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 CEO the descriptions of the most important risk and uncertainty factors the group faces in the next accounting period, as well as the descriptions of related parties’
The Board of Representatives has no further comments to the Board’s proposal regarding the allocation of the profit for the year of
At its meeting on 1 March 2011, the Control Committee of Storebrand ASA reviewed the Board of Directors’ proposed company accounts, consolidated accounts and annual report for 2010 for Storebrand ASA.
dow Jones sustainability index qualified qualified qualified ftse4Good qualified qualified qualified
Customers storebrand among global leaders in responsible investments 1 among global leaders among global leaders among global leaders investment in microfinance 2 noK 149 million explore new opportunities in microfinance and increase investments if feasible explored new opportunities
Customer satisfaction – retail customers with personal adviser 66 66 65
Customer satisfaction – other retail customers 64 64 63 processing time for complaints 4 41% within 3 weeks 70% within 3 weeks 43% within 3 weeks percentage of error-free inquiries via online service 99% 98% 98%
ratio of women/men in internal training programmes Within 40-60% Within 40- 60% Within 40- 60%
from 2,828 reduced by 35% to 1,836 air travel (individual flights) 7,550 reduce by 10% from 11,700 energy consumption (head office) 10 increased by 2.9% 160 kWh/m2 in 2010 220 kWh/m2 energy consumption (managed properties) 11 increased by 0.8% reduce by 3% increased 0.3%
Water consumption (head office) 10 22,588 m3 25,000 m3 13,413 m3
7 Question removed from employee satisfaction survey in 2010. 8 Defined as managerial position with personnel responsibilities.
Focus based on their approach to the GHG protocol. Calculated emissions using reported factor for certified renewable energy (electric) is 1,367 metric tonnes. The reduction target is a 2-year target based on the 2008 level.
Storebrand has issued environmental reports since 1995. In addition, it has been reporting on the broader field of corporate responsibility since 1999. The Group reports according to the triple bottom line where financial, environmental and social responsibility is described. The action plan for corporate responsibility (see above) is structured around the relationships to the Group’s most important stakeholders: Owners, customers, employees, suppliers, the rest of society and the international community. We use Global Reporting Initiative (GRI) as a tool for our corporate responsibility reporting. In our opinion, our reporting practices generally conform to GRI’s reporting principles and qualify for level B in accordance with the guidelines. The GRI Index matrix on our website (www.storebrand.no/samfunnsansvar or www.
storebrand.com) provides references to information on the indicators, whether these are completely or partly answered. The definition and boundaries of the indicators in the action plan are also described in more detail.
The targets in the action plan are for a 2-year period, while the results are reported annually. The measures for achieving the targets are anchored in and followed up by the company’s different expert groups. The results are collected from all units in the Group using established reporting routines. The corporate responsibility unit also conducts separate meetings and joint meetings with indicator owners in the company. A great emphasis is placed on ensuring that the information is correct and complete, however some uncertainty may be associated with some parts of the numerical data.
Storebrand wants to ensure transparency in its work on corporate responsibility work. The reported results in the action plan are therefore reviewed by Deloitte. Reviews of this kind increase the credibility of the reporting and presented data. This also increases Storebrand’s confidence that the information was appropriately collected, collated and quality assured.
dow Jones sustainability index 74 points ≥ 75 points profitability of corporate responsibility 1 -- analysis
Customers’ awareness and support of storebrand’s corporate responsibility work -- develop indicator + baseline assessment prevention and detection of fraud -- ensure compliance with internal guidelines and participate in external professional forums processing time for complaints 43% within 3 weeks 70% within 3 weeks employees ethics work in the Group 4 -- 85%
employees’ health and wellbeing -- develop indicator + baseline assessment proportion of female managers 38% Within 40-60%
5 Target is for 2011. 6 Certification of Norwegian properties according to the Norwegian environmental standard “Miljøfyrtårn”.
Subordinated loan capital is loan capital which ranks after all other debt. Subordinated loan capital forms part of tier 2 capital in the calculation of capital adequacy.
Equity consists of paid in capital, retained earnings and minority interests. Paid in capital includes share capital, the share premium reserve and other paid in capital. Retained earnings include other equity and other funds.
Primary capital is capital eligible to fulfil the capital requirements under the authorities’ regulations. Primary capital may comprise of core (tier 1) capital and tier 2 capital.
Core (tier 1) capital is part of primary capital and consists of the primary capital less the minimum requirement for reinsurance provisions in P&C insurance, goodwill, other intangible assets, net prepaid pensions, 50 per cent of any capital adequacy reserve, and cross-ownership deductions in other financial institutions. Issued hybrid tier 1 capital can account for 15 percent of the core (tier 1)
Tier 2 capital is part of primary capital and consists of subordinated loan capital and that proportion of hybrid tier 1 capital that is not counted as core (tier 1) capital. 50 percent of any capital adequacy reserve and cross-ownership deduction in other financial institutions is deducted. In order to be eligible as primary capital, tier 2 capital cannot exceed core (tier 1) capital. Perpetual subordinated loan capital, together with other tier 2 capital, cannot exceed 100 percent of core (tier 1) capital, whilst dated subordinated loan capital cannot exceed 50 percent of core (tier 1) capital. To be fully eligible as primary capital, the remaining term must be at least five years. If the remaining term is less, the eligible portion is reduced by 20 percent per annum.
The booked return on capital shows net realised income from financial assets and changes in the value of real estate, expressed as a percentage of the year’s average capital in customer funds with guarantees and in the company portfolio, respectively. The market return shows the total of realised income from financial assets, changes in the value of real estate and the year’s change in unrealised gains or losses, expressed as a percentage of the year’s average total capital in customer funds with guarantees and in the company portfolio, respectively, at market value.
Guaranteed pension payments from a specified age for as long as the insured person lives. Alternatively it can be agreed that the pension will end at a specified age. The product is offered in both the private and the public sectors. The cover includes retirement, disability and survivor pensions.
Endowment insurance or allocated annuity in which the customer bears the financial risk.
For a more detailed description of the technical insurance reserves and accrual accounting for premiums and compensation see note 1 - accounting policies, page 64-66.
Primary capital as in capital adequacy plus 50 percent of additional statutory reserves and risk equalisation fund, plus 55 percent of the contingency fund’s for P&C insurance lower limit.
For a more detailed description of the technical insurance reserves and accrual accounting for premiums and compensation see note 1 - accounting policies, page 66.
Financial derivatives can be used to hedge against unwanted financial risks, or to create a desired risk exposure in place of using traditional financial instruments.
Credit derivatives are financial contracts that transfer all or part of the credit risk associated with loans, bonds or similar instruments from the purchaser of the protection (seller of the risk) to the seller of the protection (purchaser of the risk). Credit derivatives are tradable instruments that make it possible to transfer the credit risk associated with particular assets to a third party without selling the assets.
Interest rate swaps/asset swaps are agreements between two parties to exchange interest rate terms for a specified period.
This is normally an agreement to exchange floating rate payments for fixed rate payments, and this instrument is used in the management of long term interest rate risk.
Interest rate options can be related to either bond yields or money market rates. The purchase of interest rate options related to bonds (also known as bond options) confers a right (but not an obligation) to buy or sell bonds at a pre-determined price.
Interest rate options can be used as a flexible instrument for the management of both long and short-term interest rate exposure.
to buy or sell a currency at a predetermined exchange rate. Foreign exchange options are used for hedging subordinated loans.
History of Storebrand 1767–1919: roots den almindelige brand-forsikrings-anstalt is established in Copenhagen.
storebrand’s owners establish idun, the first privately owned life insurance company in norway.
the p&C insurance company norden is established as a competitor to storebrand.
1920–1969: Growth and Consolidation storebrand acquires nearly all of the shares in idun. the rest, with a couple of exceptions, are acquired during the 1970s.
storebrand initiates a new wave of acquisitions and mergers by acquiring norrøna, which was experiencing financial problems.
1970–1989: Group formation 1978 storebrand changes its logo – from the stylised st. hallvard, patron saint of oslo – and introduces “the link” as an easily recognisable trademark. the formal name of the holding company is changed to a/s storebrand-gruppen.
1990–1999: Crisis and ChanGe storebrand and uni forsikring agree to merge, and the merger receives official permission in January 1991.
uni storebrand’s negotiations with skandia concerning establishing a major norwegian led company fail to reach agreement.
2000–2010: new ChallenGes norwegian and international stock markets fall sharply from september 2000 to february 2003.
the storting, the norwegian parliament, rules that all companies must have an occupational pension scheme in place by 2007. storebrand responds to the challenge with its new product, storebrand folkepensjon.
storebrand acquires spp, the swedish life insurance and pensions provider, from handelsbanken and forms the leading life insurance and pensions provider in the nordic region.
storebrand moves into its new head office in lysaker in december.