bribery as a result of inadequate corporate governance and systematic failure to uncover fraud and corruption. We vote to encourage greater accountability and transparency. In 2020 we focused on conflict areas and occupied territories and had dialogue with companies about their activities in such areas. 37)
We want to raise awareness of international employer rights,especially in high-risk sectors. We seek to improve guidelines and contribute to both better relationships between management and employees and working conditions in supplier chains. As described previously, Covid-19 led to major negative consequences in the supplier industry, and we have had a particular focus on the textile industry. 38).
In connection with the Covid-19 pandemic, we worked actively with supply chains, mainly in the textile industry. This is to reduce or prevent poverty, and ensure that people in the supply chain do not lose their jobs, or workwithout receiving compensation for work done.
36) A company can be excluded on several criteria, therefore the total is less than the sum of the individual exclusions
or systematic unsustainable production of palm oil, soy, cattle and timber. 10 companies are excluded due to gross corruption, 38 companies are excluded for human rights violations and international law, 25 exclusions on the tobacco criterion, 24 on the controversial weapons criterion and 2 companies that are excluded on our cannabis criterion.
Companies with more than 5 per cent of their revenue come from the production or distribution of controversial weapons, including nuclear weapons, landmines, cluster munitions, biological weapons and chemical weapons.
Companies that cause or contribute to serious and systematic violations of workers’ rights.
Companies with more than 5 per cent of their revenue come from the production or distribution of tobacco or drugs.
Companies with more than 5 per cent of their revenue come from the production or distribution of fossil fuels, or that have more than 100 million tons of CO2 in fossil reserves.
Companies where more than 5 per cent of their revenue comes from the production or distribution of alcohol.
Companies where more than 5 per cent of their revenue comes from the production or distribution of weapons (small arms and military weapons).
The strategy is divided into four main areas: 1 Make investment decisions in line with scientific consensus
We will use the following metrics to measure, monitor and report climate-related risks and identify investment opportunities: • Climate risk assessment and monitoring: All portfolio managers are responsible for assessing and reporting on the climate risk profile of their portfolios. In addition, we have established a methodology aimed at high emission sectors.
• is involved in severe and/or systematically unsustainable production of palm oil, soy, cattle and timber. This can reduce deforestation risk in portfolios, in line with our deforestation policy.
• deliberately and systematically work against the goals and targets enshrined in the Paris Agreement., for example through lobbying. Two of the world’s largest energy companies, Exxon Mobil and Chevron were excluded from all Storebrand’s funds in 2020 due to this criterion.
Exceptions from divestment limits may be made in cases where companies can demonstrate a clear and rapid transition pathway.
39) Fossil-free products are one of several ways to achieve our overall goal of net zero emissions, and therefore we have not set a specific target for how much should be invested in fossil-free products.
40) The method of carbon footprint calculations has been further developed for the annual report 2020. Similar indicators for 2017 – 2019 are rendered with the same methodology to ensure a consistent comparison basis.
41) The method of carbon footprint calculations has been further developed for the annual report 2020. Similar indicators for 2017 – 2019 are rendered with the same methodology to ensure a consistent comparison basis.
43) We have decided to set an overall target for 2020 and 2025, and not a target for each asset class.
Carbon footprint from bond investments: tonnes of CO2e per NOK 1 million in sales income (against index) 41) New New 7(12) 9 (16) N/A N/A
Exposure to high emission sectors: NOK billion / share of equity investments 42) New 37.7 / 19% 34.6 /13% 32.2 /8% N/A N/A
Investments in solutions (solutions companies, green bonds and property with environmental certification): NOK billion / share of total assets 43) New 38.8 / 5.5 % 53.7 / 6.5 % 92.6 / 9.6% 10 % 15 %
Investments in green bonds, nok/ share of total bond investments New 8.4 / 2.9 % 12.4 / 3.1 % 22.2 / 5.2% - -
Our risk management framework is designed to ensure that we take the appropriate risk for delivering returns to customers and owners, while protecting them, our employees and other stakeholders from adverse events and losses. The framework covers all risks Storebrand may be exposed to. The main risks are business risk, financial market risk, insurance risk, counterparty risk, operational risk, climate risk and liquidity risk.
Overall, we saw a positive development in the number of reported incidents in 2020. Fewer customer and process-related incidents were reported compared to 2019. The number of “high-risk incidents” was also fewer than the year before, but their share of total is about the same as last year.
The pandemic and the economic consequences of lock downs to limit contagion both in Norway and internationally resulted in large stock market declines, wider credit spreads, falling interest rates and a lower turnover for many financial assets during the first part of 2020. The unrest, in combination with falling oil prices, resulted in a significant depreciation of the Norwegian krone. In the subsequent three quarters of the year, most markets recovered. Financial markets stabilised, helped by extensive rescue packages from governments. At the beginning of 2021, the interest rate level was still significantly lower than a year earlier, however. The financial market turmoil was handled within our normal framework for risk management in the Group. The persistent need for measures to limit contagion means that the risk is still higher than normally.
Covid-19 also affects our insurance risk. The greatest risk is associated with rising unemployment as a result of a weak economy, which has historically led to an increase in disability. Storebrand has strengthened the disability reserves to address the increased uncertainty.
Please also read note 2 for more information related to uncertainties arising from the Covid-19 pandemic.
In property and casualty insurance, most of the risk is linked to developments in claims payments from car and home insurance. Climate change is one factor which may affect future claims.
Savings Savings consists of unit-linked insurance and other nonguaranteed pensions, the asset management business and the banking business.
For unit-linked insurance, the customer bears the financial market risk. The disbursements are generally time limited, and Storebrand bears low risk from increased life expectancy. For Storebrand, the risk from unit-linked insurance is primarily changes in future income or cost. Managing customer’s assets in a professional and sustainable way, which at that at the same time ensures a good risk-adjusted return, is however important to attract new customers and create growth.
The greatest risks for the banking business are credit risk and liquidity risk. Virtually the entire loan portfolio is secured by mortgages, limiting our credit risk.
A common feature of the products is that Storebrand guarantees a minimum return. In Norway, the return must exceed the guarantee in each year, while in Sweden it is enough to achieve the guaranteed return on average over time.
The traditional guaranteed products are closed for new business, but there is a large back-book of reserves. New premiums are mainly in Defined Contribution pensions (unit linked) or hybrid schemes with zero per cent guarantee.
Storebrand wants to grow in the guaranteed public occupational pension market and received new customers in 2020. Public pension products differ from guaranteed pension products in the private sector because in the public sector, the employer pays for the interest rate guarantee, even for resigned employees and pensioners.
We have used the recommendations of the Task Force on Climate Related Financial Disclosures (TCFD) as a framework44) for our disclosure on climate-related financial risks. The reporting on the impact our business has on climate is reported elsewhere in this report, mainly in the chapter, Keeping our house in order on page 32, and in the chapter A driving for sustainable investments on page 57 and 59.Vi have established a TCFD index, which summarises where the information recommended through the TCFD framework is presented in this report. The index is located as an attachment on page 199.
Climate risk differs significantly from other risks, especially along two dimensions. Climate risk, especially the physical risk, is very long-term.
Therefore, the risk is assessed in a longer time frame. In addition, historical events have limited relevance. Different scenarios are used as the basis for the assessment.
Climate risks and opportunities 44) Further details on climate risks and opportunities can be found in Storebrand’s Sustainability Library
(physical risk) • Is the transition controlled or disorderly? (transition risk)
Storebrand has committed to the Paris Agreement’s goal of limiting global warming to 1.5 degrees and will work for a controlled transition, similar to scenario A.
3) Warm world: Greenhouse emissions continue to grow, based on continuance of already existing emission-reduction measures. Low sense of crisis, lack of coordination and short-term policy priorities mean that already adopted future restrictions are implemented to a lesser extent. By 2050, emissions are higher than present levels and global warming will be above 3 degrees.
Transition risk Transition risk can affect investment returns, even in the short and medium term. Given a rapid transition to a low-carbon economy, exemplified in scenario 1, there is a risk that the oil and gas sector will be particularly affected. Storebrand has adapted its investments to reduce its climate footprint, and a large part of our investments are in fossil-free funds. A large proportion of our real estate investments have green certificates. This contributes to reduced climate risk. On the other hand, there is a risk that future returns for investments in solution companies are overvalued. The risk is greatest if the transition to a low-carbon society is delayed, as expressed in scenario 2. There may be a risk of overvalued valuations also in scenario 1, for example, if powerful government initiatives and restrictions are implemented faster than technology development and investment opportunities.
Transition risks can also lead to reduced economic growth, lower investment returns and increased insurance liabilities as a result of lower interest rates. The Norwegian economy is particularly vulnerable to developments in oil prices and activity in the oil and oil services sector. Overall, the transition risk is greatest with a delayed, but more restrictive approach, as expressed in scenario 2. In the short term, we find the swift and forceful climate policy restructures needed in scenario 1 to pose the greatest risk.
Storebrand is particularly exposed to developments in the Norwegian economy because higher levels of unemployment normally lead to increased levels of disability. Limited economic growth over time also poses a risk to Storebrand, given that it results in reduced growth in wages and employment, and thus lower growth in pension premiums. The fossil sector poses a particular risk. A review of the customer base shows that Storebrand has a significant exposure, both against disability coverage and pension savings premiums related to employees associated with companies in the fossil sectors.
We have established a framework with the following targets for 2025: • Emission targets for equity, corporate bonds, and real estate investments: In line with the IPCC’s 1.5°C scenarios and commitments communicated through Storebrand’s climate strategy and the Net Zero Asset Owner Alliance (NZAOA), we aim to reduce the carbon footprint46) in the Storebrand Group’s total equities, corporate bond, and real estate investments by at least 32 per cent by 2025 with the base year in 2018. 47)
• Reorient capital towards solution companies: Storebrand’s target is that 15% of our total investments will be invested in what we define as solutions by 2025. It includes equity investments in solution companies,50) green bonds, certified green property and investments in green infrastructure.
• Engage customers and offer solutions: Storebrand aims to engage customers and offer products and solutions that ensure more capital in invested in solutions and less capital is invested in high-emission companies and sectors.
Targets and metrics • Carbon footprint in equity investments: 12 tonnes CO2equivalents per NOK/SEK 1 million in sales income (compared to 18 index) 51)
• Carbon footprint in bond investments: 9 tonnes CO2equivalents per NOK/SEK 1 million in sales income (compared to 16 index) 51)
• Carbon intensity in real estate investments: 7.9 tonnes CO2equivalents per m2
• Exposure to high emission sectors NOK 32.2 billion / 8 per cent of total assets
• Number of active company engagements related to climate and environmental-related risks and opportunities: 433
• Number of companies that have been excluded due to severe climate and environmental damage: 139
In 2020 we launched a new climate strategy. This entails, among other things, that Storebrand will no longer invest in companies that receive more than 5 per cent of their revenues from coal, oil sands-based activities, are involved in severe and/or systematically unsustainable production of palm oil, soy, cattle and timber. This can reduce deforestation risk in portfolios, in line with our deforestation policy, or in companies that deliberately and systematically work against the goals and targets enshrined in the Paris Agreement52), for example through lobbying. In addition, by 2025 our investment portfolio shall be completely free from companies that contribute to illegal deforestation. We currently survey all companies at high risk of contributing to deforestation and will report annually on this process from 2021.
47) This means relative emission reductions. The methodology used is weighted average carbon intensity (tonnes CO2e per NOK 1 million in sales income) for shares and bonds and carbon intensity for real estate investments
48) Based on Net Zero Asset Owner Alliance’s list of high-emission sectors, which includes the table with our specified exposure on page 70 49) Calculated on the share of owned share capital in the company multiplied by the company’s total Scope 1-2 emissions 50) See definition page 225 51) Available data until q3 2020.
Real estate investments Storebrand has direct real estate investments equivalent to NOK 49 billion, which constitutes 5 per cent of assets under management. Physical risk is largely related to the effects of extreme weather on physical assets.
Transitional risks are linked to uncertainty about long-term changes. We expect the real estate sector to be subject to new requirements related to energy efficiency and climate impact. Our ability to adapt to these requirements is essential for us to manage risk and capitalise on market opportunities. In 2020, Storebrand’s property subsidiary, in collaboration with the The Science Based Targets Initiative (SBTi), tested their methodology for setting science-based targets in line with the1.5 degree target of the Paris Agreement. The aim of the pilot project was to establish a target, and an associated emission pathway to 2050. The pilot project was part of a report published in connection with SBTi launching its methodology to set science-based emission targets for financial institutions. The pilot project and the associated target includes intermediate targets on the road to carbon neutrality in 2050, and is a management tool that will be used in our further work on transition risk in the property portfolio.
Risk-reducing measures that we have already implemented include property certification and rating through the Global Real Estate Sustainability Benchmark (GRESB). 54)
Through 2020, we have been working on a project to develop a tool for climate accounting and forecasting for real estate, which is due to be completed in 2021. SPP Fastigheter, Storebrand’ s Swedish subsidiary in real estate investments, conducted an assessment in 2020 of its exposure to physical climate risk, mainly increased rainfall and flooding for all its properties. The analysis indicates that a couple of properties in the portfolio are at medium flooding risk, and work is underway to assess potential adaptation measures at these properties
Targets and metrics • Long-term target of 100 per cent environmentally certified property. The share of direct real estate investments that had green certificates in 2020 was 43 per cent. The target is to increase this to 74 per cent by 2025.
• Exposure mapping and reinsurance: We reinsure assets in areas with high exposure to physical risk associated with climate change.
• Pilot project under the auspices of UNEP FI: As one of 18 insurance companies, we have participated in a project for further development of standardised reporting for insurance providers in accordance with TCFD. We participated in the working group which analysed physical risk related to increased rainfall and flooding. The work resulted in a report launched in January 2021.55)
Measurements and measurement parameters • Share of insurance premiums from electric car insurance: 18,8 per cent in 2020
• Our suppliers should have set targets for emissions cuts in the short and long term by 2025
• All suppliers must be climate neutral by 2025 54) GRESB assesses and rates real estate investments with respect to ESG performance and delivers standardised and validated data to capital markets.
Storebrand’s absence due to illness has been at a stable low level for many years. Absence due to illness was 2.3 per cent in Norway and 1.8 per cent in the Swedish business. Storebrand has been an “inclusive workplace” (IA) company since 2002, and the Group’s managers have over the years built up routines for the follow-up of employees who are ill. All managers with Norwegian employees must complete a mandatory HSE course, in which following up illness is part of the training.
Karin Bing Orgland (sign.) Laila S. Dahlen (sign.) Marianne Bergmann Røren (sign.)
Pe op le 56) We aim to reduce the carbon footprint of the Storebrand Group’s total equity, corporate bond and real estate investments by at least 32 per cent by 2025 with a base year in 2018. In 2021, we will set targets for the individual asset class. See page 69 for more information.
Carbon footprint from bond investments: tonnes of Co2e per NOK 1 million in sales income (against index) 7 (12) 9 (16) N/A56)
Exposure to high emission sectors: NOK billion/share of equity investments 34,6 /13 % 32,2 /8 % N/A56)
Shareholder matters Trading volume for shares in Storebrand In 2020, 585 million shares were traded, compared to 335 million shares in 2019. The trading volume in monetary terms was NOK 30,552 million in 2020, up from NOK 21,348 million in 2019. In relation to the average number of shares, the turnover rate for shares in Storebrand was 125 per cent.
Capital gains taxation Dividends are subject to tax for personal shareholders. The shareholder model entails that share dividends after the deduction for risk-free return shall be multiplied by an adjustment factor of 1.44. This amount is taxed at the capital income tax rate (22 per cent), which gives an effective tax rate of 31.68 per cent on dividends. Deduction for risk-free return in the individual year is the share’s input value (plus any previously unused deduction) multiplied by a risk-free interest rate. The risk-free interest rate will be set by the Directorate of Taxes in January the year after the income year. Only when a dividend that exceeds the total deduction for risk-free return will the dividend be subject to tax.
Share purshase scheme for employees Every year since 1996, Storebrand ASA has given its employees an opportunity to purchase shares in the Company through a share purchase scheme. The purpose of the scheme is to involve the employees more closely in the Company’s value creation. In 2020, each employee was given the opportunity to buy shares in Storebrand and almost half of the Storebrand’s employees purchased a total of 384,670 shares.
Average daily turnover (1000s of shares) 2,321 1,346 3,094 2,450 2,780 2,820
Number of ordinary shares 31/12 (1000s of shares) 467,814 467,814 467,814 467,814 449,910 449,910
Shareholder´s contact with the company Shareholders should generally contact the operator of their securities account for questions or notification of changes, such as change of address.
Chairman’s foreword 7 1. This is Storebrand 2. Customer relations 3. People 4. Keeping Our House in Order 5. Director´s report 6. Shareholder matters 7. Annual Accounts and Notes 8. Governance 9. Sustainability assurance 10. Appendix http:// www.storebrand.com/ir
Storebrand ASA 163 Income statement 163 Statement of total comprehensive income 164 Statement of Financial Position 165 Statement of changes in equity 166 Statement of cash flow 167 Notes 180 Declaration by member of the Board and the CEO 181 Indepentent auditor’s report
Net income from financial assets and properties for the company: - equities and other units at fair value 15 22 40 - bonds and other fixed-income securities at fair value 15 785 600 - derivatives at fair value 15 -397 -12 - loans at fair value 15 37 14 - bonds at amortised cost 15 212 214 - loans at amortised cost 15 687 802 - profit from investments in associated companies/joint ventures 29 52 39
Net income from financial assets and properties for the customers: - equities and other units at fair value 15 14,632 37,318 - bonds and other fixed-income securities at fair value 15 3,550 4,167 - derivatives at fair value 15 5,771 1,424 - loans at fair value 15 23 11 - bonds at amortised cost 15 4,202 3,912 - loans at amortised cost 15 909 546 - profit from investments in associated companies/joint ventures 29 569 341
Fair value adjustment of properties for own use 33 83 -22
Tax on other comprehensive income elements not to be reclassified to profit/loss 15 12
Total other comprehensive income elements not to be reclassified to profit/loss -95 15
Total comprehensive income attributable to: Share of total comprehensive income - shareholders 2,515 1,879
Share of total comprehensive income - hybrid capital investors 10 12
Financial assets at fair value: - Bonds and other fixed-income securities 8, 10, 12, 30, 36 148,162 128,127
Independent auditor´s report 181 8. Governance 9. Sustainability assurance 10. Appendix
Total comprehensive income for the period -166 2,045 1,879 12 1 1,892
Paid out interest hybrid capital -10 -10 1) 467,813,982 shares with a nominal value of NOK 5.
Net cash flow from financial assets and banking customers -16,137 -7,262
Cash and cash equivalents at the start of the period 3,160 3,951
Financing activities Financing activities include cash flows for equity, subordinated loans and other borrowing that helps fund the Group’s activities. Payments of interest on borrowing and payments of share dividends to shareholders are financial activities.
Statement of financial position Note 27: Intangible assets and fair value adjustments on purchased insurance contracts
Note 1: Company information and accounting policies 1. Company information Storebrand ASA is a Norwegian public limited company that is listed on the Oslo Stock Exchange. The consolidated financial statements for 2020 were approved by the Board of Directors of Storebrand ASA on 9 February 2021.
Use of estimates when preparing the consolidated financial statements. The preparation of the consolidated financial statements in accordance with IFRS requires the management to make judgements, estimates and as assumptions that affect assets, liabilities, revenue, expenses, the notes to the financial statements and information on potential liabilities. Actual amounts may differ from these estimates. See Note 2 for further information.
3. Summary of significant accounting policies for material items on the balance sheet For the most part, the asset side of the Group’s balance sheet comprises financial instruments and investment properties and a differentiation is made between assets in the company portfolio (shareholders) and assets belonging to the customer portfolio. This split is due to the fact that the Group has a significant life insurance business in which customer assets must be kept separate from the company’s assets.
The Storebrand Group has conducted a provisional analysis of the classification and measurement of financial instruments in accordance with the present IAS 39 for the transition to IFRS9, based on the current business model for the individual instruments. For debt instruments that are expected to be classified and measured at amortised cost or fair value through total comprehensive income upon transition to IFRS9, a SPPI (“Solely payment of principal and interest”) test is carried out. This is a provisional categorisation under IFRS9, based on the present asset allocation. No assessments have been made of any changes in classification and measurement of financial assets under IFRS9 in connection with the transition to IFRS17.
Bonds and other fixed-income securities AC AC 111,424 116,161 116,511 125,604
Accounts receivable and other short-term receivables AC AC 5,274 5,274 7,422 7,422
5. New IFRS that have not entered into force New standards and changes in standards that have not come into effect: IFRS 17 IFRS 17 replaces IFRS 4 Insurance Contracts and introduces new requirements for the recognition, measurement, presentation and disclosure of issued insurance contracts. The standard has not been approved by the EU, but is expected to be applicable from 1 January 2023. The purpose of the new standard is to establish uniform practices for the accounting treatment of insurance contracts.
As a starting point, IFRS 17 must be retrospectively applied, but modified retrospective transition method or application is permitted or application based on the fair value on the transition date if retrospective application is impracticable.
The implementation date is 1 January 2023, with a requirement that comparable figures are stated.
8. Segment information The segment information is based on the internal financial reporting structure of the most senior decision-maker. At Storebrand, the executive management is responsible for following-up and evaluating the results of the segments and is defined as the most senior decision -maker. Four segments are reported for: • Savings • Insurance • Guaranteed Pension • Other
Intangible assets with limited useful economic lives are measured at acquisition cost less accumulated amortisation and any write downs. The useful life and amortisation method are measured each year. With initial recognition of intangible assets in the balance sheet, it must be demonstrated that probable future economic benefits attributable to the asset will flow to the Group. The acquisition cost of the asset must also be reliably estimated. The value of an intangible asset is tested for impairment when there are indications that its value has been impaired, normally by the related cash-generating unit(s) being tested Intangible assets are otherwise subject to write-downs and reversals of write-downs in the same manner as described for tangible fixed assets.
Investment properties primarily consist of centrally located office buildings, shopping centres and logistics buildings. Investment properties are properties leased to tenants outside the Group. In the case of properties partly occupied by the Group for its own use and partly let to tenants, the identifiable tenanted portion is treated as an investment property. All properties are measured at fair value and the changes in value are allocated to the customer portfolios.
Measurement of impairment and doubtful financial assets For financial assets carried at amortised cost, an assessment is made on each reporting date whether there is any objective evidence that a financial asset or group of financial assets have incurred losses.
If there is objective evidence that impairment has occurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows (excluding future credit losses that have not occurred) discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate calculated at initial recognition). The amount of the loss is recognised in the income statement.
Financial assets held for trading are measured at fair value at the reporting date, Changes in fair value are recognised in the income statement.
At fair value through profit or loss in accordance with the fair value option (FVO). A significant proportion of Storebrand’s financial instruments are classified in the category of fair value through profit or loss because: • such classification reduces the mismatch in the measurement or recognition that would otherwise arise as a result of the different rules for measuring assets and liabilities, or • the financial assets form part of a portfolio that is managed and reported on a fair value basis
The accounting is equivalent to that of the held for trading category (the instruments are measured at fair value and changes in value are recognised in the income statement).
Investments held to maturity Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity and that a company has the intention and ability to hold to maturity, with the exception of: • assets that are designated upon initial recognition as assets at fair value through profit or loss, or • assets that are defined as loans and receivables.
Assets held to maturity are recognised at amortised costs using the effective interest method. The category is used in the Norwegian life insurance business for assets linked to insurance contracts with interest rate guarantees.
Loans and receivables payments that are not quoted in an active market, with the exception of assets that the company intends to sell immediately or in the near term that are classified as held for trading and those that the company upon initial recognition designates at fair value through profit or loss.
Fair value hedging Storebrand uses fair value hedging for the interest rate risk. The items hedged are financial liabilities measured at amortised cost. Derivatives are recognised at fair value through profit or loss. Changes in the value of the hedged item that are attributable to the hedged risk adjust the carrying amount of the hedged item and are recognised through profit or loss.
An explanation of the accounting policies for the most important insurance liabilities can be found below.
Changes in insurance liabilities Changes in insurance liabilities comprise premium savings that are taken to income under premium income and payments, as well as changes in provisions for future claims This item also includes added guaranteed returns on the premium reserve and the premium fund, as well as returns to customers beyond the guaranteed returns.
Market value adjustment reserve The current year’s net unrealised gains/losses on financial assets at fair value in the group portfolio are allocated to or reversed from the market value adjustment reserve in the balance sheet asTotaling the portfolio has a net unrealised excess value. The portion of the current year’s net unrealised gains/losses on financial current assets denominated in foreign currencies that can be attributed to fluctuations in exchange rates is not transferred to the market value adjustment reserve. The foreign exchange fluctuations associated with investments denominated in foreign currencies are largely hedged through foreign exchange contracts on a portfolio basis. Similarly, the change in the value of the hedging instrument is not transferred to the market value adjustment reserve, but is charged directly to the profit and loss account. Pursuant to accounting standard for insurance contracts (IFRS 4) the market value adjustment reserve is shown as a liability.
any future negative risk result. The risk equalisation reserve is not considered to be a liability according to IFRS and is included as part of the equity (undistributable equity).
Pension costs and pension obligations for defined-benefit pension schemes are determined using a linear accrual formula and expected final salary as the basis for the entitlements, based on assumptions about the discount rate, future salary increases, pensions and National Insurance benefits, future returns on pension plan assets as well as actuarial estimates of mortality, disability and voluntary early leavers. The net pension cost for the period comprises the total of the accrued future pension entitlements during the period, the interest cost on the calculated pension liability and the calculated return on pension plan assets.
A defined-contribution pension scheme involves the Group in paying an annual contribution to the employees’ collective pension savings. The future pension will depend upon the size of the contribution and the annual return on the pension savings. The Group does not have any further work-related obligations after the annual contribution has been paid. No provisions are made for ongoing pension liabilities for these types of schemes. Defined-contribution pension schemes are recognised directly in the financial statements.
16. Tangible fixed assets and intangible assets The Group’s tangible fixed assets comprise equipment, fixtures and fittings, IT systems and properties used by the Group for its own activities.
Properties used for the Group’s own activities are measured at appreciated value less accumulated depreciation and write-downs. The fair value of these properties is tested annually in the same way as described for investment properties. The increase in value for buildings used by the Group for its own activities is recognised through total comprehensive income. Any write-down of the value of such a property is recognised first in the revaluation reserve for increases in the value of the property in question. If the write-down exceeds the revaluation reserve for the property in question, the excess is expensed over the profit and loss account.
The value of a tangible fixed asset is tested when there are indications that its value has been impaired. The impairment test is carried out for each asset if the asset primarily has independent, inward cash flows, or possibly a larger cash-generating unit. Any impairment losses are charged to the income statement as the difference between the carrying value and the recoverable amount. The recoverable amount is the greater of the fair value less costs of sale and the value in use. On each reporting date it is determined as to whether there is a basis for reversing previous impairment losses on non-financial assets.
17. Tax The Group’s tax liabilities are valued in accordance with IAS 12 and clarifications in IFRIC 23.
In the Swedish business, there are no contracts with an annual interest rate guarantee, but there are insurance contracts with interest rate guarantees which enable them to receive a guaranteed terminal value. These contracts are discounted by a market-based calculated interest rate where parts of the yield curve used are not liquid. Changes in the discount rate may have a significant impact on the size of the insurance liabilities and impact the result. If the associated customer assets have a higher value than the recognised value of these insurance liabilities, then the difference will represent a conditional customer allocated fund – conditional bonus (buffer capital). Changes
Further information about insurance liabilities is provided in Notes 7, 38 and 39.
External valuations are also obtained for parts of the portfolio every quarter. All properties must have a minimum of one external valuation during a 3 year period.
There is uncertainty linked to the valuation of fixed-rate loans recorded at fair value, due to variation in the interest rate terms offered by banks and since individual borrowers often have different credit risks.
Covid-19 2020 has been influenced by developments relating to the spread of the Coronavirus. From the latter part of February and throughout March, the pandemic and the consequences of shutdowns in both Norway and globally, resulted to financial turmoil, with falling share prices, increased credit spreads, reduced interest rates and lower earnings for many financial assets. Together with lower oil prices, these conditions also resulted in a significant weakening of the Norwegian krone. Increased unemployment has had a negative impact on the disability insurance results and necessitated the strengthening of reserves. It is uncertain as to how the present situation will develop going forward. Assisted by political measures, the financial market, and particularly the stock market, strengthened in the second half of the year. The final months of the year were characterised by both another wave of infections in a number of countries, but there has also been positive news regarding the testing of potential vaccines. Storebrand has a risk management system which, through principles that have been adopted, manages and mitigates the impact of volatile financial markets.
Storebrand increased its insurance liabilities in the first quarter of 2020 based on the expected impact of the Covid-19 virus. The situation was closely monitored in the following three quarters of 2020, and no significant impact on the reserves due to Covid-19 was observed. The development of insurance liabilities will depend on future scenarios and is currently more uncertain than usual. Storebrand will continue to monitor the development of Covid-19 and its effects on the economy. A long-term situation with high unemployment may result in higher levels of disability and increased liabilities. However, the current insurance liabilities represent Storebrand’s best estimate of the insurance liabilities.
On 14 August 2020, Storebrand Forsikring AS entered into an agreement with Insr Insurance Group ASA (Insr) to acquire customer portfolios from Insr. Storebrand Forsikring AS acquired the right and obligation to renew insurance agreements from Insr’s portfolios.
Insurance Insurance has responsibility for the Group’s risk products in Norway and Sweden. The unit provides health insurance in the Norwegian and Swedish corporate and retail markets, P&C insurance and personal risk products in the Norwegian and Swedish retail markets and employee-related and pension-related insurance in the Norwegian and Swedish corporate markets.
Guaranteed pension The guaranteed Pension segment includes long-term pension saving products which provide customers a guaranteed rate of return. The area includes defined benefit pensions in Norway and Sweden, paid-up policies and individual capital and pension insurances.
Other The result for the holding company Storebrand ASA is reported under Other, as well as the result for the company portfolios and small subsidiaries of Storebrand Livsforsikring and SPP. In addition, this business is included in Euroben and the minority of the securities fund. The elimination of intra-group transactions that have been included in the other segments has also been included.
Financial items and risk result life and pensions include risk result life and pensions and financial result includes net profit sharing and Loan Losses.
Net profit sharing - Storebrand Livsforsikring AS A modified profit-sharing regime was introduced for old and new individual contracts that have left group pension insurance policies (paid-up policies), which allows the company to retain up to 20 per cent of the profit from returns after any allocations to additional statutory reserves. The modified profit-sharing model means that any negative risk result can be deducted from the customers’ interest profit before sharing, if it is not covered by the risk equalisation fund.
SPP Pension & Försäkring AB For premiums paid from and including 2016, previous profit sharing is replaced by a guarantee fee for premium-determined insurance (IF portfolio). The guarantee fee is annual and is calculated as 0.2 per cent of the capital. This goes to the company.
In the case of defined-benefit contracts (KF portfolio), the company is entitled to charge an indexing fee if the group profit allows the indexing of the insurance. Indexing is allowed up to a maximum equalling the change in the conTotaler price index (CPI) between the previous two Septembers. Pensions that are paid out are indexed if the consolidated figures on 30 September exceed 107 per cent, and half of the fee is charged. The whole fee is charged if the consolidated figures on 30 September exceed 120 per cent, in which case paid-up policies can also be included. The total fee equals 0.8 per cent of the insurance capital.
The guaranteed liability is continuously monitored. If the guaranteed liability is higher than the value of the assets, a provision must be made in the form of a deferred capital contribution. If the assets are lower than the guaranteed liability when the insurance payments start, the company supplies capital up to the guaranteed liability in the form of a realised capital contribution. Changes in the deferred capital contribution are included in the financial result.
Group pre-tax profit 2,219 2,593 1) Amortisation of intangible assets are included in Storebrand Group 2) Includes eliminations of group transactions
Buffer capital in % of customer reserves Storebrand Life Group 1) 11.0% 8.6%
Buffer capital in % of customer reserves SPP 2) 11.4% 10.7%
1) Additional statutory reserves + market value adjustment reserve 2) Conditional bonuses 3) See note 13 for specification of Solvency II 4) The term solidity capital encompasses equity, subordinated loan capital, the risk equalisation fund, the market value adjustment reserve, additional statutory reserves, conditional bonuses, excess value/deficit related to bonds at amortised cost and accrued profit.
Continuous monitoring and active risk management are core areas of the Group’s activities and organisation. At the Storebrand Group, responsibility for risk management and internal control is an integral part of management responsibility.
Independent control functions Independent control functions have been established for risk management for the business (Risk Management Function/Chief Risk Officer), for compliance with the regulations (Compliance Function), for ensuring the insurance liabilities are calculated correctly (Actuary Function), for data protection (Data Protection Officer), for money laundering (Anti Money Laundering) and for the bank’s lending. Relevant functions have been established for both the Storebrand Group (the Group) and all of the companies requiring a licence. The independent control functions are organised directly under the companies’ managing directors and report to the respective company’s board.
In terms of function, the independent control functions are affiliated with Group Risk & Compliance (GRC), which is organised directly under the CEO and reports to the Board of Directors of Storebrand ASA. GRC’s task is to ensure that all significant risks are identified, measured and appropriately reported. The GRC function shall be actively involved in the development of the Group’s risk strategy and maintain a holistic view of the company’s risk exposure. This includes responsibility for ensuring compliance with the relevant regulations for risk management and the consolidated companies’ operations.
Operational risk is the risk of loss due to inadequate or failing internal processes or systems, human error or external events. The definition includes the risk of loss or public sanctions as a result of non-compliance with external or internal rules.
Storebrand’s IT systems are vital for operations and reliable financial reporting. Errors and disruptions may have consequences for commercial operations and can impact on the trust the Group has from both customers and shareholders. In the worst case, abnormal situations can result in penalties from the supervisory authorities. Storebrand’s IT platform is characterised by complexity and integration between different specialist systems and joint systems. The operation of the IT systems has largely been outsourced to different service providers. A management model has been established with close follow-up of providers and internal control activities in order to reduce the risk associated with the development, administration and operation of the IT systems, as well as information security. Storebrand is facing a major technological shift with the transition to cloud-based infrastructure. Risks increase in connection with the actual transformation, and the consequence of errors can be greater when services are provided online. At the same time, cloud-based services and infrastructure reduce the risk associated with self-developed systems and, in the long term, outdated infrastructure. The asset management business has a modern and standardised core system, combined with self-developed applications. The bank platform and insurance platform are based on purchased standard systems that are operated and monitored through outsourcing agreements. There is a greater degree of own development for the life insurance activities, while parts of the operation of this have also been outsourced. The unit administration within defined-contribution occupational pension and unit linked products is managed in a purchased system solution.
In the Guaranteed Pensions segment, the Group has a significant insurance risk relating to estimation of life expectancy and future pension payments for group and individual insurance agreements. In addition, there is an insurance risk associated with estimates of disability and pensions left to spouses and/or children. The disability coverage in Guaranteed Pensions is primarily sold together with a retirement pension. The risk of mortality is low in Guaranteed Pensions when viewed in relation to other risks. In SPP it is possible to change the future premiums for the IF portfolio, reducing the risk significantly. In Norway it is also possible to change the future premiums of group policies, but only for new accumulation, entailing reduced risk. Occupational pension agreements (hybrid) are reported in the Guaranteed Pension segment when a customer has an agreement without a choice for investment of the pension assets. This is a small portfolio with limited insurance risk.
In the Savings segment the Group has a low insurance risk. The insurance risk is largely associated with death, with some long-life risk for paid-up policies with investment options. Occupational pension agreements (hybrid) are reported in the Guaranteed Pension segment when a customer has an agreement with a choice for investment of the pension assets. This is a small portfolio with limited insurance risk.
For individual insurance in Norway, the premiums for death risk and long life expectancy risk are based on tariffs produced by insurance companies on the basis of their shared experience. This applies to both endowment and pension insurance. Disability premiums are based on the company’s own experience.
The new public service occupational pension entered into force from 2020 and includes retirement pensions in the public sector. The new scheme is a premium pension and is a net pension that is known from the private sector. Premium pension means that the pension is accrued each year based on the employee’s salary. This is as opposed to the previous schemes whereby the pension was calculated based on the final salary. The premium pension ensures a life-long retirement pension, and the retirement pension can be fully or partly withdrawn from and including the age of 62 until and including the age of 75. Payment of the pension will start at the age of 75 regardless. Members who are not entitled to an AFP are given a conditional occupational pension as a supplement to the retirement pension.
Management of insurance risk Insurance risk is monitored separately for every line of insurance in the current insurance portfolio. The development of the risk results 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 Total 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 experience, asTotales have occurred.
Adequacy test In accordance with the accounting standard IFRS 4 Insurance Contracts, the insurance liabilities that are included shall be adequate and a liability adequacy test shall be performed. Storebrand satisfies the adequacy tests for 2020, and these therefore had no impact on the results in the financial statements for 2020.
Sensitivity The volatility of the risk results depends on the development in disability and mortality relative to expectations. The different contracts at Storebrand come with different risks, however when calculating volatility, the starting point is the same changes since the development in, for example, disability, is assumed to be the same across the contracts. To indicate the sensitivity of the annual result, an expected 5% increase in claims for disability and mortality respectively is used as a basis, where mortality consists of the risks of death and longevity.
The net effect of increased claims for disability will result in a reduction in the disability risk result of NOK 14 million for paid-up policies and NOK 40 million for group disability pensions. Correspondingly, an increase in mortality claims will reduce the death risk result for group life by NOK 19 million, and for paid-up policies, the risk result for mortality will be improved by NOK 49 million.
For guaranteed customer portfolios, the risk is affected by changes in the interest rate level. Falling interest rates are positive for the investment return in the short term due to price appreciation for bonds and interest rate swaps, but negative in the long term because it reduces the probability of achieving a return higher than the guarantee. Both short and long-term money market rates fell significantly in Norway in 2020. Long-term rates have fallen in Sweden, while short-term money market rates have remained stable at close to zero.
The most significant market risks facing guaranteed customer portfolios are linked to equity risk, interest rate risk, credit risk and property price risk. Risk management during the turmoil in the financial markets in the first quarter resulted in a decrease in equity exposure. This has since increased, which means that the investment allocation at the end of 2020 had not changed significantly from the start of the year. In Norway, most of the credit risk is linked to securities, which are carried at amortised cost. This significantly reduces the risk to the company’s result because the result is not normally influenced by market fluctuations. The exception is if there is a loss event.
In the consolidated financial statements, the value of assets and results from the Swedish operations are affected by changes in the value of the Swedish krone. Storebrand Livsforsikring AS has hedged parts of the value of SPP through forward foreign exchange contracts and borrowings in Swedish kroner.
NOK million Net in balance sheet Net sales in currency in NOK
SPP: SPP uses currency hedging for its investments to a certain degree. Currency exposure may be between 0 and 30 per cent in accordance with the investment strategy
Banking business: Storebrand Bank ASA hedges net balance sheet items by means of forward contracts. The permitted limit for the bank’s foreign exchange position is 0.50 per cent of primary capital, which is approximately 13 million at present.
If the assets in an insurance contract in the company are less than the market value of the liability, an equity contribution is allocated that reflects this value shortfall. This is termed a deferred capital contribution (DCC), and changes in DCC are recognised in the profit and loss account as they occur. When the contracts’ assets exceed the present value of the liabilities, a buffer, which is termed the conditional bonus, is established. Changes in this customer buffer are not recognised in the profit and loss account.
The amount of stress is the same that is used for the company’s risk management. Two stress tests have been defined. Stress test 1 is a fall in the value of shares, corporate bonds and property in combination with lower interest rates. Stress test 2 is a somewhat smaller fall in the value of shares, corporate bonds and property in combination with higher interest rates.
As a result of customer buffers, the effect of the stresses on the result will be lower than the combined change in value in the table. As at 31 December 2020, the customer buffers were of such a size that the effects on the result were significantly lower.
Storebrand Livsforsikring For Storebrand Livsforsikring it is stress test 2, which includes an increase in interest rates, that makes the greatest impact. The overall market risk is NOK 7.8 billion, which is equivalent to 3.7 per cent of the investment portfolio.
In addition to clear strategies and the risk management of liquidity reserves in each subsidiary, the Group’s holding company has established a liquidity buffer. The development of the liquid holdings is continuously monitored at the Group level in relation to internal limits. A particular risk is the fact that during certain periods the financial markets can be closed for new borrowing. Measures for minimising the liquidity risk are to maintain a regular maturity structure for the loans, low costs, an adequate liquidity buffer and credit agreements with banks which the company can draw on if necessary.
NOK million 0-6 months 7-12 months 2-3 years 4-5 years over 5 years Total cashflows Total book value
Debt raised from issuance of securities 1,471 379 11,142 10,687 -2,357 21,322 20,649
Lending commitments 2,962 2,962 1) Liabilities for which repayment may be demanded immediately are included in the 0-6 month column. 2) In the case of perpetual subordinated loans the cash flow is calculated through to the first call date.
Of which derivatives in bond funds, managed by Storebrand 477 570 1,047
Total derivatives excluding derivatives in bond funds 2020 4,311 5,393 114 134 24 9,977
Of which bank deposits in bond funds, managed by Storebrand 46 1,452 6 1,504
Total bank deposits excluding bank deposits in bond funds 2019 303 3,716 6,466 108 10,594
Loans to financial institutions 71 32 103 1) of which tied-up bank deposit (tax deduction account) 280 280
Investments subject to netting agreements 9,909 964 9,076 5,741 -2 3,337
Total loans to and receivables from customers 2020 1) 63,214 3,128 66,342 66 71 17 153
Total loans to and receivables from custo1 ) 2020: 2) 2019: The division into customer groups is based on Statistics Norway’s standard for sector and business grouping. The placement of the individual customer is determined by the customer’s primary business.
As at 31 December 2020, Storebrand had loans to customers totalling NOK 63.2 billion net after provisions for losses of NOK 0.1 billion. Of this, NOK 13.9 billion was to the corporate market and NOK 49.4 billion to the retail market.
The corporate market portfolio consists of income generating properties and development properties with few customers and low level of default that are primarily secured by mortgages in commercial property.
In the short term, an interest rate increase will negatively impact on the returns for the life insurance companies. An interest rate increase can also result in bank customers having lower debt-servicing capacity and increased losses for the banking business.
Storebrand has climate risks associated with investments and insurance liabilities. Both physical climate change and risks from the transition to low emissions can have an impact, but the transition risk is greatest in the short and medium terms. Storebrand may be adversely affected if the Norwegian economy and the oil sector weaken, however the risk is somewhat offset by underweighted investments in the fossil fuel sector and overweighted investments in solution companies. For investments, the effect of climate risk is difficult to differentiate from other factors that influence financial market developments.
Level 1: Financial instruments valued on the basis of quoted prices for identical assets in active markets This category encompasses listed equities that over the previous three months have experienced average daily trading equivalent to approximately NOK 20 million or more. Based on this, the equities are regarded as sufficiently liquid to be included at this level. Bonds, certificates or equivalent instruments issued by national governments in local currencies are generally classified as level 1. When it comes to derivatives, standardised stock index futures and interest rate futures will also be included at this level.
Level 2: Financial instruments valued on the basis of observable market information not covered by level 1 This category encompasses financial instruments that are valued on the basis of market information that can be directly observable or indirectly observable. Market information that is indirectly observable means that the prices can be derived from observable related markets. Level 2 includes shares or equivalent equity instruments for which market prices are available, but where the volume of transactions is too limited to fulfil the criteria in level 1. Shares in this level will normally have been traded during the last month. Bonds and equivalent instruments are generally classified in this level. Moreover, interest rate and foreign exchange swaps, as well as non-standardised interest rate and foreign exchange derivatives are classified as level 2. Fund investments, including hedge funds but excluding other alternative investment funds, are generally classified as level 2.
Units Of the fund units, it is private equity investments that represent the majority at level 3. Moreover, there are also some other types of funds, such as infrastructure funds and microfinance funds, loan funds and property funds here. The majority of Storebrand’s private equity investments are investments in private equity funds. These fund investments are valued based on the value reported by the funds. Most of the funds report on a quarterly basis, while a few report less often. Reporting typically takes place with a few months’ delay. The most recently received valuations are used as a basis, adjusted for cash flows and market effects in the period from the most recent valuation until the reporting date. For private equity, the market effect is calculated based on the development in value in the relevant index, multiplied by the estimated beta in relation to this index.
Office properties and shopping centres in Norway: The required rate of return is of greatest importance when calculating the fair value for investment properties.
When calculating fair value, Storebrand uses internal cash flow models. Net cash flows for the individual property are discounted by an individual required rate of return. A future income and expense picture for the first 10 years has been estimated for the office properties and a final value has been calculated for the end of the 10th year based on market rent and normal operating costs for the property. A future income and expense picture for the first 6 years has been estimated for the shopping centre properties and a final value has been calculated for the end of the 6th year based on market rent and normal operating costs for the property. In both models, the net income stream has been taken into consideration for existing and future loss of income due to vacancy, necessary investments and an assessment of the future development in the market rent. The majority of new contracts that are entered into have a duration of five or ten years for offices (three to five years for trading). The cash flows from the lease agreements (contractual rent) are included in the valuations. To estimate the long-term, future non-contractual rental incomes, a forecasting model has been developed. The office model is based on the rental price overview from areastatistics, as well as data and observations from brokers.
External valuation: For properties in the Norwegian business, a methodical approach is taken to a selection of properties that are to be externally valued each quarter so that all properties have had an external valuation at least every three years. In 2020, external valuations were obtained for properties worth NOK 18.3 billion (85 per cent of the portfolio’s value as at 31 December 2020).
Loans to and due from financial institutions 103 103 103 41 41
Bonds classified as loans and receivables 109,723 1,636 111,359 103,484 101,728 98,046
As of 31.12.20, Storebrand Livsforisikring had NOK 6.166 million invested in Storebrand Eiendomsfond Norge KS and Ruseløkkveien 26 AS, Oslo.
The investments are classified as “Investment in associated companies and joint ventures” in the Consolidated Financial Statements.
Equities It is the forest investment in Hancock that accounts for most of the value of Level 3 equities. Forestry investments are characterised by, among other things, very long cash flow periods. There can be some uncertainty associated with future cash flows due to future income and costs growth, even though these assumptions are based on recognised sources. Nonetheless, valuations of forestry investments will be particularly sensitive to the discount rate used in the estimate. The company bases its valuation on external valuations. These utilise an estimated market-related required rate of return.
Fund units Large portions of the portfolio are private equity funds invested in companies priced against comparable listed companies. The valuation of the private equity portfolio will thus be sensitive to fluctuations in global equity markets. The private equity portfolio has an estimated Beta relative to the MSCI World (Net – currency hedged to NOK) of around 0.54.
Loans to customers Loans are appraised at fair value. The value of these loans is determined by discounting future cash flows with the associated swap curve adjusted for an issuer-specific credit spread.
Corporate bonds Bonds are usually not priced at level 3, but in some cases, when they are non-performing loans, they are priced based on the expected payment. As at 31 December 2020, this was not a significant amount for Storebrand’s accounts.
Total solvency capital available to cover the minimum capital requirement 43,533 40,186 1,131 2,215 38,614
The Storebrand Group has also a requirement to report capital adequacy in a multi-sectoral financial group (conglomerate directive). The calculation in accordance with the Solvency II regulations and capital adequacy calculation in accordance with the conglomerate directive give the same primary capital and essentially the same capital requirements.
Under Solvency II, the capital requirement from the CRD IV companies in the Group is included in accordance with their respective capital requirements. In a multi-sectoral financial group, all the capital requirements of the CRD IV companies are calculated based on their respective applicable requirements, including buffer requirement for the largest company in the Group (Storebrand Bank). This increases the total requirement from the CRD IV companies in relation to what is included in the Solvency II calculation. As at 31 December 2020, the difference amounted to NOK 173 million.
Profit on equities and fund units 693 6,128 7,833 14,654 22 14,632 37,358
Profit on bonds and other fixed-income securities at fair value 2,835 286 1,214 4,335 785 3,550 4,767
Net income bonds to amortised cost 3,961 452 4,413 212 4,202 4,126
Realised losses on loans where provisions have previously been made -2 -21
Realised losses on loans where no provisions have previously been made -13
Write-downs/income recognition for loans and guarantees for the period -37 -3
Of which premium reserve transferred to company -8,152 -6,357 1) Individual life and disability, property and caualty insurance 2) Group life, workers comp. And health insurance
At end of the policy year 685 793 797 760 825 998 - four years later 641 736 - five years later 635
Average number of person-years 1 767 1 753 1) Including Storebrand Helseforsikring with 100 per cent.
SPP has a defined-contribution occupational pension known as BTP1. All new employees were enrolled in this pension agreement from and including 1 January 2014. In BTP1, the employer pays a premium for pension savings that is calculated based on pensionable salary up to 30 times the ”basic income amount” (inkomstbasbelopp). The insurance includes retirement pension with or without mortality inheritance, disability pension and children’s pension. The premium is calculated independently of age and is calculated primarily based on the monthly salary. The premium is paid monthly in two parts, a fixed part that is 2.5 per cent of the pensionable salary up to and including 7.5 times the “basic income amount”. The optional part of the premium is 2 per cent of salary up to and including 7.5 times the “basic income amount” and 30 per cent of salary between 7.5 and 30 times the “basic income amount”.
The retirement age for SPP’s CEO is 65 years. The CEO is covered by BTP1. In addition, the CEO has a defined-contribution based additional pension with SPP. The premium for this insurance is 20 per cent of salary that exceeds 30 times the “basic income amount”.
NOK million 2020 2019 Present value of insured pension liabilities 1,237 1,062 Fair value of pension assets -1,082 -994 Net pension liabilities/assets insured scheme 155 68 Present value of unsecured liabilities 196 196 Net pension liabilities recognised in statement of financial position 351 264
NOK million 2020 2019 Pension assets 2 Pension liabilities 351 266
PENSION ASSETS ARE BASED ON THE FINANCIAL ASSETS HELD BY STOREBRAND LIVSFORSIKRING/SPP COMPOSED AT 31.12: Storebrand Livsforsikring SPP
NET PENSION EXPENSES BOOKED TO PROFIT AND LOSS ACCOUNT, SPECIFIED AS FOLLOWS
Senior employees 1) A proportion of the executive management’s fixed salary will be linked to the purchase of physical STB shares with a lock-in period of three years. The purchase of shares will take place once a year.
THE BOARD OF DIRECTOR’S GUIDELINES FOR THE FIXING OF SALARIES AND OTHER REMUNERATION TO EXECUTIVE PERSONNEL AND STATEMENT ON THE EXECUTIVE EMPLOYEE REMUNERATION POLICY DURING THE PREVIOUS FINANCIAL YEAR ETC.
2. STATEMENT ON THE EFFECTS OF SHARE-BASED REMUNERATION AGREEMENTS ON THE COMPANY AND THE SHAREHOLDERS A proportion of the executive management’s fixed salary is linked to the purchase of physical Storebrand shares, with a lock-in period of three years. The purchase of shares will take place once a year. In the opinion of the Board of Directors, this has a positive effect on the company and the shareholders, given the structure of the scheme and the size of each individual’s portfolio of shares in Storebrand ASA.
1. Who the guidelines apply to The guidelines apply to the executive management (CEO and executive vice presidents) and employees who are members of the Board of Directors of Storebrand ASA.
2. The guidelines’ connection to the Group’s business strategy, long-term interests and financial sustainability Storebrand’s business strategy is to offer the most sustainable products and services within pension, savings, insurance and banking products to private individuals, businesses and public enterprises. Customers must be assured that their needs are assigned first priority when recommending our solutions.
Storebrand’s guidelines for financial remuneration are adapted to the company’s business strategy. In order to best safeguard the interests of customers and shareholders, Storebrand considers that the correct course of action is to focus primarily on a fixed salary as a means of overall financial compensation, and utilise variable remuneration to a limited extent. Executive management are only paid a fixed salary. To ensure that the Group’s executive management team has incentive schemes that coincide with the long-term interests of the owners, a significant proportion of the gross fixed salary is linked to the purchase of physical Storebrand shares, with a lock-in period of three years.
The salaries of executive management are determined based on the position’s responsibilities and level of complexity. Regular comparisons with equivalent roles in other companies are made in order to ensure that the salary level is competitive.
3. Remuneration to executive management Fixed salary with equity share Executive management’s equity share of the fixed salary involves the purchase of physical Storebrand shares at a fixed point in time once a year. The shares have a three year lock-in period and the Board of Directors encourages executive management to also retain the shares after the lock-period expires after three years. In the opinion of the Board of Directors, this scheme has a positive effect on the company and the shareholders, given the structure of the scheme and the size of each individual’s portfolio of shares in Storebrand ASA.
Like other employees at the company, certain members of the Group’s executive management team receive benefits in kind in the form of car allowances and smaller fixed amounts as contributions to cover expenses for newspapers, electronic communication etc. These schemes are linked to employment contracts entered into in the past and are not part of the new contracts.
Pension scheme and insurance The Group arranges and pays for an ordinary group pension scheme for all employees, which takes effect from the moment employment commences, and in accordance with the pension agreement in force at any given time. All employees are also enrolled in group insurance schemes that provide cover in the event of illness, disability or death. Since 2015, the Company has had defined-contribution pension schemes for all employees. Executive management are included in the general pension and insurance schemes. The following defined-contribution pension scheme applied as of February 2021: • Saving starts from the first krone of salary.
• Savings rate of 7 per cent of salary from 0 to 12 G (G = National Insurance basic amount). • In addition, 13 per cent of salary between 7.1 and 12 G is saved.
• The total savings rate between 7.1 and 12 G is therefore 20 per cent. • Savings rate of 20% (taxed as salary) for salary above 12 G.
The difference in remuneration between the Group’s executive management team and other employees is primarily due to the significant responsibility held by executive management and the complexity that comes with these roles. A significant proportion of
Remuneration of other roles in the Group is also assessed in relation to responsibility, complexity and market conditions, based on a reputable and systematic system for evaluation. It is the responsibility of the individual managers to recommend financial remuneration for their employees within the framework of the principles and guidelines adopted by the Board of Directors and the company’s management. The People Departments assists the line with these decisions and approves recommendations. The People Department consults the executive vice president of the relevant area when required.
Each year there is a local salary process for all Storebrand employees, where salary adjustments are proposed by an employee’s immediate superior and are sent to the superior’s manager for assessment. Each area of the Group is calibrated before the CEO approves the changes for the entire Group based on the recommendations from the Executive Vice President for People.
6. Decision-making process for establishing, revising and implementing the guidelines The Board of Directors of Storebrand ASA has had a dedicated Compensation Committee since 2000.
Remuneration to executive management is subject to an independent process through the Compensation Committee, following the recommendation of the CEO. Remuneration for the CEO is subject to consideration by the Compensation Committee and is then approved by the Board. Market comparisons are used in the annual salary assessments. This prevents any conflict of interest.
related to the former booked tax loss (appears as a reduction in the loss carryforward and, in isolation, gave an associated increased tax expense for 2017 of approximately NOK 0.4 billion). In May 2019, Storebrand Livsforsikring AS received a draft decision from the Norwegian Tax Administration claiming changes in the tax return from 2015. Storebrand disagrees with the notice from the Norwegian Tax Administration and submitted its response in October 2019. The company considers it to be preponderance that Storebrand’s understanding of the tax legislation will be accepted by a court of law and thus, no uncertain tax position has been recognised in the financial statements based on the recieved draft decision. If the Norwegian Tax Administration’s position is accepted, Storebrand estimates that a tax expense for the company of approximately NOK 1.2 billion will arise. There will also be negative effects for returns on customer assets after tax. The effects are based on best estimates and following a review with external expertise. B. New tax rules for life insurance and pension companies were introduced for the 2018 financial year. These rules contained transitional rules for how the companies should revalue/ write-down the tax values as at 31 December 2018. In December 2018, the Norwegian Directorate of Taxes published an interpretive statement that Storebrand does not consider to be in accordance with the wording of the relevant act. When presenting the national budget for 2020 in October 2019, the Ministry of Finance proposed a clarification of the wording of the transitional rules in line with the interpretive statement from the Norwegian Directorate of Taxes. The clarification was approved by the Norwegian Parliament in December 2019. Storebrand considers there to be uncertainty regarding the value such subsequent work on a legal rule has as a source of law, and which in this instance only applies for a previous financial year. In the tax return for 2018, Storebrand Livsforsikring AS applied the wording in the original transitional rule, but in October 2019 received a notice of adjustment of tax assessment in line with the interpretive statement from the Norwegian Directorate of Taxes and the clarification from the Ministry of Finance. Storebrand Livsforsikring AS disagrees with the Norwegian Tax Administration ’s interpretation but considers it uncertain as to whether the company’s interpretation will be accepted if the case is decided by a court of law. The uncertain tax position has therefore been recognised in the financial statements. Based on our revised best estimate, the difference between Storebrand’s interpretation and the Norwegian Tax Administration’s interpretation is approximately NOK 6.4 billion in an uncertain tax position. If Storebrand’s interpretation is accepted, a deferred tax expense of approximately NOK 1.6 billion will be derecognised from the financial statements.
Note 27: Intangible assets and fair value adjustments on purchased insurance contracts
Additions in the period - Purchased via acquistion/merger 14 14 590
Value of business in force Silver 10 years 10 % Straight line 197
Intangible assets linked to the acquisition of Skagen Storebrand Asset Management AS acquired Skagen AS in 2017. The intangible assets linked to Skagen are customer lists, branded products, technology and goodwill. Budgets and forecasts approved by the Board for the next three years (2021 to 2023) are used as the basis for the valuation. For the period from 2024 to 2025, a growth rate in line with the equity market for the income and a constant ratio between income and expenses were used as a basis. A growth rate of 1.0 per cent is used when calculating the terminal value. This is lower than Norges Bank’s inflation target, but consistent with the risk-free interest rate used in the required rate of return. The utility value is calculated using a required rate of return of 10 per cent.
Intangible assets linked to the acquisition of Cubera Private Equity Storebrand Asset Management AS acquired Cubera Private Equity AS in 2019. The intangible assets linked to Cubera are customer lists, customer relations and database over the private equity market. Budgets and forecasts approved by the Board for the next three years (2021 to 2023) are used as the basis for the valuation. For the period from 2024 to 2025, a projected forecast has been used that is based on the expected development in the private equity market. A growth rate of 1.0 per cent is used when calculating the terminal value. This is lower than Norges Bank’s inflation target, but consistent with the risk-free interest rate used in the required rate
There are uncertainty related to the assumptions that have been made in the valuation. The value will be influenced by changes in the assumptions regarding expected returns of the financial markets, costs, management fees, growth parameters, and the required rate of return that is used as the discount rate. The aim of the calculations is to achieve a satisfactory level of certainty that the entity specific value, cf. IAS 36, is not lower than the value recognised in the accounts. Simulations with reasonable and also conservative assumptions indicate a value that justifies the book value.
IFRS 10 establishes a model for evaluating control that will apply to all companies. Control exists when the investor has power over the investment object and possesses the right to variable yields from the investment object and simultaneously possesses the power and possibility to steer activities in the investment object that affect the yield. In the Group’s financial statements, securities funds in which Storebrand has an ownership percentage of around 40 per cent or more, and which are also managed by management companies within the Storebrand Group, are consolidated 100 per cent on the balance sheet. Minority ownership interests in consolidated securities funds are shown on one line for assets and correspondingly on one line for liabilities. In consequence of other investors in the funds being able to request redemption of their ownership interests from the respective funds, such are deemed to be minority interests that are classified as liabilities in Storebrand’s consolidated financial statements.
Write-downs of loans losses -77 -53 1) Of which Storebrand Bank 21 23 2) Of which Storebrand Bank 31,780 30,187
Properties - customers without guarantee 4,415 3,839 1) The properties are valued on the basis of the following effective required rate of return (included 2.0 per cent inflation)
Allocation by company and customers: Bonds and other fixed-income securities - company 28,833 28,512
Bonds and other fixed-income securities - customers with guarantee 97,223 83,881
Bonds and other fixed-income securities - customers without guarantee 50,939 44,245
The effective yield for each security is calculated using the observed market price. Calculated effective yields are weighted to give an average effective yield on the basis of each security’s share of the total interest rate sensitivity. Interest derivatives are included in the calculation of modified duration and average effective interest rate.
A long position in an equity derivative produces a gain in value if the share price increases. For interest rate derivatives, a long position produces a gain if interest rates fall, as is the case for bonds. For currency derivatives, a long position results in a positive change in value if the relevant exchange rate strengthens against the NOK. Average gross nominal volume are based on daily calculations of gross nominal volume.
Total insurance liabilities - life insurance 250,123 268,345 6,849 9,367 534,683 476,040 *) Including personal risk and employee insurance of the Insurance segment.
Total insurance liabiliteis - life insurance 31.12. 250,123 268,345 6,849 9,367 534,683 476,040 *) Including personal risk and employee insurance of the Insurance segment.
Debt raised through issuance of securities -284 284 -7 -500 493 15 1) Book values as at 31.12.
The CSA agreements entered into with 13 counterparties regulate the security that can be used by the parties in OTC contracts that have been entered into. Most of the agreements have a minimum transfer amount of EUR 500,000. All agreements stipulate that cash in EUR and NOK can be used as security. In some of the agreements, government bonds are also defined as approved security. Interest is calculated based on the NOWA and EONIA rates respectively. Security provided for futures and options is adjusted daily on the basis of a daily margin settlement for each contract. Security is received and provided in the form of both cash and securities. Security in the form of cash is recognised in the balance sheet and classified as other receivables and other current liabilities in Notes 34 and 40 respectively.
Storebrand Group companies are engaged in extensive activities in Norway and abroad, and are subject for client complaints and may become a party in legal disputes.
Net income and gains from financial instruments: - equities and other units 3 4 2 - bonds and other fixed-income securities 3 64 50 - financial derivatives/other financial instruments 3 -3 -6
Cash and cash equivalents at start of the period 34 34
Investments in subsidiaries, dividends and group contributions In the company’s accounts, investments in subsidiaries and associated companies are valued at the acquisition cost less any writedowns. The need to write down is assessed at the end of each accounting period. Storebrand ASA’s primary income is the return on capital invested in subsidiaries. Group contributions and dividends received in respect of these investments are therefore recorded as ordinary operating income. Proposed and approved dividends and group contributions from subsidiaries at the end of the year are recognised in the financial statements of Storebrand ASA as income in that financial year.
Net income from bonds and other fixed income securities 72 2 -9 64 50
Net income and gains from financial assets at fair value 72 2 -7 66 47
The Norwegian companies participate in the Joint Scheme for Collective Agreement Pensions (AFP). The private AFP scheme provides a lifelong supplement to an ordinary pension and is a multi-employer pension scheme, but there is no reliable information available for inclusion of this liability on the statement of financial position. The scheme is financed by means of an annual premium that is defined as a percentage of salaries from 1 G to 7.1 G, and the premium rate was 2.5 % in 2020. Storebrand employees in Norway who were born before 1 January 1956 can choose between drawing an AFP scheme pension or retiring at the age of 65 and receiving a direct pension from the company until they reach the age of 67. Employees can choose to receive benefits from the AFP scheme from the age of 62 and still continue to work.
Expected premium payments are estimated to be NOK 1 million and the payments from operations are estimated to be NOK 12 million in 2021.
Pension assets are based on the financial assets held by Storebrand Livsforsikring, which are composed of as per 31.12.: NOK million 2020 2019
Booked returns on assets managed by Storebrand Livsforsikring were: 4.4 % 3.6 %
Financial assumptions : The financial assumptions have been determined on the basis of the regulations in IAS 19. Long-term assumptions such as future inflation, real interest rates, real wage growth and adjustment of the basic amount are subject to a particularly high degree of uncertainty.
Actuarial assumptions : In Norway standardised assumptions on rates of mortality and disability as well as other demographic factors are prepared by Finance Norway. With effect from 2014 a new mortality basis, K2013, has been introduced for group pension insurance in life insurance companies and pension funds. Storebrand has used the mortality table K2013BE (best estimate) in the actuarial calculations at 31 December 2020.
2) A proportion of the executive management’s fixed salary will be linked to the purchase of physical Storebrand shares with a lock-in period of three years. The purchase of shares will take place once a year.
The difference between the financial results and the tax basis for the year is provided below.
2) Group contribution in 2020 of NOK 229 million as capital contribution.
Storebrand ASA had as per 31 December 2020 liquid assets of NOK 4,9 billion.
Property, plant and equipment mainly includes art that is not depreciated.
Signed loan agreements and drawing facility have covenant requirements. Storebrand ASA has an unused drawing facility of EUR 200 million, expiration december 2024.
Magnus Gard 1,633 1) The Summary shows the number of shares owned by the individual, as well as his or her immediate family and companies where the individual exercises significant influence, confer the Accounting Act, Section 7-26.
Profit and loss account items: Group contributions and dividends from subsidiaries 3,028 3,230
The consolidated financial statements have been prepared in accordance with the EU-approved International Financial Reporting Standards (IFRS) and the associated interpretations, as well as the other disclosure obligations stipulated in the Norwegian Accounting Act that must be applied as at 31 December 2020. The annual financial statements for the parent company have been prepared in accordance with the Norwegian Accounting Act, Norwegian Regulations relating to annual accounts, etc. for insurance companies and the additional requirements in the Norwegian Securities Trading Act. The annual report for the Group and parent company complies with the requirements of the Norwegian Accounting Act and Norwegian Accounting Standard no. 16 as at 31 December 2020.
In the best judgment of the Board and the CEO, the annual financial statements for 2020 have been prepared in accordance with applicable accounting standards, and the information in the financial statements provides a fair and true picture of the parent company’s and Group’s assets, liabilities, financial standing and results as a whole as at 31 December 2020. In the best judgment of the Board and the CEO, the annual report provides a fair and true overview of important events during the accounting period and their effects on the annual financial statements for Storebrand ASA and the Storebrand Group. In the best judgement of the Board and the CEO, the descriptions of the most important elements of risk and uncertainty that the group faces in the next accounting period, and a description of related parties’ material transactions, also provide a true and fair view.
In our opinion: • The financial statements are prepared in accordance with the law and regulations.
• The accompanying financial statements give a true and fair view of the financial position of the Company as at 31 December 2020, and its financial performance and its cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway.
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We focused on the valuation of the insurance liabilities because it is significant estimates in the financial statements. The estimates involves complex assessment concerning the probability that insured events occurs, and uncertainty related to whether the provisions are sufficient to cover the total liabilities to the policyholders. Small adjustments of the assumptions may have significant impact on the estimates. The calculation of the insurance liabilities will to a large extent depend on good quality of data in the insurance system and use of assumptions that are in accordance with regulatory requirements and appropriate industry standards. Refer to note 1, 2, 7 and 38 in the financial statements where management further describes the insurance liabilities, assumptions and uncertainty of the estimates.
We considered and challenged management’s use of key assumptions that the estimated insurance liabilities are based on. We did the same for the method and the models the management used. We used our own internal actuaries for parts of this work. Our findings are that assumptions, methods and models were in accordance with industry standards, regulatory requirements, and that they were used consistently.
We also considered and found that the information regarding the insurance liabilities in notes to the financial statements is sufficient and adequate.
We obtained, read through and understood the internal valuation model. We concluded that the model contains the elements required by the financial reporting framework and therefore is appropriate as a basis for determining fair value on the Group’s investment properties. We tested whether, and concluded that the model made mathematically correct calculations.
Through our audit we have assessed and tested design and effectiveness of established controls for review of applied assumptions and calculation methods, including the company’s internal valuation of investment properties. We particularly examined whether management had established controls to ensure assessment of market rent and discount rate. We found that routines to ensure that these elements regularly were checked against both external valuations and marked data was established. Those controls that we elected to base our audit on, was in our view working efficiently.
description of the method and the underlying assumptions that is used for the valuation.
We have focused on this area both because financial assets represent a substantial part of the assets in the statement of financial position, and because the fair value in certain instances will have to be estimated using valuation models that apply judgement.
Tax rules for life insurance companies and financial groups are complex and has changed significantly during the last couple of years. As described in note 26 uncertain tax positions have occurred as part of the group’s activities related to liquidation of a subsidiary in 2015 and new tax rules for life insurance companies in 2018. Management applied significant judgment in their assessment of whether the uncertain tax positions should be recognized in the financial statements and have therefore been a focus area.
The Board of Directors and the Managing Director (Management) are responsible for the preparation in accordance with law and regulations, including a true and fair view of the financial statements of the Company in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and for the preparation and true and fair view of the consolidated financial statements of the Group in accordance with International Financial Reporting Standards as adopted by the EU, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Contents
Corporate governance 189 Corporate governance 197 Companies in the Storebrand Group
Statement in line with the Norwegian Code of Practice for Corporate Governance (NUES) of 1. Implementation and reporting on corporate governance (no deviations from the code of practice). The Board has decided that the Norwegian Code of Practice for Corporate Governance shall be followed. Compliance with the Code of Practice is discussed in the Directors’ Report. Storebrand complies with the Code of Practice without any significant exceptions. One minor deviation has been accounted for below under section 3.
The market is kept updated on Storebrand’s goals, strategies and creation of value through quarterly performance presentations and other thematic presentations. Read more about the Company’s goals and main strategies in the Directors’ Report under the heading Strategy.
Development Goals. • We help our customers to live more sustainably. We do this by managing our customers’ money in a sustainable manner, in addition to providing sustainable financing and insurance.
sustainability as a competitive advantage. This goal has underlying targets related to our own operations, our products and our external communications. The targets are reviewed by the group management three times a year and twice a year by the board.
Storebrand believes that diversity reinforces the company’s relative capacity for value creation. Increased diversity is an important aspect of Storebrand recruitment policy. Storebrand works to maintain and further develop an organization with equality and diversity. For more information see the chapter people in the annual report
Storebrand has its own ethical rules. In addition, guidelines have been established for events, whistleblowing and combating corruption, among others. See our sustainability library for a full list of sustainability guidelines.
3. Equity and and dividends (deviations from the code of practice). The Board of Storebrand ASA continuously monitors Storebrand’s capital adequacy in light of its goals, strategy and risk profile. Read more under the heading “Capital situation, rating and risk” in the Directors’ Report.
The dividend is adopted by the General Meeting, based on a proposal put forward by the Board of Directors. The General Meeting may, by simple majority, authorise the Board of Directors to distribute a dividend pursuant to Section 8-1, second paragraph of the Norwegian Public Limited Companies Act. This shall be based on the annual financial statements adopted by the General Meeting. This authorisation may not be granted for a period longer than until the next Annual General Meeting. In addition, the authorisation shall be based on the adopted dividend policy. The General Meeting was not requested to provide such authorisation in 2020. Read more about Storebrands dividend policy on page 51.
Storebrand ASA would like to have various tools available for its efforts to maintain an optimal capital structure for Storebrand to contribute to good shareholder returns and financial resilience. At the 2020 Annual General Meeting, the Board was granted authorization to increase the share capital through issuing new shares for a total maximum value of NOK 233,906,991. This authorization may be used for the acquisition of businesses in consideration for new shares or for increasing the share capital by other means. The Board of Directors may decide to waive the shareholders’ preferential rights to subscribe for new shares in accordance with the authorization. This authorization may be used for one or more new issues. This authorization is valid until the next Annual General Meeting.
4. Equal treatment of shareholders and transactions with close associatess (No deviation from the code of practice) Storebrand ASA has only one class of shares. There are no special ownership and voting restrictions beyond the restrictions imposed by the Act on Financial Undertakings and Financial Groups Through their work, the board and management of Storebrand place great emphasis on equal treatment of the shareholders.
The general competence rules for board members and executive personnel may be found in the rules of procedure for the Board of Storebrand ASA, rules of procedure for the boards of subsidiaries, instructions for the CEO, guidelines for conflicts of interest and Storebrand’s code of ethics. Board members must inform the company if they have direct or indirect material interests in an agreement concluded by one of the companies in the Storebrand Group. The Board shall ensure that an independent third party assesses the value of transactions that are not insubstantial in nature. Furthermore, the rules of procedure for the Board stipulate that no board member may participate in discussions or a decision concerning matters that are of such material importance to them or a close associate that the member must be regarded as having a conspicuous personal or special financial interest in the matter. Each board member has a responsibility to continuously assess whether or not such a situation exists. Transactions with close associates involving Storebrand’s employees and other officers of the Group are regulated by Storebrand’s code of ethics. Employees shall on their own initiative immediately report conflicts of interest that may arise to their immediate superior as soon as they become aware of such a situation. In general, an employee is defined as disqualified if circumstances exist that could result in others questioning the person’s impartiality in relation to matters other than Storebrand’s interests. In the event of capital increases in accordance with the authorisation set out in Item 3 above, the Board may decide that the shareholders’ preferential rights shall be waived.
All shareholders may participate at the General Meeting. Storebrand’ s Articles of Association allow shareholders to vote in advance by means of electronic communication, cf. section 5-8b of the Norwegian Public Limited Companies Act.
It is also possible to vote by proxy. Provisions have been made so that the proxy form is linked to each individual item to be considered. We will seek whenever possible to design the form so that it also allows voting for candidates who are to be elected. Further information about voting in advance, use of proxies and the shareholders’ rights to have matters discussed at the General Meeting is available both in the notice of the General Meeting and on Storebrand’ s website.
7. Nomination Committee (No deviation from the code of practice) Storebrand ASA’s Articles of Association regulate the Nomination Committee, which consists of four or five members and an observer elected by the employees. For 2020-2021 election period, the Nomination Committee has four members.
The Chairman of the Nomination Committee and the other members are elected annually by the General Meeting. The employees’ representative will participate as a permanent member of the Committee in discussions and nominations concerning the election of the Chairman of the Board of Directors, as well as in other contexts where this would be natural, in accordance with an invitation from the Chairman of the Committee. The majority of the Nomination Committee is independent of the Board of Directors and the management. The Nomination Committee is composed with a view to safeguarding the interests of the community of shareholders. In the General Meeting’s rules of procedure for the Nomination Committee, there are provisions concerning the rotation of members of the Nomination Committee.
The Articles of Association stipulate that the Nomination Committee should work in accordance with the rules of procedure adopted by the General Meeting. The Nomination Committee’s rules of procedure were adopted at the 2020 Annual General Meeting. In accordance with the rules of procedure, the Nomination Committee shall, for example, give attention to the following when preparing nominations for representatives for the companies’ governing and controlling bodies: expertise, experience, capacity, gender distribution, independence and the interests of the community of shareholders. More information about the members has been published on Storebrand’s website. The Nomination Committee annually writes to the Company’s 30 largest shareholders with an invitation to suggest candidates for the Board of Directors and Nomination Committee. A corresponding request to the shareholders is published on the company’s website.
The remuneration of the members of the nomination committee has is in line with the nature of the work and the time spent in the committee work. The Nomination Committee held [14] meetings in 2020.
8. The composition and independence of the Board of directors (No deviation from the code of practice) The Articles of Association stipulate that between five and seven Board members shall be elected by the General Meeting based on nominations from the Nomination Committee. The Board Chairman shall be elected by the General Meeting. Two members, or three members if the General Meeting elects six or seven board members, shall be elected by and from among the employees. The board members are elected for one year at a time. The dayto -day management is not represented on the Board of Directors. At the end of 2020, the board consisted of 10 members (six men and four women).
The Board shall stay informed about Storebrand’ s financial position and development, and it shall ensure that the Company’s value creation and profitability are safeguarded in the best possible manner on behalf of the owners. The Board shall also ensure that the activities are subjected to adequate control and ensure that Storebrand has adequate capital based on the scope of, and risks associated with, its activities.
The work of the Board is regulated by special rules of procedure for the Board, which are reviewed annually. In order to ensure sound and well-considered decisions, importance is attached to ensuring that meetings of the Board are well prepared so that all the members can participate in the decision-making process. The Board prepares an annual schedule for its meetings and the topics it will consider. The agenda for the next board meeting is normally presented to the Board based on the approved schedule for the year and a list of matters carried forward from previous meetings. The final agenda is fixed in consultation with the Chairman of the Board. Time is set aside at each board meeting to evaluate the meeting without the management present. The Board is entitled to appoint external advisers to help it with its work whenever it deems this necessary. The Board has also drawn up instructions for the CEO.
Board committee The Board has established three subcommittees in the form of the Compensation Committee, Audit Committee and Risk Committee. The composition helps ensure a thorough and independent consideration of matters that concern internal control, financial reporting, risk assessment and remuneration of executive personnel. The committees are preparatory and advisory working committees and assist the Board with the preparation of items for consideration. Decisions are made, however, by the full Board. The committees are able to hold meetings and consider matters at their own initiative and without the participation of company management.
The Compensation Committee assists the Board with all matters concerning the Chief Executive Officer’s remuneration. The Committee monitors the remuneration of Storebrand’s executive personnel and proposes guidelines for fixing executive personnel remuneration and the Board’s statement on the fixing of executive personnel remuneration, which is presented to the General Meeting annually. In addition, the Committee safeguards the areas required by the Compensation Regulations in Norway and Sweden. The Compensation Committee held three meetings in 2020.
The main task of the strategy committee is to prepare the board management in the strategy area, with particular attention to the Group’s work on strategy, including mergers and acquisitions. The Committee shall provide forward-looking decision support related to the board’s discussion of the company’s strategic choices and targets. The strategy committee was established in August 2020 and held one meeting during the year.
The Investor Relations guidelines ensure reliable, timely and identical information to investors, lenders and other stakeholders in the securities market.
As an extension of the general policies and guidelines, a code of ethics has been drawn up that applies to all employees and representatives of Storebrand, in addition to corporate rules for areas such as risk management, internal control, financial reporting, handling inside information and share trading by primary insiders. Guidelines and information about information security, contingency plans, measures against money laundering and other financial criminality have also been drawn up. Storebrand is subject to statutory supervision in the countries
where it has operations that require a licence, including the Financial Supervisory Authority of Norway, as well as its own supervisory bodies and external auditor.
Storebrand’s consolidated financial statements are prepared by the Consolidated Accounts Unit, which reports to the Group Chief Financial Officer. Key managers in the Consolidated Accounts Unit have fixed annual compensation that is not influenced by Storebrand’ s accounting results. The division of work involved in the preparation of the financial statements is organised in such a way that the Consolidated Accounts Unit does not carry out valuations of investment assets. Instead it exercises a control function in relation to the accounting processes of the group companies.
Storebrand’s strategy and operational objectives are based on annual individual assessments of the remuneration of employees. This further strengthens the compliance between owners and the administration. Sustainable solutions are a key part of Storebrand’s business strategy and will also be part of the assessment of employees.
13. Information and communication (No deviation from the code of practice) The Board has issued guidelines for the company’s reporting of financial and other information and for contact with shareholders other than through the General Meeting. Storebrand’s reporting with regard to sustainable investments goes beyond the statutory requirements. Storebrand’s financial calendar is published on the Internet and in the company’s annual report. Financial information is published in the quarterly and annual reports, as described under Item 10 above – Financial information and Storebrand’s accounting process. Documentation that is published is available on Storebrand’s website. All reporting is based on the principle of transparency and takes into account the need for the equal treatment of all participants in the securities markets and the rules concerning good stock exchange practices. Storebrand has its own guidelines for handling insider information, see also Item 10 – Management and control, above.
15. Auditor (No deviation from the recommendation) The external auditor is elected by the General Meeting of Storebrand ASA and is responsible for the financial auditing. The external auditor issues an auditor’s report in connection with the annual financial statements and conducts limited audits of the interim financial statements. The external auditor attends board
Other As one of the largest investors in the Norwegian stock market, Storebrand has considerable potential influence over the development of listed companies. Storebrand attaches importance to exercising its ownership in listed companies based on straightforward and consistent ownership principles that place considerable emphasis on sustainability. Storebrand applies the Norwegian Code of Practice for Corporate Governance in this role. Storebrand has had an administrative Corporate Governance Committee since 2006. The Committee is responsible for ensuring good corporate governance across Storebrand.
Storebrand Asset Management AS has had a Corporate Governance Committee for several years. The Committee has a mandate to set the level of ambition and establish frameworks for corporate governance. The Committee shall coordinate Storebrand’s use of voting rights, including prioritising matters and ensuring consistency in the work.
Statement in accordance with Section 3-3b, second paragraph of the Norwegian Accounting Act A summary of the matters that Storebrand is to report on in accordance with Section 3-3b, second paragraph of the Norwegian Accounting Act follows below. The items follow the numbering used in the provision.
1. The principles for Storebrand’s corporate governance have been prepared in accordance with Norwegian law, and they are based on the Norwegian Code of Practice for Corporate Governance published by the Norwegian Corporate Governance Board (NUES).
4. A description of the main elements of Storebrand’s systems for internal control and risk management related to the financial reporting process is discussed in Section 10 above.
5. Provisions in the Articles of Association that refer to the provisions in Section 5 of the Norwegian Public Limited Companies Act with regard to the General Meeting are discussed in Item 6 above.
7. The provisions in the Articles of Association that regulate the appointment and replacement of board members are discussed in Item 8 above.
8. Provisions in the Articles of Association and authorisations granting the Board the authority to buy back or issue the Group’s own shares are discussed in Item 3 above.
Euroben Life & Pension Designated Activity Company CIN 31 42 39 100,0 %
Disclose the actual and potential impacts of climate-related risks and opportunities on Storebrand’s businesses, strategy, and financial planning where such information is material.
TCFD Recommended Disclosures Page a Describe the climate-related risks and opportunities Storebrand has identified over the short, medium and long term b Describe the impact of climate-related risks and opportunities on Storebrand’s businesses, strategy, and financial planning c Describe the resilience of Storebrand’s strategy, taking into consideration different climate-related scenarios
TCFD Recommended Disclosures Page a Disclose the metrics used by Storebrand to assess climaterelated risks and opportunities in line with its strategy and risk management process.
TCFD Recommended Disclosures Page a Disclose the metrics used by Storebrand to assess climaterelated risks and opportunities in line with its strategy and risk management process b Disclose Scope 1, Scope 2 and Scope 3 GHG emissions, and the related risks.
c Disclose the targets used by Storebrand to manage climate-related risks and opportunities and performance against targets.
GRI-indeks GRI-index An index of the GRI indicators we are reporting on and where the report contains information about the indicators follows below.
Full 102-3 The location of the head office Professor Kohts vei 9, Lysaker, Oslo, Norway Full 102-4 The places where your organisation operates
Described in chapter: This is Storebrand and the sub-chapters About Storebrand and Material issues
Full 102-6 The markets covered Described in chapter: This is Storebrand and the sub-chapter About Storebrand
Full 102-12 External initiatives Described in the chapters: This is Storebrand Keeping our house in order
In the sub-chapter: Sustainable practices throughout our value chain Director’s report in the sub-chapters A driving force for sustainable investments and Climate risks and opportunities Corporate governance
In the sub-chapter: Sustainable practices throughout our value chain Director’s report in the sub-chapters A driving force for sustainable investments and Climate risks and opportunities
In the sub-chapter: About Storebrand, Keeping our house in order, Directors’ Report and Corporate governance
Management 102-18 Governance structure Described in the chapters: This is Storebrand, Directors’ report, Corporate Governance
In the sub-chapters: Organisation, Corporate Management, Board of Directors and Committees, Risk,
Under the sub-chapters: A driving force for sustainable investments and Climate risk and opportunities
Full 102-49 Changes in reporting No significant changes Full 102-50 Reporting period January 1,20 20–December 31, 2015 Full 102-51 Date of previous report January 1,2019–December 31, 2019 Full 102-52 Reporting frequency Annual Full 102-53 Contact Full 102-54 Reporting in accordance with GRI standards
Directors’ Report in the sub-chapters: Risk, Climate risk and opportunities, A driving force for sustainable investments, Strategic Highlights 2020, Group Results 2020, Future Outlook
Described in: Directors’ report in the sub-chapters A driving force for sustainable investments and Climate risks and opportunities
Directors’ Report in the sub-chapters: Strategic highlights and A driving force for sustainable investments
Directors’ Report in the sub-chapters: Strategic Highlights, A driving force for sustainable investments, Active ownership, Exclusions and Climate risks and opportunities
Described in the chapters: Ceo’s foreword, Chairman’s preface, This is Storebrand About Storebrand Directors’ Report in the sub-chapters
FS11 Percentage of assets exposed to positive and negative environmental or social screening
Full 412-3 Significant investment agreements and contracts that include human rights provisions or have undergone human rights screening
Described in Directors’ report in the sub-chapter: A driving force for sustainable investments in the sub-chapters Active ownership and Exclusions
Described in chapter: Customer relations under the sub-chapter Greater financial security and freedom
STB-1 Customer satisfaction Described in chapter: Customer relationships under Key figures
Full 418-1 Documented complaints about privacy violations and loss of customer data
STB-3 Automation of settlement processes Described in chapter: Customer relations under sub-chapter Digital innovator in financial services
Full 417-2 Cases of non-compliance with information and labelling of products and services
Described in chapter: Customer relationships under the sub-chapters Simple and seamless customer experiencesand Key figures
Full 205-2 Communication and training on policies and procedures for combating corruption
Partial 418-1 Documented complaints about privacy violations and loss of customer data
Full 415-1 Political contributions We don’t make contributions to political parties. Full
Vi har kontrollert om Storebrand ASA har utarbeidet GRI-indeks for 2020 og målinger og beregninger av nøkkeltall for bærekraft («rapportering om bærekraft) per 09.02.2021.
Storebrands GRI-indeks for 2020 er en oversikt over hvilke av indikatorene i retningslinjene fra The Global Reporting Initiative som Storebrand ASA har benyttet for å måle og rapportere om bærekraft; sammen med en henvisning til hvor informasjonen om bærekraft er rapportert. Storebrands GRI-indeks for 2020 er tilgjengelig og inngår i Storebrands ASAs årsrapport for 2020. Vi har kontrollert om Storebrand har utarbeidet en indeks for 2020 og om obligatorisk informasjon er gitt slik det kreves i standarder utgitt av The Global Reporting Initiative (www.globalreporting.org/standards) (kriterier).
Vi er uavhengige av selskapet i overenstemmelse med lov og forskrift og Code of Ethics for Professional Accountants (IESBA Code) og med de etiske kravene som er relevante for vårt oppdrag, og vi har oppfylt våre etiske forpliktelser i samsvar med disse kravene og IESBA Code. Vi anvender ISQC 1 [NORSK] – Kvalitetskontroll for revisjonsfirmaer som utfører revisjon og forenklet revisorkontroll av regnskaper samt andre attestasjonsoppdrag og beslektede tjenester og opprettholder et omfattende system for kvalitetskontroll inkludert dokumenterte retningslinjer og prosedyrer vedrørende etterlevelse av etiske krav, faglige standarder og gjeldende lovmessige og regulatoriske krav.
We have examined whether Storebrand ASA has developed GRI Index for 2020 and measurements and reporting of key performance indicators for sustainability (sustainability reporting) per 09.02.2021.
Tasks and responsibilities of management Management is responsible for GRI Index 2020 and that the Index is developed in accordance with the Standards published by The Global Reporting Initiative. Management is also responsible for key performance indicators for sustainability and that these are developed in accordance with the definitions given in the tables at the end of the chapters «Financial capital and investment universe», «Customer relations», «People» and «Keeping our house in order». Their responsibility includes developing, implementing and maintaining internal controls that ensure the development and reporting of the GRI Index and key performance indicators for sustainability.
Key performance indicators for sustainability are the tables containing sustainability indicators that Storebrand ASA measure and control. The tables are available and included in Storebrand ASA’s annual report 2020, specifically at the end of the four chapters titled «Financial capital and investment universe», «Customer relations», «People» and «Keeping our house in order». Storebrand has defined the key performance indicators and explained how they are measured in the tables (criteria). We have examined the basis for the measurements and checked the calculations of the measurements.
Assurance Engagements ISAE 3000: “Assurance engagements other than audits or review of historical financial information".
GRI Index 2020 is, in all material respects, developed and presented in accordance with the requirements of the Standards published by The Global Reporting Initiative; and
209 Executive management CVs 213 Group Board of Directors CVs 219 Complete list of Sustainability Indicators 223 Definitions
2001–2008: IKANO Finans ASA, Managing Director 1987–2000: Managerial positions at Den norske
Shipping, Handelsbanken Markets 1995–1997: Partner, Marsoft Capital 1992–1995: Head of Research, Christiania
LAILA S. DAHLEN (1968) Director of the Board at Storebrand ASA since 2013