Storebrand establishes an Executive Committee as its main management body, responsible for the group's strategic positioning and overall profitability. The ownership interest in If (22.47%) was sold from Storebrand
Employees of companies, public sector entities and other organisations 259 336
One of the many measures implemented to improve customer relationships was a nation-wide series of customer seminars on pension arrangements for employees. In scarcely a month 24 seminars were held, attracting representatives from over 500 companies
March 2003. The merger will bring Storebrand’s banking activities together in a single bank with total assets approaching NOK 29 billion, and this will make Storebrand a more powerful player in the
200 million from security reserves to profit and loss account in 2002 as compared to NOK 280 million in 2001. Following the sale of its shares in If to Storebrand ASA, Storebrand Skadeforsikring represents the group's remaining activities involved in the run-off of the non-life and reinsurance business.
Corporate social responsibility and environmental issues have been on Storebrand’s agenda for many years. The company first initiated an environmental plan and reporting in 1995. Full details of Storebrand's action plan for corporate social responsibility can be found at www.storebrand.no/fsa. Information on the main areas of focus for corporate social responsibility and a report on the results of the 2000-2002 action plan can be found on page 40 of this annual report.
The Norwegian registered global equity fund 'Storebrand Global med Sikring' produced the strongest performance in its class in 2002, falling by just 7.4% as compared to a 38.1% decline in the benchmark global equity index measured in NOK. ‘Storebrand
When equity markets fall, investors typically turn to funds that focus on absolute returns or guaranteed minimum returns.
The Finansbanken ASA group reported a profit for 2002 of NOK
The group reduced its lending to customers by 17.3% in 2002, particularly in the areas of shipping and securities lending.
Non-interest income amounted to NOK 44.7 million, reflecting a fall over the course of 2002. Turbulent conditions in financial markets caused a drop in sales of savings and mutual fund products, and this had an adverse effect on non-interest income. In response to these difficult market conditions Finansbanken carried out a comprehensive reorganisation of its asset management activities.
Operating expenses amounted to NOK 389.5 million, equivalent to 2.15% of average total assets or 89.9% of total operating income (61.8% for the parent bank). Non-recurring expenses and goodwill write-downs totalling NOK 25.3 million were recognised in the second quarter in respect of the reorganisation of the asset management area. In anticipation of the approved merger with Storebrand Bank and the reorganisation of Finansbanken A/S
(non-life insurance and reinsurance run-off), including the ownership of Oslo Re. The principal reason for the sale is to facilitate any future restructuring of Storebrand Non-Life, which does not form part of Storebrand’s core activities. Oslo Re is principally involved in the run-off of its own reinsurance business and managing run-off business for other companies.
Storebrand's ownership interest in If is recognised in the accounts in accordance with the equity method of accounting, and the shareholding in Fair is recognised on the proportional consolidation method. The addition of Sampo's Non-Life insurance business to If's activities was treated for accounting purposes as a single transaction on 2 January 2002 which had an overall effect close to zero in Storebrand’s accounts.
The committee supervises all the group's overall activities, and is required to ensure that the group adheres to all relevant legislation and regulations, and that it operates in accordance with the articles of association and resolutions passed by the group's corporate bodies. The committee is entitled to look into any matter that it sees fit, and has access to all relevant documentation and other information. Moreover the committee can demand such information as it may need from any employee or member of any of the group's corporate bodies. Employees and members of the company ’s corporate bodies are under a duty of provide the control committee with any information it may require. The Control Committee reports to the Board of Representatives at least once a year.
For shares held by Storebrand’s SRI funds, including international shares, the company will exercise its voting rights on environmental and social responsibility issues.
Norway the acquisition price has to be adjusted by a so-called
The information provided in the Norwegian Annual Report for the purposes of shareholders resident in Norway is as follows: The RISK amounts for shares in Storebrand ASA have been set as follows: As at RISK mount As at RISK mount
• the financial statements are prepared in accordance with the law and regulations and present the financial position of the company and of the group as of 31 December 2002 and the results of its operations and its cash flows for the year then ended, in accordance with good accounting practice in Norway.
SECURITIES Shares held as fixed assets Investments in shares in subsidiaries and associated companies are treated as fixed assets in the company’s accounts where the investment is of a long term and strategic nature. A corresponding classification is made for other strategic equity investments. The book value of such shares is the cost price, and write-downs are made on an individual basis if these are not due to reasons assumed to be temporary.
Liquid assets, receivables and liabilities are converted at the exchange rate prevailing on the date of the balance sheet. Any other balance sheet items are recorded at the exchange rate prevailing at the date of acquisition.
In addition employers' social security contributions in respect of the uninsured scheme totalling NOK 0.3 million were charged to profit and loss in 2002.
In March 2002 Storebrand ASA issued a EUR 160 million exchangeable bond with a fixed EUR coupon of 2.25%. The bond was issued at par. Each EUR 1 000 bond carries the right of conversion to 43.54 shares in Orkla ASA. The bonds are repayable on 8 March 2006 at a price of 105.81 assuming the holder has not exercised the right to convert to Orkla shares at an earlier date.
Steen & Strøm Drammen AS 6.30 Bank of New York 0.92
Grace Reksten Skaugen 13 000 *) The summary shows the number of shares owed by the individual, as well as his or her close family and companies where the individual exercises significant influence (cf. Accounting Act 7-26).
Total income from financial assets 20 381.6 18 903.4 23 953.8 20 469.6 18 510.9 24 667.2
Loan losses and provisions for the period 10.5 401.3 411.8 269.3 247.6
Fees for advisory services **) 11.2 **) Includes work relating to DnB merger process in 2002
Deferred tax/Deferred tax assets (net) -650.7 -51.4 125.1 *) Storebrand Finans AS is subject to a large negative RISK amount due to dividends paid to Storebrand Bank AS in recent years. The group accounts do not make allowance for deferred tax on this tax-increasing timing difference since the shares in Storebrand Finans AS are not likely to be sold.
NOK million cost 01.01 ation 01.01 value 01.01 disposals for the year value 31.12 period *)
Storebrand Bank AS 100.0% Storebrand Finans AS 100.0% Bertil O Steen Finans AS 50.0%
General Duration: The average remaining term of cash flow on interest bearing financial instruments. Modified duration is calculated on the basis of duration and is an expression of sensitivity to changes in underlying interest rates.
Storebrand ASA Head office: Filipstad Brygge 1 P O Box 1380 Vika N-0114 Oslo Norway Tel.: +47 22 31 50 50 www.storebrand.no