Storebrand ASA
Annual Report
2020
InnholdIntroduksjon1.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Finansielle mål7.Konsernets resultater 20208.Utbytte for 20209.Kapitalforhold10.Rating11.fremtidsutsikter12.Risiko13.arbeidsmiljø og HMS14.Annual Accounts and notes15.Shareholder matters16.Sustainability assurance17.Appendix Table of contents
How to navigate in the Annual
Introduction
3 Facts and figures 2020
report
5 Letter from the Group Chief Executive Officer
Previous page
Next page
7 Chairman’s foreword
1. This is Storebrand
10 About Storebrand
11 Organisation
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
6. Shareholder matters
7. Annual Accounts
and Notes
Storebrand Group
78 Income statement
79 Statement of total comprehensive income
80 Statement of financial position
82 Statement of changes in equity
83 Statement of cash flow
85 Notes
Storebrand ASA
163 Income statement
23 Simple and seamless customer experiences
163 Statement of total comprehensive income
Full screen
24 Key performance indicators
3. People
26 A culture for learning
164 Statement of financial position
165 Statement of changes in equity
166 Statement of cash flow
167 Notes
28 Engaged, competent and courageous employees
180 Declaration by member of the Board and the CEO
Table of contents
On the left hand side, you will always
have access to the table of contents.
Here you can easily navigate
between the chapters. If you are
looking for something you can
always go back to this page for a
complete overview.
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
43 Strategy 2021-23
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
181 Independent auditor´s report
8. Governance
189 Corporate Governance
197 Companies in the Storebrand Group
9. Sustainability assurance
199 TCFD-index
201 GRI-index
208 Auditor’s statement on sustainability
10. Appendix
209 Executive management CVs
213 Group Board of Directors CVs
221 Complete list of Sustainability KPIs
223 Definitions
2
Facts and figures
2020
Number of employees
Group profit1), NOK million
1,824
2,711
Return on equity2)
Solvency margin3)
8.6 %
178 %
Assets under Management, NOK billion
Assets under Management
screened for sustainability criteria
962
100 %
Investments in fossil free funds, NOK billion
Investments in solutions4), NOK billion
379.2
92.6
Real estate investments with green
certificates
Rank in Global 100 among insurance companies
43 %
#1
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
3
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix Defined Contribution pensions Norway
– Annualised return last 5 years*
Pension investment profiles Sweden
– Annualised return last 5 years**)
8.1 %
7.6 %
7.3 %
7.2 %
7.0 %
8.2 %
7.5 %
7.4 %
6.4 %
5.9 %
Storebrand Balansert pensjon
Competitors
SPP Arbetsliv
Competitors
Unit Linked reserves (NOK billion)
Written portfolio premiums (NOK billion)
+22%
268
220
+18%
5.56
4.70
2019
2020
2019
2020
Total assets under management
(NOK billion)
+16%
962
831
Earnings per share, adj. for amortisation (NOK)
+13%
6.07
5.38
2019
2020
2019
2020
*) 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.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix A rather different year
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.
Odd Arild Grefstad
Group Chief Executive Officer
5
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix 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 corporate market in Norway, we landed several large new
customers in a competitive market. We also received renewed trust
from existing customers who announced bids on tenders. We are
prepared to roll up our sleeves as individual pension accounts are
introduced in Norway in 2021. We will continue to work hard to
provide good customer experiences, so that customers will prefer
Storebrand.
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
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.
Sales of non-life insurance increased by 15 per cent from 2019 to
2020, and online sales in insurance rose by 63 percent. We see great
growth opportunities in non-life insurance in the years to come.
In Norway, the “My Money” app was downloaded by over 120,000
people. The cooperation between the savings branch in the retail
market, and Storebrand asset management continued its positive
development. We will build on our strong position in asset management
to strengthen our value proposal to retail clients.
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 long-
term 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.
Although 2020 was a different year, our regular employee surveys
showed that we had a high level of engagement among our employees,
significantly above the industry average. This is important to the more
than 200 new employees who were employed at Storebrand through
last year, and all existing employees.
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.
Odd Arild Grefstad
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
Looking ahead
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.
Didrik Munch
Chairman, Storebrand ASA
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.
This has made us capable of delivering good results throughout
the year. The total return for the year was slightly higher than for
comparable European companies5), and defined contribution
pensions in Norway Storebrand still has higher average returns over
the past five years than our competitors. Within savings, which is
Storebrand’s core business, we see increased fee and administration
income as a result of strong underlying volume growth in unit linked
and asset management.
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 cost-
effective 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.
In the past two years, three of the largest brokerage companies have
been acquired by private equity firms. This indicates a strong belief in
growth in the financial advice market, in an industry that has traditionally
been unavailable to new entrants. All competitors express strong growth
ambitions.
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, value-
added 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 has a great starting point for strengthening our position in the
public sector as well. The market potential is significant, and the public
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix service pension market is ripe for increased competition. Our new focus
on public service pensions achieved several important breakthroughs
in 2020. Based on our expertise and strong technological platform,
and as the sole provider of occupational pensions to both the retail
market and the public sector, we have all the prerequisites in place to
achieve profitable growth, satisfied customers and efficient customer
solutions.
In recent years, Storebrand asset management has evolved from a
focus on investments in traditional asset classes such as equities and
bonds- to an increasingly diversified portfolio including real estate,
private equity and infrastructure. Storebrand asset management is
now recognised as a leading multi-boutique manager in the Nordic
region. We will continue to build on the positive momentum, with the
aim of realizing further growth ambitions as a Nordic powerhouse for
asset management.
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.
Climate adaptation and the transition to a low-emission society involve
both risks and opportunities for Storebrand. Through the investor
initiative Net Zero Asset Owner Alliance (NZAOA), we are committed
to adapting our investment portfolio to the 1.5-degree target of the
Paris Agreement, which means that the investment portfolio must
be carbon neutral by2050, at the latest. This is an ambitious goal
that requires close dialogue with the companies we invest in to help
reduce their emissions.
The time ahead will present a number of exciting challenges for
Storebrand. I am convinced that Storebrand’s employees will handle
these in an excellent way. There is a high level of engagement in
the organisation, and many employees highlight that sustainability
gives their work and additional purpose. This will make Storebrand
capable of delivering value beyond financial returns to our customers.
Storebrand will continue to contribute to lasting and positive changes,
in line with our customers and society’s expectations. We will continue
to challenge ourselves, the companies in we invest in, our suppliers
and partners, so that we all contribute to the transition we all face. At
the same time, we will help our customers make good choices so that
they have a future to look forward to.
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.
5) Compared to European Insurance Index Bone clock
5) Se kapittel 3, People - dette er fornoten på norsk?!
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix 1
This is Storebrand
10 About Storebrand
11 Organisation
14 Executive management
15 Board of directors
4 Om Storebrand
5 Organisasjon
6
7
Konsernledelsen
Konsernstyret
9
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is StorebrandAbout Storebrand 10Organisation 11Executive management 14Board of directors 152. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
About Storebrand
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 com-
panies around the world. Over two million people in Norway and
Sweden place their savings with us. This comes with clear obli-
gations. . 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 posi-
tive impact on society. We shall make it easy for our customers to
make good choices, both for themselves and society.
Our purpose is clear - we create a future to look forward to.
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.
Storebrand
1847
Christiania Almindelige Brand-Forsikrings-Selskap
1887
Life insurance company
1904
The Norwegian Association
1922
The Association for Norwegian
1936
Storebrand acquire Euro-
referred to as Storebrand
Brage established
of Actuaries established
life insurance companies
peiske, Norway´s leading
1966
1978
Association of casualty
Storebrand changes its logo and
insurers (SKAFOR)
introduces “the link”. The name
established
travel insurance company
1767
Den almindelige
Brand-Forsikrings-Anstalt
established in Copenhagen
1861
Storebrand establish Idun, Norway´s fi rst
privately-owned life insurance company
1900
The Norwegian Association
1917
The Life Insurance company
of Insurers established
Norske Folk (Norwegian People)
established
1996
Name changed to
Storebrand ASA
Storebrand Bank established
1991
1998
2014
Storebrand’s AuM exceeds
NOK 500 billion
changes to The
Storebrand Group Ltd
Storebrand and Uni-Insurance
Storebrand
merge and become UNI-
Health Insurance
Storebrand Ltd
1983
The Nordic Group and the
Storebrand Group merge
1999
Storebrand acquires Finans-
banken (the Finance Bank)
2017
2017 Storebrand
2020
acquires SKAGEN
Included in Dow Jones
Sustainability Index
1814
Administration of national fi re
insurance scheme transferred to
Christiania
1010
1947
Storebrand celebrate
centenary
1975
Custos
Finance
1984
Norges Brannkasse and
Norske Folk become UNI
Insurance
1982
1995
Association of casualty
Storebrand establishes team
insurers dissolved
of sustainability analytics in
Storebrand Asset Management
2007
Storebrand
acquires SPP
2006
Storebrand re-enters
P&C insurance market
2012
“Our customers
recommend us”
vision launched
2016
“Our driving force” launched
2019
Storebrand Asset Management
acquires Cubera Private Equity
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is StorebrandAbout Storebrand 10Organisation 11Executive management 14Board of directors 152. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
Organisation
LEGAL STRUCTURE (SIMPLIFIED)
Storebrand ASA
Storebrand
Livsforsikring AS
Storebrand
Forsikring AS
Storebrand
Bank ASA
Storebrand
Asset Management AS
Storebrand
Facilities AS
Storebrand
Helseforsikring AS
(50 %)
SPP Pension & Försäkring AB
Storebrand Boligkreditt AS
SPP Fonder AB
Storebrand Fastigheter AB
SKAGEN AS
Cubera Private Equity AS
Business Segments
Savings
Guaranteed Pension
Insurance
Other
Consists of products that
encompass pension savings
without interest rate
guarantees. This includes
defined contribution pensions
in Norway and Sweden, asset
management and savings and
banking products for private
individuals.
Consists of products that
include long-term pension
savings, where customers
have a guaranteed return.
This area includes
occupational pension
schemes in Norway and
Sweden, independent
personal pensions and
pension insurance.
Consists of the Group’s
risk products in Norway and
Sweden. This comprises health
insurance in the corporate and
retail markets, employer’s
liability insurance and pension-
related insurance in the
corporate market as well ass
property, accident, and personal
risk insurance products in the
Norwegian retail market.
This includes other compa-
nies within the Storebrand
Group, including small
subsidiaries of Storebrand
Life Insurance and SPP.
Storebrand
1847
Storebrand
Christiania Almindelige Brand-Forsikrings-Selskap
Life insurance company
Christiania Almindelige Brand-Forsikrings-Selskap
The Norwegian Association
The Association for Norwegian
Life insurance company
Storebrand acquire Euro-
1887
1847
1904
1922
1887
1936
1904
The Norwegian Association
referred to as Storebrand
Brage established
referred to as Storebrand
of Actuaries established
life insurance companies
Brage established
peiske, Norway´s leading
of Actuaries established
1922
The Association for Norwegian
1966
Association of casualty
1936
Storebrand acquire Euro-
1978
Storebrand changes its logo and
life insurance companies
insurers (SKAFOR)
peiske, Norway´s leading
introduces “the link”. The name
established
travel insurance company
established
travel insurance company
changes to The
Storebrand Group Ltd
Storebrand ASA
1966
Association of casualty
Storebrand Bank established
1991
Storebrand and Uni-Insurance
insurers (SKAFOR)
1998
Storebrand
1978
Storebrand changes its logo and
2014
Storebrand’s AuM exceeds
introduces “the link”. The name
NOK 500 billion
changes to The
Health Insurance
Storebrand Group Ltd
Storebrand Bank established
1991
Storebrand and Uni-Insurance
1998
Storebrand
merge and become UNI-
Health Insurance
2014
Storebrand’s AuM exceeds
NOK 500 billion
1767
Den almindelige
Brand-Forsikrings-Anstalt
established in Copenhagen
1861
1767
Storebrand establish Idun, Norway´s fi rst
Den almindelige
privately-owned life insurance company
Brand-Forsikrings-Anstalt
established in Copenhagen
1900
1861
1917
The Norwegian Association
Storebrand establish Idun, Norway´s fi rst
The Life Insurance company
The Norwegian Association
1900
1917
The Life Insurance company
of Insurers established
privately-owned life insurance company
Norske Folk (Norwegian People)
of Insurers established
Norske Folk (Norwegian People)
established
established
merge and become UNI-
Storebrand Ltd
1983
The Nordic Group and the
Storebrand Group merge
1996
Name changed to
1996
Name changed to
Storebrand ASA
1814
Administration of national fi re
insurance scheme transferred to
Christiania
1814
Administration of national fi re
insurance scheme transferred to
Christiania
1947
Storebrand celebrate
centenary
1975
Custos
Finance
1947
Storebrand celebrate
1984
Norges Brannkasse and
Norske Folk become UNI
centenary
Insurance
1982
Association of casualty
insurers dissolved
1995
Storebrand establishes team
of sustainability analytics in
Storebrand Asset Management
1999
Storebrand acquires Finans-
banken (the Finance Bank)
1983
The Nordic Group and the
2017
2017 Storebrand
Storebrand Group merge
acquires SKAGEN
Storebrand Ltd
1999
Storebrand acquires Finans-
banken (the Finance Bank)
2020
Included in Dow Jones
Sustainability Index
2007
Storebrand
acquires SPP
1975
Custos
Finance
2006
Storebrand re-enters
2012
1984
“Our customers
Norges Brannkasse and
recommend us”
Norske Folk become UNI
vision launched
Insurance
2019
Storebrand Asset Management
acquires Cubera Private Equity
2006
Storebrand re-enters
2007
Storebrand
acquires SPP
2017
2017 Storebrand
acquires SKAGEN
2020
Included in Dow Jones
Sustainability Index
2012
“Our customers
recommend us”
vision launched
2019
Storebrand Asset Management
acquires Cubera Private Equity
P&C insurance market
1982
Association of casualty
2016
“Our driving force” launched
1995
Storebrand establishes team
P&C insurance market
2016
“Our driving force” launched
insurers dissolved
of sustainability analytics in
Storebrand Asset Management
1111
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is StorebrandAbout Storebrand 10Organisation 11Executive management 14Board of directors 152. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
Sustainability as a core business
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.
The financial sector plays a key role in helping to achieve the
UN Sustainable Development Goalsn(SDGs). Through good
management, our pensions, savings and investments can be
powerful tools to address key challenges and to realise the
Sustainability goals. As a significant asset owner, insurer and
asset manager, we also see great economic opportunities in the
alignment of investment portfolios to a sustainable agenda, in line
with international obligations. In the long term, this will also result
in higher returns.
Companies with sustainability as a key part of their business
strategy have good conditions for managing climate and
sustainability risks and capitalizing on the opportunities they
represent. There is growing consensus that companies that have
a strategy in line with the SDGs and the Paris Agreement have
better conditions than others to create long-term returns and
may be better positioned to succeed in future markets.
integrated
Sustainability in Storebrand
in our business strategy and
is
Sustainability
implemented across the entire business, including investments,
products and product development, procurement, employment
policies and business management.
Our main objective is to leverage sustainability as a competitive
advantage. Members of the executive management group
are responsible for achieving our main strategic goals on
sustainability within their respective business areas. Business unit
goals and targets are reviewed three times a year by the executive
management group and semi-annually by the Board of Directors.
At an operational level, our work on sustainability is divided into
three areas: Keeping our house in order, products and services,
and communication and stakeholder engagement.
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.
• 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.
• We are a responsible employer.
• 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 use the precautionary principle when it comes to mitigating
social and environmental risk.
• We are transparent about our work and our sustainability
results.
We have identified three SDGs which we can significantly impact by
the way we manage our group’s business and people processes.At
the end of relevant chapters of this report, figures are provided that
show how far we have come in this work.
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).
We aim to protect labour rights and promote
safe and secure working environments for all
our workers, contractors and suppliers (target
8.8).
We continuously work towards encouraging and
expanding access to banking, insurance and
financial services for all (target 8.10).
We strengthen resilience and adaptive capacity
to climaterelated 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).
6) The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services
12
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is StorebrandAbout Storebrand 10Organisation 11Executive management 14Board of directors 152. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
Initiative
Communication and stakeholder dialogue
We are open about our sustainability efforts and report in
accordance with several leading reporting standards, including
the Global Reporting
(GRI), task force on Climate-
RelatedFinancial Disclosures (TCFD) and Carbon Disclosure Project
(CDP), in line with the expectations of a number of key stakeholders.
Strategic ambitions, specific goals, reporting and communication on
sustainability are important success criteria in our work. In addition,
we engage in international sustainability initiatives such as The Net
Zero Asset Owner Alliance and Climate Action 100+ to help our
customers have a future to look forward to.
We form strong partnerships to realise our
sustainability objectives. This illustrates our
strong commitment to Sustainable development
goal17: collaboration to achieve the goals. In
addition, through stakeholder dialogue and
communication, we want to influence these
sustainability goals:
We encourage companies to adopt sustainable
practices and
sustainability
information into their reporting cycle (target
12.6).
integrate
to
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).
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.
important recognitions of the work both with
These are
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 have identified eight SDGs (below) where we can have the
greatest impact through our investment activities. We use these
sustainability goals actively in asset management, for example
when applying our sustainability rating. In addition, we consider
accountability and anti-corruption (SDG 16) when engaging with
the companies we invest in (see page 62). For Specific measures
and objectives related to these sustainability goals in our asset
management are described in the chapter a driving force for
sustainable investments.
13
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is StorebrandAbout Storebrand 10Organisation 11Executive management 14Board of directors 152. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
Group management
From left: Trygve Håkedal (Executive Vice President Technology), Staffan Hansén (CEO, SPP), Terje Løken (Executive Vice President Digital and Innova-
tion), Jan Erik Saugestad ((Executive Vice President Ass.Mngt), Odd Arild Grefstad (CEO), Heidi Skaaret (Executive Vice President Retail Market), Karin
Greve-Isdahl Executive Vice President Communications, Sustainability and Business Policy), Lars Løddesøl (Group CFO), Tove Selnes (executive vice
president People), Geir Holmgren Executive Vice President Corporate Market).
See attachments on page 211 for full CVs for group management
14
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is StorebrandAbout Storebrand 10Organisation 11Executive management 14Board of directors 152. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix Corporate Board of Directors
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).
See attachments on page 215 for full resumes for board and committee members.
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
Board shall ensure that business activities, accounting and asset
management are subject to proper scrutiny. All Directors are
independent and do not have significant business relations with
Storebrand. All shareholder-elected directors are non-managerial
staff.
15
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is StorebrandAbout Storebrand 10Organisation11Executive management 14Board of directors 152.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix COMMITTEES
The Board has appointed four committees to support its role: the Audit
Committee, the Compensation Committee, the Strategy Committee and
the Risk Committee. More information on the role of each committee
can be found on page 193.
The Strategy Committee
The Audit Committee
Leader
Members
Didrik Munch
Fredrik Åtting
Laila S. Dahlen
Hans-Petter Salvesen
Leader
Members
Karin Bing Orgland
Martin Skancke
Bodil Catherine Valvik
The Compensation Committee
The Risk Committee
Leader
Members
Didrik Munch
Marianne Bergmann Røren
Hans-Petter Salvesen
Leader
Members
Martin Skancke
Fredrik Åtting
Magnus Gard
The Nomination Committee
Leader
Per Otto Dyb
Member (shareholder elected)
Leiv Askvig, Nils Halvard Bastiansen
Anders Gaarud, Margareth Øvrum
Material issues
To ensure that we have a comprehensive and long-term approach
to creating value for our shareholders, customers, employees and
society at large, we regularly conduct a materiality analysis. This
ensures alignment between our goals and prioritised areas, and our
stakeholders’ expectations. The material analysis has been adjusted
and updated through ongoing stakeholder dialogue in recent years
and was further developed in 2020.
The analysis defines the challenges and opportunities that both
Storebrand and our stakeholders perceive as most crucial to reaching
our long-term strategic goals, and where we have the greatest impact
on society and the environment. Our main stakeholders, and those we
consider most relevant to the analysis, are shareholders, customers,
employees, authorities and NGOs. The analysis is publicly available. 7)
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
7) https://www.storebrand.no/en/sustainability/sustainability-library/_/attachment/download/a66150fc-0f46-4c2d-8aa1-cbb3d5ebc00d:d12bc8eb4126c99c0ae94c0e72b9d8b0e6ad0c1a/Materi-
ality%20analysis%20report%202019.pdf
16
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is StorebrandAbout Storebrand 10Organisation 11Executive management 14Board of directors 152. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
VERY HIGH
A
E
G
B
K
C
I
J
L
F
H
HIGH
D
MODERATE
M
N
i
i
s
n
o
s
c
e
d
d
n
a
s
t
n
e
m
s
s
e
s
s
a
r
e
d
o
h
e
k
a
t
s
n
o
e
c
n
e
u
fl
n
l
I
Significance of business impact
Financial capital and investment universe
A
B
C
Competitive long-term returns to share-
holders an customers
Driving force for sustainable investments
Active owners and reducing ESG (Environmen-
tal, Social and Governance) risk
Customer relations
D
E
F
G
Greater financial security and freedom
Engaging relevant and responsible advice
Digital innovator in financial services
Simple and seamless customer experiences
Our people
H
I
J
A culture for learning
Engaged, competent and courageous employees
Diversity and equal opportunities
Keeping our house in order
K
L
M
Governance and Compliance: Privacy and combating
financial crime
Sustainable practices throughout the value chain
Corporate citizenship
N Responsible resource usage
related material topics in 2020, and how we will work on these going
forward. The four focus areas are:
1.
2.
3.
4.
Financial capital and investment universe
Customer relations
Our people
Keeping our house in order
The focus areas and associated themes are presented in the materiality
matrix above.
The material themes are ranked according to the influence they have
on our stakeholders’ assessments and their decisions related to
Storebrand, and their significance of business impact.
The materiality analysis forms the structure of this annual report and
includes input from our stakeholders. The focus area financial capital
and investment universe and the three underlying material topics are
consistently ranked as very significant among our stakeholders. They
are also very relevant to the Group’s strategy and risk management.
Therefore, our reporting on this focus area has been included in the
Directors Report. Other material themes are also ranked with high
importance, including topic E: Engaging, relevant and responsible advice,
17
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 report has been prepared in accordance with the GRI standards
(Core option). Our GRI index can be viewed on page 201. The guidelines
of the International Integrated Reporting Council (IIRC) are also used
as foundation for the report.
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.
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is StorebrandAbout Storebrand 10Organisation 11Executive management 14Board of directors 152. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
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
18
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relationsGreater financial security and freedom 19Engaging, relevant and responsible advice 21Digital innovator in financial services 22Simple and seamless customer experiences 23Key performance indicators 243.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Greater financial security and freedom
We shall help our customers achieve financial security and freedom
to realise small and big dreams by providing holistic solutions and
diligently looking after what our customers hold most important.
We will motivate our customers to make good decisions in savings,
banking and insurance by delivering customer experiences that
meet their needs at different stages of life. Through good asset
management and structures for risk management, we will ensure
that our customers get good returns in a sustainable manner on
their investments. Dialogue with our customers takes place through
both digital and serviced channels. Our goal is to be closest to the
customer, simple and sustainable.
Why
Recent reforms to the Norwegian and Swedish pension systems
require greater responsibility from individuals for their own long-
term financial situation, including pensions. This is especially
true considering that life expectancy has increased, and that
Norwegians can expect less support from the government to meet
living costs throughout retirement. Taking an active responsibility
for your personal finances is important to lead the life you want,
both throughout working life and as a pensioner.
Norwegian residents received their own pension account (Egen
pensjonskonto) from February 2021. It is intended to provide
better oversight and control over your own pension and increase
payouts. New rules for retirement savings are also being developed
in Sweden. It will be easier and more affordable for employees
to move pension funds saved from 1 July 2007 to the present
da. Swedish authorities are exploring several measures to limit
fees related to insurance and savings schemes, to ensure proper
freedom of choice for workers.
Goals and ambitions
Our aim is to offer customers a range of services designed to meet
the breadth of their financial needs at all stages of life. In Norway,
we offer relevant products and services in banking and insurance.
In Sweden, our offer is limited to savings.
Our customers should be confident that we offer relevant and
attractive products, and that we manage their savings so that they
get the best return possible. We provide information and advice to
our corporate customers to enable them to assist their employees
in making better financial decisions. We work to build strong
relationships with corporate customers and their employees
through holistic and customised follow-up. Through digital solutions,
customer seminars and consulting, we make it easier for companies
to understand their pension schemes, and for their employees to
gain oversight and control of their own pension. We value the use
of qualified advisors and comprehensible communication. Overall,
Storebrand is a preferred provider of pension services.
The Storebrand brand in Norway is communicated to the market
through the communication concept “Good money”. Storebrand
should be known for its ability to create value through sustainable
investments, profitable sustainability. In 2020, we developed
several products and services that support this strategy. The target
for 2021 in Norway is to increase the number of customers who
have products from at least one of our product lines by 10 per cent.
In Sweden, SPP aims to be the occupational pension company
known for being passionate about making occupational pensions
easy for the employees of our corporate customers. We offer
extensive expertise, digital services, tailored advice, and a complete
product offering. We develop attractive benefit packages for
employees and focus on sustainable investments, in line with the
widespread demand for this type of pension and savings products
in the Swedish market.
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.
In Norway we launched a new version of “My Money”. The “My
Money” app helps our customers get an overview and take control
of their pension and other savings. Based on figures from the
Norwegian public pension scheme (Folketrygdfondet), private
pension savings and employers, customers can calculate their
future pensions. We also use the app to encourage our own
employees to become private customers at Storebrand. The service
“SmartPension” enables customers approaching retirement age to
plan their transition to a new phase in their lives. During this phase,
we see a higher demand from our customers for counselling.
19
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relationsGreater financial security and freedom 19Engaging, relevant and responsible advice 21Digital innovator in financial services 22Simple and seamless customer experiences 23Key performance indicators 243.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix In 2020, SPP further developed digital services that make it even
easier for companies to manage their occupational pensions. An
example is the development of a new interface for calculating and
updating pension contributions. In 2020, SPP also developed a fully
digital service for employees to choose when and how they want
their pension payouts.
In the autumn of 2020, we launched a digital tool called “your
climate footprint” in Sweden. The tool shows the carbon footprint
of the investments associated with an employee’s pensions and
savings, compared to the carbon footprint if the investments had
been made in funds without a sustainability profile. Companies use
the information in communication with employees, in their own
sustainability reporting, and to strengthen their own profiling on
sustainability.
We are continuously working to stimulate,
and expand access, to banking and
insurance services and financial services
for all (target 8.10).
“Storebrand shall be known for our
ability to create value through
sustainable investments.”
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.
A significant number of corporate customers also chose to enter
into an agreement on digital payment of occupational pensions.
After the service was introduced, more than 50 per cent of all private
customers who retired in 2020 chose a fully digital pension payment
solution.
20
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relationsGreater financial security and freedom 19Engaging, relevant and responsible advice 21Digital innovator in financial services 22Simple and seamless customer experiences 23Key performance indicators 243.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Engaging, relevant and responsible advice
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.
Through the different phases of working life and up to retirement
age, our customers receive insight and oversight of their own
pension, savings and insurance agreements.
Relevant and responsible advisory services are the most important
prerequisites for customer satisfaction. We will help customers
purchase products and services that are relevant and appropriate
in the life situation they are in.
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.
Approach
The starting point for all customer contact is the principle of putting
the customer first. This is reflected in our service standards:
• Trustworthy – I keep what I promise, and I am a professional.
• Caring – I treat everyone individually, help them, and give advice.
• Enthusiastic – I am positive and exceed expectations.
• Efficient – I make the customer journey easy and improve
your organisation.
High ethical standards, good quality advisory services and first-
class customer care are fundamental. Our advisors in Norway
are authorised through the financial advisors authorisation scheme
(AFR), the non-life insurance and personal insurance authorisation
scheme (AIS and AIP) and/or the authorisation scheme for credit
and personal insurance, all under the auspices of the financial
industry.
Our authorisation and competency requirements are communicated
to customers across digital platforms. In 2020, a separate framework
for career development was developed among the advisors in the
Norwegian retail market. The framework describes the requirements
and responsibilities for the various roles, including the requirements
for authorisations.
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.
Results
In 2020, Storebrand was ranked 2nd in the Norwegian Customer
Barometer’s annual measurement of customer satisfaction in the
corporate market. The score of 73 points (out of 100) indicates
that customers were well satisfied with their customer relationship.
Storebrand received the highest score on loyalty among corporate
customers. It is also pleasing that sustainability was an important driver
of loyalty and trust. This confirmed that Storebrand’ s commitment
to profitable sustainability will become an important differentiator in
both the corporate and retail markets.
In the market for transferable savings9) had a market share of 21.7
per cent at the end of 2020, up from 19.9 in 2019. In the non-life
insurance market, we had a market share of 4.5 per cent.
In the market for banking we had a market share of 1.7 per cent in
2020.
SPP has grown significantly in the Swedish market. Several companies
demand sustainable management of employees’ pension funds. In
2020, 25 per cent of transferable funds in the occupational pension
market were transferred to the SPP.
Market position,
pension:
#1
corporate market
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). .
21
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relationsGreater financial security and freedom 19Engaging, relevant and responsible advice 21Digital innovator in financial services 22Simple and seamless customer experiences 23Key performance indicators 243.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Digital innovator in financial services
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.
Results
In 2020, we had more than four million visits to Storebrand.no.The
number of page views increased by approximately 10 per cent from
2019, and organic traffic increased by 20 per cent. Additionally, the
number of digital sales of insurance and savings increased by 25 per
cent.
Almost half a million people checked their own retirement savings
through our website and mobile app in 2020.
Storebrand Bank reached record high sales figures for mortgages
in 2020. The bank is providing an updated digital service for loan
applications- and the number of people taking out loans after using the
service increased by 15 per cent. In addition, we entered partnerships
for mortgages into with the real estate chain Nordvik and Huseierne.
Automation of settlement processes improves customer experiences.
Improvements to the processes contributed to a significant increase
in fully or partially automated payments of disability pensions in 2020,
from 400 to 1 200 payments. Average waiting times were reduced
by 75 percent, and the number of cases resolved within one day is
increasing steadily.
In 2020 we launched the app “My Money”, which is a further
development of “My Pension”. The app gives the customer insight of
their pensions and other savings at Storebrand overall, making financial
planning a lot easier. After six months, nearly 120,000 customers had
downloaded and adopted the app.
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 year-
end, 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.
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.
Approach
Digital & Innovation was established as a separate commercial
group unit in 2019, as a step to further develop our operations
and customer experiences using technology and digital services.
Digital business development takes place in multidisciplinary teams
where product managers, business developers, analysts, developers
and designers work together to understand customers, improve
customer experiences, and solve the customers’ needs through
digital services.
By being close to our customers, we can understand their behaviour,
challenges and needs. Digital development had a high level of activity
in 2020. Multiple improvements were made to existing solutions,
while new services were developed throughout the year. We
integrated the work with digital trust and information security in the
teams, so that they have better conditions for safeguarding privacy
and information security both in concept development, design,
development, and operation of the services.
New working patterns because of Covid-19 resulted in a change of
pace in digitalisation among Storebrand’ s customers and employees,
as in society at large. Never before have we had so many digital
customer meetings, sold as much in digital channels and handled as
many settlement cases digitally as in 2020.
Digitalisation provides many opportunities for the development and
provision of value-added services to our customers, based on their
needs. In 2020, we partnered with Aprila Bank for credit to small
and medium-sized businesses, with Homely for alarm services, with
Justify for legal services and with The Home Doctors for Medical Care.
In addition, we strengthened our cooperation with Dreams related to
a new debt repayment service.
22
20) A customer and process-related incident is defined as an undesired situation that has occurred as a result of a failure of internal processes, operational disruptions, human error, violation of internal/external regulations or
external matters. The consequences may be financial loss or gain, extra work, loss of reputation and/or sanctions related to the violation of internal/external regulations.
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relationsGreater financial security and freedom 19Engaging, relevant and responsible advice 21Digital innovator in financial services 22Simple and seamless customer experiences 23Key performance indicators 243.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Simple and seamless customer experiences
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.
Results
When introducing the new CRM platform in 2020, we established
a customer-journey framework. The framework will help guide for
how we meet the customer across our own and paid channels,
with communications, concepts, and products. The work will
continue in 2021.
Goals and ambitions
Storebrand aims to create increased perceived value for each
customer by delivering personalised and seamless customer
experiences across serviced and digital channels.
“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.
Work on the development of a new concept for wealthy persons
began in early 2020. The target group is people who have more
than NOK 3 million in placeable wealth. In addition to a personal
investment advisor, customers have access to personalised
service and follow-up within all Storebrand’ s services in the retail
market. The concept will be further developed in 2021.
Approach
An important step in 2020 was to introduce a new data-driven
CRM platform for customer engagement. This work combines
two disciplines for improved customer experiences: service
design and new technology. The platform allows us to use data
in a smarter way to offer solutions tailored to each customer. The
platform is scheduled to be in effect for all customers in the retail
market during 2021 and will be rolled out in the corporate market
in 2022.
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.
23
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relationsGreater financial security and freedom 19Engaging, relevant and responsible advice 21Digital innovator in financial services 22Simple and seamless customer experiences 23Key performance indicators 243.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Gajda
Key performance indicators
For detailed KPI definitions, see page 225.
Key Performance Indicators10)
Customer satisfaction11)
Market share: Savings, retail market
Norway
Market position: Pension, corporate
Result
2017
#4
Result
2018
#4
Result
2019
#4
Result
2020
#6
Goal
2021
Top 3
Goal
2025
Top 3
22 %
21 %
20 %
22 %
Increase
Increase
market Norway
#1
#1
Recognised for sustainable value
creation (Retail Norway)
New 2019
New 2019
Recognised for sustainable value
creation (Corporate market Norway)
New 2020
New 2019
#1
#3
#1
#1
#5
#4
#1
Top 3
#1
#1
#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.
11) Net Promoter System, Retail Norway
24
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relationsGreater financial security and freedom 19Engaging, relevant and responsible advice 21Digital innovator in financial services 22Simple and seamless customer experiences 23Key performance indicators 243.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix 3
People
26 A culture for learning
28 Engaged, competent and courageous employees
29 Diversity and equality
31 Key performance indicators
25
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. PeopleA culture for learning 26 Engaged, competent and courageous employees 28 Diversity and equality 29 Key performance indicators 314. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix A culture for learning
«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.
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”.
In 2020, the organisation was put to the test, along with the rest
of the world. At short notice, almost all employees had to start
working from home, many of us while at the same time dealing
with home schooling and closed kindergartens. Everyday life
entailed new challenges for our society and for our employees.
Many people felt uncertain and worried, and the challenges have
unfortunately continued into 2021. Digital tools and employees’
ability to use them, meant that Storebrand was probably better
equipped to cope with the situation than many other businesses.
We
training
programs and activities to develop company culture swiftly.
Employees initiated and adopted new methods of collaboration,
learning and knowledge across disciplines
and
and organisational units were reported. We are proud of the
willingness to change and the flexibility that our employees have
shown throughout the year. Many challenging tasks, both directly
and indirectly related to the pandemic were solved by making
use of the foundations of the HR strategy: Learning, agility, and
leadership in a new landscape.
redesigned working processes,
interactions,
increased
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.
Goals and ambitions
Our ambition is to build a learning culture characterised by
innovation, responsibility for one’s own and others’ learning, and
feedback, to ensure continuous development and improvement.
In 2020, we combined the potential of our new communication
and interaction tools, with our digital learning platform Campus
Storebrand, which enabled increased social learning and learning
outcomes. This was in addition to the many courses and offers
found in Campus Storebrand, where mandatory training in ethics,
combating corruption and anti-money laundering has been
facilitated.
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,
26
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.
Transparency and sharing are prerequisites for achieving the best
possible interaction and learning across the group. In 2020, we
introduced new communication and interaction tools to support
this. More than 100 employees with a commitment to digital tools
were engaged to ensure smart and efficient use, and this work will
continue in 2021. Instead of offering traditional courses, we will
adapt the training to specific needs as they emerge.
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.
More than 35 middle managers participated in our digital
“Storebrand Leadership
leadership development program,
Weekly”,
issues of trust and transformation
management through strength-based development. In 2010,
the program was reinforced with a separate learning course in
Campus Storebrand.
focusing on
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
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. PeopleA culture for learning 26 Engaged, competent and courageous employees 28 Diversity and equality 29 Key performance indicators 314. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix sustainable way. The aim of the program is to educate future
leaders and change agents in Storebrand.
We conducted our summer internship program for students,
“Sandbox”, partly digital. Students held weekly presentations over
video. In order for participants to get to know each other well
before they started, we facilitated a digital introduction (over four
meetings) from May to June.
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.
A total of 1 997 people participated in one or more courses under
the auspices of Storebrand. Our employees completed a total of 7
702 hours of learning, an average of 3.9 hours per person. However,
this figure does not give a complete picture of all digital learning
through last year, as many employees take courses on other online
platforms, as well as over Teams, which we do not keep statisticson.
By the end of 2020, more than 70 per cent of our employees had
completed training in the new Personal Data Act.
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,
entrepreneurship
technology,
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.
development,
psychology,
Three gatherings were held for the 23 talents in Storebrand
Future Impact. Two of sessions were conducted digitally due to
Covid-19. The project work, which lasted eight weeks and was
carried out according to the Agile Business Exploration method,
was facilitated and carried out digitally. Despite the changes
explained above, the program achieved a satisfaction score of 84
out of 100. The goal of the program is to enable the participants to
become effective ambassadors for change. When evaluating goal
achievement on this criterion, participants gave an average score
for the program of 4.92 out of 6.
27
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. PeopleA culture for learning 26 Engaged, competent and courageous employees 28 Diversity and equality 29 Key performance indicators 314. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix Engaged, competent and courageous
employees
Why
Storebrand’s employees are our main source of innovation,
development and growth. Employees who are courageous
pathfinders who dare to innovate, and challenge prevailing norms
are essential to realizing our goal of becoming a world-class savings
group.
Goals and ambitions
Our ambition is to strengthen employee satisfaction, job satisfaction
and engagement through meaningful work, good management,
a motivating working environment, development opportunities
and confidence in management. Our managers are responsible
for setting clear objectives and for encouraging employees to
collaborate with peers around how to achieve both collective and
individual goals.
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.
Approach
Storebrand relies on the trust of customers, partners, authorities,
shareholders, and society at
large. The business must be
characterised by high ethical standards in order to gain trust.
All employees shall act with due diligence, accountability and
legality. The organisation uses e-learning for training in ethics, anti-
corruption, anti-money laundering and terror financing, and privacy
and digital trust. The courses are mandatory to complete each year
to ensure responsible business practices in line with our Code of
Conduct.
The organisation also has an external third party notification channel
through an auditing company (https://u.bdo.no/storebrand). We
also have well-established procedures for dealing with complaints,
harassment, and other unacceptable behavior.
Our driving force is to be closest to our customers and help them to
achieve financial safety and freedom, so that they have a future to
look forward to. This requires us to act as courageous pathfinders.
Every year, an employee from across the group is awarded with
the Courageous Pathfinder Award. The nomination process in 2020
was based on transparency, sharing and accessibility through digital
platforms, leading to a record turnout and number of nominations.
The award process clearly showed that our employees can rethink,
innovative and challenge practices internally and globally.
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.
Results
In 2020, an average of 87 per cent of employees completed
e-learning courses in ethics, anti-corruption, anti-money laundering
and terror financing, and privacy and digital trust.
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.
In 2020, our data protection and information security rules were
distributed digitally through our HCM system. All employees must
review the documents once a year and confirm that they have read
and understood the content.
An average of 86 per cent of employees responded to the
employee engagement survey at least once in the last three months
throughout 2020.
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.
In the latter half of 2020, employee engagement surveys also showed
an improved score on all questions, and particularly on issues of
organisational adaptation (including core values, sustainability and
equality), self-determination, freedom of opinion, relationship with
colleagues, support from the leader and significance of work tasks.
The results showed room for improvement in terms of physical
working environment. One of several initiatives to address this is
experimentation around the workplace of the future to strengthen
agile collaboration and work processes across the organisation.
28
Bildetekst
Female managers
in group
39%
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. PeopleA culture for learning 26 Engaged, competent and courageous employees 28 Diversity and equality 29 Key performance indicators 314. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix Diversity and equality
Why
It is important that Storebrand’s organisation and business reflects
our customers and the market in which we operate. Storebrand aims
to be a good workplace for everyone, regardless of their background.
We strongly believe in building an agile organisation and a culture
of trust, inclusion and belonging. It is important that our employees
have freedom and mandate to deliver unprecedented customer
experiences regardless of their background.
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.
Our goal is greater diversity and an equal distribution of men and
women in senior positions in all parts of the Group. One strategy for
achieving this is by nominating an increased proportion of women
for leadership development programmes and in recruitment
processes for leadership positions. For the Board of Storebrand
ASA, the requirement is that each gender should be represented by
at least 40 per cent.
We will contribute to the UN Sustainable Development Goal number
5, gender equality, by promoting gender equality in the workplace.
At Storebrand, equal work should be paid equally.
Approach
Storebrand works systematically to ensure diversity and equality
through clearly defined processes in recruitment, reorganisations,
salary adjustments, leadership training, and other development
initiatives. In 2019, we established a diversity committee with
participation from across the group. In 2020, the committee worked
on various initiatives in diversity, inclusion and belonging.
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.
Storebrand has participated in the tripartite programmemet Inclusive
Working Life (IA) since 2002. The program is based on the assumption
that work promotes good health and well-being, and that early, active
intervention can prevent absence. The Group’s managers have
established procedures for inclusive follow-up of employees in the
event of illness.
We aim to offer the best candidate journey, so that Storebrand is
considered an attractive workplace.
We work actively towards equal oppor-
tunities and gender balance in work and
economic life (target 5.5). Our goal is a
50/50 distribution of men and women in
leading positions, an equal distribution
of men and women in our management
development programmes, as well as
recruitment processes for management
positions
Throughout 2020, we improved our recruitment and interview
process to make it as digital and gender neutral as possible at every
stage. Women and men shall be represented in the interview team,
and there must be at least one female and one male final candidate
when recruiting for leadership positions.
We offer permanent employees paid parental leave beyond the
statutory requirements of Norway and Sweden and pay 100 per cent
salary during parental leave.
We aim to achieve decent work for
all our employees. We have a goal
of equal pay for work of equal value
(target 8.5). Our policy on discrimina-
tion and our active promotion of good
health and well-being at work support
these objectives.
Results
In the period from March 2020, all candidates were invited to digital
first-time interviews. We employed over 200 employees who all
signed their contracts digitally.
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
29
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. PeopleA culture for learning 26 Engaged, competent and courageous employees 28 Diversity and equality 29 Key performance indicators 314. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix The group’s salary levels were reviewed in cooperation with the
union representatives in connection with the wage adjustment
process in 2020. The review showed slightly lower average earnings
among female employees than male employees.
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.
We have a good gender distribution among permanent employees
in both Norway and Sweden, as can be seen in the table below.
Sickness absence has been low and stable for several years. In 2020,
the absence rate was 2.3 per cent in our Norwegian operations and
1.8 per cent in our Swedish operations.
No physical injuries were reported in the Storebrand Group in 2020.
Gender distribution
Norway
male 718
female 576
Sweden
male 213
female 235
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.
Among the participants in the “Storebrand Academy” and at
“Storebrand Leadership Weekly”, 40 per cent were women and 60
per cent men. In the Summer internship program, “Sandbox”, and in
the graduate program “Storebrand Future Impact”, 60 per cent of the
participants were female, and 40 per cent were male.
“All Storebrand employees shall
be treated equally, regardless of
age, gender, disability, cultural
background, religious beliefs or
sexual orientation”
30
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. PeopleA culture for learning 26 Engaged, competent and courageous employees 28 Diversity and equality 29 Key performance indicators 314. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix Key performance indicators
Result 2018
Goal 2019
Result 2019
Goal 2020
Goal 2025
243/26
New indicator
New indicator
E-Learning courses in ethics/anti-corruption
106/136
(14,6%/1,6%)
3.5%
3.5%
38%
3.5%
3.5%
50%
50 %
50%
50%
50%
2.7%
3.3%
39%
25 (44%)
32 (56%)
22 (46%)
26 (54%)
33.3 %
55.6 %
711,653
880,397
631,393
776,513
TBD
3.5%
3.5%
50%
50%
50%
50%
50%
50%
TBD
3.5%
3.5%
50%
50%
50%
50%
50%
50%
107%
100%
100%
Result 2019
98.8%
100%
100%
1,667
4.1%
3.9%
1,667
220
78
116
115
102
526
408
235
284
Absence due to illness (Norway)
Absence due to illness (Sweden)
Gender-balanced management
Number (share) of women at executive
levels 1–3
level 3
Number (share) of men at executive levels 1–3
Number (share) of women at executive
Number (share) of men at executive level 3
Number of women in group management
Number of women on the Board of Directors
Average salary in Norway 2019 Women
Average salary in Norway 2019 Men
Average salary in Sweden 2019 Women
Average salary in Sweden 2019 Men
Senior management, women's share of men’s
salary per position category (Hay Grade 21-24) I)
All employees up to intermediate managers,
women’s share of salary per position category
Our employees
(Hay Grade 13-20) II)
Number of employees (Norway + Sweden)
Turnover among women in the Group
Turnover among men in the Group
Number of employees (Norway + Sweden)
Number recruited to the Group
Number of women recruited
Number of men recruited
Male employees under 30
Female employees under 30
Male employees 30–50
Female employees 30–50
Male employees over 50
Women employees over 50
I) Based on Hay Grade 21-24. Hay Grade above 24 is not included, as only men are represented here (applies for 3 positions only). For Hay Grade definition, see page 212.
II) For Hay Grade definition, see page 212.
Key performance indicators
For detailed KPI definitions, see page 225.
All KPIs in this table include Skagen, Cubera and Værdalsbruket (100% of the groups employees).
Key Performance Indicators
Women on Board of Directors
Women in group executive management
Percentage of women at management level 3
Gender balance all managers, proportion of women
Extended top management, women’s share of men’s salary
per position category (Hay Grade 21-23)
Employees up to middle managers, women’s share of
men’s salary per position category (Hay Grade 13-20)
Result
2018
5 of 9
3 of 9
46%
39%
110%
99%
Result
2019
4 of 9
3 of 10
41%
39%
100%
99%
Result
2020
4 of 10
3 of 10
38%
39%
Goal
2021
40%
N/A
50%
50%
Goal
2025
40%
N/A
50%
50%
104%
100%
100%
97%
100%
100%
31
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. PeopleA culture for learning 26 Engaged, competent and courageous employees 28 Diversity and equality 29 Key performance indicators 314. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
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
32
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance Privacy and combating financial crime 33Responsible resource use 37Sustainable practices throughout our value chain 38Social responsibility 40Key performance indicators 415. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix Corporate governance and compliance:
Privacy and combating financial crime
Ethical guidelines and ethical practices at all levels
of the organisation are prerequisites for gaining
trust
from customers, authorities, sharehold-
ers, and society in general. The trust stems from
responsible business practices and employees
with high levels of integrity.
Breaches to Storebrands code of conduct
Category
Bribery/corruption
Internal misconduct
Other violations of ethical rules
Discrimination
Number 2020
Comment
Uncovered two conditions of misconduct at external partner
0
2
0
0
33
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance Privacy and combating financial crime 33Responsible resource use 37Sustainable practices throughout our value chain 38Social responsibility 40Key performance indicators 415. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix Privacy and digital trust
Why
We live in a digital world with an increasing risk that personal data
may go astray, be stolen or be shared without our consent. Our
customers must feel certain that their personal data is in safe
hands and handled in a responsible manner. Therefore, we are
reliant on proper security measures, established procedures and
processes. Moreover, our employees receive training to ensure
they have expertise in handling of personal information in a
prudent manner.
New technology combined with smart use of information and
personal data enables us to better understand our customers
and their needs. As long as our customers continue to have high
levels of trust, we can use this technology to develop better, more
relevant and more customer-oriented products and services.
Goals and ambitions
Our ambition is to engage our customers and build long-term
relationships by delivering first-class customer experience across
all channels. This requires us to safeguard our customers’ rights in
accordance with the Personal Data Act.
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.
If a personal data breach occurs, and the risk to our customers
is considered medium-high or high, customers will be contacted
directly by phone or email. In such cases, we inform customers
about what has happened, what actions we have taken, and, if
necessary, what measures the customer should take to protect
their personal data.
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.
Training in information security and privacy is mandatory for all
employees and is carried out by e-learning and in thematic groups
for each department.
The protection of personal data and information security is well
integrated into our internal control systems and risk management
processes. We continuously assess the ongoing privacy risks that
our customers are exposed to.
We update our Privacy Policy when changes are made to the use of
personal data, and our online customer portal gives the individual
customer a better overview of his/her privacy settings.12) In
addition, on our website we provide advice and recommendations
on how our customers can reduce their risk of online fraud.
Results
In 2020, a new e-learning course on privacy protection was
established. The course is mandatory for all employees. We also
conduct specific training for individual departments.
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.
40) https://u.bdo.no/storebrand
12) See https://www.storebrand.no/en/security-and-privacy for more information about digital security and privacy.
34
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance Privacy and combating financial crime 33Responsible resource use 37Sustainable practices throughout our value chain 38Social responsibility 40Key performance indicators 415. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
STOREBRAND ANNUAL REPORT 2019
Countering corruption
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.
Goals and ambitions
At Storebrand, we have a zero tolerance for corruption and other
economic misconduct. We work methodically to identify areas with
increased risk and have taken measures to prevent exploitation.
Furthermore, we work systematically with our suppliers and
partners.
All employees and board members shall complete the Group’s anti-
corruption 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.
Our guidelines increase awareness about corruption and ensure
that each employee is capable of identifying potential corruption
risks at an early stage. The guidelines also specify measures that
should be taken to avoid corruption.
All employees are responsible for familiarizing themselves with
and acting in accordance with anti-corruption guidelines, including
completing mandatory training, and managers shall ensure that this
is done. All new employees complete mandatory training as part of
their onboarding process.
13) Figures do not include Cubera Private Equity, as this company has its own anti-corruption Program.
35
Employees shall act with integrity and fully disclose any private business
agreements or business-related services they provide to companies,
individuals, friends or family members.
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.
All events held on behalf of Storebrand shall be consistent with our
role in society, all content shall be professionally relevant, and shall
otherwise adhere to our guidelines for events.
Storebrand has established both an internal and external notification
channel. Employees who suspect corruption or other financial
misconduct shall report this in one of these channels. When reported
externally, the reporter (whistle blower) can choose to remain
anonymous.
Results
90 per cent of the group’s employees completed the mandatory
course on corruption in 2020.13) No cases related to corruption were
uncovered or reported in 2020. Two cases of internal misconduct were
uncovered with an external partner. Both matters were handled as
personnel matters with dismissal as a result.
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance Privacy and combating financial crime 33Responsible resource use 37Sustainable practices throughout our value chain 38Social responsibility 40Key performance indicators 415. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix Anti-money laundering and terror financing
Why
We are a key player in the Nordic financial market. Therefore, we
have a distinct responsibility to avoid being used in connection
with the financing of terrorism, money laundering or other forms
of financial crime. Our stakeholders expect us to handle with our
responsibilities in an adequate manner. Routines and management
are important for maintaining our reputation.
Goals and ambitions
Storebrand shall act consistently and in compliance with relevant
legislation related to money laundering, terror financing and
financial crime in general.
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.
Approach
We have established policies to avoid money laundering (AML) and
terror financing. The guidelines have been reviewed and approved
by the Board of Storebrand ASA and are based on our code of
conduct. Furthermore, we have implemented measures throughout
the Group to avoid money laundering, financial crime, and terror
financing.
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.
All employees are required to familiarise themselves with our guidelines
for preventing financial crime and shall complete our mandatory
training program on AML and terror financing. All new employees
complete mandatory training as part of their onboarding process.
The training also provides employees with a basic understanding of the
regulatory framework concerning financial crime and terror financing,
as well as our requirements to employees and managers. Senior
managers and board members for the Group, and for each subsidiary
also receive mandatory training in AML, financial crime and terror
financing.
Measures to prevent money laundering, financial crime and terror
financing are described on the Group intranet, along with information
on what we expect from our employees in terms of responsible
business conduct. The information applies to all companies in the
Group.
Storebrand is a member of Finance Norway’s economic crime
committee. The committee cooperates closely with the authorities in
Norway and provides guidance to all member companies.
Results
In 2020, 46 cases related to suspected financial crime were reported
to the police’s Norwegian National Authority for Investigation and
Prosecution of Economic and Environmental Crime, while 29 cases
related to suspected fraud were reported directly to the police. The
severity of the cases varied, from suspicion of money laundering,
terror financing and tax evasion to falsifying documents and attempted
insurance fraud.
In 2020, 92 per cent of our employees completed the mandatory
training course in anti-money laundering, financial crime and terror
financing.14)
16.4 We are committed to combating financial crime.
16.5 We are committed to combating corruption and bribery in all their forms.
16.6 We are committed to developing effective, accountable and transparent companies.
14) Figures do not include Cubera Private Equity, as this company has its own anti-corruption Program.
36
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance Privacy and combating financial crime 33Responsible resource use 37Sustainable practices throughout our value chain 38Social responsibility 40Key performance indicators 415. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
Responsible resource use
Why
At Storebrand, sustainability is an integral part of our business
strategy. We express clear expectations to the companies we
invest in, our suppliers and partners. At the same time, we want to
act as an example to follow. That’s why we work to ensure that our
own operations are as sustainable as possible.
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.
A dedicated department oversees energy and water consumption,
waste production and levels of waste sorting in the office premises
to ensure that we reach the lowest possible footprint. We buy
electricity from renewable energy sources through purchasing
guarantees of origin.
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.
Goals and ambitions
We are committed to setting science-based targets for our
emissions, in line with the Paris Agreement. The plan is to set
science-based targets in line with the 1.5-degree target for the
entire business, including our own operations, by 2021. For our
own operations, we aim to reduce greenhouse gas emissions by
7.615) per cent per annum with 2019 as a baseline year, in line with
the 1.5-degree target and the findings of the UN Emissions Gap
Report 2019.16)
We are continuously working to become more energy efficient,
reduce waste production, increase the proportion of waste sorted,
and reduce our carbon footprint in connection with flights and
commuting.
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.
Carbon emissions from our own operations were reduced
significantly in 2020, compared to previous years. However, the
reductions are mainly related to restrictions stemming from Covid-
19 restrictions rather than our environmental efforts.
50 employees used the offer to buy electric bikes for personal use
at a discounted rate, with a interest-free loan from Storebrand.
12.5 We aim to significantly reduce the
amount of waste through prevention,
reduction, recycling and reuse.
12.6 We encourage companies to imple-
ment sustainability in their practices.
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.
16) https://wedocs.unep.org/bitstream/handle/20.500.11822/30797/EGR2019.pdf?sequence=1&isAllowed=y 37
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance Privacy and combating financial crime 33Responsible resource use 37Sustainable practices throughout our value chain 38Social responsibility 40Key performance indicators 415. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix Sustainable practices throughout our value chain
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.
Goals and ambitions
A key objective is to avoid the use of suppliers where production
processes or products violate international agreements, national
legislation or internal guidelines. Through our own activities
8.7 Through our procurement practices,
we strive to contribute to effective efforts
to end modern slavery and eliminate child
labour in our value chain.
8.8 We aim to protect workers’ rights and
promote a safe and secure working envi-
ronment for all employees, contractors and
suppliers.
12.5 We aim to significantly reduce the
amount of waste through prevention,
reduction, recycling and reuse in the
supply chain.
12.6 We encourage companies to intro-
duce sustainable working methods and
integrate information about sustainabil-
ity into their reporting routines.
12.7 We promote sustainable procure-
ment practices.
13.2 We incorporate action on climate
change into our policies, strategies and
plans.
and procurement activities, we aim to contribute to sustainable
development, and to ensure that human rights and workers’ rights are
not infringed.
Our ambition for 2020 was to stabilise the share of environmentally
certified purchasing volume of at least 55 percent, following our
overachievement of this target in 2019. The target for 202517) was
increased to a 60 per cent share of environmentally certified purchasing
volume, to stimulate further improvement in the environmental
performance of the supply chain. 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%.
In 2020, we concretised our work on sustainability in the supply chain
further, and thus also our targets. We have defined three specific
climate targets for suppliers and partners:
• By 2025, the goal is that all suppliers have set short- and medium-
term verifiable emission reduction targets
• By 2025, the goal is that all suppliers will be climate neutral 18)
• By 2030, the goal is that the entire value chain for our deliveries will
be climate neutral
Approach
We set clear requirements to our suppliers and business partners,
by Storebrand’s Standard Annex for Sustainability. This is an annex
to all tender requests and supplier contracts. In addition to following
our internal procurement guidelines, a key principle is that goods
and services purchased shall support our key objective of cost
effective, sustainable business operations. Storebrand shall not
purchase goods or services from companies listed on storebrand
Kapitalforvaltning’s exclusion list.19), Our purchasing policy is based on
the Group’s governing documents and related procedures, which are
revised annually. 20)
In 2020, we have developed a new framework for follow-up and
evaluation of suppliers. Our approach focuses on collaboration for
continuous improvement when it comes to sustainability, defined
by the questions we ask suppliers and partners. Our approach to
sustainable procurement follows the same three-folded strategy as
our work with active ownership towards companies we are invested in.
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.
19)https://www.storebrand.no/en/asset-management/sustainable-investments/exclusions/the-storebrand-standard/_/attachment/inline/c00185a1-c1b0-4b0c-a534-29d554b952d1:dba8691dda63ab2554b6870c0124632d-
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, ter-
rorist 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”.
38
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in OrderCorporate governance and compliance Privacy and combating financial crime 33Responsible resource use 37Sustainable practices throughout our value chain 38Social responsibility 40Key performance indicators 415.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix KAPITTEL 6 - KEEPING OUR HOUSE IN ORDER
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.
We work actively to influence - We use our position as a
major buyer to influence suppliers and business partners for
improvement. We do this both when we consider entering into
new agreements and evaluating existing ones.
We exclude - Storebrand shall not choose vendors, products or
services that are in violation of international agreements, national
regulations or internal policies. This is described in our sourcing
principles.
To get an overview of how good our suppliers are when it comes
to sustainability, we are now mapping all suppliers with annual
sales volume to Storebrand of more than 1 million NOK, through a
questionnaire divided into the following main areas:
• How sustainability is integrated into suppliers’ strategies
• Environmental performance over time and targets
• Diversity performance over time and targets
• Environmental, quality and management systems
To measure progress, annual reporting on sustainability will be
effective from 2020. An extended set of questions is also used to
evaluate suppliers in purchasing processes.
Our most important and largest purchases include contracting
IT and business processes, healthcare, damage settlement in
insurance and management of direct real estate investments. The
areas with the greatest risk and impact on sustainability are, in our
judgment, outsourcing (including offshoring), damage settlement
(car and property), and property management in general.
Results
In 2020, contracts worth more than 1 million NOK totaled around
3,2 billion NOK. This accounts for more than 87 per cent of our
total purchasing volume and includes the management and
development of direct real estate investments. Of this volume, 62
per cent are with suppliers that are environmentally certified in
accordance with our purchasing policy. This volume is divided into
290 suppliers, of which 62 (21 percent) are certified according to
a recognised environmental management standard.
Our first survey of suppliers with over NOK 1 million in turnover
was answered by 45 suppliers. Our total purchasing volume from
these suppliers was 625 million NOK in 2020, almost 20 per
cent of our total purchase volume for the year. We will continue
to work on mapping our suppliers’ sustainability work and aim to
provide further information on this in the annual report for 2021.
39
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance Privacy and combating financial crime 33Responsible resource use 37Sustainable practices throughout our value chain 38Social responsibility 40Key performance indicators 415. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
Results
353 Young entrepreneurship start-ups competed
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.
in
In 2020, NOK 500 000 was awarded to 17 “We’re rooting for”
projects around Norway, and 250 000 SEK were awarded to
similar projects in Sweden. All the projects somehow contribute
to a future to look forward to.
Social responsibility
Why
As a leading financial institution in Norway and Sweden, we have
an important social responsibility. The sustainability work means
that we actively engage with the society in which we operate,
beyond delivering financial services.
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.
We’re rooting for: Volunteering is an important part of Norwegian
culture, and there is a large amount of work to be done annually,
including sports and leisure activities. Through our “We’re rooting
for” competition, we provide financial support for various socially
useful projects at home and abroad.
40
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance Privacy and combating financial crime 33Responsible resource use 37Sustainable practices throughout our value chain 38Social responsibility 40Key performance indicators 415. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix Key performance indicators
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.
Key performance indicators
Result 2017
Result 2018
Result 2019
Result 2020
Goal 2020
Goal 2025
Environmentally certified
purchases (share of the total
expenditure that went to suppliers
with certified environmental
management system) 21)
Share of purchasing volume that
has answered survey on
sustainability of suppliers 22)
Greenhouse gas emissions from own
operation (total) scope 1-3: tonnes of
38 %
46 %
57 %
62%
60%
60 %
New
New
New
17%
Increse
100%
CO2 / tonnes CO2 per FTE
1,484 / 0.9
1,444 / 0.9
1,519 / 0.92
477 / 0.28
0.71 23)
0.6232)
Scope 1-emission: tonnes CO2 /
tonnes CO2 per FTE
1.9 / 0
1.4 / 0
1.1 / 0
1.2 / 0
Scope 2-emission: tonnes CO2
/ tonnes CO2 per FTE
320 / 0.19
201 / 0.13
179 / 0.11
164 / 0.09
Scope 3-emission: tonnes CO2
/ tonnes CO2 per FTE
1,162 / 0.71
1,241 / 0.77
1,339 / 0.81
313 / 0.18
CO2e-emissions per FTE due
to air travel: Scope 3,tonnes25)
CDP rating
DJSI score/ percentile global
E-learning conducted, ethics:
total / share of man-years26)
E-learning carried out, anti-
corruption work:
0.64
B
69/74
New
0.69
A -
63/74
New
0.74
A -
75/81
89 %
-
-
-
-
A
-
-
-
-
A
0.15
A -
81/93
Top 10% 24)
Top 10% 24
91%
100 %
100 %
total / share of man-years 26)
New
New
87 %
90%
100 %
100 %
E-learning completed, combating
money laundering and financial
crime: total / share of man-years26)
E-learning completed, privacy:
total/share of man-years 26)
Number of complaints processed by
the Financial Appeals Board 27)
Number of breaches of code of
conduct/Code of Conduct
Number of information security
incidents
Number of privacy events
New
New
New
New
3
N/A
New
New
135
New
0
60
89 %
New
192
9
30
48
92%
85%
218
2
20
41
100 %
100 %
100%
100%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
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%.
22) Applies to volume of our purchases in NOK to suppliers with over NOK 1 million in sales to Storebrand
23) We have set a target to reduce our emissions by 7,6% per year by 2025 with a 2019 baseline year. Due to the Covid-19 pandemic, our emissions in 2020 were abnormally low. We will consider adjusting our long-term targets
when the pandemic stabilises and working-life becomes more normalised.
24) A top 10% rank entails that Storebrand will be included in the Dow Jones Sustainability Wolrd Index. Score and percentile as expressed in the indicator can therefore not be directly compared with the target expressed here.
25) We have stopped reporting the average number of flights per FTE, as this is not a relevant indicator. The impact of air travel on the environment depends on how far you travel. This indicator is therefore replaced by kg
CO2equivalents per FTE related to flights will be replaced from 2019. Emissions from flights have been recalculated for 2017-2019 as a result of updates to the emission factors in our travel agencies’ systems.
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.
41
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance Privacy and combating financial crime 33Responsible resource use 37Sustainable practices throughout our value chain 38Social responsibility 40Key performance indicators 415. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix
5
Directors’ report
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
42
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Strategy 2021-23:
Leading the Way in Sustainable Value Creation
Future
Storebrand
Growth focus in
capital-light business
areas in front book
Strategic
differentiators
Capital
Management of
capital and back
book balance sheet
A
B
C
Leading Provider
Occupational Pensions
Norway & Sweden
Nordic Powerhouse
in Asset Management
Growing Challenger
in Norwegian Retail
Market
D
E
Leadership in Sustainability
Digital Frontrunner
I
Growing ordinary dividends
form earnings
II
NOK 10bn capital release
from back book by 2030
Storebrand aims to help customers achieve financial security and
freedom by offering long-term savings and insurance solutions. Our
goal is to deliver sustainable solutions tailored to the customer’s
individual needs, so that customers can receive the best possible
pension in a more sustainable world. This is how we create value
for customers, shareholders, and society.
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.
43
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix KAPITTEL 8 - ÅRSBERETNING
Strategic highlights 2020
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.
The main impact of Covid-19 on Storebrand was the increased
risk of lower employment and a subsequent rise in disability in the
society. Reserves for insurance products with disability coverage
were therefore strengthened in the first quarter, and these were still
assessed to be adequate by the end of the year.
References to Covid-19 and related information in notes
Note
Note 2:
Key accounting estimates and discretionary assessments
Note 2:
Key accounting estimates and discretionary assessments
Note 7:
Insurance risk
Note 2:
Key accounting estimates and discretionary assessments
Note 8:
Financial market risk
Theme
Covid-19 and the effects on key accounting estimates and discretionary assessments.
Description of effect on insurance obligations.
Discusses insurance risks and shows sensitivities associated with insurance incidents.
Description of effect on valuation of financial instruments.
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.
Note 12:
Describes the processes associated with valuation and sensitivities for financial
Valuation of financial instruments and properties
instruments.
Note 2:
Key accounting estimates and discretionary assessments
Description of the effect on valuation of investment property.
Note 8:
Financial market risk
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.
Note 12:
Describes the processes associated with valuation and sensitivities for investment
Valuation of financial instruments and properties
property.
Note 2:
Key accounting estimates and discretionary assessments
Description of effect on estimated expected impairment losses.
Note 10:
Credit risk
Discusses the loan portfolio and shows key figures for this.
44
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Growth in capital-light business areas in the front book
The core of Storebrand’s strategy is to gather and manage savings
from pension and institutional customers in Norway and Sweden,
as well as retail customers in Norway. By the end of 2020, we
managed NOK 962 billion of assets. This is our main revenue
driver. In addition, we will build on existing savings and pension
relationships by offering related products and solutions within
insurance and banking in Norway.
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 capital-
light 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.
In Sweden, where the defined contribution pension market
is more mature, SPP increased its market share to 18 per cent
from 16 per cent last year, becoming the second largest provider
within non-unionised pensions 29). New digital sales tools and a
successful strategy to encourage customers to transfer previously
earned pension assets to SPP were main drivers for the growth.
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.
Nordic Powerhouse in Asset Management
In 2020, Storebrand’s total assets under management increased
to NOK 962 billion, and 43 per cent are now external customers’
funds. We affirmed our position as Norway’s largest and the
Nordic’s fifth largest private asset manager. A growing share
of external customers drive earnings growth, and the ability to
co-invest with our internal pension business provides us with a
competitive advantage.
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.
Storebrand has developed into a Nordic multi-boutique manager
with several brands. SPP Fonder is currently the fifth largest mutual
fund company in Sweden. SKAGEN, which was acquired in 2017,
has provided Storebrand Asset Management with a common
modern technological platform. SKAGEN has also been a catalyst
for
international expansion and strengthened Storebrand’s
position in the retail market for mutual fund savings. With the 2019
acquisition of Cubera, we have also strengthened our capabilities
within alternative asset classes, in particular private equity. During
2020, Cubera successfully raised NOK 9 billion in capital.
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.
28) Measured in gross premiums as of Q3 2020. Source: Finance Norway.
45
29) Measured in gross premiums including transfers as of Q3 2020, but excluding Brummer Life. Source: Insurance Sweden
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix KAPITTEL 8 - ÅRSBERETNING
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.
More information about our sustainability work is discussed in
the section below A Driving Force for Sustainable Investments
and in the chapter Keeping our house in order.
Digital frontrunner
The use of technology makes it possible to combine growth
initiatives and measures for increased competitiveness, while
at the same time realising cost reductions and efficiency gains.
Smart use of data paves the way for new business opportunities
and efficiency gains, both through digitalisation and automation.
Storebrand is adopting modern cloud solutions, enabling faster
time-to-market and better access to new digital capabilities.
Digital sales have increased 25 per cent annually over the past
three years. The duration of handling disability claims has seen
a reduction of up to 75 per cent, while fraud detection increased
85 per cent.
Digital customer experiences will be a high priority going forward.
More information about our digital initiatives is described in the
chapter Customer Relations under the section Digital Innovator in
the Financial Sector.
Management of capital and balance sheet
Storebrand is a blend of fast-growing capital-light business that
deliver high returns on equity, and capital-intensive run-off
business with low returns on equity. The run-off business of
guaranteed pensions ties up more than three-quarters of the
group’s equity and yielded a return on equity of 3 per cent in
2020. The growth business, on the other hand, yielded a return
on equity of 54 per cent30) . The group’s overall return on equity31)
was 8.6 per cent for 2020.
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 Covid-
19 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 solvency margin including transitional rules was 178 per
cent at the end of 2020 - an increase of 2 percentage points
from last year’s 176 per cent, despite occasionally challenging
financial markets throughout the year. Without transitional rules,
the solvency margin was 166 per cent. This corresponds to a
decrease of 8 percentage points from last year’s 174 per cent.
The reduction is mainly due to a lower interest rates at the end
of 2020. However, this is to a large extent compensated for with
transitional rules. Regulatory assumptions in the calculation of
solvency ratio, such as reduced volatility adjustment and a lower
ultimate forward rate, contributed negatively to the solvency
ratio as well. Nevertheless, we were able to improve our solvency
position through actions. A dynamic pricing model for interest
rate guarantees was introduced, and the result in 2020 also
helped to strengthen the solvency ratio by approximately 10
percentage points.
Financial targets
Storebrand has the following financial targets:
Key performance indicators
Return on equity 31)
Future Storebrand
(Savings and Insurance)
Goal
> 10 %
Run-off business (Guaranteed and Other)
Dividend pay-out ratio 32)
> 50 %
Status
2020
8.6 %
54 %
3 %
65 %
Solvency 2 ratio33) (Storebrand Group)
> 150 %
178 %
30) Based on a pro forma distribution of IFRS equity per line of business. The capital is allocated based on the capital consumption under Solvency II and CRD IV. The segments Savings and Insurance and Other are calibrated to
a solvency margin of 150%, while the rest of the capital is allocated to the segment Guaranteed pension.
31) After tax, adjusted for amortisation of intangible assets. This report contains alternative performance measures (APM) as defined by the European Securities and Market Authority (ESMA). There is summary of the APMs
used in financial reporting at storebrand.com/ir.
32) After tax.
33) Including transitional rules.
46
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix The Group’s results 2020
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.
Our financial result is reported by the following business segment:
Savings, Insurance, Guaranteed Pension and Other, as well as on a
consolidated Group level.
Group results
NOK million
Fee and administration income
Insurance result
Operational cost
Operating profit
2020
2019
5,676
5,308
825
1 005
-4,068
-4,015
2,433
2,298
Financial items and risk result life
278
739
Profit before amortisation
2,711
3,037
uncertain macroeconomic situation that occurred and the risk of
increased disability in Norway.
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.
Total operating profit was NOK 2,433 million (NOK 2,298 million).
Financial items and risk result life was NOK 278 million (NOK 739
million). The decrease in profits in 2020 is mainly due to a weak
disability result in the Norwegian Defined Benefit pensions as well
as an increased need for Deferred Capital Contributions in SPP due
to lower discount rates and wider credit spreads.
Amortisation of intangible assets amounted to NOK -492 million
(NOK -444 million). The increase is mainly due to a strengthened
Swedish krona.
Amortisation and write-downs of intangible
assets
-492
-444
Profit before tax was NOK 2,219 million (NOK 2,593 million).
The Group ended the year with a tax income of NOK 136 million
(NOK -511 million). The tax income is the result of new information
and interpretation of the transitional rules for 2018. The estimated
normal tax rate for the Group is 21-23 per cent, depending on each
legal entity’s contribution to the group result. For more information
on tax and uncertain tax positions, see note 26. Storebrand also
has a policy for responsible taxation and publishes a separate tax
transparency report on our website.
Group profit after tax was NOK 2,355 million (NOK 2,082 million).
Profit before tax
Tax
Profit after tax
2,219
2,593
136
-511
2,355
2,082
Storebrand achieved a group profit (before amortisation) of NOK
2,711 million (NOK 3,037 million). The figures in parentheses show
the corresponding figures for last year.
Fee and administration income increased by 7 per cent to NOK
5,676 million (NOK 5,308 million), driven mainly by strong underlying
growth in assets under management. Adjusted for a strengthened
Swedish krona, the income growth was 3 per cent.
The insurance result was NOK 825 million (NOK 1,005 million) and
resulted in a combined ratio of 97 per cent (91 per cent). Reserve
strengthening in products with disability coverage weakened this
year’s performance, as a result of the Covid-19 pandemic with the
47
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Savings
Key figures Savings
NOK million
2020
2019
NOK million
Fee and administration income
4,392
3,996
Unit linked Reserves
Operational cost
Operating profit
-2,611
-2,621
Unit linked Premiums
1,781
1,375
AuM Asset Management
Financial items and risk result life
-51
-11
Retail Lending
Profit before amortisation
1,730
1,364
2020
2019
268,331
219,793
20,185
17,168
962,472
831,204
49,474
48,161
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).
Profit before amortisation increased to NOK 1,730 million (NOK
1,364 million) – an increase of 27 per cent in 2020.
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.
The bank’s retail lending balance grew by NOK 1.3 billion (3 per
cent) to NOK 49.5 billion.
48
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix KAPITTEL 8 - ÅRSBERETNING
Insurance
NOK million
Insurance premiums f.o.a.
Claims f.o.a.
Operational cost
Operating profit
Financial result
Profit before amortisation
2020
2019
4,331
3,909
-3,506
-2,904
-712
-648
113
357
91
83
204
439
Financial results
Insurance premiums for own account (f.o.a.) grew by 11 per cent
to NOK 4,331 million in 2020 (NOK 3,909 million), driven mainly by
strong volume growth, but also price increases in less profitable
products.
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.
Key figures Insurance
Claims ratio
Cost ratio
Combined ratio
2020
81 %
16 %
97 %
2019
74 %
17 %
91 %
49
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Guaranteed pension
Key figures Guaranteed Pension
NOK million
2020
2019
Fee and administration income
1,455
1,475
Operational cost
Operating profit
Risk result life & pensions
Net profit sharing
-842
-819
614
17
144
657
215
157
Profit before amortisation
775
1,029
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 long-
term 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.
NOK million
Guaranteed reserves
2020
2019
276 755
263 185
Guaranteed reserves in % of total
50.8 %
54.5 %
reserves
Net transfers
Buffer capital in % of customer reserves
in Norway
Buffer capital in % customer reserves in
Sweden
1 427
11,0 %
-103
8.6 %
11.4 %
10.7 %
Other
NOK million
2020
2019
Fee and administration income
65
51
Operational cost
Operating profit
-139
-143
-75
-91
Financial items and risk result life
76
296
Profit before amortisation
1
205
The table above excludes eliminations. The segment result
consists of the sum of the results for the business activities in the
Other segment and eliminations.
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.
Earnings before amortisation amounted to NOK 775 million (NOK
1,029 million).
NOK million
2020
2019
Fee and administration income
-236
-215
Operational cost
Financial result
Profit before amortisation
236
215
-
-
-
-
Balance sheet and market development
Guaranteed reserves at the end of the year amounted to NOK 277
billion. This is an increase of NOK 13.5 billion in 2020, but adjusted
for currency effects, the change is only NOK 4.7 billion. As a share
of total reserves, this corresponds to 50.8 per cent (54.5 per cent)
at the end of the year, a decrease of 3.7 percentage points since
last year.
Storebrand’s strategy is to increase the buffer capital to secure
customer returns and protect shareholder’s equity under
turbulent market conditions. Buffer capital for guaranteed
pensions increased to 11.0 per cent (8.6 per cent) of customer
reserves in Norway and to 11.4 per cent (10.7 per cent) in Sweden.
This corresponds to an overall increase of NOK 5.7 billion since
last year.
Financial results
The operating profit for the Other segment was NOK -75 million,
in line with the previous year’s result (NOK -91 million). Financial
items and risk result life was NOK 76 million, a decrease from last
year’s NOK 296 million. The result is primarily based on returns in
the company portfolios in Storebrand Livsforsikring and SPP, as
well as the financial result in Storebrand ASA. Unrealised losses
on investments in the portfolios that occurred in the first quarter
during the market turmoil have been reversed throughout the
rest of the year. Profit before amortisation amounted to NOK 1
million (NOK 205 million).
50
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Dividend for 2020
Storebrand has established a framework for capital management
that links dividends to the solvency margin. The dividend policy
intends to reflect the strong growth in fee-based earnings, the
more volatile financial markets related earnings and the future
capital release from the guaranteed book. The Board’s ambition is
to pay a gradually growing ordinary dividend. When the solvency
margin reaches 180% without material use of transitional
capital, the Board intends to initiate a share buyback program.
The purpose of the buyback program is to return excess capital
released from the guaranteed liabilities that are in long-term run-
off. A review of the solvency level and related share buybacks will
be conducted after the full year results for 2021.
The Board has carefully reviewed the solvency position, liquidity
position and result prognosis for the company, in light of the Covid-
19 pandemic and the resulting macroeconomic uncertainties.
Based on the review, the Board’s assessment is that Storebrand’s
financial position supports paying an ordinary dividend. The
Board proposes an ordinary dividend of NOK 3.25 per share for
2020, equal to NOK 1,519 million, to the Annual General Meeting.
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.
We target a solvency ratio in accordance with Solvency II of at least
150 per cent, including the use of transitional rules. At the end of
2020, the solvency ratio for the Group was 178 per cent including
transitional rules. Without transitional rules, the solvency margin
was 166 per cent. Storebrand uses the standard model for the
calculation of Solvency II. Prudent risk management and regulatory
adjustment mechanisms in the solvency regulation compensate
for occasionally challenging financial market conditions.
Storebrand Livsforsikring
Group’ssolidity capital consists of equity, subordinated loan
capital, market value adjustment reserves, additional statutory
reserves, conditional bonuses and risk equalisation reserves. The
solidity capital was strengthened by NOK 10.3 billion in 2020. The
market value adjustment reserve increased by NOK 1.7 billion as
a result of positive market developments and amounted to NOK
7.2 billion at year-end. Conditional bonuses increased by NOK
1.5 billion and amounted to NOK 10.8 billion. Booked returns
have increased the additional statutory reserves. The additional
statutory reserves amounted to NOK 11.4 billion at the end of
the year, an increase of NOK 2.4 billion for the year. The excess
value of bonds and loans that are booked at amortised cost have
increased by NOK 4.1 billion during the year and amounted to
NOK 8.8 billion at year-end. The excess value of bonds and loans
at amortised cost is not included in the financial statements.
Storebrand Bank Group had a pure core capital adequacy ratio
of 15.1 per cent and capital adequacy ratio of 18.7 per cent at
the end of 2020. The company has satisfactory capital adequacy
and liquidity based on its business activities. The lending portfolio
consists primarily of low-risk home mortgages with an average LTV
(loan-to-value) of 56 per cent.
Storebrand ASA (holding) held liquid assets of NOK 5.0 billion
at the end of the year. Liquid assets consist mainly of short-term
fixed income securities with high credit ratings. Storebrand ASA’s
total interest-bearing liabilities were NOK 1.0 billion at the end of
the year. The next maturity on bond debt for Storebrand ASA is
in May 2022. In addition to the liquidity portfolio, the company
has an unused credit facility of EUR 200 million, which expires
in December 2024, with the option for an extension for another
two years. Storebrand ASA recognised dividend and group
contributions from subsidiaries of NOK 3,148 million in 2020.
The dividend allocated to shareholders amounted to NOK 1,519
million.
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’s dividend policy:
Storebrand aims to pay an ordinary dividend of more than 50% of Group result after tax. The Board of Directors’ ambition is to pay
ordinary dividends per share of at least the same nominal amount as the previous year. Ordinary dividends are subject to a sustain-
able solvency margin of above 150%. If the solvency margin is above 180%, the Board of Directors intends to propose special dividends
or share buy backs.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Official Financial Statements of Storebrand ASA
Storebrand ASA reported a profit of NOK 2,804 million compared to
NOK 2,952 million in 2019.
The Board proposes a dividend of NOK 1,519 million to the General
Meeting, corresponding to an ordinary dividend of NOK 3.25 per
share for the financial year 2020.
Allocation of the profit for the year for Storebrand ASA
NOK million
Profit for the year
Allocations
Trasferred to other reserves
Provision for shared dividends
Total allocations
2020
2,804
2019
2,952
1,285
1,519
2,804
1,435
1,517
2,952
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.
Income statement for Storebrand ASA
NOK million
Group contribution and dividends
Net financial items
Operating expenses
Pre-tax profit
Tax
Profit for the year
Statement of comprehensive income
NOK million
Profit for the year
Other result elements not to be classi-
fied to profit/loss
Change in estimate deviation pension
Tax on other result elements
Total other result elements
2020
3,028
43
-96
2,975
-171
2,804
2019
3,230
-3
-102
3,125
-173
2,952
2020
2,804
2019
2,952
-15
4
-11
-8
2
-6
Total comprehensive income
2,793
2,946
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix
Outlook
Market development
Financial market developments affect both the Group’s solvency
ratio and the financial results. Higher interest rates increase
the solvency ratio and make it easier to achieve returns above
the guaranteed rate. Defined Contribution pensions and asset
management are largely exposed to the stock market. Market
movements will therefore affect income earned on assets under
management. Currency movements between the Norwegian and
Swedish krone affect the reported balance sheet and results
in SPP at a consolidated level. There is still uncertainty about
the consequences of Covid-19 and how it will affect financial
markets going forward. With a solid solvency margin of 178 per
cent and more than 11 per cent buffer capital in guaranteed
products, Storebrand is in a good position to navigate safely
through demanding markets. The company also has a robust
risk management framework, as described in a separate section
below. Read more in note 2 about uncertainties related to the
Covid-19 pandemic.
Regulatory changes
Regulations enacted by the authorities can be of great importance
to Storebrand. We describe the most important changes and
their significance for Storebrand below.
European regulations
Solvency II revision
In December 2020, the European Supervisory Authority for
Insurance and Occupational Pensions (EIOPA) submitted its final
proposal for changes to the standard model under Solvency II to
the European Commission. One of several proposals by EIOPA
concerns changes to the interest rate risk module that could
increase the solvency capital requirement for Norwegian and
Swedish insurance companies.
EIOPA originally planned to submit its final proposals in June 2020,
but the timetable was revised due to Covid-19. We expect final
conclusions to be drawn by the Commission, the Parliament and
the Council in 2022. This will be followed by work on delegated
acts and guidelines. Changes are not expected to enter into force
before 2026.
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).
The new rules will establish standards for sustainable asset
management and clarify reporting requirements and customer
information.
We regard the regulations for sustainable finance to be positive. It
will increase the requirements and improve the quality of financial
and non-financial reporting, which in turn will provide better
information to stakeholders and improve comparability within the
financial sector.
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.
Pension capital certificates accumulated
from previous
employments are automatically transferred to the Individual
Pension Account, which is established at the current employer’s
pension provider. Transfers are carried out unless the policyholder
makes an active choice to opt-out (“negative acceptance”) and
stay with the providers from previous employments. At the same
time, it introduces the opportunity for policyholders to choose
a provider of their own choice rather than staying with the
employer’s collective scheme.
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.
5353
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Transfers of pension capital certificates that have not opted-
out shall be carried out in the period between 1 May and 30
December 2021. Policyholders who do not want to wait may
request that pension capital certificates shall be moved to their
Individual Pension Account at once.
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 self-
selected Individual Pension Accounts for their members.
Storebrand participates in the Ministry of Finance’s implementation
group for Individual Pension Accounts.
Guaranteed pension
The Norwegian Financial Supervisory Authority’s proposed
changes to the regulations for guaranteed pension products have
been consulted. The Ministry of Finance is yet to decide which of
the proposals for legislative changes are to be submitted to the
parliament.
The Ministry of Finance decided in May 2020 that the Financial
Supervisory Authority’s proposal to remove the possibility
of booking bonds and loans at amortised costs will not be
followed up. Bonds held at amortised costs are a key tool for risk
management of paid-up policies, and the clarification provided
reassurance that we can continue to make use this tool.
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 customer-
distributed 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.
• The ability for the company to fulfil annual interest rate
guarantees with borrowed equity.
• The ability for customers to choose faster pay-outs for small
paid-up policies.
• The ability for companies to compensate customers who
convert to paid up policies with investment choice.
We expect the proposed legislation to be presented in early
2021.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix 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.
Swedish regulations
Premium pensions (PPM) of the national retirement pension system
The report on the Swedish premium pension system (PPM) is still
being discussed in the Swedish parliament’s pension group. This
will present the final requirements for a procured fund market,
before for further processing. The inquiry period has been
extended until 31 August 2021 so that the authorities can begin
their work with the fund market on 1 September 2021. Today’s
fund market is expected to be replaced by a procured market
based on new criteria for fees, sustainability and quality.
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.
The PPM fund market is a major distribution channel for SPP’s
funds. We anticipate that the new fund market will offer fewer
funds at a lower price, but it is too early to say anything about the
consequences.
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.
The Swedish government has been asked by the parliament to
draw up further proposals for adjustments to the transfer fees
for Unit Linked accounts (including deposit insurance). Proposed
regulations were presented in October 2020. The new rules,
which introduce an upper limit on fees, will come into force on
1 April 2021 and apply to policies dated back to 1 July 2007. An
inquiry for policies established before 1 July will be conducted and
proposed regulations are expected in September 2021.
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.
Financial results
In Norway, the market for private sector occupational pensions has
experienced increased competition over the last years in anticipation
of the new Individual Pension Accounts (IPA), described under
regulatory changes above. As individuals’ contracts are merged into
one account, fees will be reduced. The resulting economic effect
is expected to be moderate in 2021 and slightly more negative in
2022, before recovering in 2023 through strong underlying growth
as well as measures to increase profitability. The market has grown
structurally over the past years. High single-digit growth in premiums
and double-digit growth in assets under management are expected
during the next years. We aim to defend Storebrand’s market leader
position, while also focusing on cost leadership and improved
customer experience through end-to-end digitalisation.
As a leading occupational pension provider in the private sector,
Storebrand also has a competitive offering to the public sector
market. The public sector pension market is fast growing and larger
the private sector, thus representing a potential additional source
of revenue generation for Storebrand. The ambition is to gain 1 per
cent market share annually, or approximately NOK 5 billion in annual
net inflow.
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.
Overall reserves for guaranteed pensions are expected to start
decreasing in the coming years. Guaranteed reserves represent a
declining share of the Group’s total pension reserves and were 50.8
per cent at the end of the year, 3.7 percentage points lower than last
year. Storebrand’s strategy is to secure customer returns and shield
shareholder’s equity under turbulent market conditions by building
customer buffers. Customer buffers make up more than 11 per cent
of customer reserves in both Norway and Sweden. The levels will
grow with an expected positive spread over the guaranteed rate on
the policies.
Storebrand Asset Management is growing its external mandates
from institutional and retail investors, both in the Nordics and
across Europe, in addition to managing internal pension funds.
Storebrand has a full product range including index, factor, and
active management. We are also one of the strongest providers
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix KAPITTEL 8 - ÅRSBERETNING
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.
Capital management
Storebrand aims to maintain a solvency ratio of at least 150 per cent.
At the end of 2020 it was 178 per cent. On an annual basis, a net capital
generation of about 6-7 percentage points of solvency is expected
over the next few years. Of this, approximately 10 percentage points
are generated in the business, 3 additional percentage points are
expected as a result of the guaranteed business being in run-off,
and around 5-6 per cent are expected to pe paid out as dividend
from the annual results. Financial market volatility, especially the
development in long interest rates, and regulatory changes, may
lead to short term volatility in the solvency ratio.
The Board’s ambition is to pay a gradually increasing ordinary
dividend. When the solvency ratio exceeds 180 per cent without
material use of transitional capital, the Board’s intention is to begin a
share buy-back programme. The purpose of the buy-back program
will be to return excess capital from the guaranteed business which
is in long-term run-off. Under normal circumstances, the solvency
ratio can be expected to reach 180 per cent in 2023. During the
same period, it is expected that the transitional capital will be phased
out as a result of the change in business mix from guaranteed to
non-guaranteed business. We expect that approximately NOK
10 billion in capital will be released by 2030. In combination with
increased earnings from capital light growth, the business mix shift
will also lead to positive developments in return on equity over time.
We expect to deliver a return on equity (adjusted for amortisation)
of more than 10 per cent by the end of 2023 on a sustainable basis.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix A driving force for sustainable investments
Having a long-term perspective is important for Storebrand, as
we manage customers’ savings over decades. We fundamentally
believe that investments in companies that are well positioned
to deliver on the UN Sustainable Development Goals (SDG) will
provide better risk-adjusted returns for our customers over
time. Companies that rank highly on sustainability indicators
have a better understanding of global developments, and how to
navigate risks and opportunities, than other businesses. According
to international studies, the most sustainable companies on
the world’s stock exchanges tend to outperform their peers
financially over time. We therefore believe such companies will
be the winners of tomorrow and provide better returns for our
customers.
In order to clarify and measure sustainability, we have defined
sustainability as measurable subpoints under the Envionmental,
Social and Governance (ESG) categories – environmental and
social conditions, and corporate governance. Storebrand is both
a significant asset owner and asset manager. With investments in
over 4,500 companies worldwide, we are exposed a wide array
of ESG risks. We work actively to reduce the risk of our portfolio
having a negative impact on the environment and in societies. More
specifically, we work to reduce the risk of our investments having
indirectly contributed to environmental degradation, violations of
international conventions on human rights and international law,
suppression of children’s rights, corruption or economic crime.
From a financial perspective, it is also crucial for us to reduce ESG
risk to avoid negative effects on the value of our investments.
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 large-
scale losses of biodiversity and ecosystems.
The Covid-19 pandemic affected us all in 2020, but the impacts
were unevenly distributed. Just like the impact of climate change
will challenge societies differently. In our work on responsible
investments, we see that the pandemic has had major consequences
for supply chains in developing countries and has consequently
resulted in millions of people losing their livelihoods. The World Bank
estimates that for the first time in 20 years the number of extremely
poor increased, and it is estimated that around 100 million people
have been driven into extreme poverty in 2020. 34)
34) https://www.worldbank.org/en/news/press-release/2020/10/07/Covid-19-to-add-as-many-as-150-million-extreme-poor-by-2021
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix We see a growing demand for sustainable investment products,
especially products with a focus on climate solutions. In Sweden,
our customers want to reduce the exposure to carbon-related
activities in their portfolios. In this market, one-third of our total
assets of NOK 962 billion are invested in fossil-free products that
exclude companies in coal, oil and gas. In 2020 assets under
management in fossil free products increased by more than
NOK 130 billion. Our efforts to reduce CO2emissions among
companies in our portfolio are driven by customer expectations,
as well as our responsibility to manage financial risk on behalf of
our customers and investors.
Our exposure to companies actively working to achieve the
SDGs increased significantly in 2020. These businesses are
called “solution companies” in Storebrand. Our investments in
solution companies accounted for 13 per cent of our total equity
investments in 2020, up from 8 per cent in 2019.
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 Net-
Zero 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.
In 2020, we launched a new comprehensive climate policy for
Storebrand’s investments. The work included a comprehensive
analysis to uncover deforestation risks, and direct dialogue on
deforestation with Brazilian and Indonesian authorities. We also
decided not to invest in companies that engage in deliberate and
systematic lobbying to counter the goals of the Paris Agreement.
Over time, we have had dialogue with the International Energy
Agency (IEA), along with over 60 other international companies,
organisations and academic researchers. We have urged the IEA to
provide governments, investors and companies with better tools
to align policies, investments and business strategies with the Paris
Agreement’s goal of reducing global warming. In the “2020 World
Energy Outlook,” the IEA included a renewable energy scenario for
the first time, with net zero emissions by 2050. This is a positive
development that shows that international cooperation works. We
will continue to put pressure on the IEA to include a comprehensive
1.5-degree scenario in the World Energy Outlook report in 2021.
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.
In 2020, we also assisted The Science Based Targets Initiative (SBTi) in
the development of a methodology to adapt lending and investment
portfolios to the ambitions of the Paris Agreement, by providing input
on their Temperature Alignment Tool. In addition, we road tested the
SBTi methodology to set goals for property investments, contributing
to a report where we shared our target and experiences using the
framework.
As these examples indicate, we expanded our sustainability work
through cooperation with different types of stakeholders, as well as
strengthening direct dialogue with the companies in which we are
invested throughout the year.
35) http://www.mynewsdesk.com/no/storebrand-asa/pressreleases/storebrand-makes-unprecedented-commitment-to-net-zero-emissions-291916
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Our work on sustainable investments
We aim to be a driving force for lasting change in the way
companies are managed, while ensuring good returns for our
owners and customers. We put capital into action to fund socially
purposeful, sustainable solutions and reduce exposure to activities
that adversely affect society and the environment. Our work on
sustainable investments consists mainly of three instruments;
solutions, active ownership and exclusions
These three instruments enable us to be an active, driving force
for sustainable investments that contributes to positive change and
development, and to reduce financial risk.
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.
In order to integrate assessments of companies’ ESG risks and
opportunities into the investment process, proper tools are
essential. Since 2012, Storebrand has developed and integrated
a sustainability score providing a foundation for investment
decisions, by ranking the companies on operations, products, and
services. In this way, we can effectively identify companies that
have the potential to deliver good returns, while helping to solve
sustainability challenges. We calculate the sustainability scores of
over 4 500 companies and base it on a 0-100 scale. We increase
investments in companies that achieve high scores, an reduce
investments in companies with low scores. Our target is that 15
per cent of our investments will be invested in solution by 2025, up
from 9.6 per cent in 2020.
We also invest in green bonds. These secure access to capital for
new and existing projects with environmental benefits. By year-
end in 2020, we had invested NOK 22.2 billion in green bonds,
accounting for 5 per cent of our total bond investments, up from 2
per cent in 2019. Green bonds are part of what we call solutions,
and are included in the total target of 15 per cent described above
The table below shows how our strategy for increasing investments
in solutions contributes positively to the UN Sustainable
Development Goals.
59
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.
Certified green property
investments
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix How we contribute to the UN Sustainable Development Goals
We invest in companies that deliver climate
solutions and help achieve
the Paris
Agreement.
We invest in solutions for safe drinking
water at an affordable price, improved
sanitation, water
quality,
efficient
water consumption, water
resources
management and recovery of water-
related ecosystems.
We invest in companies that deliver solutions
in sustainable management and efficient
use of natural resources. Companies that
contribute to circular economy and waste
reduction in the life cycle of products.
We invest in companies that deliver sustainable
urban
development
and
sustainable
transportation systems and reduce cities’
impact on the environment. More specifically,
companies that improve air quality and waste
management, promote
inclusion, promote
resource efficiency, mitigates and adapts to
climate change and increases resilience to
natural disasters.
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.
60
We invest in companies that support
productive employment and decent work
for all women and men. We increase
exposure to companies that work against
discrimination, which provide equal
pay for equal work, and provide equal
opportunities for senior positions at all
levels of decision-making.
We invest in companies that contribute
to inclusive, fair and good education for
all. We increase exposure to companies
that offer products and services that
contribute
to
increased access and
accessibility to education, companies that
help young people and adults increase
their ICT knowledge and contribute to
knowledge sharing about sustainability.
We invest in companies that contribute
to good health and quality of life. We are
increasing exposure to companies that
contribute to more people accessing
essential health services, medicines and
vaccines, health insurance, and companies
that counteract deaths as a result of
unsatisfactory water and sanitation.
Certified green property
investments
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix 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 ESG-
related 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.
In our active ownership, we prioritised four topics in 2020:
Decarbonization of companies
Our climate change policy aims to reduce investment exposure to
climate risk. We are part of several global collaborations where we
have a leading role in engaging with companies that are top carbon
emitters. With the decision to phase out investments in coal by 2026,
we are engaging with investee entities on reducing their exposure
to coal production, distribution and consumption. We will also
co-file shareholder proposals on two-degree scenario planning and
methane emission reduction targets.
Conflict areas
During 2020, Storebrand has carried out a screening to identify
companies with operations in occupied Palestinian territories and
occupied Western Sahara. These companies may contribute and
profit from the occupation by supplying security and surveillance
services and equipment. They may also profit from the maintenance,
development and expansion of settlements by providing construction
materials and services or directly financing the construction of
settlements or by being involved in the exploitation of natural
resources without the consent of the occupied people. According
to reports from the UN and several Human Right organisations,
the occupying powers in these territories continue expanding their
occupation which in turn results in continuing violations of human
rights. In addition, attention to these issues by companies and
investors continues to be low. Therefore, we decided to make conflict
areas one of our top engagement priorities. During the year we
faced several dilemmas that highlighted the importance of thinking
holistically about sustainability. Among other things, we chose to
exclude companies with business activity in occupied territories,
despite their business contributing to green restructuring.
Money laundering
Trust in the financial system is at the very core of our modern society.
If banks and other financial institutions are used as tools to legitimate
criminal activity through money laundering this trust will quickly
erode. In recent years major banks all over the world, including major
Scandinavian banks, have been implicated in money laundering
scandals. We expect all financial institutions to follow international
rules and the recommendations from the Financial Action Task
Force on Anti-Money Laundering (AML). We will cooperate with other
investors, to improve the AML systems in banks we are invested.
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.
In collaboration with the Rainforest Foundation and KLP, we
produced a report that maps the types of data sources, tools
and methods investors can use to work systematically and fact-
based with deforestation. Based on the findings of the report,
Storebrand conducted a comprehensive risk analysis and
identified companies and sectors with high deforestation risk.
Further work in this area will be one of our priorities in 2021.
Furthermore, Storebrand also initiated an investor coalition on
deforestation, the Investors Policy Dialogue on Deforestation
(IPDD). The coalition consists of 43 investors who manage
approximately USD 6,000 billion and will work systematically
towards governments in countries where deforestation is a
problem. Storebrand and BlueBay Asset Management share the
leadership responsibility for this work. Initially, the coalition focused
on Brazil, where we led the dialogue with Brazilian authorities.
The work gained great international recognition, and received
massive media coverage in Brazil and internationally, giving us a
solid starting point for our work to combat deforestation.
Loss of biodiversity is a priority for Storebrand. The value of
natural goods is estimated to be over NOK 100,000 billion globally,
and loss of nature can have major financial consequences for
companies. For us, it is important to establish nature-related risk
as a concept, in the same way as climate risk is. Internationally,
we have been invited to work with governments, companies and
other financial institutions to establish the Task Force on Nature-
related Financial Disclosures with accompanying standards for
better company reporting for biodiversity.
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.
6161
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix At the end of 2020, we had excluded 21536) companies for violating
the Storebrand standard for sustainability. Of these exclusions,
139 were due to severe climate and environmental damage, which
include conduct based exclusions such as; companies that derive
more than 5 per cent of their revenues from coal and oil sands,
companies that work against the goals and targets enshrined in the
Paris Agreement and companies that are involved in severe and/
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.
Active ownership to realise Sustainable Development Goals
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).
We strive to ensure that the companies
we are invested in ensure good health
and quality of life for their employees. This
year we also demanded that companies
established
proper
practices
and
measures to protect their employees from
Covid-19.
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.
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 engage with companies
involved
in
serious and/or systematic unsustainable
production of palm oil, soy, cattle and timber.
In 2020, we had dialogue with other important
stakeholders, including the authorities in
Brazil, on measures to reduce biodiversity
loss and to prevent deforestation.
We engage with companies in the world
that emit the most greenhouse gases, to
reduce emissions,
strengthen
climate-
related financial reporting and
improve
climate management. In 2020, we worked to
ensure that the companies we are invested
in will set climate targets in line with the Paris
Agreement and report on climate risks in
accordance with the TCFD recommendations.
We engage with companies to reduce water
consumption and greenhouse gas emissions
in intensive livestock production. We raise
environmental standards
in key sectors,
such as palm oil, soy, cattle and timber. In
2020, we analyzed companies with increased
deforestation risk, that employ irresponsible
production methods.
36) A company can be excluded on several criteria, therefore the total is less than the sum of the individual exclusions
37) https://www.storebrand.no/asset-management/barekraftige-investeringer/aktivt-eierskap/konfliktomrader
38) https://www.storebrand.no/asset-management/barekraftige-investeringer/aktivt-eierskap/storebrand-committed-to-act-in-support-of-the-investor-statement-on-coronavirus-response
62
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Exclusion criteria based on Sustainable Development Goals
Storebrand standard (applies to all funds)
Additional criteria (applies to selected funds)
Companies
involved
in systematic corruption and
Companies where more than 5 per cent of their
financial crime.
revenue comes from the production or distribution
of weapons (small arms and military weapons).
Companies that cause or contribute to serious and
systematic violations of international law and human
rights in areas of war.
Government bonds
issued by countries that are
systematically corrupt, which systematically suppress
basic social and political rights, or against which the UN
Security Council has adopted sanctions.
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 involved in serious environmental damage.
Companies with more than 5 per cent of their
Companies that receive more than 5 per cent of their
revenue come from the production or distribution of
revenue from coal or oil sands-based operations.
fossil fuels, or that have more than 100 million tons
of CO2 in fossil reserves.
Companies that contribute to severe and/or systematic
deforestation through unsatisfactory production of
palm oil, soy, cattle or timber.
Companies that deliberately and systematically work
and lobby to counter the objectives enshrined in the
Paris Agreement.
Companies with
severe
and/or
systematic
unsustainable palm oil production
Companies that cause or contribute to serious and
Companies where more than 5 per cent of their
systematic violations of workers’ rights.
revenue comes from the production or distribution
of gambling or pornography.
Companies with more than 5 per cent of their revenue
Companies where more than 5 per cent of their
come from the production or distribution of tobacco
revenue comes from the production or distribution
or drugs.
of alcohol.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix
Case: New ecosystem-based climate strategy for investments
In 2020, Storebrand launched a new climate strategy as an addition to the Group’s
sustainable investment guidelines. The strategy aims to ensure that we are a driving
force for a just transition to a low-carbon society, while helping to reduce climate risk
in our investments.
3. Avoid investments that contribute greatly to
climate change
Storebrand will no longer invest in companies
such as:
•
•
•
receive more than 5 per cent of its revenues from
coal or oil sands-based activities
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.
4. Use ownership position to stimulate ambitious
climate practices at portfolio companies
We will seek to build positive dialogue with companies,
aiming to support their transition to low carbon and
climate-resilient activities. This will be done both
through individual dialogue, but also through investor
initiatives such as the PRI and Climate Action 100+.
The strategy is divided into four main areas:
1 Make investment decisions in line with scientific
consensus
Using climate scenarios based on the climate models of
the Intergovernmental Panel on Climate Change (IPCC)
and limiting global warming to 1.5°C with no or with
limited overshoot.
2. Reorient capital flows towards low-carbon, climate-
resilient and transition companies
Using the EU taxonomy for sustainable activities and
establishing methods for measuring, monitoring and
reporting on climate-related risks and identify investment
opportunities.
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.
Ranking and research: Use data to assess and
manage climate-related risks and opportunities.
Carbon footprint: Measure the carbon footprint
of our portfolios and compare these with relevant
indexes to map reduction targets. Use best available
reporting practices.
Adaptation metrics: Assess the preparedness of
investee companies and entities to the physical
impact risks associated with climate change. In
addition, we will consider adaptation plans for
companies that are particularly exposed to climate
change.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix
Key performance indicators
For detailed KPI definitions, see page 225.
Key performance indicators
Result 2017
Result 2018
Result 2019
Result 2020
Goal 2021
Goal 2025
Return on equity
Solvency margin
Dividend ratio
Share of total assets screened for
11.3 %
172 %
40 %
13.7 %
173 %
68 %
8.0 %
176 %
0%
8.6%
178%
65%
>10 %
>150 %
>50 %
>10 %
>150 %
>50 %
sustainability
100 %
100 %
100 %
100%
100 %
100 %
NOK billion invested in fossil-free
products 39)
Carbon footprint from equity invest-
ments: tonnes of CO2e per NOK 1
60
68
277
379
N/A
N/A
million in sales income (against index) 40)
28 (18)
22 (32)
18 (24)
12 (18)
N/A
N/A
Carbon footprint from bond invest-
ments: 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)
Investments in solutions (solutions
companies, green bonds and property
with environmental certification): NOK
New
37.7 / 19%
34.6 /13%
32.2 /8%
N/A
N/A
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%
Investments in solution companies,
nok / share share investments
New
New
24.3 / 9.3 %
50.3 / 13.1%
-
-
-
-
Certified green property, nok/ share of
total real estate investments
New
13 / 30 %
17 / 41 %
20.1 / 43.0%
52 %
74 %
Companies that have been
contacted to discuss ESG through
active ownership: number/share of
investment universe
New
314 / 10.8 %
408 / 9.7%
572 / 12%
CO2emissions real estate investments:
total / kg CO2e per m2
10,551 /
10.25
10,818 /
9.96
10,228 /
9.12
8,456 / 7.9
N/A
8.2
N/A
6.5
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.
The ratio of funds to index is similar with the current and previous method, but the absolute values on the indicators will thus differ from previous years’ reported figures.
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.
The ratio of funds to index is similar with the current and previous method, but the absolute values on the indicators will thus differ from previous years’ reported figures.
42) The figure applies to equity investments. For more information, see the chapter on climate risks and opportunities, especially page 70. See also description in the list of definitions from page 225.
43) We have decided to set an overall target for 2020 and 2025, and not a target for each asset class.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix
Risk
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.
The Board of Storebrand ASA and the directors of the subsidiaries
adopt a risk appetite and risk strategy at least once per year. Risk-
taking shall contribute to the achievement of our strategic and
commercial goals, including customers receiving a competitive
return on their pension funds, and that Storebrand receives
adequate payment for taking on risk. Risk appetite is defined as
the overall risk level and what types of risk are deemed acceptable.
The guidelines from the risk appetite are incorporated in our risk
strategy, which sets the targets and frameworks. Based on these,
more detailed strategies are compiled for different risk categories.
Storebrand publishes an annual Solvency and Financial Condition
Report (SFCR) which helps customers and other stakeholders
understand the risks in the business and how these are managed.
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.
Covid-19 had limited impact on Storebrand’s operations, but it
caused major fluctuations in the financial markets. The first phase
was handled as an emergency situation. Home office and digital
meeting places were adopted to prevent the risk for contagion.
Work processes were successfully restructured without any
significant negative events. Our customer service and deliveries
were affected to a small extent.
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.
The risk picture differs between business units. The main risks are
described per business unit below.
Insurance
Insurance consists of risk products and property and casualty
insurance. The price can normally be adjusted on an annual basis
if the risk changes.
The greatest risk is disability risk. More people than expected may
become disabled and/or fewer disabled people will be able to
work again. Some policies provide a pay-out in the event of death,
but Storebrand’s risk from this is limited.
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 non-
guaranteed 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 asset management business offers active and passive
management, as well as management of fund-in-fund structures.
including regulatory compliance, are the
Operational risks,
greatest risks.
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.
66
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Guaranteed pension
Guaranteed Pension encompasses savings and pension products
with guaranteed interest rates. The greatest risks are financial
market risk and longevity 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 guaranteed insurance liabilities are sensitive to changes
in interest rates, where lower rates will increase the value of the
liabilities and make it harder to achieve the guaranteed rate. We aim
to control the risk through the investments, but there is a residual
risk from lower interest rates.
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.
Other
The Other unit encompasses the holding company Storebrand
ASA, as well as the company portfolios and smaller subsidiaries of
Storebrand Life Insurance and SPP. The assets in Storebrand ASA
and the company portfolios are invested at low risk, primarily in
investment grade short-term interest-bearing securities.
Tax
Changes have been made to the Norwegian tax legislation for the
insurance industry in recent years. Storebrand and the Norwegian
Tax Administration have interpreted some of the legislation changes
and the associated transitional rules differently. Consequently,
Storebrand has three significant uncertain tax positions with regards
to recognised tax expenses. These are described in more detail in
note 8. Should Storebrand’s interpretation be accepted in all three
cases, an estimated positive tax result of up to NOK 2.8 billion
may be recognised. Should all the Norwegian Tax Administration’s
interpretations be the final verdict, a tax expense of NOK 1.8 billion
could be recognised. The Norwegian Tax Administration is expected
to come with their decision on whether to retroactively change
Storebrand’s tax bill in early 2021. However, the timeline for settling
the process with the Norwegian Tax Administration might take
several years. If necessary, Storebrand will seek clarification from
the court of law on the matter.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Climate risks and opportunities
Why
Climate change and the transition to a low-carbon society can have a
significant impact on our business. This may be further exacerbated
by changes in the Norwegian economy, which is vulnerable to falling
oil prices and lower activity in the oil and gas industry. In developing
our climate strategy, we looked at how Storebrand’ s activities affect
climate change, how climate change and climate policy can affect
our business, and how we can adapt to avoid or mitigate potential
negative impacts. In addition, we identified opportunities as a result
of a changing climate and the transition to a low-carbon economy,
what these entail for us and how we can capitalise on them in the
best possible way. This is described in the chapter A driving force for
sustainable investments on page 57.
The effects on investments and liabilities may be sudden in the form
of market unrest, or they may unfold gradually through lower average
return and persistently low interest rates. A disorderly transition also
poses a risk, for instance if policy initiatives are too strong relative to
technology development and investment opportunities. Vulnerability
from a lower oil price and activity in the oil and gas-sector is a
particular risk for Norway. A potential trigger is if the policy is abruptly
strengthened to achieve Norway’s goals based on the Paris agreement.
A potential effect is a country-specific fall in interest rate. As part of
our efforts to reduce risk, in 2020 we mapped Storebrand’s exposure
to the fossil sector, analyzing revenues from pension premiums, and
disability coverage related to the sector and underlying industries.
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.
Our approach
Storebrand assesses climate risk through the same framework as
other risks. The overall risk, including climate risk, is summarised
in the Board’s risk review. Risk assessments are broad and include
reputational risks associated with Storebrand’s sustainability
position. In the Group’s Own Risk and Solvency report (ORSA), the
main objective is to assess climate risks for investments, insurance
obligations and solvency margins in different scenarios.
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.
Storebrand has defined three scenarios based on the framework
developed by Network for Greening the Financial System (NGFS). The
network is established by central banks and supervisory authorities.
The aim is to develop a framework for assessing and managing climate
risk and encouraging the financial sector to support the transition
to a low-carbon economy. The scenarios will be further developed,
including quantitative stress tests, as the basis for the supervision
process and analyses of financial stability.
Too little, too late
Scenario analysis
High
Disorderly
s
k
s
i
r
n
o
i
t
i
s
n
a
r
t
2
Disorderly
1
Orderly
Orderly
Low
Physicalrisk
3
Hot house
world
Hot house world
High
The scenarios are based on two dimensions that affect
the risk.
• How serious will the impact of global warming be?
•
(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.
44) Further details on climate risks and opportunities can be found in Storebrand’s Sustainability Library https://www.storebrand.no/en/sustainability/sustainability-library
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix
Scenario analysis
Storebrand has used the NGFS framework and associated scenarios
to assess climate risk. The scenarios used can be simplified as follows:
persistently low interest rates are also relevant to climate risk, where
climate change and climate policy could be affected by potentially
contributing underlying causes.
1) Controlled:
Climate policy is restructured swiftly and with force with the aim
of reaching zero emissions by 2050 and limiting global warming to
1.5 degrees. The restructuring is facilitated by the fact that carbon
capture becomes technically and economically viable to some extent.
2) Delayed:
Varying degrees of climate crisis understanding, complex decision-
making and limited technology developments delay a coordinated
restructuring of climate policy in relation to the goals of the Paris
Agreement. From about 2025, clearer signs of negative climate
change are increasing acceptance of costs of severe austerity. Overall,
the restructuring will be large enough for global warming to remain
below 2 degrees.
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.
The economic implications of the potentially catastrophic climatic
changes of scenario 3 cannot be quantified in a meaningful way.
Therefore, we have based our assessment on the consequences of
the scenarios controlled (1.5 °C) and delayed (> 2 °C). Based on these
two scenarios, we have identified potential risks and assessed them
in short (1-3 years) and long term (3-10 years). 45)
Overall findings
Physical climate risk
Physical climate change lead to lower returns, both for equities,
bonds and property investments. The risk is mainly long-term and
most prevalent if climate change is dramatic, expressed in scenario
3. Insurance obligations can also be negatively affected. Storebrand
exposure to climate change through direct insurance is very low.
Yet, limited economic growth can cause interest rates to remain
lower than they would otherwise. This has a negative impact on our
guaranteed obligations. The combination of lower returns on assets,
and higher insurance liabilities could negatively affect our solvency
margin. The effect can hit abruptly in the form of market turmoil, or
over time in the form of lower average returns and persistently low
interest rates.
In practice, climate effects on returns and interest rates are very
difficult to isolate from other effects. The risk is therefore considered
to be covered by the capital requirements for market risk. The
scenarios for negative development in the financial market and
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.
Asset management
Our asset management’s largest climate-related financial risks and
opportunities are believed to lie in the transition to a low-emission
society. Climate policy and regulations, more rigorous emission
requirements, a changed cost structure and market preferences may
affect our investments. Our most important initiatives to mitigate
these risks and capitalise on potential opportunities are listed below
and, in the chapter driving force for sustainable investments.
Through Storebrand’ s climate strategy for investments, and our
commitments through Net Zero Asset Owner Alliance, our target is
to ensure that our investment portfolio shall be climate neutral by
2050. Part of the commitment is for Storebrand to set intermediate
targets for emission reductions and report on target achievement.
45) Since climate risk is integrated into our structured framework for risk assessment that only operates with these two time horizons, we have not included risk that could be felt in the even longer term, ie.
in ten years or more
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix
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)
• Climate reduction objectives for high emission sectors:
Storebrand will set targets for emissions reductions for high-
emission sectors during the first half of 2021 48). See our equity
exposure to high emission sectors below.
• Be an active owner and driving force: Storebrand Asset
Management (SAM) leads Storebrand’s work with active
ownership. In line with SAM’s strategy for active ownership,
particular focus will be placed on our active ownership and
engagements with the 20 companies where we own the
largest emissions.49) This will mainly be done in cooperation
with other investors in initiatives such as Climate Action 100+.
• 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.
Sector-specified exposure to high emission 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.
Additional measurement parameters and measurements can be found
in the chapter a driving force for sustainable investments.
Sector 53)
Aluminum
Aviation
Cement
Chemicals
Energy
Heavy duty automobiles
Light duty automobiles
Shipping
Steel
Utilities
Total
2018
(Bn NOK )
2019
(Bn NOK )
2020
Change 2018-2020
(Bn NOK )
(Bn NOK )
1,2
3,1
0,3
6,8
15,8
0,6
3,7
0,9
0,8
4,6
37,7
1,2
3,6
0,4
8,0
12,2
0,9
3,8
0,6
1,1
2,9
34,6
1,5
3,3
0,6
9,8
7,0
1,1
4,3
0,7
1,4
2,5
32,2
0,2
0,1
0,3
3,0
-8,8
0,5
0,6
-0,2
0,7
-2,1
-5,5
46) Calculated as Weighted Average Carbon Intensity.See calculation methodology in Definitions from page 225.
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
(CO2 per m2).
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.
52) See case on page 64
53) The GICS codes included in the various sectors are described in Definitions from page 225
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix 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.
• Sustainability rating of all real estate: Our direct real estate
investments are rated by GRESB in four different portfolios,
and the portfolios are among the best in the Nordic region. The
score increased almost 4 per cent in 2020 from 82 in 2019, to an
average of 85 out of 100. With that, three out of four portfolios are
ranked in the top 20 per cent globally, and awarded the maximum
5 stars.
• Commitment to energy efficiency and greenhouse gas emissions:
Continuous improvements in energy efficiency are achieved
through several measures to optimise operations. The total
carbon emissions in direct real estate investments continued
to decrease, ending at 8 456 tons of CO2equivalents in 2020, or
7.9kg CO2e/m2. The goal for 2025 is to reduce this to 6.5kg CO2e/m2.
Additional measurement parameters and targets relevant to
climate-related risks related to real estate investments can be
found on pages 59 and 65.
Insurance
The direct impact of climate change on Storebrand’s insurance
obligations is limited because our business is largely based on
reassurance where the terms of the agreement are adjusted
annually. As a responsible insurance company, we still have a
responsibility to assist our customers in securing themselves and
their assets against potential climate risks. The biggest climate-
related financial risk to our property and non-life insurance
business is increased insurance settlements related to climate-
related damage. In the long term, rising sea levels and changes in
weather patterns can also have an impact. Risks associated with
changing customer behaviour, technological developments and
new regulations will also affect the property and non-life insurance
market.
Our main measures to reduce climate risk are the following:
•
•
•
•
•
Risk assessment and pricing: Climate factors are included
in risk assessment and pricing in the underwriting process.
Exposure mapping and reinsurance: We reinsure assets in
areas with high exposure to physical risk associated with
climate change.
Diversified risk through national plan: Participation in
Norwegian natural perils pool is statutory and provides joint
reinsurance protection linked to property insurance for real
estate and housing.
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)
Rewarding damage prevention: We actively communicate
with our customers, encouraging damage prevention
measures, such as securing property during periods prone to
flooding
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.
55) https://www.unepfi.org/psi/wp-content/uploads/2021/01/PSI-TCFD-final-report.pdf
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix
Working environment and HSE
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.
There were no (zero) injuries to a staff member in 2020. No damage
to property was reported, and no accidents were otherwise reported
in the Storebrand Group in 2020.
resources
Storebrand’s work on gender equality, human
management, working environment and ethical regulations is
described in more detail in the chapters People and Keeping our
house in order. See our compilation of sustainability indicators on
page 221.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix Progress on our most material sustainability KPIs
Key performance indicators
Carbon footprint from equity investments:
tonnes of Co2e per NOK 1 million in sales income (against index)
Status
2019
Status
2020
Target
2025
18 (24)
12(18)
N/A56)
Carbon footprint from bond investments:
tonnes of Co2e per NOK 1 million in sales income (against index)
7 (12)
9 (16)
N/A56)
s
t
n
e
m
t
s
e
v
n
I
l
e
p
o
e
P
Exposure to high emission sectors:
NOK billion/share of equity investments
34,6 /13 %
32,2 /8 %
N/A56)
Investments in solutions: NOK billion/ share of total AUM
53,7 / 6,5 %
92,6 / 9,6 %
15 % av AUM
Comapny dialogues on ESG: number/share
408/9,7 %
572/12%
N/A
Carbon intensity property investments: co2/m2
9,12 tonn
7,9 tonn
6,5 tonn
Property investments with green certificates: share of property investments
Gender balance managment all levels: share women
Engagement score all employees:
41%
39 %
43 %
39 %
74 %
50 %
Storebrand score/ industry average in peakon, scale from 1-10
8,0 (7,8)
8,3 (7,8)
> 8,0
Lysaker, 9 February 2021
Board of Directors of Storebrand ASA
Didrik Munch (sign.)
Chairman of the Board
Karin Bing Orgland (sign.)
Laila S. Dahlen (sign.)
Marianne Bergmann Røren (sign.)
Martin Skancke (sign.)
Karl Sandlund (sign.)
Fredrik Åtting (sign.)
Magnus Gard (sign.)
Hans-Petter Salvesen (sign.) Bodil Catherine (sign.) Valvik
Odd Arild Grefstad (sign.)
Group Chief Executive Officer
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.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s reportStrategy 2021-23 43Strategic highlights 44Group Results 47Official Financial Statements of Storebrand ASA 52Outlook53A driving force for sustainable investments 57Risk66Climate risks and opportunities 68Working environment and HSE 72Progress on our most material sustainability KPIs 736.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.Appendix
6
Shareholder matters
10 Shareholder matters
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix Shareholder matters
Share Captial, rights issues and number of shares
Shares in Storebrand are listed on the Oslo Stock Exchange (Oslo
Børs) under the ticker code STB. Storebrand ASA’s share capital
at the end of 2020 was 2,339.1 million kroner. The Company
has 467,813,982 shares with a nominal value of NOK 5. As of 31
December 2020, the Company owned 416,255 treasury shares,
which corresponds to 0.1 per cent of the total shares. The
Company has not issued any options that can dilute the existing
share capital.
Shareholders
Storebrand ASA is among the largest companies listed
on the Oslo Stock Exchange measured by the number of
shareholders. The Company has shareholders from almost all
the municipalities in Norway and from 48 countries. In terms of
market capitalisation, Storebrand was the 16th largest company
on the Oslo Stock Exchange at the end of 2020.
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.
Foreign ownership
As at 31 December 2020, foreign ownership totalled 56.6 per
cent, compared to 56.2 per cent at the end of the 2019.
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.
Share price performance
Shares in Storebrand yielded a total return of -7.0 per cent
in 2020. In the same period, the Oslo Stock Exchange’s OSEBX
Index ended at 4.6 per cent, whereas the European Insurance
Index Beinsur yielded a total return of -7.9 per cent for the
corresponding period, measured in NOK.
Dividend policy
Storebrand’s dividend policy sates that the aim is to pay an
ordinary dividend of more than 50 per cent of the group result
after tax and at least the same nominal amount as the previous
year. Ordinary dividends will be paid at a solvency margin of more
than 150 per cent. If the solvency margin is above 180 per cent,
the Board intends to propose special dividends or share buy
backs.
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.
Storebrand share
Highest closing price (NOK)
Highest closing price (NOK)
Closing price on 31/12 (NOK)
2020
74.24
34.73
64.20
2019
2018
73.98
50.86
69.02
75.20
59.48
61.64
2017
70.45
46.97
66.9
2016
47.1
28.45
45.92
2015
35.98
23.21
34.95
Market cap 31/12 (NOK million)
30,034
32,289
28,836
31,296
20,660
15,724
Annual turnover (1000s of shares)
585,004
335,202
445,614
427,632
589,322
707,870
Average daily turnover (1000s of shares)
Annual turnover (NOK million
Rate of turnover (%)
2,321
30,552
125.1
1,346
3,094
21,348
30,477
71.7
95.3
2,450
25,359
94.9
2,780
21,249
131
2,820
20,907
157.3
Number of ordinary shares 31/12 (1000s of shares)
467,814
467,814
467,814
467,814
449,910
449,910
Earnings per ordinary share (NOK)
Dividend per ordinary share (NOK)
Total return (%)
5.02
3.25
-7.0
4.43
0
16.8
75
7.89
3.0
-4.7
5.28
2.1
49.1
4.73
1.55
31.4
2.63
0
19.7
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix Insider trading
As one of the country’s leading financial institutions, Storebrand
is dependent on maintaining an orderly relationship with
financial markets and supervisory authorities. The Company
therefore places particular emphasis on ensuring that its
routines and guidelines satisfy the formal requirements imposed
by the authorities on securities trading. In this context, the
Company has prepared internal guidelines for insider trading
and own account trading based on the current legislation and
regulations. The Company has its own compliance system to
ensure that the guidelines are observed.
Investor relations
Storebrand has a focus on comprehensive and effective
communication with financial markets. Maintaining a
continuous dialogue with shareholders, investors and analysts
both in Norway and abroad is a high priority. The Group has
a special Investor Relations unit. This unit is responsible for
establishing and coordinating contact between the Company
and external parties such as the stock exchange, analysts,
shareholders and other investors. All quarterly reports, press
releases and presentations of interim reports are published
THE 20 LARGEST SHAREHOLDERS
Based on a screening of the shareholder list per. 31.12.2020
Fund Manager
Folketrygdfondet
Allianz Global Investors
T Rowe Price Global Investments
EQT Fund Management
KLP
Vanguard Group
Handelsbanken Asset Management
M&G Investment Management
DNB Asset Management
Storebrand Asset Management
BlackRock
Varma
Danske Bank Asset Management
Highclere International Investors
Solbakken AS
Nordea Asset Management
HSBC Trinkaus & Burkhardt
Deka Investment
Dimensional Fund Advisors
BMO Global Asset Management (UK)
on Storebrand’s website: www.storebrand.com/ir. In December
2020, Storebrand held a capital markets day outlining the
strategy for 2021-2023.
General meeting
Storebrand has one class of shares, each share carrying one vote.
The Company holds its Annual General Meeting each year by the
end of June. Shareholders who wish to attend the General Meeting
must notify the Company no later than 4:00 p.m. three business
days before the General Meeting. Shareholders who do not give
notice of attendance before the deadline expires will be able to
attend the General Meeting, but concede their right to vote.
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.
Current Rank
Shares
Ownership in %
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
51,635,337
33,865,368
28,371,592
18,500,000
14,237,832
13,510,084
12,901,293
10,922,166
10,261,001
10,245,078
9,741,980
9,403,234
9,398,795
7,348,235
6,766,008
6,737,269
6,373,970
5,950,437
5,257,200
4,717,507
11.04
7.24
6.06
3.95
3.04
2.89
2.76
2.33
2.19
2.19
2.08
2.01
2.01
1.57
1.45
1.44
1.36
1.27
1.12
1.01
76
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix 9
Annual Accounts
and Notes
Income statement
Storebrand Group
78
79 Statement of total comprehensive income
80 Statement of Financial Position
82 Statement of changes in equity
82 Statement of cash flow
85 Notes
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
77
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
STOREBRAND GROUP
Income statement
NOK million
Premium income
Net income from financial assets and properties for the company:
- equities and other units at fair value
- bonds and other fixed-income securities at fair value
- derivatives at fair value
- loans at fair value
- bonds at amortised cost
- loans at amortised cost
- profit from investments in associated companies/joint ventures
Net income from financial assets and properties for the customers:
- equities and other units at fair value
- bonds and other fixed-income securities at fair value
- derivatives at fair value
- loans at fair value
- bonds at amortised cost
- loans at amortised cost
- properties
- profit from investments in associated companies/joint ventures
Other income
Total income
Insurance claims
Change in insurance liabilities
Change in capital buffer
Operating expenses
Other expenses
Interest expenses
Total expenses before amortisation and write-downs
Group profit before amortisation and write-downs
Amortisation and write-downs of intangible assets
Group pre-tax profit
Tax expenses
Profit/loss for the year
Profit/loss for the period attributable to:
Share of profit for the period - shareholders
Share of profit for the period - hybrid capital investors
Share of profit for the period - non-controlling interests
Total
Earnings per ordinary share (NOK)
Average number of shares as basis for calculation (million)
There is no financial instruments that gives diluted effect on earnings per share
78
Note
14
15
15
15
15
15
15
29
15
15
15
15
15
15
16
29
17
18
38
19
20, 21, 22, 23
24
25
27
26
2020
44,188
22
785
-397
37
212
687
52
2019
32,366
40
600
-12
14
214
802
39
14,632
37,318
3,550
5,771
23
4,202
909
1,680
569
4,109
81,031
-29,531
-37,929
-4,327
-4,914
-826
-793
-78,320
2,711
-492
2,219
136
2,355
2,345
10
2,355
5.02
467.2
4,167
1,424
11
3,912
546
1,864
341
3,758
87,403
-26,756
-44,725
-5,892
-4,828
-1,238
-927
-84,366
3,037
-444
2,593
-511
2,082
2,067
12
3
2,082
4.43
466.8
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix STOREBRAND GROUP
Statement of total comprehensive income
NOK million
Profit/loss for the year
Note
2020
2,355
Change in actuarial assumptions
Fair value adjustment of properties for own use
Other comprehensive income allocated to customers
Tax on other comprehensive income elements not to be reclassified to profit/loss
Total other comprehensive income elements not to be reclassified to profit/loss
Translation differences foreign exchange
Gains/losses from cash flow hedging
Total other comprehensive income elements that may be reclassified to profit/loss
21
33
41
Total other comprehensive income elements
Total comprehensive income
Total comprehensive income attributable to:
Share of total comprehensive income - shareholders
Share of total comprehensive income - hybrid capital investors
Share of total comprehensive income - non-controlling interests
Total
-110
83
-83
15
-95
305
-33
273
178
2,532
2,515
10
8
2,532
2019
2,082
3
-22
22
12
15
-168
-36
-204
-190
1,892
1,879
12
1
1,892
79
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note
31.12.20
31.12.19
STOREBRAND GROUP
Statement of Financial Position
NOK million
Assets company portfolio
Deferred tax assets
Intangible assets and fair value adjustments on purchased insurance contracts
Pension assets
Tangible fixed assets
Investments in associated companies and joint ventures
Financial assets at amortised cost:
- Bonds
- Loans to financial institutions
- Loans to customers
Reinsurers' share of technical reserves
Investment properties at fair value
Biological assets
26
27
21
28
29
1,780
6,303
1,397
283
10, 30, 31
10,639
10, 30
103
10, 30, 32
31,058
8,12,33
56
50
67
Accounts receivable and other short-term receivables
30.34
7,018
Financial assets at fair value:
- Equities and fund units
- Bonds and other fixed-income securities
- Derivatives
- Loans to customers
Bank deposits
Minority portion of consolidated mutual funds
Total assets company portfolio
Assets customer portfolio
Investments in associated companies
Financial assets at amortised cost:
- Bonds
- Bonds held-to-maturity
- Loans to customers
Reinsurers' share of technical reserves
Investment properties at fair value
Properties for own use
Accounts receivable and other short-term receivables
Financial assets at fair value:
- Equities and fund units
- Bonds and other fixed-income securities
- Derivatives
- Loans to customers
Bank deposits
Total assets customer portfolio
Total assets
8, 12, 30, 35
384
8, 10,12, 30, 36
28,833
10,12, 30, 37
32
10, 30
1,389
722
2,775
59,845
152,701
29
6,167
10, 30, 31
10, 30, 31
10, 30, 32
92,846
13,026
23,769
24
8, 12, 33
32,067
12, 33
30, 34
1,609
404
8, 12, 30, 35
8, 10, 12, 30, 36
10, 12, 30, 37
32
230,446
148,162
8,587
7,665
10, 30
10,290
575,061
727,763
80
1,430
6,220
2
1,075
227
8,256
41
29,798
26
49
67
4,824
323
28,512
1,183
389
3,119
44,933
130,474
4,045
89,790
13,377
23,735
69
29,366
1,375
450
194,020
128,127
4,131
6,736
7,475
502,695
633,170
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix NOK million
Equity and liabilities
Paid-in capital
Retained earnings
Hybrid capital
Non-controlling interests
Total equity
Subordinated loans
Capital buffer
Insurance liabilities
Pension liabilities
Deferred tax
Financial liabilities:
- Loans and deposits from credit institutions
- Deposits from banking customers
- Securities issued
- Derivatives company portfolio
- Derivatives customer portfolio
- Other non-current liabilities
Other current liabilities
Minority portion of consolidated mutual funds
Total liabilities
Total equity and liabilities
Note
31.12.20
31.12.19
12,858
22,839
226
35,923
9,110
29,319
9,30
38
38,39
536,028
21
26
352
849
9,12,30
9,12,30
9,12,30
10,12,30,37
10,12,30,37
9,30,40
1,653
15,506
20,649
114
851
1,355
16,209
59,845
691,840
727,763
12,856
20,264
226
52
33,398
8,925
23,825
477,171
266
768
446
14,404
18,729
86
908
1,037
8,274
44,933
599,772
633,170
Lysaker, 9 February 2021
Board of Directors of Storebrand ASA
Didrik Munch (sign.)
Chairman of the Board
Karin Bing Orgland (sign.)
Laila S. Dahlen (sign.)
Marianne Bergmann Røren (sign.)
Martin Skancke (sign.)
Karl Sandlund (sign.)
Fredrik Åtting (sign.)
Magnus Gard (sign.)
Hans-Petter Salvesen (sign.)
Bodil Cahterine Valvik (sign.)
Odd Arild Grefstad (sign.)
Group Chief Executive Officer
81
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
STOREBRAND GROUP
Statement of changes in equity
NOK million
capital 1)
shares
premium
equity
differences
equity 2)
earnings
capital 3)
interests
equity
Share
Own
Share
paid in
translation
Other
retained
Hybrid
controlling
Total
Total
Currency
Total
Non-
Majority’s share of equity
Equity at 31 December 2018
2,339
-2
10,521
12,858
1,076
18,706
19,782
2,067
2,067
-166
-22
-188
176
12
57
3
-2
32,873
2,082
-190
-166
2,045
1,879
12
1
1,892
Equity at 31 December 2019
2,339
-5
10,521
12,856
910
19,355
20,264
-3
-3
-27
-27
3
3
-1,399
-1,399
27
27
50
-12
226
10
2,345
2,345
298
-128
170
298
2,217
2,515
10
Profit for the period
Total other comprehensive
income elements
Total comprehensive
income for the period
Equity transactions with
owners:
Own shares
Hybrid capital classified as
equity
Paid out interest hybrid capital
Dividend paid
Other
Profit for the period
Total other comprehensive
income elements
Total comprehensive
income for the period
Equity transactions with
owners:
Own shares
Hybrid capital classified as
equity
Paid out interest hybrid capital
Other
3
3
33
3
24
33
3
24
-10
-59
Equity at 31 December 2020
2,339
-2
10,521
12,858
1,208
21,631
22,839
226
35,923
1) 467,813,982 shares with a nominal value of NOK 5.
2) Includes undistributable funds in the risk equalisation fund amounting to NOK 438 million and security reserves amounting NOK 68 million.
3) Perpetual hybrid tier 1 capital classified as equity.
82
-7
52
8
8
-29
53
-12
-1,399
21
33,398
2,355
178
2,532
36
3
-10
-35
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
STOREBRAND GROUP
Statement of cash flow
NOK million
Cash flow from operating activities
Net receipts premium - insurance
Net payments compensation and insurance benefits
Net receipts/payments - transfers
Net receipts/payments - insurance liabilities
Receipts - interest, commission and fees from customers
Payments - interest, commission and fees to customers
Taxes paid
Payments relating to operations
Net receipts/payments - other operating activities
Net cash flow from operations before financial assets and banking customers
Net receipts/payments - loans to customers
Net receipts/payments - deposits bank customers
Net receipts/payments - mutual funds
Net receipts/payments - investment properties
Net change in bank deposits insurance customers
Net cash flow from financial assets and banking customers
Net cash flow from operating activities
Cash flow from investing activities
Payments - purchase of subsidiaries
Net receipts/payments - sale/purchase of fixed assets
Net receipts/payments - sale of insurance portfolios
Net cash flow from investing activities
Cash flow from financing activities
Receipts - new loans
Payments - repayments of loans
Payments - interest on loans
Receipts - subordinated loans
Payments - repayment of subordinated loans
Payments - interest on subordinated loans
Net receipts/payments - loans to financial institutions
Receipts - issuing of share capital / sale of shares to employees
Payments - repayment of share capital
Payments - dividends
Receipts - hybrid capital
Payments - repayment of hybrid capital
Payments - interest on hybrid capital
Net cash flow from financing activities
Net cash flow for the period
83
2020
2019
28,825
-21,606
7,285
184
953
-102
-24
-5,197
3,790
14,108
-1,801
1,102
-12,270
-511
-2,657
-16,137
-2,029
-220
-48
45
-224
9,012
-7,048
-371
499
-872
-388
1,205
26
-10
2,052
-201
26,343
-20,723
-118
-765
1,014
-115
-21
-4,837
5,742
6,522
-1,419
-15
-3,368
-368
-2,092
-7,262
-740
-308
-96
29
-375
3,001
-1,769
-429
1,052
-253
-365
443
33
-68
-1,399
125
-75
-12
284
-831
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix STOREBRAND GROUP
Statement of cash flow (continue)
NOK million
Cash and cash equivalents at the start of the period
Currency translation cash/cash equivalents in foreign currency
Cash and cash equivalents at the end of the period 1)
1) Consists of:
Loans to financial institutions
Bank deposits
Total
2020
3,160
-81
2,878
103
2,775
2,878
2019
3,951
41
3,160
41
3,119
3,160
The cash flow analysis shows the Group’s cash flows for operating, investing and financing activities pursuant to the direct method. The cash flows
show the overall change in means of payment over the year.
Operating activities
A substantial part of the activities in a financial group will be classified as operating. All receipts and payments from insurance activities are included
from the insurance companies, and these cash flows are invested in financial assets that are also defined as operating activities. One subtotal is
generated in the statement that shows the net cash flow from operations before financial assets and banking customers, and one subtotal that shows
the cash flows from financial assets and banking customers. This shows that the composition of net cash flows from operational activities for a financial
group includes cash flows from both operations and investments in financial assets. The life insurance companies’ balance sheets include substantial
items linked to the insurance customers that are included on the individual lines in the cash flow analysis. Since the cash flow analysis is intended to
show the change in cash flow for the company, the change in bank deposits for insurance customers is included on its own lines in operating activities
to neutralise the cash flows associated with the customer portfolio in life insurance.
Investing activities
Includes cash flows for holdings in group companies and tangible fixed assets.
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.
Cash/cash equivalents
Cash/cash equivalents are defined as claims on central banks and loans to and claims from financial institutions. The amount does not include claims
on financial institutions linked to the insurance customers portfolio, since these are liquid assets that are not available for use by the Group.
84
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix STOREBRAND GROUP
Notes
Business and risk
Note 1:
Note 2:
Note 3:
Note 4:
Note 5:
Note 6:
Note 7:
Note 8:
Note 9:
Note 10:
Note 11:
Note 12:
Note 13:
Corporate information and accounting policies
Important accounting estimates and judgement
Acquisitions
Segment reporting
Risk management and internal control
Operational risk
Insurance risk
Financial market risks
Liquidity risk
Credit risk
Risk concentration
Valuation of financial instruments and properties
Solidity and capital management
Income statement
Note 14:
Premium income
Note 15:
Note 16:
Note 17:
Note 18:
Note 19:
Note 20:
Note 21:
Note 22:
Note 23:
Note 24:
Note 25:
Note 26:
Net income analysed by class of financial instrument
Net income from properties
Other income
Insurance claims
Change in capital buffer
Operating expenses and number of employees
Pensions expenses and pension liabilities
Remuneration to senior employees and elected officers
of the company
Remuneration paid to auditors
Other expenses
Interest expenses
Tax
Statement of financial position
Intangible assets and fair value adjustments on
Note 27:
Note 28:
Note 29:
Note 30:
Note 31:
Note 32:
Note 33:
Note 34:
Note 35:
Note 36:
Note 37:
Note 38:
Note 39:
Note 40:
Other
Note 41:
Note 42:
Note 43:
Note 44:
Note 45:
purchased insurance contracts
Tangible fixed assets and lease contracts
Investments in other companies
Classification of financial assets and liabilities
Bonds at amortised cost
Loans to customers
Properties
Accounts receivable and other short-term receivables
Equities and fund units to fair value
Bonds and other fixed-income securities
Derivatives
Technical insurance reserves - life insurance
Technical insurance reserves - P&C insurance
Other current liabilities
Hedge accounting
Collateral
Contingent liabilities
Securities lending and buy-back agreements
Information about related parties
85
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix 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 state-
ments for 2020 were approved by the Board of Directors of Storebrand ASA on 9 February 2021.
The Storebrand Group offers a comprehensive range of insurance and asset management services, as well as securities, banking and
investment services, to private individuals, companies, municipalities, and the public sector. The Storebrand Group consists of the
business areas Savings, Insurance, Guaranteed Pensions and Other. The Group’s head office is located at Professor Kohts vei 9, in
Lysaker, Norway.
2. Basis for preparation of the financial statements
The accounting policies applied in the consolidated financial statements are described below. The policies are applied consistently to
similar transactions and to other events involving similar circumstances. There is no required use of uniform accounting policies for
insurance contracts and this exemption is applied for insurance contracts in the consolidated financial statements. This is discussed
in section 14.
Storebrand ASA’s consolidated financial statements are presented using EU-approved International Financial Reporting Standards
(IFRS) and related interpretations, as well as other Norwegian disclosure requirements laid down in legislation and regulations.
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 differ-
entiation 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.
Financial instruments - IFRS 9
IFRS 9 Financial Instruments replaces IAS 39, and was generally applicable from 1 January 2018. However, for insurance-dominated
groups and companies, IFRS 4 allows for the implementation of IFRS 9 to be deferred until implementation of IFRS 17. The Storebrand
Group qualifies for temporary deferral of IFRS 9 because over 90 per cent of the Group’s total liabilities as at 31 December 2015 were
linked to the insurance businesses. For the Storebrand Group, IFRS 9 will be implemented together with IFRS 17, which is expected to
be applicable from 1 January 2023.
The Storebrand Group has conducted a provisional analysis of the classification and measurement of financial instruments in accor-
dance 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 in-
come 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 measure-
ment of financial assets under IFRS9 in connection with the transition to IFRS17.
86
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix IFRS9 - FINANCIAL INSTRUMENTS TO AMORTISED COST AND FVOCI
NOK million
Financial assets
Bank deposits
Bonds and other fixed-income securities
Loans to financial institutions
Loans to customers
Loans to customers
Accounts receivable and other short-term
receivables
Total financial assets
Financial liabilities
Deposits from banking customers
Liabilities to financial institutions
Debt raised by issuance of securities
Subordinatd loan capital
Other current liabilities
Total financial liabilities
IAS 39
IFRS 9
after IAS 39
after IFRS 9
after IAS 39
after IFRS 9
classification
classification
1.1.2020
1.1.2020
31.12.2020
31.12.2020
Booked value
Fari value
Booked value
Fari value
AC
AC
AC
AC
AC
AC
AC
AC
AC
AC
AC
AC
AC
AC
10,594
10,594
13,065
13,034
111,424
116,161
116,511
125,604
41
41
103
103
FVOCI
53,245
53,246
54,534
54,533
AC
AC
AC
AC
AC
AC
AC
288
288
294
294
5,274
5,274
7,422
7,422
180,867
185,605
191,928
200,990
14,404
14,404
446
446
18,729
18,728
8,925
8,661
9,010
8,661
51,166
51,250
15,506
1,653
20,649
9,110
16,209
63,127
15,506
1,653
20,738
9,115
16,209
63,221
IFRS9 - FINANCIAL INSTRUMENTS AT FAIR VALUE
NOK million
Financial assets
IAS 39
IFRS 9
after IAS 39
after IFRS 9
after IAS 39
after IFRS 9
classification
classification
1.1.2020
1.1.2020
31.12.2020
31.12.2020
Booked value
Fari value
Booked value
Fari value
Shares and fund units
FVP&L (FVO)
Bonds and other fixed-income securities
FVP&L (FVO)
Loans to customers
FVP&L (FVO)
FVP&L
FVP&L
FVP&L
194,343
194,343
230,830
230,830
156,639
156,639
176,995
176,995
7,126
7,126
8,386
8,386
Derivatives
Total financial assets
Financial liabilities
Derivatives
Total financial liabilities
FVP&L/ Hedge
accounting
FVP&L/ Hedge
accounting
5,314
5,314
9,977
9,977
363,421
363,421
426,188
426,188
FVP&L/ Hedge
FVP&L/ Hedge
accounting
accounting
994
994
994
994
964
964
964
964
87
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix A large majority of the financial assets are measured at fair value (the fair value option is used), whilst other financial instruments that
are included in the categories Loans and receivables and Held to maturity are measured at amortised cost. Financial assets measured at
amortised cost are largely related to Norwegian pension liabilities with annual interest rate guarantee.
Investment properties are measured at fair value.
Intangible assets comprise excess value relating to insurance contracts and customer relations acquired in connection with a business
combination and acquired and self-developed IT solutions. This excess value is measured at acquisition cost less annual amortisation and
write-downs.
For the most part, the liabilities side of the Group’s balance sheet comprises financial instruments (liabilities) and provisions relating to
future pension and insurance payments (insurance liabilities). With the exception of derivatives, financial liabilities are measured at amor-
tised cost.
Insurance liabilities must be adequate and cover liabilities relating to issued insurance contracts. Various methods and principles are
used in the Group when assessing the reserves for different insurance contracts. A considerable part of the insurance liabilities relate to
insurance contracts with interest guarantees. The recognised liabilities related to Norwegian insurance contracts with guaranteed interest
rates are discounted by the basic interest rate (which corresponds to the guaranteed return/interest rate) for the respective insurance
contracts.
The recognised liabilities related to the Swedish insurance contracts with guaranteed interest rates in the subsidiary SPP are discounted
by an observable market interest rate and by an estimated market interest rate for terms to maturity when no observable interest rate is
available and corresponds essentially to the same interest rate that is used in the solvency calculations.
In the case of unit-linked insurance contracts, reserves for the savings element in the contracts will correspond to the value of related
asset portfolios.
Due to the fact that the customers’ assets in the life insurance business (guaranteed pension) have historically yielded a return that has
exceeded the increased value in guaranteed insurance liabilities, the excess amount has been set aside as customer buffers (liabilities),
including in the form of additional reserves, value adjustment reserve and conditional bonus.
Insurance liabilities include Incurred But Not Settled (IBNS) reserves, which consist of amounts reserved for claims either incurred but not
yet reported or reported but not yet settled (Incurred But Not Reported “IBNR” and Reported But Not Settled “RBNS”). IBNS reserves are
included in the premium reserve.
IBNS reserves are measured using actuarial models based on historical information about the portfolio.
4. Changes in accounting policies
New accounting standards that have a significant impact on the consolidated financial statements have not been implemented in 2020.
For changes in estimates, see Note 2 for further information.
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 disclo-
sure 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.
IFRS 17 is a comprehensive and complex standard, with fundamental differences to the present standard for measuring liabilities and
recognising earnings. Insurance contracts must be recognised at the risk-adjusted present value of future cash flows, with the addition of
unearned profit in a group of contracts (Contractual Service Margin = CSM). Loss-making contracts must be recognised immediately.
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.
88
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Storebrand is working on preparing for implementation of IFRS17, including assessing the effects implementation of IFRS17 will have for
Storebrand’s consolidated financial statements.
There are no other new or changed accounting standards that have not entered into force that are expected to have a significant effect on
Storebrand’s consolidated financial statements.
6. Consolidation
The consolidated financial statements include Storebrand ASA and companies controlled by Storebrand ASA. Minority interests are includ-
ed in the Group’s equity, unless there are options or other conditions that entail that minority interests are classified as liabilities.
Storebrand Livsforsikring AS, Storebrand Asset Management AS, Storebrand Bank ASA and Storebrand Forsikring AS are significant
subsidiaries owned directly by Storebrand ASA. Storebrand Livsforsikring AS also owns the Swedish holding company Storebrand Hold-
ing AB, which in turn owns SPP Pension & Försäkring AB (publ). On acquiring the Swedish operations in 2007, the authorities instructed
Storebrand to make an application to maintain a group structure by the end of 2009. Storebrand has filed an application to maintain the
existing group structure. A controlling interest in Skagen AS was acquired in 2017 and is owned by Storebrand Asset Management AS.
The Norwegian authorities have granted Storebrand an exemption from the requirement to organise equivalent businesses in the same
company. This exemption expires in 2022.
Investments in associated companies (normally investments of between 20 per cent and 50 per cent of the company’s equity) in which the
Group exercises significant influence, and investments in joint ventures are recognised in accordance with the equity method. Investments
in associated companies and joint ventures are initially recognised at acquisition cost.
Storebrand consolidates certain funds in the Group’s balance sheet when the requirement for control has been met. This encompasses
funds in which Storebrand has an ownership interest of approximately 40 per cent or more, which are managed by companies in the
Storebrand Group. In the Group’s accounts, such funds are consolidated fully in the balance sheet, and the non-controlling interests are
shown on a line for assets and on a corresponding line for liabilities. The non-controlling interests can demand redemption of their owner-
ship interests and, as a result of this, they are classified as liabilities in the consolidated financial statements of Storebrand.
Currencies and translation of foreign companies’ accounts
The Group’s presentation currency is Norwegian kroner. Foreign companies that are part of the Group and have different functional cur-
rencies are converted to Norwegian kroner. Translation differences are included in the total comprehensive income.
Elimination of internal transactions
Internal receivables and payables, internal gains and losses, interest, dividends and similar between companies in the Group are eliminat-
ed in the consolidated financial statements. Transactions between the customer portfolios and the company portfolio in the life insurance
business and between the customer portfolios in the life insurance business and other companies in the Group will not be eliminated in
the consolidated financial statements. The reason for this is that the result in the customer portfolio is assigned to the customers each
financial year and must not influence the result and equity of the company. Pursuant to the life insurance regulations, transactions with
customer portfolios are carried out at fair value.
7. Business combinations
The acquisition method is applied when accounting for acquisition of businesses. The consideration is measured at fair value. The direct
acquisition expenses are expensed when they arise, with the exception of expenses related to raising debt or equity (new issues).
When making investments in subsidiaries, including purchasing investment properties, a decision is made as to whether the purchase
constitutes acquisition of a business pursuant to IFRS 3. When such acquisitions are not regarded as an acquisition of a business, the
acquisition method pursuant to IFRS 3 is not applied. Among other things, this does not entail provisions for deferred tax such as for
business combinations.
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 deci-
sion-maker. Four segments are reported for:
• Savings
•
• Guaranteed Pension
• Other
Insurance
89
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix There are some differences between the result lines used in the income statement and the segment results. The Group’s income state-
ment includes gross income and costs linked to both the insurance customers and owners (shareholders). The segment results only
include result elements relating to owners (shareholders) which are the result elements that the Group has performance measures and
follow-up for.
Financial services provided between segments are priced at market terms. Services provided from joint functions and staff are charged to
the different segments based on supply agreements and distribution keys.
9. Income recognition
Premium income
Net premium income includes the year’s premiums written (including savings elements, administration premium, fees for issuing Nor-
wegian interest rate guarantees and profit element risk), premium reserves transferred and ceded reinsurance. Annual premiums are
generally accrued on a straight-line basis over the coverage period.
Income from properties and financial assets
Income from properties and financial assets are described in Sections 12 and 13.
Other income
Fees are recognised when the income can be measured reliably and is earned. Return-based revenues and performance fees are rec-
ognised when the uncertainty associated with the income is no longer present. Fixed fees are recognised as income in line with delivery of
the service.
10. Goodwill and intangible assets
Added value when acquiring a business that cannot be directly attributable to assets or liabilities on the date of the acquisition is classified
as goodwill on the balance sheet. Goodwill is measured at acquisition cost on the date of the acquisition and classified as an intangible
asset.
Goodwill is not amortised, instead it is tested for impairment. Goodwill is tested for impairment annually when assessing the recoverable
amount or if there are indications that impairment has occurred. Goodwill is allocated to the relevant cash generating units that are ex-
pected to benefit from the acquisition so that it can subsequently be tested for impairment. If the discounted cash flow for the cash-gen-
erating unit(s) that goodwill is allocated to is lower than the recognised value, goodwill will be written down. Reversal of an impairment
loss for goodwill is prohibited even if information later comes to light showing that there is no longer a need for the write-down or the
impairment loss has been reduced.
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.
11. Adequacy test for insurance liabilities and related excess values
A liability adequacy test must be conducted of the insurance liability pursuant to IFRS 4 each time the financial statements are presented.
The test conducted in Storebrand’s consolidated financial statements is based on the Group’s calculation of capital.
12. Investment properties
Investment properties are measured at fair value. Fair value is the amount for which an asset could be exchanged between well-informed,
willing parties in an arm’s length transaction. Income from investment properties consists of both changes in fair value and rental income.
Investment properties primarily consist of centrally located office buildings, shopping centres and logistics buildings. Investment proper-
ties 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.
90
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
13. Financial instruments
13-1. General policies and definitions
Recognition and derecognition
Financial assets and liabilities are included in the balance sheet from such time Storebrand becomes party to the instrument’s contractual
terms and conditions. General purchases and sales of financial instruments are recorded on the transaction date. When a financial asset
or a financial liability is initially recognised in the financial statements, it is valued at fair value.
Initial recognition includes transaction costs directly related to the date of acquisition or issue of the financial asset/liability if the financial
asset/liability is not measured at fair value through profit or loss.
Financial assets are derecognised when the contractual right to the cash flow from the financial asset expires, or when the company trans-
fers the financial asset to another party in a transaction by which all, or virtually all, the risk and reward associated with ownership of the
asset is transferred.
Financial liabilities are derecognised in the balance sheet when they cease to exist, i.e. once the contractual liability has been fulfilled,
cancelled or has expired.
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 car-
rying 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.
Losses expected as a result of future events, no matter how likely, are not recognised.
13-2. Classification and measurement of financial assets
Financial assets are classified into one of the following categories:
• Financial assets held for trading
• Financial assets at fair value through profit or loss in accordance with the fair value option (FVO)
• Financial assets held to maturity
• Financial assets, loans and receivables
Held for trading
A financial asset is classified as held for trading if:
•
•
it has been acquired principally for the purpose of selling or repurchasing it in the short term,
is part of a portfolio of identified financial instruments that are managed together and there is evidence of a recent actual pattern of
short-term profit-taking, or
it is a derivative that is not designated and effective as a hedging instrument.
•
With the exception of derivatives, only a limited proportion of Storebrand’s financial assets fall into this category.
Financial assets held for trading are measured at fair value at the reporting date, Changes in fair value are recognised in the income state-
ment.
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).
91
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Investments held to maturity
Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity and that a compa-
ny 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.
Loans and receivables are recognised at amortised cost using the effective interest method. The category is used in the Norwegian life
insurance business linked to insurance contracts with a guaranteed interest rate, and in the banking business.
Loans and receivables that are designated as hedged items are subject to measurement under the hedge accounting requirements.
13-3. Derivatives
Accounting treatment of derivatives that are not hedging
Derivatives that do not meet the criteria for hedge accounting are recognised as financial instruments held for trading. The fair value of
such derivatives is classified as either an asset or a liability with changes in fair value through profit or loss.
The majority of the derivatives used routinely for asset management fall into this category.
Some of the Group’s insurance contracts contain embedded derivatives such as interest rate guarantees. These insurance contracts do
not follow the accounting standard IAS 39 Financial Instruments, but instead follow the accounting standard IFRS 4 Insurance Contracts,
and the embedded derivatives are not continually measured at fair value.
13-4. Hedge accounting
Fair value hedging
Storebrand uses fair value hedging for the interest rate risk. The items hedged are financial liabilities measured at amortised cost. Deriv-
atives 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.
Cash flow hedging
Some borrowing in foreign currency is hedged by means of hedging instruments (derivatives). Storebrand uses cash flow hedging of the
foreign exchange risk on the principal amount and foreign exchange risk for the credit margin. The net ongoing changes in value in the
hedging instrument that is considered effective hedging are recognised in total comprehensive income and the non-effective share is
recognised through profit or loss.
Storebrand has selected early implementation of “Interest Rate Benchmark Reform—Amendments to IAS 39 and IFRS 7” (IBOR Reform)
that was issued in September 2019. In accordance with the transitional rules, the amendments have been subsequently applied to hedg-
ing arrangements that existed at the start of the reporting period or were identified thereafter and to the amount accumulated in the cash
flow hedge reserve on that date. The amendments provide temporary relief from applying specific requirements for hedge accounting of
hedging arrangements that are directly affected by the IBOR reform. This has the effect that the IBOR reform will not generally result in the
conclusion of hedge accounting. However, all hedge ineffectiveness will still be recognised in the income statement. The stipulated amend-
ments also determine when the relaxation of the rules shall no longer apply, which includes the uncertainty resulting from the Interest
Rate Benchmark Reform no longer existing. See the discussion in Note 41.
Hedging of net investments
Hedging of net investments in foreign businesses is recognised in the accounts in the same way as cash flow hedging. Gains and losses on
the hedging instrument that relate to the effective part of the hedging are recognised through total comprehensive income, while gains
92
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
and losses that relate to the ineffective part are recognised in the income statement. The total loss or gain in equity is recognised in the
income statement when the foreign business is sold or wound up.
13-5. Financial liabilities
Subsequent to initial recognition, all financial liabilities that are not derivatives are primarily measured at amortised cost using an effective
interest method.
14. Insurance liabilities
The accounting standard IFRS 4 Insurance Contracts addresses the accounting treatment of insurance contracts. Storebrand’s insurance
contracts fall within the scope of this standard. IFRS 4 is a temporary standard until IFRS 17 is to be used. IFRS 4 allows the use of non-uni-
form principles for the treatment of insurance contracts in consolidated financial statements. In the consolidated financial statements, the
insurance liabilities in the respective subsidiaries are included as these are calculated on the basis of the laws of the individual countries.
This also applies to insurance contracts acquired via business combinations. In such cases, positive excess values are capitalised as assets.
Pursuant to IFRS 4, provisions for insurance liabilities must be adequate. When assessing the adequacy associated with recognised ac-
quired insurance contracts, reference must also be made to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and Solvency II
calculations.
An explanation of the accounting policies for the most important insurance liabilities can be found below.
14-1. General – life insurance
Claims for own account
Claims for own account comprise claims settlements paid out, less reinsurance received, premium reserves transferred to other compa-
nies, and reinsurance ceded.
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.
Insurance liabilities (premium reserve)
The premium reserve represents the present value of the company’s total expected insurance liabilities, including future administration
costs in accordance with the individual insurance contracts, after deducting the present value of agreed future premiums. In the case of
individual account policies with flexible premium payments, the total policy value is included in the premium reserve. The premium reserve
is equivalent to 100 per cent of the guaranteed surrender or transfer value of insurance contracts prior to any fees for early surrender or
transfer and the policies’ share of the market value adjustment reserve.
The premium reserve is calculated using the same assumptions as those used to calculate premiums for the individual insurance con-
tracts, i.e. assumptions about mortality and disability rates, interest rates and costs. Premium tariffs are based on the observed level of
mortality and disability in the population with the addition of security margins that include expected future developments in this respect.
The premium reserve includes reserve amounts for future administration costs for all lines of insurance including settlement costs (admin-
istration reserve). In the case of paid-up contracts, the present value of all future administration costs is allocated in full to the premium
reserve. In the case of contracts with future premium payments, a deduction is made for the cash value of the proportion of future admin-
istration costs expected to be financed by future premium receipts.
A substantial proportion of the Norwegian insurance contracts have a one-year interest rate guarantee, meaning that the guaranteed
return must be achieved every year. In the Swedish business, there are no contracts with an annual interest rate guarantee, but there are
insurance contracts with a terminal value guarantee.
Insurance liabilities, special investments portfolio
Insurance liabilities associated with the value of the special investments portfolio must always equal the value of the investments portfolio
assigned to the contract. The proportion of profit in the risk result is included. The company is not exposed to investment risk on customer
assets, since the customers are not guaranteed a minimum return. The only exception is in the event of death, when the beneficiaries are
repaid the amount originally paid in for annuity insurance and for guaranteed account (Garantikonto).
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
IBNS reserves
Included in the premium reserve for insurance risk are provisions for claims either occurred but not yet reported or reported but not yet
settled. IBNR are reserves for potential future payments when Storebrand has yet to be informed about whether an instance of disability,
death or other instance entailing compensation has occurred. Since Storebrand is neither aware of the frequency nor the amount payable,
IBNR is estimated using actuarial models based on historical information about the portfolio. Correspondingly, RBNS is a provision for
potential future payments when Storebrand has knowledge of the incident, but has not settled the claim. Actuarial models based on his-
torical information are also used to estimate the reserves.
Transfers of premium reserves, etc. (transfers)
Transfers of premium reserves resulting from transfers of policies between insurance companies are recorded in the profit and loss
account as net premiums for own account in the case of reserves received and claims for own account in the case of reserves paid out.
The recognition of costs and income takes place on the date the insured risk is ceded. The premium reserve in the insurance liabilities is
reduced/increased on the same date. The premium reserve transferred includes the policy’s share of additional statutory reserves, the
market value adjustment reserve, conditional bonus and the profit for the year. Transferred additional reserves are not shown as part of
premium income, but are reported separately as changes in insurance liabilities. Transferred amounts are classified as current receivables
or liabilities until the transfer takes place.
Selling costs
All selling costs in the Norwegian life insurance business are expensed, whilst in the Swedish subsidiaries, parts of the selling costs are
recorded in the balance sheet and amortised over the expected duration of the contract.
14-2. Life insurance – Norway
Additional statutory reserves
The company is allowed to make allocations to the additional statutory reserves to ensure the solvency of its life insurance business. These
additional reserves are divided among the contracts and can be used to cover a negative interest result up to the interest rate guarantee.
In the event that the company does not achieve a return that equals the interest rate guarantee in any given year, the allocation can be
reversed from the contract to enable the company to meet the interest rate guarantee. This will result in a reduction in the additional
statutory reserves and a corresponding increase in the premium reserve for the contract. For allocated annuities, the additional statutory
reserves are paid in instalments over the disbursement period.
The additional statutory reserves cannot exceed 12 per cent of the premium reserve. If the limit is exceeded, the excess amount is as-
signed to the contract as surplus.
Premium fund, deposit reserve and pensioners’ surplus fund
The premium fund contains premiums prepaid by policyholders as a result of taxation regulations for individual and group pension insur-
ance and allocated profit shares. The contribution fund contains payments and deposits for employees who have been members for less
than 12 months. Credits and withdrawals are not recognised through the income statement but are taken directly to the balance sheet.
The pensioners’ surplus fund comprises surplus assigned to the premium reserve in respect of pensions in group payments. The fund is
applied each year as a single premium payment to secure additional benefits for pensioners.
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 cur-
rent 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 invest-
ments 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.
Risk equalisation reserve
Up to 50 per cent of the positive risk result for group pensions and paid-up policies can be allocated to the risk equalisation fund to cover
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix 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).
14-3. Life insurance Sweden
Life insurance liabilities
The life insurance liabilities are estimated as the present value of the expected future guaranteed payments, administrative expenses
and taxes, discounted by the current risk-free interest rate. Insurance reserves with guaranteed interest rates in SPP use a marked-based
yield curve. A real discount curve is used for risk insurance within the defined-contribution portfolio. For endowment insurance within
the defined-benefit and defined-contribution portfolios, as well as sickness insurance in the defined-benefit portfolio, the provisions are
discounted using the nominal yield curve. As a starting point, the applicable discount rate is determined based on the methods used for
the discount rate in Solvency II.
When calculating the life insurance liabilities, the estimated future administrative expenses that may reasonably be expected to arise and
can be attributed to the existing insurance contracts are taken into account. The expenses are estimated according to the company’s own
cost analyses and are based on the actual operating costs during the most recent year. Projection of the expected future costs follow the
same principles on which Solvency II is based. Any future cost-rationalisation measures are not taken into account.
Conditional bonus and deferred capital contribution
The conditional bonus arises when the value of customer assets is higher than the present value of the liabilities, and thus covers the por-
tion of the insurance capital that is not guaranteed. In the case of contracts where customer assets are lower than liabilities, the owners’
result is charged via deferred capital contribution allocations. The conditional bonus and deferred capital contribution are recognised on
the same line in the balance sheet as part of the buffer capital.
14-4. P&C insurance
Costs related to insurance claims are recognised when the claims occur. The following allocations have been made:
Reserve for unearned premium for own account concerns on-going policies that are in force at the time the financial statements were
closed and is intended to cover the contracts’ remaining risk period.
The claims reserve is a reserve for expected claims that have been reported, but not settled (RBNS). The reserve also covers expected
claims for losses that have been incurred, but have not been reported (IBNR) at the expiry of the accounting period. In addition, claims
reserves shall include a separate provision for future claims on losses that have not been settled.
15. Pension liabilities for own employees
Storebrand has country-specific pension schemes for its employees. The schemes are recognised in the accounts in accordance with IAS
19. In Norway, Storebrand has a defined-contribution pension. Storebrand is a member of the Norwegian contractual early retirement
(AFP) pension scheme. The Norwegian AFP scheme is regarded as a defined-benefit scheme, but there is insufficient quantitative informa-
tion to be able to estimate reliable accounting obligations and costs.
In Sweden, SPP has agreed, in accordance with the Finance Companies’ Service Pension Plan (BTP Plan), to collective, defined-benefit pen-
sion plans for its employees. A group defined-benefit pension implies that an employee is guaranteed a certain pension based on the pay
scale at the time of retirement on termination of the employment.
15-1. Defined-benefit scheme
Pension costs and pension obligations for defined-benefit pension schemes are determined using a linear accrual formula and expect-
ed 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.
Actuarial gains and losses and the impact of changes in assumptions are recognised in total comprehensive income during the period in
which they arise. Employees who resign before reaching retirement age or leave the scheme will be issued ordinary paid-up policies.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix 15-2. Defined-contribution scheme
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 activ-
ities.
Equipment, inventory and IT systems are valued at acquisition cost less accumulated depreciation and any write-downs.
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 revalua-
tion reserve for the property in question, the excess is expensed over the profit and loss account.
The write-down period and method are reviewed annually to ensure that the method and period being used both correspond to the use-
ful economic life of the asset. The disposal value is similarly reviewed. Properties are split into components if different parts have different
useful economic lives. The depreciation period and method of depreciation are measured then separately for each component.
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.
The tax cost in the income statement consists of tax payable and changes in deferred tax. Tax is recognised in the income statement,
except to the extent that it relates to items recognised in total comprehensive income. Deferred tax and deferred tax assets are calculated
on the differences between accounting and tax values of assets and liabilities.
Deferred tax is calculated on the basis of the Group’s tax loss carryforward, deductible temporary differences and taxable temporary
differences.
Any deferred tax assets shall be recognised if it is considered probable that the tax asset will be recovered. Assets and liabilities associated
with deferred tax are recognised as a net amount when there is a legal right to offset assets and liabilities for tax payable and the Group
has the ability and intention to settle net tax payable.
Changes in assets and liabilities associated with deferred tax that are due to changes in the tax rate are generally recognised in the in-
come statement.
Reference is made to Note 26 - Tax for further information.
18. Provision for dividends
The proposed dividend is classified as equity until approved by the general meeting and presented as liabilities after this date. The pro-
posed dividend is not included in the calculation of the solvency capital.
19. Leases
Leases are recognised in the balance sheet. The present value of the combined lease payments shall be recognised on the balance sheet
as debt and an asset that reflects the right of use of the asset during the lease period. Storebrand has chosen to classify the right to use
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
the asset as tangible fixed assets and the lease liability as other debt. The recognised asset is amortised over the lease period and the de-
preciation expense is recognised as an operating expense on an ongoing basis. The interest expense on the lease liability is recognised as
a financial expense. Leases with a duration of less than 12 months and leases that include assets valued at less than approximately NOK
50,000 will not be recognised in the balance sheet, but rental amounts will be recognised as an operating expense over the lease period.
20. Statement of cash flows
The statement of cash flows is prepared using the direct method and shows cash flows grouped by sources and use. Cash is defined as
cash, receivables from central banks and receivables from credit institutions with no agreed period of notice.
21. Biological assets
Pursuant to IAS 41, investments in forestry are measures as biological assets. Biological assets are measured at fair value in accordance
with IFRS 13. Changes in the value of biological assets are recognised in the profit and loss account. Ownership rights to biological assets
are recognised on the date of transfer pursuant to the purchase agreement. Annual income and expenses for forestry and uncultivated
land are recognised.
Note 2: Critical accounting estimates and judgements
In preparing the consolidated financial statements the management are required to apply estimates, make discretionary assessments and
apply assumptions for uncertain amounts. The estimates and underlying assumptions are reviewed on an ongoing basis and are based
on historical experience and expectations of future events and represent the management’s best judgement at the time the financial
statements were prepared.
A description of the most important elements and assessments in which discretion is used and which may influence recognised amounts
or key figures is provided below and in Note 13 for Solvency II and in Note 26 for Tax.
Actual results may differ from these estimates.
Insurance contracts
Insurance risk is the risk of higher than expected payments and/or unfavourable changes in the value of an insurance liability due to the
actual development differing from what was expected when premiums or provisions were calculated.
In the consolidated accounts, insurance liabilities with a guaranteed interest rate are included, but using different principles in the Norwe-
gian and the Swedish activities. An immaterial asset (value of business in-force – VIF) linked to the insurance contracts in the Swedish activi-
ties is also included. This asset originated from Storebrand’s purchase of the insurance business. There are several factors that may have
an impact on the size of the insurance liabilities including VIF, such as biometric factors relating to higher life expectancy, future returns
and invalidity, as well as the development of future costs and legal aspects, such as amendments to legislation and judgments handed
down in court cases, etc.
In the long term, a low interest rate will represent a challenge for insurance contracts with a guaranteed interest rate and, together with a
reduced customer buffer, may have an impact on the amount recorded that is linked to the insurance contracts. The Norwegian insurance
contracts with guaranteed interest rates are discounted at the premium calculation rate (around 3.2 per cent). The Swedish insurance
liabilities with guaranteed interest rates have been discounted by a yield curve that coincides with the Solvency II yield curve.
In the Norwegian business, a significant share of the insurance contracts have annual interest rate guarantees. Changes in estimates and
valuations may entail a change in the return on the customer portfolios. Depending on the size of any impairment in value, such impair-
ment may be offset by a reduction in the market value adjustment reserve and additional statutory reserves, so that the effect on the
owner’s result may be limited. Correspondingly, increases in values could, to a large extent, increase the size of such funds.
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
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix in the assumptions for future cost, mortality and other biometric assumptions may also have a significant impact on the recognised insur-
ance liabilities. Changes in estimates and valuations may entail a change in the return on the customer portfolios. Depending on the size
of any impairment in value, such impairment may be offset by a reduction in the conditional bonus, so that the effect on the owner’s result
may be limited. If the value of the individual insurance contract is higher than the associated customer assets, the owner will have to cover
the deficient capital.
Further information about insurance liabilities is provided in Notes 7, 38 and 39.
Investment properties
Investment properties are measured at fair value. The commercial real estate market in Norway and Sweden is not particularly liquid, nor
is it transparent. Uncertainty will be linked to the valuations, and they require exercise of professional judgement, especially in periods with
turbulent finance markets.
Key elements included in valuations that require exercising judgement are:
• Market rent and vacancy trends
• Quality and duration of rental income
• Owners’ costs
• Technical standard and any need for upgrading
• Discount rates for both certain and uncertain cash flows, as well as residual value
External valuations are also obtained for parts of the portfolio every quarter. All properties must have a minimum of one external valua-
tion during a 3 year period.
Reference is also made to Note 12 in which the valuation of investment properties at fair value is described in more detail.
Financial instruments at fair value
There will be some uncertainty associated with the pricing of financial instruments, particularly instruments that are not priced in an active
market. This is particularly true for the types of securities priced on the basis of non-observable assumptions , and for these invest-
ments various valuation techniques are applied in order to fix fair value. These include private equity investments, investments in foreign
properties, and other financial instruments where theoretical models are used in pricing. Any changes to the assumptions could affect
recognised amounts. The majority of such financial instruments are included in the customer portfolio.
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.
Reference is also made to Note 12, in which the valuation of financial instruments at fair value is described in more detail.
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 con-
tinue 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.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Covid-19 and the uncertain macroeconomic situation mean that there is greater uncertainty relating to several estimates at the end of
2020 than was the situation prior to the start of the pandemic. There is still major uncertainty about the spread of Covid-19 and the con-
sequences for society. There is thus also increased uncertainty regarding cash flows associated with financial instruments and investment
properties that are priced based on level 3 calculations, as well as estimated expected losses on lending.
Deferred tax and uncertain tax positions
Calculation of deferred tax assets, deferred tax liabilities and the income tax expense is based on the interpretation of rules and esti-
mates.
The Group’s business activities may give rise to disputes, etc. related to tax positions with an uncertain outcome. The Group makes pro-
visions for uncertain and disputed tax positions with best estimates of expected amounts, subject to decisions by the tax authorities in
accordance with IAS 12 and IFRIC 23. The provisions are reversed if the disputed tax position is decided to the benefit of the Group and
can no longer be appealed.
Reference is made to further information in Note 26.
Note 3: Acquisitions
On 14 August 2020, Storebrand Forsikring AS entered into an agreement with Insr Insurance Group ASA (Insr) to acquire customer portfo-
lios from Insr. Storebrand Forsikring AS acquired the right and obligation to renew insurance agreements from Insr’s portfolios.
The transition process for customers from Insr to Storebrand will take place gradually over a 12-month period from the renewal date for
the customers, starting on 1 December 2020. Storebrand will pay consideration to Insr of 20-30% of renewed premiums, and has pledged
to pay a minimum of NOK 70 million no later than six months after the end of the renewal period.
This transaction will be recognised under intangible assets in the balance sheet as the purchase of customer lists in line with the gradual
transfer, and will not be recognised as a business combination.
Note 4: Profit by segments
Storebrand’s operation includes the segments Savings, Insurance, Guaranteed Pension and Other.
Savings
The savings segment includes products for retirement savings with no interest rate guarantees. The segment consists of defined contribu-
tion pensions in Norway and Sweden, asset management and retail banking products. In addition, certain other subsidiaries in Storebrand
Livsforsikring and SPP are included in Savings.
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.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
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.
Reconciliation between the profit and loss statement and alternative statement of the result (segment)
The results in the segments are reconciled against the Group result before amortisation and write-downs of intangible assets. The Group’s
income statement includes gross income and costs linked to both the insurance customers and owners (shareholders). The alternative
statement of the result only includes result elements relating to owners (shareholders) which are the result elements that the Group has
performance measures and follow-up for. The result lines that are used in segment reporting will therefore not be identical with the result
lines in the corporate profit and loss account. Below is an overall description of the most important differences.
Fee and administration income consists of fees and fixed administrative income. In the Group’s income statement, the item is classified
as premium income, net interest income from bank or other income depending on the type of activity. The Group’s income statement also
includes savings elements for insurance contracts and possibly transferred reserve.
Price of return guarantee and profit risk (fee incomes) - Storebrand Livsforsikring AS
The return guarantees in group pension insurance with a return guarantee must be priced upfront. The level of the return guarantee, the
size of the buffer capital (additional statutory reserves and unrealised gains), and the investment risk of the portfolio in which the pensions
assets are invested determine the price that the customer pays for his or her return guarantee. Return guarantees are priced on the basis
of the risk to which the equity is exposed. The insurance company bears all the downside risk and must carry reserves against the policy if
the buffer reserves are insufficient or unavailable.
The insurance result consists of insurance premiums and claims
Insurance premiums consist of premium income relating to risk products (insurance segment) that are classified as premium income in the
Group’s income statement.
Claims consist of paid-out claims and changes in provisions for claims incurred but not reported (IBNR) and claims reported but not settled
(RBNS) relating to risk products that are classified as claims in the Group’s income statement.
Administration costs consist of the Group’s operating costs in the Group’s income statement minus operating costs allocated to traditional
individual products with profit sharing.
Financial items and risk result life and pensions include risk result life and pensions and financial result includes net profit sharing and Loan
Losses.
Risk result life and pensions consists of the difference between risk premium and claims for products relating to defined-contribution
pension, unit linked insurance contracts (savings segment) and defined-benefit pension (guaranteed pension segment). Risk premium is
classified as premium income in the Group’s income statement.
The financial result consists of the return for the company portfolios of Storebrand ASA, Storebrand Livsforsikring AS and SPP Pension
& Försäkring AB (Other segment), while returns for the other company portfolios in the Group are a financial result within the segment
which the business is associated with. Returns on company portfolios are classified as net income from financial assets and property for
companies in the Group’s income statement. The financial result also includes returns on customer assets relating to products within the
insurance segment, and in the Group’s income statement this item will be entered under net income from financial assets and property
for customers. In the alternative income statement, the result before tax of certain unimportant subsidiaries is included in the financial
result, while in the Group’s income statement, this is shown as other income, operating costs and other costs.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
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 statu-
tory 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.
Individual endowment insurance and pensions written by the Group prior to 1 January 2008 will continue to apply the profit rules effective
prior to 2008. New contracts may not be established in this portfolio. The Group can retain up to 35 per cent of the total result after allo-
cations to additional statutory reserves.
Any negative returns on customer portfolios and returns lower than the interest guarantee that cannot be covered by additional statutory
reserves must be covered by the company’s equity and will be included in the net profit-sharing and losses line.
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.
For contributions agreed to prior to 2016, the profit sharing is maintained, i.e. that if the total return on assets in one calendar year for
a premium-determined insurance (IF portfolio) exceeds the guaranteed interest, profit sharing will be triggered. When profit sharing is
triggered, 90 per cent of the total return on assets passes to the policyholder and 10 per cent to the company. The company’s share of
the total return on assets is included in the financial result.
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 pre-
vious 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.
Loan losses:
Loan losses consist of individual and group write-downs on lending activities that are on the balance sheet of Storebrand Bank Group.
In the Group’s income statement, the item is classified under loan losses. With regard to loan losses that are on the balance sheet of the
Storebrand Livsforsikring Group, these will not be included on this line in either the alternative income statement or in the Group’s income
statement, but in the Group’s income statement will be included in the item, net income from financial assets and property for customers.
Amortisation of intangible assets includes depreciation and possible write-downs of intangible assets established through acquisitions of
enterprises.
101
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
GROUP PROFIT BY SEGMENT
NOK million
Savings
Insurance
Guaranteed pension
Other
Group profit before amortisation
Amortisation of intangible assets
Group pre-tax profit
NOK million
Fee and administation income
Insurance result
- Insurance premiums f.o.a.
- Claims f.o.a.
Operating cost
Operating profit
Financial items and risk result life & pension
Group profit before amortisation
Amortisation of intangible assets 1)
Group pre-tax profit
NOK million
Fee and administation income
Insurance result
- Insurance premiums f.o.a.
- Claims f.o.a.
Operating cost
Operating profit
Financial items and risk result life & pension
Group profit before amortisation
Amortisation of intangible assets 1)
Group pre-tax profit
1) Amortisation of intangible assets are included in Storebrand Group
2) Includes eliminations of group transactions
2020
1,730
204
775
1
2,711
-492
2,219
2019
1,364
439
1,029
205
3,037
-444
2,593
Savings
2020
4,392
2019
3,996
Insurance
Guaranteed pension
2020
2019
2020
1,455
2019
1,475
825
4,331
-3,506
-712
113
91
204
1,005
3,909
-2,904
-648
357
83
439
-842
614
162
775
-2,611
1,781
-51
1,730
-2,621
1,375
-11
1,364
Other 2)
Storebrand Group
2020
-172
2019
-164
97
-75
76
1
73
-91
296
205
2020
5,676
825
4,331
-3,506
-4,068
2,433
278
2,711
-492
2,219
-819
657
372
1,029
2019
5,308
1,005
3,909
-2,904
-4,015
2,298
739
3,037
-444
2,593
102
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix THE STOREBRAND GROUP ARE REPRESENTED IN THE FOLLOWING COUNTRIES:
Segment/Land
Norway
Sweden
UK Netherlands
Denmark
Germany
Luxemburg
Ireland
Savings
Insurance
Guaranteed pension
Other
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
2020
2019
5.02
35,923
20,185
268,331
962,472
49,474
5,562
81%
16%
97%
4.43
33,398
17,168
219,793
831,204
48,161
4,698
74%
17%
91%
276,755
263,185
50.8%
-704
11.0%
11.4%
178%
72,766
18.7%
16.7%
54.5%
16
8.6%
10.7%
176%
62,442
19.6%
17.5%
KEY FIGURES BY BUSINESS AREA
NOK million
Group
Earnings per ordinary share
Equity
Savings
Premium income Unit Linked
Unit Linked reserves
AuM asset management
Retail lending
Insurance
Total written premiums
Claims ratio
Cost ratio
Combined ratio
Guaranteed pension
Guaranteed reserves
Guaranteed reseves in % of total reserves
Net transfer out of guaranteed reserves
Buffer capital in % of customer reserves Storebrand Life Group 1)
Buffer capital in % of customer reserves SPP 2)
Solidity
Solvency II 3)
Solidity capital (Storebrand Life Group) 4)
Capital adequacy Storebrand Bank
Core Capital adequacy Stobrand Bank
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.
103
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Note 5: Risk management and internal control
Storebrand’s income and performance are dependent on external factors that are associated with uncertainty. The most important
external risk factors are the developments in the financial markets and changes in life expectancy in the Norwegian and Swedish po-
pulations. Certain internal operational factors can also result in losses, e.g. errors linked to the management of the customers’ assets
or payment of pension.
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.
Organisation of risk management
The Group’s organisation of the responsibility for risk management follows a model based on three lines of defence. The objective of
the model is to safeguard the responsibility for risk management at both company and Group level.
Board of Directors
CEO
Executive management
CRO Group
Independent control functions
Internal
auditing
Risk
management
Acturay
function
Compliance
Anti-money
laudering (AML)
Privacy
(DPO)
The Boards of directors of both Storebrand ASA and the group companies have the overall responsibility for limiting and following up
the risks associated with the activities. The Boards set annual limits and guidelines for risk-taking in the company, receive reports on
the actual risk levels, and perform a forward-looking assessment of the risk situation.
The Board of Storebrand ASA has established a Risk Committee consisting of 3 Board members. The main task of the Risk Commit-
tee is to prepare matters to be considered by the Board in the area of risk, with a special focus on the Group’s appetite for risk, risk
strategy and investment strategy. The Committee should contribute forward-looking, decision-making support related to the Board’s
discussion of risk taking, financial forecasts and the treatment of risk reporting.
Managers at all levels in the company are responsible for risk management within their own area of responsibility. Good risk mana-
gement requires targeted work on objectives, strategies and action plans, identification and assessment of risks, documentation of
processes and routines, prioritisation and implementation of improvement measures, and good communication, information and
reporting.
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 (Actu-
ary 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 regulati-
ons for risk management and the consolidated companies’ operations.
104
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix The internal audit function is organised directly under the Board and shall provide the Boards of the relevant consolidated compa-
nies with confirmation concerning the appropriateness and effectiveness of the company’s risk management, including how well the
various lines of defence are working.
Note 6: Operational risk
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.
The Group seeks to reduce operational risk through an effective system for internal control. Risks are followed up through the ma-
nagement’s risk reviews, with documentation of risks, measures and the follow-up of incidents. In addition, Internal Audit carries out
independent checks through audit projects adopted by the Board.
Contingency and continuity plans have been prepared to deal with serious incidents in business-critical processes.
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, abnor-
mal 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 infra-
structure. 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.
Note 7: Insurance risk
Storebrand offers traditional life and pension insurance as both group and individual contracts. Contracts are also offered in which
the customer has the choice of investment.
The insurance risk in Norway is largely standardised for contracts within the same product category as a result of detailed regulation
from the authorities. In Sweden, the framework conditions for insurance contracts entail major differences between the contracts
within the same product category.
The insurance risk associated with an increase in life expectancy and thereby an increase in future pension payments (longevity) is the
greatest risk for the Group. Other risks include disability risk and mortality risk. The life insurance risks are:
1. Long life expectancy – The risk of erroneously estimating life expectancy and future pension payments. Historical developments
have shown that an increasing number of people attain retirement age and live longer as pensioners than was previously the case.
There is a great deal of uncertainty surrounding future mortality development. In the event of longer life expectancy beyond that
assumed in the premium tariffs, there is also an increased risk of the owner’s result having to be charged in order to cover necess-
ary statutory provisions.
2. Disability – The risk of erroneous estimation of future illness and disability. There will be uncertainty associated with the future
development of disability, including disability pensioners who are returned to the workforce.
3. Death – The risk of erroneous estimation of mortality or erroneous estimation of payment to surviving relatives. Over the last few
years, a decrease in mortality and fewer young surviving relatives have been registered, compared with earlier years.
105
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix 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.
In the Insurance segment, the Group has an insurance risk associated with disability and death. In addition, there are insurance risks
associated with occupational injury, critical illness, cancer insurance, child insurance, accident insurance and health insurance. For
occupational injury, the risk is first and foremost potential errors in the assessment of the level of provisions, because the number of
claim years can be up to 25 years. The insurance risk within critical illness, cancer, accident and health insurance is considered to be
limited based on the volume and underlying volatility of the products. Within P&C insurance, the risk of house fire and personal injury
for motor vehicle insurance constitute the main risks.
The Other segment also includes the insurance risk at Euroben, which offers pension products to Nordic companies, and the insuran-
ce risk is limited.
Description of products
Risk premiums and tariffs
Guaranteed Pension
Group pension insurance schemes in Norway follow the premiums for traditional retirement and survivor coverage in the industry
tariff K2013. The premiums for disability pensions are based on the company’s own experience. Expense premiums are determined
annually with a view to securing full cover for the next year’s expected costs.
For individual insurance in Norway, the premiums for death risk and long life expectancy risk are based on tariffs produced by insu-
rance companies on the basis of their shared experience. This applies to both endowment and pension insurance. Disability premi-
ums are based on the company’s own experience.
The risk premium for group insurance in Sweden is calculated as an equalised premium within the insurance group, based on the
group distribution of age and gender, as well as the requirement for coverage of next of kin. The risk premium for individual insurance
is determined individually and is based on age and gender.
SPP’s mortality assumptions are based on the general mortality tariff DUS14, adjusted for the company’s own observations.
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.
Insurance
Tariffs for group life insurance and certain risk insurances within group pensions also depend on the industry or occupation, in
addition to age and gender. Group life insurance also applies tariffs based on claims experience. The company’s tariff for group life
insurance, both for life and disability cover, is based on the company’s own experience.
106
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Newer individual endowment policies are priced without taking gender into account. The tariffs for all individual endowment policies
are based on the company’s own experiences.
For P&C insurance (occupational injury, property and motor vehicle) the tariffs are based on the company’s own experiences.
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.
When writing individual risk cover, the customer is subject to a health check. The result of the health check is reflected in the level of
premium quoted. When arranging group policies with risk cover, all employees of small companies are subject to a health check, while
for companies with many employees a declaration of fitness for work is required. In the assessment of risk, the company’s business
category, sector and sickness record are also taken into account.
Large claims or special events constitute a major risk for all products. The largest claims will typically be in the group life, occupational
injury and personal injury (motor vehicle accidents) segments.
The company manages its insurance risk through a variety of reinsurance programmes. Through catastrophe reinsurance (excess of
loss), the company covers losses (single claims and reserves provisions) where a single event causes more than two deaths or disa-
bility cases. This cover is also subject to an upper limit. A reinsurance agreement for life policies covers death and disability risk that
exceeds the maximum risk amount for own account the company practises. The company’s maximum risk amount for own account is
relatively high, and the risk reinsured is therefore relatively modest.
The company also manages its insurance risk through international pooling. This implies that multinational corporate customers can
equalise the results between the various units internationally. Pooling is offered for group life and risk cover within group pensions.
Risk result
The risk result consists of premiums the company charges to cover insurance risks less the actual costs in the form of insurance reserves
and payments for insured events such as death, pensions, disability and accidents.
The table below specifies the risk result for the largest entities in the Group and also states the effect of reinsurance and pooling on the
result. The risk result in the table shows the total risk result for distribution to customers and owner (the insurance company).
SPECIFICATION OF RISK RESULT
NOK million
Survival result
Death result
Disability result
Reinsurance
Pooling
Other
Total risk result
Storebrand Livsforsikring AS
SPP Pension & Försäkring AB
2020
7
243
-26
5
-44
-33
153
2019
-58
416
443
2
22
-101
724
2020
54
23
134
-26
1
186
2019
-39
19
92
-1
-14
-4
53
107
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
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 develop-
ment 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.
STOREBRAND LIVSFORSIKRING AS
Guaranteed pension
Insurance
Defined
Occupa-
benefit
tional
Paid-up
Individual
Group
Non-life
NOK million
pension
pension
policies
insurance
Total
disability
insurance
Group life
Total
Total
Death
Disability
4
-4
1
49
-14
5
-4
59
-22
-1
-40
-2
-4
-19
-26
-22
-70
37
-92
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 poli-
cies 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.
It varies as to how the gross effects above are recognised in the company’s income statement. The business rules define buffer capital
and other factors which entail that a negative risk result for the pension products may be covered by the risk equalisation fund,
provided that this is sufficient. Equivalently, up to 50% of the positive risk result will be added to the risk equalisation fund, while other
positive risk results will pass to the customers. For group disability pensions, group life and personal risk, the risk results pass in their
entirety to Storebrand, while the risk result for individual insurance policies are included in the profit sharing between the customers
and Storebrand.
SPP PENSION & FÖRSÄKRING AB
SEK million
Death
Disability
Defined
contribution
8
2
Defined
benefit
17
Total
25
2
Part of the change in disability and waiver of premiums is covered by pooling and reinsurance, and SPP’s effect on result is expected
to be approximately 95 per cent. The change in increased longevity and mortality have their full impact in SPP’s result.
Note 8: Financial market risk
Market risk means changes in the value of assets as a result of unexpected volatility or changes in prices on the financial markets. It
also refers to the risk that the value of the insurance liability develops differently to that of the assets as a result of changes in interest
rates.
The most significant market risks for Storebrand are interest rate risk, share market risk, property price risk, credit risk, and exchange
rate risk.
108
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix For the life insurance companies, the financial assets are invested in a variety of sub-portfolios. Market risk affects Storebrand’s
income and profit differently in the different sub-portfolios. There are three main types of sub-portfolio: company portfolios, customer
portfolios without a guarantee (unit linked insurance) and customer portfolios with a guarantee.
The market risk in the company portfolios has a direct impact on the profit.
The market risk in unit linked insurance is at the customers’ risk, meaning Storebrand is not directly affected by changes in value.
Nevertheless, changes in value do affect Storebrand’s profit indirectly. Income is based largely on the size of the reserves, while the
costs tend to be fixed. Lower than expected returns in the financial market will therefore have a negative effect on Storebrand’s future
income and profit.
For customer portfolios with a guarantee, the net risk for Storebrand will be lower than the gross market risk. The extent of measures
to reduce risk depends on several factors, the most important being the size and flexibility of the customer buffers and level and du-
ration of the return guarantee. If the investment return is not sufficient to meet the guaranteed interest rate, the shortfall may be met
by using customer buffers built up from previous years’ surpluses.
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 composition of the assets within each sub-portfolio is determined by the company’s investment strategy. The investment strategy
also establishes guidelines and limits for the company’s risk management, credit exposure, counterparty exposure, currency risk, use
of derivatives, and requirements regarding liquidity.
ASSET ALLOCATION
Properties at fair value
Bonds at amortised cost
Money market
Bonds at fair value
Equities at fair value
Loans at amortised cost
Other
Total
Customer portfolios
Customer portfolios
with guarantee
without guarantee
Company
portfolios
11%
36%
3%
24%
10%
16%
2%
4%
14%
79%
1%
100%
100%
26%
13%
59%
2%
1%
100%
Storebrand aims to take low financial risk for the company portfolios, and most of the funds are invested in short and medium-term
fixed income securities with low credit risk.
The financial risk related to customer portfolios without a guarantee is borne by the insured person, and the insured person can
choose the risk profile. Storebrand’s role is to offer a good, broad range of funds, to assemble profiles adapted to different risk
profiles, and to offer systematic reduction of risk towards retirement age. The most significant market risks are share market risk and
exchange rate risk.
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.
109
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix The market risk is managed by segmenting the portfolios in relation to risk-bearing capacity. For customers who have large customer
buffers, investments are made with higher market risk that give increased expected returns. Equity risk is also managed by means of
dynamic risk management, the objectives of which are to maintain good risk-bearing capacity and to adjust the financial risk to the
buffer situation and the company’s financial strength. By exercising this type of risk management, Storebrand expects to create good
returns both for individual years and over time.
For company portfolios and guaranteed customer portfolios, most of the assets that are in currencies other than the domestic cur-
rency are hedged. This limits the currency risk from the investment portfolios.
Foreign exchange risk primarily arises as a result of investments in international securities, including as a result of ownership in SPP.
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.
FINANCIAL ASSETS AND LIABILITIES IN FOREIGN CURRENCIES
NOK million
Net in balance sheet
Net sales
in currency
in NOK
Balance sheet items exclu-
ding currency derivatives
Forwad contracts
Net position
DKK
CHF
HKD
CAD
EUR
GBP
JPY
SEK
USD
NOK1)
Other currency types
Insurance liabilities in SEK
Total net currency positions 2020
Total net currency positions 2019
200
93
210
174
1,082
106
296
234,093
4,135
39,005
-325
-134
-931
-279
-1,221
-203
-413
-9,559
-5,184
-1,487
-127
-41
-721
-105
-147
-98
-117
224,301
-1,070
37,518
-224,197
-224,197
-176
-398
-797
-703
-1,454
-1,139
-969
234,084
-9,161
37,518
-144
-233,735
22,927
7,080
1) Equity and bond funds denominated in NOK with foreign currency exposurein i.a. EUR and USD NOK 34 billion.
The table above shows the currency positions as at 31 December 2020. The currency exposure is primarily related to
investments in the Norwegian and Swedish insurance business.
Storebrand Livsforsikring:
The company hedges most of the foreign exchange risk in the customer portfolios on an ongoing basis. Foreign exchange risk exists
primarily as a result of investments in international securities, as well as subordinated loans in a foreign currency to a certain extent.
Hedging is performed by means of forward foreign exchange contracts at the portfolio level, and the currency positions are monito-
red continuously against a total limit. Negative currency positions are closed out no later than the day after they arose. In addition,
separate limits have been defined so that active currency positions can be taken.
SPP:
SPP uses currency hedging for its investments to a certain degree. Currency exposure may be between 0 and 30 per cent in accor-
dance with the investment strategy
110
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
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.
Guaranteed customer portfolios in more detail
Storebrand Livsforsikring
The annual guaranteed return to the customers follows the basic interest rate. New premiums were taken in with a basic interest rate
of 2.0 per cent, and pensions were adjusted upwards with a basic interest rate of 0.5 per cent.
The percentage distribution of the insurance reserves by the various basic annual interest rates as at 31 December is as follows:
Interest rate
6 %
5%
4%
3.4 %
3%
2.75 %
2.50 %
2.00 %
1.50 %
0.50 %
0%
The table includes premium reserve excluding IBNS
Average interest rate guarantee in per cent
Individual endowment insurance
Individual pension insurance
Group pension insurance
Paid-up policy
Group life insurance
Total
The table includes premium reserve including IBNS
2020
0.3 %
0.3 %
42.9 %
0.3 %
28.8 %
1.8 %
10.9 %
12.2 %
0.1 %
1.6 %
0.9 %
2020
2.6 %
3.8 %
2.4 %
3.3 %
0.2 %
3.1 %
2019
0.3 %
0.3 %
44.4 %
0.3 %
29.0 %
1.8 %
11.0 %
11.2 %
1.3 %
0.5 %
2019
2.6 %
3.8 %
2.5 %
3.3 %
0.1 %
3.2 %
There is a 0 per cent interest rate guarantee for premium funds, defined-contribution funds, pensioners’ surplus funds and additional
statutory reserves.
The interest rate guarantee must be fulfilled on an annual basis. If the company’s investment return in any given year is lower than the
guaranteed interest rate, the equivalent of up to one year’s guaranteed return for the individual policy can be covered by transfers
from the policy’s additional statutory reserves.
To achieve adequate returns with the present interest rates, it is necessary to take an investment risk. This is primarily done by inves-
ting in shares, property and corporate bonds.
Interest rate risk is in a special position because changes in interest rates also affect the fair value of the insurance liability for the
solvency calculation. Since pension disbursements may be many years in the future, the insurance liability is particularly sensitive to
changes in interest rates. In the Norwegian business, greater interest rate sensitivity from the investments will entail increased risk
that the return is below the guaranteed level. The risk management must therefore balance the risk of the profit for the year (interest
rate increase) with the reinvestment risk if interest rates fall below the guarantee in the future. Bonds at amortised cost are an impor-
tant risk management tool.
111
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
SPP Pension & Insurance
The guaranteed interest rate is determined by the insurance company and is used when calculating the premium and the guarante-
ed benefit. The guaranteed interest rate does not entail that there is an annual minimum guarantee for the return as is the case in
Norway.
New premiums in individual defined-contribution pensions (IF) have a guarantee of 1.25% for 85% of the premium. Group defined-be-
nefit pension (KF) is closed to new members.
SPP bears the risk of achieving a return equal to the guaranteed interest on the policyholders’ assets over time and that the level of
the contracts’ assets is greater than the present value of the insurance liabilities. For IF, profit sharing becomes relevant in SPP if the
return exceeds the guaranteed yield. The contracts’ buffer capital must be intact in order for profit sharing to represent a net income
for SPP. In the case of KF, a certain degree of consolidation, i.e. that the assets are greater than the present value of the liabilities by a
certain percentage, is required in order for the owner to receive profit-sharing income (indexing fee).
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.
Interest rate
5.20 %
4,5%-5,2%
4.00 %
3.00 %
2,75%-4,0%
2.70 %
2.50 %
1.60 %
1.50 %
1.25 %
1,25% *
0,5%-2,5%
0.00 %
* 1,25 per cent on 85 per cent of the premium
Average interest rate guarantee in per cent
Individual pension insurance
Group pension insurance
Individual occupational pension insurance
Total
2020
12.1 %
0.4 %
4.5 %
47.4 %
5.0 %
0.1 %
5.9 %
0.0 %
1.9 %
4.2 %
9.7 %
3.5 %
5.4 %
2020
3.0 %
2.6 %
3.1 %
3.0 %
2019
12.7 %
0.4 %
3.7 %
48.8 %
5.4 %
0.1 %
6.2 %
0.0 %
2.6 %
4.1 %
7.6 %
4.0 %
4.1 %
2019
3.1 %
2.6 %
3.1 %
2.9 %
In the Swedish operations management of interest rate risk is based on the principle that the interest rate risk from assets shall ap-
proximately correspond to the interest rate risk from the insurance liabilities.
112
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Sensitivity analyses
The tables show the fall in value for Storebrand Livsforsikring and SPP’s investment portfolios as a result of immediate changes in
value related to financial market risk. The calculation is model-based and the result is dependent on the choice of stress level for each
category of asset. The stresses have been applied to the company portfolio and guaranteed customer portfolios as at 31 December
2020. The effect of each stress changes the return in each profile.
Unit linked insurance without a guaranteed annual return is not included in the analysis. For these products, the customers bear the
market risk and the effect of a falling market will not directly affect the result or buffer capital.
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.
Level of stress
Interest level (parallel shiftt)
Equity
Property
Credit spread (share of Solvency II)
Stresstest 1
Stresstest 2
-100bp
-20 %
- 12 %
50 %
+100bp
- 12 %
- 7 %
30 %
Because it is the immediate market changes that are calculated, dynamic risk management will not affect the outcome. If it is assu-
med that the market changes occur over a period of time, then dynamic risk management would reduce the effect of the negative
outcomes and reinforce the positive to some extent.
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.
Stresstest 1
Sensitivity
Interest rate risk
Equtiy risk
Property risk
Credit risk
Total
Stresstest 2
Sensitivity
Interest rate risk
Equtiy risk
Property risk
Credit risk
Total
Storebrand Livsforsikring
SPP Pension & Försäkring
NOK million
Share of portfolio
NOK million
Share of portfolio
4,275
-2,447
-2,585
-1,007
-1,764
2.0 %
-1.1 %
-1.2 %
-0.5 %
-0.8 %
-150
-2,162
-1,224
-857
-4,392
-0.2 %
-2.3 %
-1.3 %
-0.9 %
-4.7 %
Storebrand Livsforsikring
SPP Pension & Försäkring
NOK million
Share of portfolio
NOK million
Share of portfolio
-2.0 %
-0.7 %
-0.7 %
-0.3 %
-3.7 %
150
-1,297
-714
-514
-2,376
0.2 %
-1.4 %
-0.8 %
-0.5 %
-2.5 %
-4,274
-1,466
-1,506
-603
-7,849
113
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Storebrand Livsforsikring
For Storebrand Livsforsikring it is stress test 2, which includes an increase in interest rates, that makes the greatest impact. The over-
all market risk is NOK 7.8 billion, which is equivalent to 3.7 per cent of the investment portfolio.
If the stress causes the return to fall below the guarantee, it will have a negative impact on the result if the customer buffer is not
adequate. Other negative effects on the result are a lower return from the company portfolio and that there is no profit sharing from
paid-up policies and individual contracts.
SPP Pension & Insurance
For SPP it is stress test 1, which includes a fall in interest rates, that creates the greatest impact. The overall market risk is SEK 4.4
billion, which is equivalent to 4.7 per cent of the investment portfolio.
The buffer situation for the individual contracts will determine if all or portions of the fall in value will affect the financial result. Only
the portion of the fall in value that cannot be settled against the customer buffer will be charged to the result. In addition, the redu-
ced profit sharing or loss of the indexing fees may affect the financial result.
Other operations
The other companies in the Storebrand Group are not included in the sensitivity analysis, as there is little market risk in these areas.
The equity of these companies is invested with little or no allocation to high-risk assets, and the products do not entail a direct risk for
the company as a result of price fluctuations in the financial market.
Note 9: Liquidity risk
Liquidity risk is the risk that the company is unable to fulfil its obligations without incurring substantial additional expenses in the form
of reduced prices for assets that must be realised, or in the form of especially expensive financing.
For the insurance companies, the life insurance companies in particular, the insurance liabilities are long-term and the cash flows are
generally known long before they fall due. In addition, liquidity is required to handle payments related to operations, and there are
liquidity needs related to derivative contracts. The liquidity risk is handled by liquidity forecasts and the fact that portions of the invest-
ments are in very liquid securities, such as government bonds. The liquidity risk is considered low based on these measures.
Liquidity risk is one of the largest risk factors for the banking business, and the regulations stipulate requirements for liquidity mana-
gement and liquidity indicators. The guidelines for liquidity risk specify principles for liquidity management, and limits stipulated by
the Board for different minimum liquidity and financing indicators. In addition to this, an annual funding strategy and funding plan are
being drawn up that set out the overall limits for the bank’s funding activities.
Separate liquidity strategies have also been drawn up for other subsidiaries in accordance with the statutory requirements. These
strategies specify limits and measures for ensuring good liquidity and a minimum allocation to assets that can be sold at short notice.
The strategies define limits for allocations to various asset types and mean the companies have money market investments, bonds,
equities and other liquid investments that can be disposed of as required.
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.
114
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix UNDISCOUNTED CASH FLOWS FOR FINANCIAL LIABILITIES 1)
NOK million
0-6 months
7-12 months
2-3 years
4-5 years
5 years
cashflows
book value
Subordinated loan capital 2)
298
865
2,361
7,654
11,177
9,110
over
Total
Total
Loans and deposits from
credit institutions
Deposits from bank custo-
mers
Debt raised from issuance of
securities
Other current liabilities
Uncalled residual liabilities
Limited partnership
Unused credit lines lending
Lending commitments
Total financial liabilities
1,653
15,504
1,471
16,150
8,251
3,063
2,962
3
379
6
11,142
10,687
-2,357
53
1,653
1,653
15,506
15,506
20,649
16,209
21,322
16,209
8,251
3,063
2,962
2020
49,351
1,253
13,556
18,340
-2,357
80,143
63,127
Derivatives related to
funding 2020
Total financial liabilities 2019
Derivatives related to funding
2019
-149
40,150
-115
74
576
98
-209
13,930
9,395
968
-284
65,020
4
50,778
-50
-114
-181
5
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.
SPECIFICATION OF SUBORDINATED LOAN CAPITAL 1)
NOK million
Issuer
Perpetual subordinated loan capital 2)
Nominal value
Currency
Interest
Maturity
Book value
Storebrand Livsforsikring AS
1,100
NOK
Variable
2024
1,100
Dated subordinated loan capital
Storebrand Livsforsikring AS 3)
Storebrand Livsforsikring AS3)
Storebrand Livsforsikring AS 3)
Storebrand Livsforsikring AS 3)
Storebrand Livsforsikring AS
Storebrand Livsforsikring AS 3)
Storebrand Bank ASA
Storebrand Bank ASA
Total subordinated loans and hybrid tier
1 capital 2020
Total subordinated loans and hybrid tier 1 capital
2019
750
1,000
900
1,000
500
300
150
125
SEK
SEK
SEK
SEK
NOK
EUR
NOK
NOK
Variable
Variable
Variable
Variable
Variable
Fixed
Variable
Variable
2021
2022
2025
2024
2025
2023
2022
2025
789
1,044
938
1,045
499
3,420
150
125
9,110
8,925
1) Storebrand Bank ASA has issued hybrid tier 1 capital bonds/hybrid capital that is classified as equity. See the statement of changes in equity.
2) In the case of perpetual subordinated loans the cash flow is calculated through to the first call date.
3) The loans are subject to hedge accounting, see note 41
115
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix SPESIFICATION OF LOANS AND DEPOSITS FROM CREDIT INSTITUTIONS
NOK million
Call date
2020
2021
Total loans and deposits from credit institutions
SPECIFICATION OF SECURITIES ISSUED
NOK million
Call date
2020
2021
2022
2023
2024
2025
Total securities issued
Book value
2020
1,653
1,653
Book value
2020
1,637
6,011
4,766
4,997
3,239
20,649
2019
446
446
2019
3,769
4,916
6,023
4,021
18,729
The loan agreements and credit facilities contain covenants.
Covered bonds
For issued covered bonds, a regulatory requirement for over-collateralisation of 102 per cent and an over-collateralisation require-
ment of 109.5 per cent for bonds issued before 21 June 2017 apply.
Credit facilities
Storebrand ASA has an unused credit facility of EUR 240 million, expiration December 2024.
FINANCING ACTIVITIES - MOVEMENTS DURING THE YEAR
NOK million
Book value 1.1.20
Admission of new loans/liabilities
Repayment of loans/liabilities
Change in accrued interest
Translation differences
Change in value/amortisation
Book value 31.12.20
Subordinated
Liabilities to
Securities
loan capital
financial institutions
8,925
499
-872
8
566
-16
9,110
446
1,653
-446
1,653
issued
18,729
8,838
-7,048
132
-2
20,649
116
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 10: Credit risk
Storebrand is exposed to risk of losses as a result of counterparties not fulfilling their debt obligations. This risk also includes losses
on lending and losses related to the failure of counterparties to fulfil their financial derivative contracts.
The maximum limits for credit exposure to individual counterparties and for overall credit exposure to rating categories are set by the
Boards of the individual companies in the Group. Particular attention is paid to ensuring diversification of credit exposure in order to
avoid concentrating credit exposure on any particular debtors or sectors. Changes in the credit standing of debtors are monitored
and followed up. Thus far, the Group has used published credit ratings wherever possible, supplemented by the company’s own credit
evaluation.
Underlying investments in funds managed by Storebrand are included in the tables.
CREDIT RISK BY COUNTERPARTY
BONDS AND OTHER FIXED-INCOME SECURITIES AT FAIR VALUE
AAA
AA
A
BBB
NIG
Fair value
Fair value
Fair value
Fair value
Fair value
Not rated
Fair value
Total
Fair value
Category by issuer
or guarantor
NOK million
Government and
government
guaranteed bonds
Corporate bonds
Structured notes
26,568
22,782
12,787
6,127
236
31,945
13
39,723
29
12
18
5,650
6
Collateralised securities
7,639
233
Total interest bearing
securities stated by
rating
Bond funds not
managed by Storebrand
Non-interest bearing
securities managed by
Storebrand
56,989
19,147
32,182
39,776
5,675
1
1
39,622
106,228
35
7,883
153,769
20,847
2,379
176,995
156,639
Total 2020
Total 2019
56,989
47,403
19,147
22,073
32,182
25,805
39,776
27,505
5,675
734
1
5,832
INTEREST BEARING SECURITIES AT AMORTISED COST
Category of issuer or
guarantor
NOK million
Government and govern-
ment guaranteed bonds
Corporate bonds
Structured notes
Collateralised securities
Total 2020
Total 2019
AAA
AA
A
BBB
NIG
Not rated
Total
Fair value
Fair value
Fair value
Fair value
Fair value
Fair value
Fair value
11,327
17,552
1,602
30,481
37,016
14,637
11,750
172
26,559
24,952
3,092
21,855
24,947
44,411
117
19,441
19,441
12,905
15,130
9,005
24,135
29,056
85,728
9,177
1,602
125,562
122,312
3,028
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix COUNTERPARTIES
NOK million
Derivatives
Of which derivatives in
bond funds, managed by
Storebrand
Total derivatives excluding
derivatives in bond funds
2020
Total derivatives excluding
derivatives in bond funds
2019
Of which bank deposits in
bond funds, managed by
Storebrand
Total bank deposits
excluding bank deposits
in bond funds 2020
Total bank deposits
excluding bank deposits in
bond funds 2019
Loans to financial
institutions
AAA
AA
A
BBB
NIG
Fair value
Fair value
Fair value
Fair value
Fair value
Not rated
Fair value
Total
Fair value
4,788
5,963
114
134
24
11,024
477
570
1,047
4,311
5,393
114
134
24
9,977
Bank deposits 1)
50
3,057
3,671
1,625
10,717
46
1,452
53
6
6
578
124
50
3,626
9,265
124
303
3,716
6,466
108
10,594
71
32
5,313
14,569
1,504
13,064
103
280
1) of which tied-up bank deposit (tax
deduction account)
280
Rating classes based on Standard & Poor’s.
NIG = Non-investment grade.
INVESTMENTS SUBJECT TO NETTING AGREEMENTS/CSA
NOK million
fin. assets
fin. liabilites
liabilities
Booked value
Booked value
fin. assets/
Net booked
Collateral
"Cash
(+/-)"
Securities
Net
(+/-)
exposure
Investments subject to netting
agreements
Investments not subject to netting
agreements
Total 2020
Total 2019
9,909
68
9,977
5,313
964
9,076
5,741
-2
3,337
964
994
67
9,143
4,319
The Group has entered into framework agreements with all its counterparties to reduce the risk inherent in outstanding derivative
transactions. These regulate how collateral is to be pledged against changes in market values that are calculated on a daily basis,
among other things.
118
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS (FVO)
NOK million
Booke value maximum exposure for credit risk
Book value of related credit derivatives that reduce credit risk
Collateral
Net credit risk
This year's change in fair value due to change in credit risk
Accumulated change in fair value due to change in credit risk
Storebrand has none related credit derivatives or collateral
CREDIT RISK FOR THE LOAN PORTFOLIO
COMMITMENTS BY CUSTOMER GOUPS
Lending to
and receiva-
bles from
2020
185,382
185,382
10
-914
2019
163,766
163,766
-283
Total
Unimpaired
Impaired
Net defaulted
NOK million
customers
Guarantees
credit-lines
ments
ments
ments
write- downs
Unused
commit-
commit-
commit-
Individual
Sale and operation of
real estate
Other service providers
Wage-earners and
others
Others
Total
- Individual write-downs
+ Group write-downs
Total loans to and
receivables from
customers 2020 1)
Total loans to and
receivables from custo-
11,411
1
49,396
2,503
63,311
-38
-59
3,106
22
3,128
11,411
1
52,501
2,525
66,439
-38
-59
63,214
3,128
66,342
mers 2019 2)
60,659
1
3,155
63,815
1) 2020:
- Of which Storebrand
Bank
- Of which Storebrand
Livsforsikring
2) 2019:
- Of which Storebrand
31,780
31,435
3,063
34,843
64
31,500
22
44
66
66
73
50
15
70
1
71
71
52
71
17
commit-
ments
30
122
1
153
9
8
17
17
153
-28
97
104
15
105
-8
Bank
30,187
1
3,072
33,260
73
52
- Of which Storebrand
Livsforsikring
30,472
83
30,555
-20
-8
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.
119
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix The majority of the loans at Storebrand consist of home loans to retail market customers. The home loans are approved and admi-
nistered by Storebrand Bank, but a significant share of the loans have been transferred to Storebrand Livsforsikring as a part of the
investment portfolio. Storebrand Livsforsikring and SPP also have loans to companies as part of the investment portfolio. Storebrand
Bank’s corporate market segment has largely been discontinued.
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 retail market, most of the loans are secured by means of home mortgages. Customers are evaluated according to their capacity
and intent to repay the loan. In addition to their capacity to service debt, checks are conducted of customers in relation to policy rules
and they are given a credit rating.
The weighted average loan-to-value ratio for home loans is approximately 57 per cent. Over 97 per cent of home loans have a loan to
value ratio within 85 per cent and approximately 99.2 per cent are within a 100 per cent loan to value ratio. Approximately 56 per cent
of the home loans are within a 60 per cent LVR. The portfolio is considered to have a low credit risk.
TOTAL COMMITTMENTS BY REMAINING TERM
2020
2019
Loans to
and receiva-
bles from
Loans to
Total
and receiva-
Total
Unused
commit-
bles from
Unused
commit-
NOK million
customers
Guarantees
credit line
ments
customers
Guarantees
credit line
ments
Up to one month
1 - 3 months
4 months - 1 year
2 -5 years
More than 5 years
Total gross
commitments
9
553
2,060
10,267
50,423
63,312
2
32
172
609
2,311
12
586
2,232
10,876
52,734
20
259
806
10,639
48,995
5
23
121
758
2,248
25
282
928
11,397
51,243
3,128
66,440
60,719
1
3,155
63,875
Commitments are regarded as non-performing and loss exposed when a credit facility has been overdrawn for more than 90 days
and when an instalment loan has arrears older than 90 days and the amount is at least NOK 2000.
CREDIT RISKS BY CUSTOMER GROUPS
NOK million
commitments
write-downs
commit-ments
during the period
Gross non-
performing
Individual
performing
value changes
Net non-
Total recognised
Sale and operation of real estate
Wage-earners and others
Others
Total 2020
Total 2019
22
98
1
121
125
9
8
-21
-4
11
13
90
1
104
105
-3
-3
-1
In the case of default, Storebrand Bank ASA will sell the securities or repossess the properties if this is most suitable.
120
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix TOTAL ENGAGEMENT AMOUNT BY REMAINING TERM TO MATURITY
NOK million
Overdue 1-30 days
Overdue 31-60 days
Overdue 61-90 days
Overdue more than 90 days
Total
2020
2019
Loans to and
Loans to and
receivables
receivables
from
from
customers
customers
282
73
40
86
481
285
58
46
91
480
Note 11: Concentrations of risk
Most of the risk for the Storebrand Group relates to the guaranteed pension products in the life insurance companies. These risks
are consolidated in the Storebrand Livsforsikring Group, which includes Storebrand Livsforsikring AS and SPP Livförsäkring AB. Other
companies directly owned by Storebrand ASA that are exposed to significant risks are Storebrand Forsikring AS, Storebrand Helse-
forsikring AS, Storebrand Asset Management Group and Storebrand Bank Group.
For the life insurance businesses, the greatest risks are largely the same in Norway and Sweden. The financial market risk will depend
significantly on global circumstances that influence the investment portfolios in all businesses. The insurance risk may be different for
the various companies, and long life risk in particular can be influenced by universal trends.
Both the insurance business and the banking business are exposed to credit risk. The insurance business primarily has a credit risk
relating to bonds with significant geographical and industry-related diversification, while the bank is mostly exposed to direct loans for
residential property in Norway. There is no significant concentration risk across bonds and loans.
The financial market and investment risks are largely related to the customer portfolios in the life insurance business. The risk associ-
ated with a negative outcome in the financial market is described and quantified in Note 8, financial market risk. The banking business
has little direct exposure to types of risk other than credit.
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.
The risk from the P&C insurance and health insurance risk in Storebrand Skadeforsikring AS and Storebrand Helseforsikring AS has a
low correlation with the risk from the rest of the businesses in the Group.
In the asset management business, the principal risk is operational risk in the form of behaviour that can trigger claims and/or impact
on reputation. Since the asset management business is the principal manager of the insurance businesses, errors in asset manage-
ment could result in errors in the insurance businesses.
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.
121
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 12: Valuation of financial instruments and properties
The Group conducts a comprehensive process to ensure that financial instruments are valued as closely as possible to their market
value. Publicly listed financial instruments are valued on the basis of the official closing price on stock exchanges, supplied by Reuters
and Bloomberg. Fund units are generally valued at the updated official NAV prices when such prices exist. Bonds are generally valued
based on prices collected from Nordic bond pricing and Bloomberg. Bonds that are not regularly quoted will normally be valued using
recognised theoretical models. This principally applies to bonds denominated in Norwegian kroner. Discount rates composed of the
swap rates plus a credit premium are used as a basis for these types of valuations. The credit premium will most often be specific to
the issuer.
Unlisted derivatives, such as forward exchange contracts and interest rate and foreign exchange swaps, are also valued theoretically.
Money market rates, swap rates and exchange rates that form the basis for valuations are supplied by Reuters and Bloomberg. The
valuations of currency options and swaptions are provided by Markit.
The Group carries out continual checks to safeguard the quality of market data that has been collected from external sources. This
involves controlling and assessing the likelihood of unusual changes.
The Group categorises financial instruments valued at fair value on three different levels, which are described in more detail below.
The levels express the differing degrees of liquidity and different measurement methods used. The company has established valuati-
on models to gather information from a wide range of well-informed sources with a view to minimising the uncertainty of valuations.
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 observa-
ble 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.
Level 3: Financial instruments valued on the basis of information that is not observable in accordance with level 2
Equities classified as level 3 are primarily investments in unlisted/private companies as well as funds consisting of these. These include
investments in forestry, microfinance, infrastructure and property. Private equity is generally classified at this level through direct
investments or investments in funds. Private customer loans and funds consisting of these are also at level 3.
The types of mutual funds classified as level 3 are discussed in more detail below with a reference to the type of mutual fund and
the valuation method. Storebrand is of the opinion that the valuation method used represents a best estimate of the mutual fund’s
market value.
Equities
Forestry represents most of the value of the level 3 shares. An external valuation was carried out as at 31 December which forms the
basis for the valuation of the company’s investments. The valuation is based on models that include non-observable assumptions.
For alternative investments organised as limited liability companies, equity investments are valued based on the value-adjusted equity
reported by external sources when available.
In the case of private equity investments, the valuation is normally based on either the most recent transaction or a model in which a
company that is in continuous operation is assessed by comparing the key figures with groups of equivalent listed companies.
122
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix 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.
Loans to customers
The value of fixed-rate loans is determined by discounting the agreed cash flows over the remaining maturity by the current disco-
unt rate adjusted for market spread. The discount rate that is used is based on a swap interest rate (mid swap) with a maturity that
corresponds to the remaining lock-in period for the underlying loans. The market spread that is used on the balance sheet date is
determined by assessing the market conditions, market price and the associated swap interest rate. However, the fair value of loans
to corporate customers with margin loans is lower than the amortised cost because certain loans run with lower margins than they
would have done if they had been taken up as of the end of 2019. The value shortfall is calculated by discounting the difference bet-
ween the agreed margin and the current market price over the remaining duration.
Corporate bonds
Bonds are normally not priced at level 3, but if the loan is in default and a payment is expected, these are priced based on the expec-
ted payment. As at 31 December 2020, this was not a significant amount for Storebrand’s financial statements.
Investment properties
The investment properties primarily consist of office buildings located in Oslo and Stockholm and shopping centres in Southern Norway.
Office properties and shopping centres in Norway:
The required rate of return is of greatest importance when calculating the fair value for investment properties.
An individual required rate of return is determined for each property. The required rate of return is viewed in connection with the
related cash flow for the property. The knowledge available about the market’s required rate of return, including transactions and
appraisals, is used when determining the cash flow.
The required rate of return is divided into the following elements:
• Risk-free interest
• Risk premium, adjusted for:
•
•
•
•
•
•
•
Type of property
Location
Structural standard
Environmental standard
Duration of the contract
Quality of tenant
Other factors such as transactions and perception in the market, vacancy and general knowledge about the market and the
individual property.
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.
123
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
A long-term, time-weighted average of the annual observations is calculated in which the oldest observations are weighted with the
lowest importance. For non-contractual rent in the short-term, the current rental prices and market situation are used. For trading,
the forecast is based on the development of the shopping centre.
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 obtai-
ned for properties worth NOK 18.3 billion (85 per cent of the portfolio’s value as at 31 December 2020).
For quality control and updating of the internal model, external valuations shall be obtained each quarter from reputable appraisers
to verify the value that appears when using the internal model. When obtaining such valuations, the individual appraiser’s routines for
valuations, including collection of information, inspections etc., shall apply. External valuations shall be rotated in such a way that all
segments are regularly appraised. The task of valuing investment properties shall be rotated between reputable appraisers within a
reasonable time interval, and knowledge of the property must be taken into consideration. In the event of a discrepancy between the
valuation and value obtained using the internal model, the model shall be used as long as the discrepancy is within what is discretio-
narily considered to be best practice in the market. If there is a discrepancy of more than 5% between the internal and external valua-
tion, the discrepancy shall be reported and the grounds for this provided in the valuation memorandum/valuation item memorandum
that is presented to the Board of Storebrand Livsforsikring AS.
External valuations are obtained for properties in the Swedish business. Shopping centres and commercial premises are valued annu-
ally, while other wholly-owned property investments are valued on a quarterly basis.
VALUATION OF FINANCIAL INSTRUMENTS TO AMORTISED COST
NOK million
Financial assets
Loans to and due from financial
institutions
Loans to customers - corporate
Loans to customers - retail
Bonds held to maturity
Bonds classified as loans and
receivables
Total financial assets
31.12.2020
Total financial assets 31.12.2019
Financial liabilities
Debt raised by issuance of
securities
Loans and deposits from credit
institutions
Deposits from banking custo-
mers
Subordinated loan capital
Total financial liabilities
31.12.2020
Total financial liabilities
31.12.2019
Total finansielle forpliktelser
31.12.19
Level 1
Level 2
Level 3
Non-
Total
Total
Quoted
Observable
observable
Fair value
Book value
Fair value
Book value
prices
assumptions
assumptions
31.12.20
31.12.20
31.12.19
31.12.19
103
12
31,044
14,244
6,065
17,719
103
6,076
48,763
14,244
103
6,064
48,763
13,026
41
6,180
47,327
14,433
41
6,206
47,327
13,377
109,723
1,636
111,359
103,484
101,728
98,046
155,128
144,461
25,420
25,248
180,546
171,441
169,709
164,997
20,750
20,649
18,728
18,729
1,653
15,506
1,653
15,506
446
14,404
446
14,404
9,184
9,110
9,010
8,925
47,094
46,918
42,589
42,504
20,750
1,653
15,506
9,184
47,094
42,589
124
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix VALUATION OF FINANCIAL INSTRUMENTS AND PROPERTIES AT FAIR VALUE
NOK million
Assets:
Equities and units
- Equities
- Fund units
Total equities and fund units 31.12.20
Total equities and fund units 31.12.19
Loans to customers
- Loans to customers - corporate
- Loans to customers - retail
Total loans to customers 31.12.20
Total loans to customers 31.12.19
Bonds and other fixed-income securities
- Government bonds
- Corporate bonds
- Collateralised securities
- Bond funds
Total bonds and other fixed-income securities 31.12.20
Total bonds and other fixed-income securities 31.12.19
Derivatives:
- Equity derivatives
- Interest derivatives
- Currency derivatives
Total derivatives 31.12.20
- of which derivatives with a positive market value
- of which derivatives with a negative market value
Total derivatives 31.12.19
Properties:
Investment properties
Properties for own use
Total properties 31.12.20
Total properties 31.12.19
Level 1
Level 2
Level 3
Quoted
prices
Observable
assumptions
Non
observable
assumptions
Total
Fair value
31.12.20
Total
Fair value
31.12.19
907
9,360
10,266
9,548
7,665
722
8,387
7,125
318
9,196
9,514
5,505
32,117
1,609
33,726
30,790
32,332
198,497
230,830
7,665
722
8,387
34,634
62,043
7,051
73,267
176,995
5,659
3,353
9,012
9,977
-964
32,117
1,609
33,726
28,765
165,578
194,343
6,736
389
7,125
32,256
60,055
3,648
60,680
156,639
1
2,537
1,781
5,314
-995
4,319
29,415
1,375
30,790
31,285
160
31,446
28,205
140
188,977
189,117
156,591
18,675
61,724
7,051
63,916
151,367
140,316
5,659
3,353
9,012
9,977
-964
4,319
15,959
155
16,114
10,818
125
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix MOVEMENTS BETWEEN QUOTED PRICES AND OBSERVABLE ASSUMPTIONS
NOK million
Equities and fund units
From quoted prices to
From observable assumptions
observable assumptions
to quoted prices
7
95
Movements from level 1 to level 2 reflect reduced sales value in the relevant equities and bonds in the last measuring period.
On the other hand, movements from level 2 to level 1 indicate increased sales value in the relevant equities and bonds in the last
measuring period.
FINANCIAL INSTRUMENTS AND REAL ESTATE AT FAIR VALUE - LEVEL 3
NOK million
Book value 01.01.20
Net gains/losses on financial
instruments
Supply
Sales
Translation differences
Other
Equities
Fund units
customers
bonds
Bond funds
properties
for own use
Loans to
Corporrate
Investment
Properties
532
9,016
7,126
-117
511
-20
184
1,253
-1,334
241
-170
2,294
-1,570
707
15
308
-6
1
5,490
29,416
1,375
-287
3,798
-327
523
84
1,099
1,086
432
72
45
-2
115
4
Book value 31.12.20
907
9,360
8,387
318
9,196
32,117
1,609
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.
SENSITIVITY ASSESSMENTS
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 valuat-
ions. These utilise an estimated market-related required rate of return.
NOK million
Change in fair value per 31.12.20
Change in fair value per 31.12.19
Change in value at change in discount rate
Increase + 25 bp
Decrease - 25 bp
-12
-19
11
21
Fund units
Large portions of the portfolio are private equity funds invested in companies priced against comparable listed companies. The va-
luation 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.
126
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
NOK million
Change in fair value per 31.12.20
Change in fair value per 31.12.19
Change MSCI World
Increase + 10 %
Decrease - 10 %
430
413
-430
-413
The valuation of indirect property investments will be sensitive to a change in the required rate of return and the expected future cash
flow. Remaining indirect property investments are no longer leveraged.
NOK million
Change in fair value per 31.12.20
Change in fair value per 31.12.19
Change MSCI World
Increase + 10 %
Decrease - 10 %
1
1
-1
-1
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.
Loans from SPP Pension & Försäkring AB are appraised at fair value. The value of these loans is determined by future cash flows being
discounted by an associated swap curve adjusted for a customer-specific credit spread.
NOK million
Change in fair value per 31.12.20
Change in fair value per 31.12.19
Change in marketspread
+ 10 bp
-30
-29
- 10 bp
31
29
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 expec-
ted payment. As at 31 December 2020, this was not a significant amount for Storebrand’s accounts.
NOK million
Change in fair value per 31.12.20
Change in fair value per 31.12.19
Properties
The sensitivity assessment for properties includes investments properties.
Change MSCI World
Increase + 10 %
Decrease - 10 %
15
0
-15
0
The valuation of property is particularly sensitive to a change in the required rate of return and the expected future cash flow. A
change of 0.25 per cent in the required rate of return where everything else remains unchanged will result in a change in the value of
Storebrand’s property portfolio of approximately 5.0 per cent. In the order of 25 per cent of the property’s cash flow is linked to lease
agreements entered into. This means that the changes in the uncertain parts of the cash flow by 1 per cent will result in a change in
value of 0.75 per cent.
NOK million
Change in fair value per 31.12.20
Change in fair value per 31.12.19
Endring i avkastningskrav
0,25 %
-1,827
-1,560
-0,25 %
2,041
1,699
127
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 13: Solidity and capital management
The Storebrand Group is an insurance-dominated, cross-sectoral financial group with capital requirements in accordance with Solven-
cy II. Storebrand calculates Solvency II according to the standard method as defined in the Solvency II Regulations.
Consolidation is carried out in accordance with Section 18-2 of the Norwegian Act relating to Financial Undertakings and Financial
Groups. The solvency capital requirement and minimum capital requirement for the group are calculated in accordance with Section
46 (1)-(3) of the Solvency II Regulations using the standard method.
Capital management
Storebrand places particular emphasis on continually and systematically adapting the levels of equity in the Group. The level is adap-
ted to the financial risk and capital requirements in the business, where growth and the composition of segments are important mot-
ivating factors for the need for capital. The purpose of capital management is to ensure an efficient capital structure and provide for
an appropriate balance between in-house goals and regulatory and rating company requirements. If there is a need for new capital,
this is raised by the holding company Storebrand ASA, which is listed on the stock exchange and is the ultimate parent company.
The Storebrand companies are subject to various capital requirements depending on the type of business. In addition to the capital
requirements for the Storebrand Group and insurance companies, the banking and asset management businesses have capital requ-
irements in accordance with CRD IV. The companies in the group governed by CRD IV are included in the group’s solvency capital and
solvency capital requirements with their respective primary capital and capital requirements.
Storebrand has the goal of paying a dividend of more than 50% of the Group profit after tax. The Board has the ambition of ordi-
nary dividends per share being, at a minimum, at the same nominal level as the previous year. The normal dividend is paid with a
sustainable solvency margin of more than 150%. If there is a solvency margin of more than 180%, the Board’s intention is to propose
extraordinary dividends or share buy-backs. In general, equity in the Group can be controlled without material limitations if the capital
requirement is met and the respective legal entities have sufficient solvency.
SOLVENCY CAPITAL
NOK million
Share capital
Share premium
Reconciliation reserve
Including the effect of the transitional arrangement
Subordinated loans
Deferred tax assets
Risk equalisation reserve
Minority interests
Unavailable minority interests
Deductions for CRD IV subsidiaries
Expected dividend 2020
Total basic solvency capital
Subordinated capital for subsidiaries regulated in
accordance with CRD IV
Total solvency capital
Group 1
unlimited
2,339
10,521
31,851
4,815
-3,006
-1,519
40,186
Total
2,339
10,521
31,851
4,815
8,734
247
438
-3,006
-1,519
49,605
3,006
52,611
31.12.20
Group 1
limited
Group 2
Group 3
1,131
7,602
247
438
1,131
8,040
247
Total solvency capital available to cover the
minimum capital requirement
43,533
40,186
1,131
2,215
31.12.19
Total
2,339
10,521
27,169
7,651
268
466
57
-41
-2,970
-1,517
43,943
2,970
46,913
38,614
128
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
SOLVENCY CAPITAL REQUIREMENT AND -MARGIN
NOK million
Market risk
Counterparty risk
Life insurance risk
Health insurance risk
P&C insurance risk
Operational risk
Diversification
Loss-absorbing ability defferd tax
Total solvency capital requirement - insurance company
Capital requirements for subsidiaries regulated in accordance with CRD IV
Total solvency capital requirement
Solvency margin
Minimum capital requirement
Minimum margin
31.12.20
31.12.19
25,675
951
10,859
935
523
1,578
-7,948
-5,533
27,040
2,565
29,605
178%
11,074
393%
22,040
779
10,702
761
307
1,493
-7,207
-4,847
24,028
2,683
26,711
176%
9,788
394%
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.
CAPITAL AND CAPITAL REQUIREMENT IN ACCORDANCE WITH THE CONGLOMERATE DIRECTIVE
NOK million
Capital requirements for CRD IV companies
Solvency captial requirements for insurance
Total capital requirements
Net primary capital for companies included in the CRD IV report
Net primary capital for insurance
Total net primary capital
Overfulfilment
31.12.20
31.12.19
2,739
27,040
29,779
3,006
49,605
52,611
22,833
2,937
24,028
26,966
2,970
43,943
46,913
19,947
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.
129
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 14: Premium income
NOK million
Savings:
Unit Linked Storebrand Livsforsikring
Unit Linked SPP
Total savings
Of which premium reserve transferred to company
Insurance:
P&C & Individual life 1)
Group life 2)
Pension related disability insurance
Total insurance
Of which premium reserve transferred to company
Guaranteed pension:
Defined Benefit (fee based) Storebrand Livsforsikring
Paid-up policies Storebrand Livsforsikring
Traditional individual life and pension Storebrand Livsforsikring
SPP Guaranteed Products
Total guaranteed pension
Of which premium reserve transferred to company
Other:
Euroben
Total other
Total premium income
Of which premium reserve transferred to company
1) Individual life and disability, property and caualty insurance
2) Group life, workers comp. And health insurance
2020
18,216
15,085
33,302
13,116
2,238
835
1,407
4,479
88
2,744
134
236
3,270
6,384
2,232
23
23
44,188
15,437
2019
14,204
8,751
22,955
5,784
1,915
662
1,188
3,765
34
3,110
103
234
2,169
5,616
420
30
30
32,366
6,239
130
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 15: Net income analysed by class of financial instrument
Net gains and
Net
Dividend/
losses on
revaluation
interest
financial
on invest-
Of which
Total
2020
Company
Customer
Total 2019
14,654
22
14,632
37,358
ments
7,833
1,214
1,080
4,335
5,374
60
10,127
24,423
-13
-3
3,547
2,676
4,413
1,595
6,009
NOK million
income etc.
Profit on equities and fund units
Profit on bonds and other fixed-inco-
me securities at fair value
Profit on financial derivatives
Profit on loans
Total gains and losses on financial
assets at fair value
- of which FVO (fair value option)
- of which trading
Net income bonds to amortised cost
Net income loans
Total gains and losses on financial
assets at amortised cost
LOSSES FROM LOANS
NOK million
693
2,835
1,024
60
4,612
3,546
2,679
3,961
1,595
5,556
assets
6,128
286
3,270
9,684
13
452
452
Write-downs/income recognition for loans and guarantees for the period
Change in individual loan write-downs for the period
Change in grouped loan write-downs for the period
Other corrections to write-downs
Realised losses on loans where provisions have previously been made
Realised losses on loans where no provisions have previously been made
Recovery of loan losses realised previously
Write-downs/income recognition for loans and guarantees for the period
Note 16: Net income from properties
NOK million
Rent income from properties 1)
Operating expenses (including maintenance and repairs) relating to properties that have
provided rent income during the period 2)
Result minority defined as liabilities
Total
Change in fair value
Total income properties
1) Of which real estate for own use
2) Of which properties for own use
Allocation by company and customers:
Customer
Total income from properties
131
785
-397
37
447
163
-3
212
687
898
3,550
5,771
23
4,767
1,412
25
23,977
43,562
3,775
2,266
4,126
1,348
4,202
909
5,111
5,474
2020
2019
3
-27
-1
-2
-13
1
-37
2020
1,648
-393
-68
1,187
494
1,680
97
-42
1,680
1,680
1
16
-1
-21
1
-3
2019
1,556
-346
-59
1,151
713
1,864
82
-29
1,864
1,864
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 17: Other income
NOK million
Fee and commission income, banking
Net fee and commission income, banking
Management fees, asset management
Return commissions/Kick-back
Insurance related income
Revenue from companies other than banking and insurance
Other income
Total other income
Note 18: Insurance claims
NOK million
Savings:
Unit Linked Storebrand Livsforsikring
Unit Linked SPP
Total savings
Of which premium reserve transferred to company
Insurance:
P&C & Individual life 1)
Group life 2)
Pension related disability insurance
Total insurance
Of which premium reserve transferred to company
Guaranteed pension:
Defined Benefit (fee based) Storebrand Livsforsikring
Paid-up policies Storebrand Livsforsikring
Traditional individual life and pension Storebrand Livsforsikring
SPP Guaranteed Products
Total guaranteed pension
Of which premium reserve transferred to company
Other:
Euroben
Total other
Total insurance claims
Of which premium reserve transferred to company
1) Individual life and disability, property and caualty insurance
2) Group life, workers comp. And health insurance
The table below shows the anticipated compensation payments
132
2020
114
114
2,342
1,217
264
180
-8
4,109
2020
-6,805
-5,162
-11,968
-7,662
-1,459
-705
-202
-2,366
-50
-1,625
-6,420
-1,243
-5,462
-14,751
-440
-447
-447
-29,531
-8,152
2019
107
107
2,111
1,117
250
115
59
3,758
2019
-6,758
-3,732
-10,490
-6,020
-1,255
-715
-158
-2,128
-45
-1,218
-6,182
-1,368
-4,961
-13,729
-291
-409
-409
-26,756
-6,357
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix DEVELOPMENT IN EXPECTED INSURANCE CLAIM PAYMENTS - LIFE INSURANCE
NOK billion
0-1 year
1-3 years
> 3 years
Total
Storebrand Livsforsikring
13
27
272
312
SPP
7
14
192
213
Euroben
1
8
9
DEVELOPMENT IN INSURANCE CLAIM PAYMENT - P&C INSURANCE, EXLUSIVE RUN-OFF
NOK million
2015
2016
2017
2018
2019
2020
Total
Calculated gross cost of claims
At end of the policy year
- one year later
- two years later
- three years later
- four years later
- five years later
Calculated amount 31.12.20
Total disbursed to present
Claims reserve
Claims reserve for previous years
(before 2015)
Total claims reserve
685
687
661
648
641
635
618
16
793
774
750
741
736
707
29
797
764
756
745
760
749
744
825
814
998
704
41
686
59
711
103
670
328
4,096
575
13
588
The overview shows the development in the estimate for occurred insurance claims over time and the remaining claims reserve.
The overview also excludes the natural damage pool (Naturskadepool), Norwegian Motor Insurers’ Bureau (TFF), reinsurance and claims
settlement costs on all products.
Note 19: Change in capital buffer
NOK million
Change in market value adjustment reserve
Change in additional statutory reserves
Change in conditional bonuses
Total change in capital buffer
2020
-1,670
-2,434
-223
-4,327
2019
-3,255
-779
-1,858
-5,892
133
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 20: Operating expenses and number of employees
OPERATING EXPENSES
NOK million
Personnel expenses
Amortisation/write-downs
Other operating expenses
Total operating expenses
SPECIFICATION OF AMORTISATION/WRITE-DOWNS
NOK million
Amortisation/write-downs tangible fixed assets
Amortisation/write-downs right-of-use assets
Amortisation/write-downs IT systems
Amortisation/write-downs properties for own use
Total amortisation/write-down in income statement
(see note 28)
(see note 28)
(see note 27)
(see note 33)
NUMBER OF EMPLOYEES 1)
Number of employees 31.12
Average number of employees
Number of person-years 31.12
Average number of person-years
1) Including Storebrand Helseforsikring with 100 per cent.
2020
-2,320
-267
-2,328
-4,914
2020
-7
-135
-123
-2
-267
2020
1 824
1 789
1 802
1 767
2019
-2,281
-231
-2,316
-4,828
2019
-6
-131
-92
-2
-231
2019
1 759
1 774
1 739
1 753
Note 21: Pensions expenses and pension liabilities
Storebrand Group has country-specific pension schemes.
Storebrand’s employees in Norway have a defined-contribution pension scheme. In a defined-contribution scheme, the company allo-
cates an agreed contribution to a pension account. The future pension depends upon the amount of the contributions and the return
on the pension account. When the contributions have been paid, the company has no further payment obligations relating to the
defined-contribution pension and the payment to the pension account is charged as an expense on an ongoing basis. For regulatory
reasons, there can be no savings in the defined-contribution pension for salaries that exceed 12G (G = National Insurance Scheme
basic amount). Storebrand has pension savings in the savings product Extra Pension for employees with salaries exceeding 12G.
The premiums and content of the defined-contribution pension scheme are as follows:
- Saving starts from the first krone of salary.
- Savings rate of 7 per cent of salary from 0 to 12 G (the National Insurance basic amount ”G” was NOK 101,351 at
31 December 2020)
- In addition, 13 per cent of salary between 7.1 and 12 G is saved.
- Savings rate for salary over 12 G is 20 per cent.
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.
134
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Employees who were on sick leave and partiality disabled during the transition to the defined-contribution pension, remain in the
defined-benefit pension scheme. There are also pension liabilities for the defined-benefit scheme related to direct pensions for certain
former employees and former board members.
The pension plan for employees at SPP in Sweden follows the plan for bank employees in Sweden (BTP).
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 mor-
tality 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 pension in the BTP2 agreement (defined-benefit occupational pension that is a closed scheme) amounts to 10 per cent of the
annual salary up to 7.5 times the “basic income amount” (which was SEK 66,800 in 2020 and will be SEK 68.200 in 2021), 65 per cent of
salary in the interval from 7.5 to 20, and 32.5 per cent in the interval from 20 to 30. No retirement pension is paid for the portion of sa-
lary in excess of 30 times the ”basic income amount”. Full pension entitlement is reached after 30 years of membership in the pension
scheme. In addition to the defined-benefit part, the BTP plan has a smaller defined-contribution component. Here the employees can
decide themselves how assets are to be invested (traditional insurance or unit-linked insurance). The defined-contribution part is 2 per
cent of the annual salary.
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 addi-
tional pension with SPP. The premium for this insurance is 20 per cent of salary that exceeds 30 times the “basic income amount”.
RECONCILIATION OF PENSION ASSETS AND LIABILITIES IN THE STATEMENT OF FINANCIAL POSITION
NOK million
Present value of insured pension liabilities
Fair value of pension assets
Net pension liabilities/assets insured scheme
Present value of unsecured liabilities
Net pension liabilities recognised in statement of financial position
BOOKED IN STATEMENT OF FINANCIAL POSITION
NOK million
Pension assets
Pension liabilities
CHANGES IN THE NET DEFINED BENEFIT PENSION LIABILITIES IN THE PERIOD
NOK million
Net pension liabilities 01.01
Pensions earned in the period
Pension cost recognised in period
Estimate deviations
Gain/loss on insurance reductions
Pensions paid
Changes to pension scheme
Pension liabilities additions/disposals and currency adjustments
Net pension liabilities 31.12
135
2020
1,237
-1,082
155
196
351
2020
351
2020
1,259
15
21
79
-1
-51
111
1,433
2019
1,062
-994
68
196
264
2019
2
266
2019
1,231
13
25
84
2
-53
-4
-37
1,259
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix CHANGES IN THE FAIR VALUE OF PENSION ASSETS
NOK million
Pension assets at fair value 01.01
Expected return
Estimate deviation
Premiums paid
Pensions paid
Changes to pension scheme
Pension liabilities additions/disposals and currency adjustments
Net pension assets 31.12
Expected premium payments (pension assets) in 2021
Expected premium payments (contributions) in 2021
Expected AFP early retirement scheme payments in 2021
Expected payments from operations (uninsured scheme) in 2021
2019
914
18
87
32
-21
-4
-32
995
2020
995
16
-31
25
-30
107
1,082
21
165
15
49
PENSION ASSETS ARE BASED ON THE FINANCIAL ASSETS HELD BY STOREBRAND LIVSFORSIKRING/SPP COMPOSED AT 31.12:
NOK million
Real estate at fair value
Bonds at amortised cost
Loans at amortised cost
Equities and units at fair value
Bonds at fair value
Other short-term financial assets
Total
Storebrand Livsforsikring
SPP
2020
15 %
34 %
20 %
12 %
17 %
3 %
2019
13 %
36 %
13 %
15 %
20 %
1%
2020
12 %
18 %
13 %
57 %
2019
12 %
14 %
11%
63 %
100 %
100 %
100 %
100 %
The table shows the percentage asset allocation of pension assets at year-end managed by Storebrand Life Insurance.
Realised return on assets
4.4 %
3.6%
4.8 %
8.8 %
NET PENSION EXPENSES BOOKED TO PROFIT AND LOSS ACCOUNT, SPECIFIED AS FOLLOWS
NOK million
Current service cost
Net interest cost/expected return
Changes to pension scheme
Total for defined benefit schemes
The period's payment to contribution scheme
The period's payment to contractual pension
Net pension cost recognised in profit and loss account
in the period
2020
15
5
20
220
17
258
2019
13
7
3
23
188
17
229
136
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix OTHER COMPREHENSIVE INCOME (OCI) IN THE PERIOD
NOK million
Actuarial loss (gain) - change in discount rate
Actuarial loss (gain) - change in other financial assumptions
Actuarial loss (gain) - experience DBO
Loss (gain) - experience Assets
Investment management cost
Remeasurements loss (gain) in the period
MAIN ASSUMPTIONS USED WHEN CALCULATING NET PENSION LIABILITY 31.12
NOK million
Discount rate
Expected earnings growth
Expected annual increase in social security
pensions
Expected annual increase in pensions payment
Disability table
Mortality table
Storebrand Livsforsikring
2020
1.5 %
1.75 %
1.75 %
0.0 %
KU
2019
2.2 %
2.00 %
2.00 %
0.0 %
KU
2020
103
-11
-11
25
3
110
SPP
2020
1.2 %
3.5 %
2019
119
-25
-10
-99
12
-4
2019
1.5 %
3.5 %
2.0 %
2.0 %
K2013BE
K2013BE
DUS14
DUS14
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.
In Norway, a discount rate based on covered bonds is used. Based on the market and volume trends observed, the Norwegian cover-
ed bond market must be perceived as a deep market.
Specific company conditions including expected direct wage growth are taken into account when determining the financial
assumptions.
Actuarial assumptions:
In Norway standardised assumptions on rates of mortality and disability as well as other demographic factors are prepared by Finan-
ce 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.
The actuarial assumptions in Sweden follow the industry’s mutual mortality table DUS14 adjusted for corporate differences.
The average employee turnover rate is estimated to be 4 per cent p.a.
Sensitivity analysis pension calculations
Storebrand’s risk associated with the pension scheme relates to the changes in the financial and actuarial assumptions that must be
used in the calculations and the actual return on the pension funds. The pension liabilities are particularly sensitive to changes in the
discount rate. A reduction of the discount rate will in isolation entail an increase in pension liabilities.
For the Norwegian companies that have converted to defined contribution pensions as of 1 January 2015, the sensitivity has not been
calculated, and the figures below illustrate the sensitivity for the Swedish companies.
The following estimates are based on facts and circumstances as of 31 December 2020 and are calculated for each individual when all
other assumptions are kept constant.
137
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
SWEDEN
Percentage change in pension:
- Pension liabilities
- The period's net pension costs
Discount rate
earnings growth
in pensions payment
in pensions payment
Expected
Expected annual increase
Expected annual increase
1.0 %
-1.0 %
1.0 %
-1.0 %
1.0 %
+ 1 year
- 1 year
-10 %
-12 %
12 %
14 %
-2 %
6 %
-5 %
-5 %
0 %
0 %
0 %
0 %
3 %
1 %
-3 %
-1 %
Note 22: Remuneration to senior employees and elected officers of the company
NOK thousand
Senior employees
Odd Arild Grefstad
Lars Aa. Løddesøl
Geir Holmgren
Heidi Skaaret
Staffan Hansén
Jan Erik Saugestad
Karin Greve-Isdahl
Trygve Håkedal
Tove Selnes
Terje Løken
Total 2020
Total 201 9
Total
Post
remunera-
Pension
termination
Ordinary
Other
tion for
accrued for
salary
No. of
shares
salary 1)
benefits 2)
the year
the year
(months)
Loan 3)
owned 4)
7,373
5,690
4,835
4,865
6,346
6,293
2,955
3,255
2,945
3,255
209
225
225
188
23
158
64
65
183
159
7,582
5,914
5,060
5,054
6,369
6,450
3,019
3,321
3,128
3,414
47,812
49,621
1,498
1,639
49,311
51,260
1,451
1,107
933
934
1,654
1,227
544
604
538
604
9,598
9,180
24
18
12
12
12
12
12
12
12
12
6,166
194,520
10,800
120,564
6,531
3,135
85,072
94,788
83,561
1,200
100,554
18,598
8,282
7,435
6,981
69,128
78,150
20,962
16,135
21,955
16,502
754,613
568,954
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.
2) Comprises company car, telephone, insurance, concessionary interest rate, other taxable benefits.
3) Employees can borrow up to NOK 7.0 million at a subsidised interest rate, currently 1,19 per cent p.a.. Excess loan amounts will be subject to market terms.
4) The summary shows the number of shares owned by the individual, as well as his or her close family and companies where the individual exercises significant influence, cf. the Accounting Act, Section 7-26.
NOK thousand
Board of Directors
Didrik Munch
Laila Synnøve Dahlen
Martin Skancke
Karin Bing Orgland
Liv Sandbæk
Karl Sandlund
Marianne Bergmann Røren
Fredrik Åtting
Bodil Catherine Valvik
Hans-Petter Salvesen
Fredrik Törnquist
Magnus Gard
Total 2020
Total 2019
Remuneration
Loan
shares owned 1)
No. of
871
409
889
552
213
465
221
288
342
282
86
459
5,077
4,507
40,000
15,500
27,500
27,000
3,000
18,500,000
870
1,633
18,615,503
95,406
5,189
4,946
6,986
17,122
10,886
1) The summary shows the number of shares owned by the individual, as well as his or her close family and companies where the individual exercises significant influence, cf. the Accounting Act, Section 7-26.
Loans to Group employees totalled NOK 2.712 million.
138
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix 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.
For the 2021 Annual General Meeting, the Board of Directors of Storebrand ASA will present new Guidelines for the fixing of salaries
and other remuneration of executive personnel in accordance with the new provision in Section 6-16a of the Norwegian Public
Limited Liability Companies Act. Pursuant to the new provision in Section 6-16b of the Norwegian Public Limited Liability Companies
Act, a report on salaries and other remuneration to executive personnel will first be presented at the annual general meeting in 2022.
The guidelines and salaries report will replace the executive remuneration statement which was stipulated in the previous provision in
Section 6-16a.
Since no salaries report for 2020 will be presented at the 2021 general meeting, the Board of Directors has issued a limited statement
on the implementation of the executive employee remuneration policy that was carried out during the previous financial year, as well
as a statement on the effect of agreements for share-based remuneration.
The statement is as follows:
1. STATEMENT ON THE EXECUTIVE EMPLOYEE REMUNERATION POLICY DURING THE PREVIOUS FINANCIAL YEAR
The executive employee remuneration policy adopted for 2020 has been observed. The annual independent assessment of the guide-
lines and the practice of these guidelines in connection with bonuses to be paid in 2021 will be carried out by the end of 2021.
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 Store-
brand ASA.
The Board of Directors presents the following guidelines for the approval of the general meeting:
GUIDELINES FOR THE DETERMINATION OF REMUNERATION OF EXECUTIVE MANAGEMENT ETC.
These guidelines were stipulated by the Board of Directors of Storebrand ASA on 9 February 2021 in accordance with Section 6-16 (a)
of the Norwegian Public Limited Liability Companies Act.
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.
In a labour market characterised by strong competition for the most qualified employees, Storebrand shall have competitive, transpa-
rent and motivating salary principles that help attract, develop and retain employees.
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 compa-
risons with equivalent roles in other companies are made in order to ensure that the salary level is competitive.
Remuneration of executive management is governed by laws and regulations relating to remuneration schemes and does not include
variable remuneration. This ensures a high level of predictability and also ensures that total remuneration is financially sustainable for
the Group.
139
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
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 Store-
brand ASA.
The normative level of the desired equity exposure in relation to gross salary is a minimum of 200% for the CEO, 150% for the Chief
Financial Officer and for executive vice presidents who are responsible for the profit & loss units, and 100% for other executive vice
presidents. The share salary scheme was introduced in 2015. Until each member of executive management reaches the normative
level, salary increases will primarily be given for the share part. When the normative level has been reached, following an individual
assessment, a salary increase can also be given for the cash part.
As is the case with other Storebrand employees, executive management have the option to purchase a limited number of shares in
Storebrand ASA at a discount in accordance with the share programme for employees.
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 employ-
ment 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-contributi-
on 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.
4. The duration of agreements and schemes for executive management
Everyone in the Group’s executive management team has a six month period of notice.
The Group has a retirement age of 70 years. In accordance with the general rules, employees can access a pension from the age of
62. There are no fixed schemes for early retirement pensions at the Group, nor for executive management.
Executive management are entitled to severance pay if their contracts are terminated by the company. The right to severance pay
also applies if the employee decides to leave the Company due to substantial changes in the organisation, or equivalent circumstan-
ces, which result in the individual being unable to naturally continue in his/her position. The CEO is entitled to severance pay up to 24
months after the end of the notice period. Other members of the Group’s executive management team have equivalent severance
pay agreements for up to 12 to 18 months from their agreed resignation. New agreements entered into for executive vice presidents
will have a severance pay agreement for up to 12 months. The severance pay corresponds to the pensionable salary at the end of
employment, excluding any bonus schemes. The amount of any severance pay will be subject to assessment in accordance with the
individual agreement and the relevant remuneration regulations.
5. Comparison with remuneration of other employees
Storebrand’s overarching guidelines for financial remuneration for all employees are considered and approved by the Group’s Board
of Directors each year. Remuneration is principally based on a fixed salary and the salary level for the different roles is based on
assessments of the requirements for the various roles in terms of formal qualifications, experience, responsibility and complexity. The
salary levels for all roles in the Group, including the Group’s executive management, are calibrated in relation to the compensation for
equivalent positions in the market. Storebrand’s pension and insurance schemes are also the same for all employees at the company,
and the Group’s executive management team has no separate pension and insurance arrangements.
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
140
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix executive management’s gross salary is used for share purchases with a lock-in period of three years to ensure that their interests
coincide with the interests of the shareholders.
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 remunera-
tion 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.
The company’ strategy and objectives are of importance to the assessment of each individual’s total remuneration. Sustainability is an
important part of Storebrand’s business strategy. The goals each area of the Group has set for sustainability will therefore also be an
important part of the overall salary assessment.
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.
The Board of Directors determines remuneration to the CEO following a proposal from the Compensation Committee. The CEO deter-
mines the compensation for other members of executive management based on a process with the Compensation Committee as the
advisory body.
The Compensation Committee is responsible for keeping itself informed about and proposing guidelines for the determination of
remuneration of executive employees in the Group, including these guidelines, which are then adopted by the Board. The Compensa-
tion Committee also acts as an advisory body to the Chief Executive Officer with regard to remuneration schemes that encompass all
employees of the Storebrand Group, including Storebrand’s bonus and pension schemes. The Compensation Committee satisfies the
follow-up requirements stipulated in regulations relating to remuneration schemes.
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.
7. Employees who are board members
Employee-elected board members shall receive remuneration as board members that is determined by the general meeting in accor-
dance with a proposal from Storebrand ASA’s nomination committee.
8. Consideration at the general meeting
These guidelines shall be presented to the general meeting for consideration and approval in the event of any significant changes and
at least every fourth year.
Note 23: Remuneration paid to auditors
NOK million
Statutory audit
Other reporting duties
Tax advice
Other non-audit services
Total remuneration to auditors
2020
-11
-2
-1
-15
2019
-11
-2
-1
-1
-15
141
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Note 24: Other expenses
NOK million
Losses on claims, insurance
Management fees
Interest expenses Insurance
Other expenses
Total other expenses
Note 25: Interest expenses
NOK million
Interest expenses subordinated loans
Interest expenses financial institutions
Interest expenses deposits from banking customers
Interest expenses lease liabilities
Other interest expenses
Total interest expenses
Note 26: Tax
TAX EXPENSES ON ORDINARY PRE-TAX PROFIT
NOK million
Tax payable
Change in deferred tax
Total tax expenses on ordinary profit
RECONCILIATION OF TAX EXPENSES AGAINST ORDINARY PRE-TAX PROFIT
NOK million
Ordinary pre-tax profit
Expected income tax at nominal rate
Tax effect of
shares ("Fritaksmetoden")
share dividends received
associated companies
permanent differences
deferred tax on the increase in value of properties for customer assets 1)
deferred tax on the increase in value of properties for customer assets covered by
customer returns 1)
Changes from previous years 2)
Total tax charge
Effective tax rate 3)
142
2020
-128
-448
-138
-112
-826
2020
-364
-295
-85
-20
-30
-793
2020
-84
220
136
2020
2,219
-555
228
4
21
-566
566
437
136
-6%
2019
-267
-762
-157
-51
-1,238
2019
-355
-413
-99
-25
-35
-927
2019
-16
-495
-511
2019
2,593
-648
-64
32
3
68
-451
451
99
-511
20%
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix 1) Provisions are made for deferred tax on the increase in value during the ownership of real estate in SPP Fastigheter AB in accordance with IAS 12 and guiding principles for consolidation.
The real estate investments are made on behalf of the customer assets. Each real estate is owned by a separate investment company, and a sale of real estate itself would entail a tax expen-
se that will reduce the return on the customer assets and will not affect the income tax for SPP / Storebrand. The deferred tax is in the consolidated financial reporting recognised as a claim
on the customer funds and will not affect the income tax expense for SPP / Storebrand. Deferred tax relating to real estate investments in the customer assets is not netted against other
temporary differences in the balance sheet.
2) Based on new information and an interpretation of transitional rules from 2018, taxable accounting income of NOK 356 million was recognised for 2020.
3) The effective tax rate is influenced by the fact that the Group has operations in countries with tax rates that are different from Norway. The income tax expense is also influenced by tax
effects relating to previous years. The tax rate for companies in Norway is 22 per cent. For companies subject to financial tax is the tax rate 25 per cent. The Storebrand Group includes
companies that are both subject to and not subject to the financial tax. Therefore, when capitalising deferred tax/deferred tax assets in the consolidated financial statements, the company
tax rate that applies for the individual companies is used (22 or 25 per cent). The tax rate for companies in Sweden is 21.4 per cent.
TAX EXPENSES ON OTHER COMPREHENSIVE INCOME ELEMENTS
NOK million
Tax on other comprehensive income elements not to be reclassified to profit/loss
Total tax expenses on other comprehensive income elements
2020
15
15
2019
12
12
CALCULATION OF DEFERRED TAX ASSETS AND DEFERRED TAX ON TEMPORARY DIFFERENCES AND LOSSES CARRIED FORWARD
NOK million
Tax-increasing temporary differences
Securities
Properties 1)
Fixed assets
Gains/losses account
Other
Total tax-increasing temporary differences
Tax-reducing temporary differences
Securities
Fixed assets
Provisions
Accrued pension liabilities
Other
Total tax-reducing temporary differences
Carryforward losses
Net basis for deferred tax and tax assets
Net deferred tax assets/liabilities in balance sheet1), 2), 3), 4)
Recognised in balance sheet
Deferred tax assets
Deferred tax
4) Uncertain tax positions
2020
178
2,696
24
62
1,212
4,173
-27
-24
-36
-171
-259
-6,530
-2,616
-931
1,780
849
2019
283
2,126
8
78
1,377
3,872
-7
-22
-30
-166
753
527
-6,685
-2,287
-663
1,430
768
The tax rules for the insurance industry have undergone changes in recent years. In some cases, Storebrand and the Norwegian Tax Administration have had different interpretations of the
tax rules and associated transitional rules. As a result of this, uncertain tax positions arise in connection with the recognised tax expenses. Whether or not the uncertain tax positions have to
be recognised in the financial statements is assessed in accordance with IAS 12 and IFRIC 23. Uncertain tax positions will only be recognised in the financial statements if the company consi-
ders it to be preponderance that the Norwegian Tax Administration’s interpretation will be accepted in a court of law. Significant uncertain tax positions are described below.
A. In 2015, Storebrand Livsforsikring AS discontinued the Norwegian subsidiary, Storebrand Eiendom Holding AS, with a tax loss of approximately NOK 6.5 billion and a corresponding increa-
se in the tax loss carryforward. In January 2018, Storebrand Livsforsikring AS received notice of an adjustment to the tax returns for 2015 which claimed that the calculated loss was excessive
but provided no further quantification. Storebrand Livsforsikring AS disagrees with the arguments that were put forward and submitted its response to the Norwegian Tax Administration on
2 March 2018. The notice was unclear, but based on the notice, a provision was made in the 2017 annual financial statements for an uncertain tax position of approximately NOK 1.6 billion
143
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
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 Administra-
tion’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.
C. The outcome of the interpretation of tax rules for group contributions referred to above under (A) will have an impact when calculating the effect from the transitional rules for the new tax
rules referred to under point (B). An equivalent interpretation to that described under (A) has been used as a basis in the financial statements when calculating tax input values on property
shares owned by customer assets for 2016 and 2017. There is thus an uncertain tax position relating to the effect from the transitional rules described in (B). This effect will depend on the
interpretation and outcome of (A). If Storebrand’s position is accepted under (A), Storebrand will recognise a tax income of approximately NOK 0.8 billion. If the Norwegian Tax Administration
prevails with its argument under point (A), Storebrand will recognise a tax expense of approximately NOK 0.6 billion.
The timeline for the continued process with the Norwegian Tax Administration is unclear, but if necessary, Storebrand will seek clarification from the court of law for the aforementioned
uncertain tax positions.
Note 27: Intangible assets and fair value adjustments on purchased insurance
contracts
Intangible asset
IT systems
1,133
VIF 1)
9,574
Other
intangible
assets
1,727
NOK million
Acquisition cost 01.01,
Additions in the period
- Developed internally
- Purchased separately
- Purchased via acquistion/merger
Disposals in the period
Currency differences on converting
foreign units
Acquisition cost 31.12
Accumulated depreciation and wri-
te-downs 01.01
Write-downs in the period
Amortisation in the period 2)
Disposals in the period
Currency adjustment on converting
foreign units
Acc. depreciation and write-downs
31.12
Book value 31.12
105
200
-10
25
1,454
-590
-22
-100
7
-2
-708
746
14
71
1,811
-959
-120
1,028
10,602
-6,827
-372
-756
-70
Goodwill
2,467
2020
14,901
2019
14,604
105
200
14
-10
124
92
590
-69
85
2,552
1,209
16,419
-440
14,901
-305
-8,681
-8,498
-22
-592
7
-828
-35
-502
69
284
-8,681
6,220
-7,954
2,648
-1,149
662
-305
2,247
-10,116
6,303
1) Value of business-in-force, the difference between market value and book value of the insurance liabilities in SPP and Silver
144
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
SPECIFIACTION OF AMORTISATION OF INTANGILBE ASSETS
NOK million
Amortisation in the period - VIF
Amortisation in the period - other intangible assets
Total write-downs//amortisation of intangible assets in income statement
Write-downs/amortisation of IT-systems are booked as operating expenses
SPECIFICATION OF INTAGIBLE ASSETS
2020
-372
-120
-492
2019
-341
-104
-444
NOK million
IT systems
Value of business in force SPP
Value of business in force Silver
Customer lists Skagen
Customer lists Cubera
Customer lists SPP
Customer lists Insr
Customer contracts Cubera
Brand name Skagen
Database Cubera
Total
Useful economic life
Depr. rate
Depr. method
Book value 2020
5 years
20 years
10 years
10 years
7 years
10 years
5 years
5 years
10 years
3 years
20 %
5 %
10 %
10 %
14 %
10 %
20 %
20 %
10 %
33 %
Straight line
Straight line
Straight line
Straight line
Straight line
Straight line
Straight line
Straight line
Straight line
Straight line
746
2,451
197
278
170
1
13
90
102
8
4,056
GOODWILL DISTRIBUTED BY BUSINESS ACQUISITION
Acquisition cost
write-downs
Book value
disposals/
Book value
Accumulated
Supply/
NOK million
Business area
01.01
Delphi Fondsforvaltning
Storebrand Bank ASA
Savings
Other
SPP
SPP Fonder
Skagen
Cubera
Total
Guarant. pension/
Savings
Savings
Savings
Savings
35
422
750
48
1,007
206
2,469
Goodwill is not amortised, but is tested annually for impairment.
Intangible assets linked to the acquisition of SPP
01.01
-4
-300
-304
01.01
currency effect
31.12
32
122
750
48
1,007
206
2,165
32
122
831
49
1,007
206
2,247
81
1
82
In 2007, Storebrand Livsforsikring AS acquired SPP Pension & Försäkring AB and its subsidiaries (SPP). The majority of the intangible
assets linked to the acquisition of SPP include the value of business in force (VIF), for which liability adequacy tests are conducted in
accordance with the requirements in IFRS 4. To determine whether goodwill and other intangible assets linked to SPP have declined in
value, an estimate is made of the recoverable amount by calculating the entity specific value of the business. SPP is considered to be a
separate cash flow generating unit.
145
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
In calculating the utility value, the management have made use of budgets and forecasts approved by the Board for the next three
years (2021-2023). The management has made assessments for the period from 2024 to 2030, and the annual growth for each ele-
ment in the income statement has been estimated. When calculating the terminal value, a growth rate equivalent to observed inflation
of 0.5 per cent is used. This is lower than Riksbanken’s inflation target of 2.0 per cent, but is consistent with the risk-free interest rate
used in the required rate of return. The primary drivers of improved long-term results will be the return on total assets, underlying
inflation and wage growth in the market (which drive premium growth). In addition to cash flows from the forecasted result, the change
in expected regulatory tying-up of capital is also used in the valuation. The utility value is calculated using a required rate of return of
7.0 per cent. The required rate of return is calculated based on the risk-free interest rate and added to a premium that reflects the risk
of the business.
Calculations related to the future are uncertain. The value will be impacted by various growth parameters, expected return and the re-
quired rate of return used as a basis, etc. The aim of the calculations is to achieve a satisfactory level of certainty that the recoverable
amount, cf. IAS 36, is not lower than the value recognised in the accounts. Simulation using reasonable assumptions indicates a value
that justifies the book value.
Intangible assets linked to the banking business
When calculating the utility value for the banking business, a cash flow based assessment of value has been made using the expected
profit after taxes. Budgets and forecasts approved by the Board for the next three years (2021 to 2023) are used as the basis for the
valuation.
The cash flow is based on two elements, profit/loss to equity and change in expected regulatory tying-up of capital. It is also assumed
that all capital in addition to regulatory tied-up capital, can be withdrawn at the end of each period. The management has made as-
sessments for the period from 2024 to 2030, and the annual growth has been determined in the income statement. 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 4.5 per cent. The
required rate of return is calculated based on the risk-free interest rate and added to a premium that reflects the risk of the business.
There will be uncertainty related to the assumptions that have been made in the valuation. The value will be affected by the assump-
tions for the interest rate margin, expected losses on lending, growth parameters and capital requirements, as well as what required
rate of return is assumed, etc. It is noted that the aim of the calculations is to achieve a satisfactory level of certainty that the utility
value, cf. IAS 36, is not lower than the value recognised in the accounts. Simulations with reasonable and also conservative assumpti-
ons indicate a value that justifies the book value.
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 pro-
ducts, 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.
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 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.
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
146
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
of return. The utility value is calculated using a required rate of return after tax of 10 per cent.
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.
Intangible assets linked to the acquisition of Silver
Storebrand Livsforsikring AS acquired Silver Pensjonsforsikring AS (Silver) in 2018 and the company was merged with Storebrand Livs-
forsikring AS the same year. The intangible assets linked to the acquisition of Silver include the value of business in force (VIF), which
is included in Storebrand Livsforsikring’s liability adequacy test in accordance with the requirements in IFRS 4. To determine whether
intangible assets linked to Silver have declined in value, an estimate is made of the recoverable amount for the contracts in the acqui-
red business. The recoverable amount is determined by calculating the entity specific value of the business. Silver has been integrated
into Storebrand Livsforsikring’s business and is predominantly part of the savings segment. The assessment of the intangible assets is
done by estimating the value of the contracts that were purchased, despite these not being a separate cash-generating unit. The as-
sets under management and income margins are forecasted based on observable developments since the acquisition and expected
natural negative growth in the portfolio.
There are uncertainty related to the assumptions that have been made in the valuation. The value will be influenced by the assumpti-
ons regarding expected returns in the financial markets, costs, transfers, income development and the discount rate. The aim of the
estimation 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.
Note 28: Tangible fixed assets and lease agreements
NOK million
Book value 01.01
Additions
Disposals
Depreciation
Book value 31.12
Vehicles/ equipment
Real estate
2020
2019
48
19
-2
-7
59
1
1
2
49
20
-2
-7
60
43
12
-1
-6
49
For specifiaction of write-downs and depreciation, see note 20.
Depreciation plan and financial lifetime:
Vehicles/equipment
Fixtures & fittings
Properties
Straight line
3-10 years
3-8 years
15 years
147
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
SPECIFICATION OF TANGIBLE FIXED ASSETS AND LEASE AGREEMENTS IN BALANCE SHEET
NOK million
Tangible fixed assets
Right-of-use assets
Book value 31.12
Allocation by company and customers
Tangible fixed assets - company
Total tangilbe fixed assets and lease agremments
LEASE AGGREMENTS
2020
60
1,337
1,397
1,397
1,397
2019
49
1,026
1,075
1,075
1,075
The Group’s leased assets include offices and other real estate, IT equipment and other equipment. The Group’s right-of-use assets
are categorised and presented in the table below:
NOK million
Book value 01. 01
Additions
Disposals
Currency adjustment from converting
foreign units
Book value 31. 12
Accumulated write-downs/depreciations
01.01
Depreciation
Currency adjustment from converting
foreign units
Accumulated write-downs/depreciations
31.12
Booked value 31.12
Buildings
IT-equipment Other equipment
1,090
402
-1
28
1,519
-116
-113
7
-222
1,297
75
3
4
83
-23
-22
-44
39
2
2
-1
1
2020
1,167
406
-1
33
1,604
-139
-135
7
-267
1,337
2019
1,088
79
1,167
-132
-10
-141
1,026
Applied practical solutions
The Group also leases PCs, IT equipment and machinery with contract terms from 1 to 3 years. The Group has decided not to recog-
nise leases when the underlying asset has a low value and therefore does not recognise lease liabilities and right-of-use assets for any
of these leases. Instead, the lease payments are expensed as they are incurred. The Group also does not recognise lease liabilities
and right-of-use assets for short-term leases of less than 12 months.
148
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix NON-DISCOUNTED LEASE LIABILITIES
NOK million
Year 1
Year 2
Year 3
Year 4
Year 5
After 5 years
Total non-discounted lease liabilities 31. 12.
CHANGES IN LEASE LIABILITIES
NOK million
Upon initial adoption 01.01
New/changed lease liabilities recognised during the period
Payment of principal
Accrued interest
Exchange rate differences when converting foreign unit
Total lease liabilities 31. 12
OTHER LEASE EXPENSES INCLUDED IN THE INCOME STATEMENT
NOK million
Lease expenses for assets with low value
Total lease expenses included in operating expenses
2020
145
141
112
108
107
793
1,406
2020
1,037
404
-146
19
40
1,355
2020
-14
-14
2019
142
135
132
111
105
511
1,136
2019
1,080
87
-146
25
-10
1,037
2019
-10
-10
Note 29: Investments in other companies
Applies to subsidiaries with a significant minority, associated companies and joint ventures.
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 finan-
cial statements.
149
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
SPECIFICATION OF SUBSIDARIES WITH SUBSTANTIAL MINORITY (100% FIGURES)
NOK million
Assets
Liabilities
Equity - majority
Equity - minority
Ownership intereest - minority
Voting rights as a percentage of the total number of shares
Income
Result after tax
Total comprehensive income
20201)
Benco
2019
Benco
10,712
10,200
512
51
10
10
882
32
32
1) Benco is no longer a substantial minority as Storebrand Livsforsikring AS during 2020 has bought out the minority share.
SPECIFICATION OF ASSOCIATED COMPANIES AND JOINT VENTURES CLASSIFED AS SUBSTANTIAL (100% FIGURES)
NOK million
Accounting method
Type of operation
Type of interest
Current assets
Fixed assets
Short term liabilities
Long term liabilities
Cash and cash equivalents
Income
Result after tax
Total comprehensive income
Dividend paid
Storebrand Helseforsikring AS
Storebrand Helseforsikring AS
2020
2019
Equity-method
Insurance
Joint venture
Equity-method
Insurance
Joint venture
694
121
74
446
34
862
67
67
584
66
50
373
28
735
47
47
130
PROFIT AND OWNERSHIP INTERESTS IN ASSOCIATED COMPANIES AND JOINT VENTURES
NOK million
Associated companies
Inntre Holding AS
Storebrand Eiendomsfond Norge KS
Andre tilknyttede selskaper
Joint ventures
Försäkringsgirot AB
Ruseløkkveien 26 AS
Storebrand Helseforsikring AS
Total 2020
Booked in the statement of financial position
Investments in associated companies - company
Investments in associated companies - customers
Total 2020
Total 2019
Business location Ownership share
Profit
31.12
Book value
31.12
Steinkjær
Bærum
Stockholm
Oslo
Lysaker
34.3 %
26.2 %
25.0 %
50.0 %
50.0 %
150
18
236
1
333.3
34
621
52
569
621
379
127
3,694
3
5
2,471.8
147
6,449
283
6,167
6,449
4,272
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Note 30: Classification of financial assets and liabilities
Investments,
Liabilities at
Loans and
held to
Fair value,
Fair value,
Available for
amortised
receivables
maturity
held for sale
FVO
sale
cost
Total
NOK million
Financial assets
Bank deposits
Shares and fund units
Bonds and other fixed-income
13,065
securities
103,484
13,026
103
54,828
7,422
178,902
167,488
13,026
13,378
Loans to financial institutions
Loans to customers
Accounts receivable and other
short-term receivables
Derivatives
Total financial assets 2020
Total financial assets 2019
Financial liabilities
Subordinated loan capital
Loans and deposits from credit
institutions
Deposits from banking customers
Securities issued
Derivatives
Other current liabilities
Total financial liabilities 2020
Total financial liabilities 2019
230,830
176,995
8,386
73
416,284
358,166
13,065
230,830
293,506
103
63,214
7,422
9,977
618,116
544,287
9,110
9,110
1,653
15,506
20,649
15,389
62,308
50,831
1,653
15,506
20,649
964
16,209
64,091
51,772
78
78
10
808
808
9,903
9,903
5,256
887
11
898
932
151
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 31: Bonds at amortised cost
LOANS AND RECEIVABLES
NOK million
Government bonds
Corporate bonds
Structured notes
Collateralised securities
Total bonds at amortised cost
Distribution beween company and customers
Loans and receivables company
Loans and receivables customers with guarantee
Total
Storebrand Bank
Modified duration
Average effective yield
Storebrand Livsforsikring
Modified duration
Average effective yield
BONDS HELD TO MATURITY
NOK million
Corporate bonds
Total bonds at amortised cost
Distribution beween company and customers:
Bonds held to maturity - customers with guarantees
Total
Modifed duration
Average effective yield
2020
2019
Book value
Fair value
Book value
Fair value
26,249
66,944
8,699
1,592
29,261
73,488
9,177
1,602
103,484
113,529
10,639
92,846
103,484
1.6%
0.1
0.6%
6.6
1.7%
26,249
69,772
1,525
501
98,046
8,256
89,790
98,046
2.5%
27,964
71,750
1,510
504
101,728
0.1
1.9%
6.1
2.6%
2020
2019
Book value
Fair value
Book value
Fair value
13,026
13,026
13,026
13,026
1.0%
14,244
14,244
3.1
1.1%
13,377
13,377
13,377
13,377
2.1%
14,433
14,433
3.8
2.3%
A yield is calculated for each bond, based on both the paper’s book value and the observed market price (fair value). For fixed income
securities with no observed market prices the effective interest rate is calculated on the basis of of the fixed interest rate period and
classification of the individual security with respect to liquidity and credit risk. Calculated effective yields are weighted to give an avera-
ge effective yield on the basis of each security’s share of the total interest rate sensitivity.
152
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 32: Loans to customers
NOK million
Corporate market 1)
Retail market
Gross loans
Write-downs of loans losses
Net loans 2)
1) Of which Storebrand Bank
2) Of which Storebrand Bank
Of which Storebrand Livsforsikring
Allocation by company and customers:
Net loans to customers - company
net loans to customers - customers with guarantee
Total
NON-PERFORMING AND LOSS-EXPOSED LOANS
NOK million
Non-performing and loss-exposed loans without identified impairment
Non-performing and loss-exposed loans with identified impairment
Gross non-performing loans
Individual write-downs
Net non-performing loans 1)
1) The figures apply in their entirety Storebrand Bank
For further information about lending, see note 10 Credit risk.
2020
13,738
49,553
63,291
-77
63,214
21
31,780
31,434
31,780
31,434
63,214
2020
71
50
121
-17
104
2019
12,954
47,758
60,712
-53
60,658
23
30,187
30,472
30,187
30,471
60,658
2019
73
52
125
-20
105
153
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 33: Properties
Type of properties
NOK million
Office buildings (including parking and storage):
Oslo-Vika/Filipstad Brygge
Rest of Greater Oslo
Office buildings in Sweden
Shopping centres (including parking and storage)
Rest of Norway
Housing Sweden 2)
Car parks
Multi-storey car parks in Oslo
Other properties:
Cultural/conference centres Sweden 2)
Housing properties Sweden 2)
Hotel Sweden 2)
Service properties Sverige 2)
Properties under development Norway
Conference centres Norway
Total investment properties
Properties for own use
Total properties
Allocation by company and customers:
Properties - company
Properties - customers with guarantee
Properties - customers without guarantee
Total
31.12.20
Average
Required rate
duration of
31.12.20
31.12.19
of return % 1)
lease (years) 3)
m2
3,50 - 4,00
4,00 - 5,35
4.40
5,00 - 7,66
5.60
4.20
6.50
3.80
4.20
4.60
4.84
5.9
3.9
4.0
4.4
4.0
2.0
11.0
12.0
10.0
4.6
3.70
4.0
94,332
85,225
16,987
165,809
103,210
27,393
19,293
69,448
35,872
73,591
38,820
729,980
729,980
8,435
4,811
790
5,497
2,693
7,682
4,360
719
5,955
2,137
858
898
270
2,589
2,692
2,750
683
50
32,117
1,609
33,726
50
29,261
4,415
33,726
239
2,143
2,563
2,016
653
49
29,415
1,375
30,790
49
26,901
3,839
30,790
1) The properties are valued on the basis of the following effective required rate of return (included 2.0 per cent inflation)
2) All of the proporties in Sweden are appraised externally. The appraisal is based on the required rates of return in the market (including 2 per cent inflation)
3) The average duration of the leases is weighted based on the value of the individulal properties.
As of 31.12.20, Storebrand Livsforsikring had NOK 6 166 million invested in Storebrand Eiendomsfond Norge KS and Ruseløkkveien 26 AS,
Oslo.The investments are classified as “Investment in associated Ccmpanies and joint ventures” in the Consolidated Financial Statements.
Storebrand Eiendomsfond Norge KS and Ruseløkkveien 26 AS, Oslo invest exclusively in real estate at fair value.
Vacancy
Norway
The vacancy rate for lettable areas was 7.4 per cent (6.3 per cent) at the end of 2020.
The vacancy rate for areas that are not available for rent due to ongoing development projects is 78.6 per cent (57.2 per cent).
At the end of 2020, a total of 13.8 per cent (12.1 per cent) of the floor space in the investment properties was vacant
Sweden
At the end of 2020, the vacancy for investment properties was 0,4 per cent
Transactions::
Purchases: Further SEK 684 millions in property acquistions in SPP have been agreed on in 4th quarter 2020 in addtition to the figures
that have been finalised and included in the financial statements as of 31 December 2020.
Sale: No further property sales has been agreed on in Storebrand/SPP in addiition to the figures that has been finalised and included
in the financial statements as of 31 December 2020
154
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix PROPERTIES FOR OWN USE
NOK million
Book value 01.01
Additions
Revaluation booked in balance sheet
Depreciation
Write-ups due to write-downs in the period
Currency differences from converting foreign units
Other change
Book value 31.12
Acquisition cost opening balance
Acquisition cost closing balance
Accumulated depreciation and write-downs opening balance
Accumulated depreciation and write-downs closing balance
Allocation by company and customers:
Properties for own use - customers
Total
Depreciation method:
Depreciation plan and financial lifetime
2020
1,375
8
72
-14
13
108
48
1,609
551
559
-677
-692
1,609
1,609
Note 34: Accounts receivable and other short-term receivables
NOK million
Accounts receivable
Receivables in connection with direct insurance
Pre-paid expenses
Fee earned
Claims on insurance brokers
Client funds
Collateral
Accrued interest/pre-paid costs
Tax receivable
Activated sales costs (Swedish business)
Other current receivables
Book value 31.12
Allocation by company and customers:
Accounts receivable and other short-term receivables - company
Accounts receivable and other short-term receivables - customers
Total
155
2020
863
261
102
458
2,093
182
2,022
129
324
717
271
7,422
7,018
404
7,422
2019
1,420
6
-34
-13
11
-55
40
1,375
545
551
-664
-677
1,375
1,375
Straight line
50 years
2019
711
310
188
358
290
225
1,086
1,309
583
214
5,273
4,823
450
5,273
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix AGE DISTRIBUTION FOR ACCOUNTS RECEIVABLE 31.12 (GROSS)
NOK million
Receivables not fallen due
Past due 1 - 30 days
Past due 31 - 60 days
Past due 61 - 90 days
Past due > 90 days
Gross accounts receivable
Provisions for losses
Net accounts receivable
Note 35: Equities and fund units
NOK million
Equities
Private Equity fund investments
Fund units
Total equities and fund units
Allocation by company and customers:
Equities and fund units - company
Equities and fund units - customers with guarantee
Equities and fund units - customers without guarantee
Sum
Note 36: Bonds and other fixed-income securities
NOK million
Government bonds
Corporate bonds
Collateralised securities
Bond funds
Total bonds and other fixed-income securities
Allocation by company and customers:
Bonds and other fixed-income securities - company
Bonds and other fixed-income securities - customers with guarantee
Bonds and other fixed-income securities - customers without guarantee
Total
2020
858
6
1
865
-2
863
2020
Fair value
30,402
1,268
199,160
230,830
384
21,839
208,607
230,829
2020
Fair value
34,634
62,043
7,051
73,267
176,995
28,833
97,223
50,939
176,995
2019
685
27
4
1
5
721
-9
711
2019
Fair value
28,768
1,471
164,104
194,343
323
25,677
168,344
194,343
2019
Fair value
32,256
60,055
3,648
60,680
156,639
28,512
83,881
44,245
156,639
Modified duration
Average effective yield
Storebrand
Fair value
Life
SPP Pension
Storebrand
Storebrand
Storebrand
Insurance
& Insurance
Euroben
Bank
Insurance
6.2
1.6 %
5.9
0.9 %
4.2
0.8 %
0.1
0.5 %
0.3
0.7 %
ASA
0.3
0.7 %
The effective yield for each security is calculated using the observed market price. Calculated effective yields are weighted to give an avera-
ge 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.
156
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 37: Derivatives
Nominal volume
Financial derivatives are related to underlying amounts which are not recognised in the statement of financial position. In order to
quantify the scope of the derivatives, reference is made to amounts described as the underlying nominal principal, nominal volume,
etc. Nominal volume is arrived at differently for different classes of derivatives, and provides some indication of the size of the position
and risk the derivative presents.
Gross nominal volume principally indicates the size of the exposure, while net nominal volume provides some indication of the risk
exposure. However , nominal volume is not a measure which necessarily provides a comparison of the risk represented by different
types of derivatives. Unlike gross nominal volume, the calculation of net nominal volume also takes into account which direction of
market risk exposure the instrument represents by differentiating between long (asset) positions and short (liability) positions.
A long position in an equity derivative produces a gain in value if the share price increases. For interest rate derivatives, a long positi-
on 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.
Gross nominal
Gross booked value
Gross booked value
volume1)
246,363
189,359
NOK million
Interest derivatives
Currency derivatives
Total derivater 31.12.20
Total derivater 31.12.19
Distribution between company and customers:
Derivatives - company
Derivatives - customers with guarantee
Derivatives - customers without guarantee
Total
1) Values 31.12.
fin. assets
fin. liabilities
Net amount
6,364
3,613
9,977
5,313
705
260
964
994
5,659
3,353
9,012
4,319
1,275
5,753
1,984
9,012
Note 38: Technical insurance reserves - life insurance
SPECIFICATION OF BUFFER CAPITAL ITEMS CONSERNING LIFE INSURANCE
NOK million
Additional statutory reserves
Conditional bonus
Market value adjustment reserve
Total buffer capital
Guaranteed
pension
11,380
9,266
6,987
27,633
Total Store-
Total Store-
Euroben
brand Group
brand Group
Savings
Insurance *)
(other)
183
183
1,503
1,503
2020
11,380
10,769
7,170
29,319
2019
9,023
9,302
5,500
23,825
157
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix SPECIFICATION OF BALANCE SHEET ITEMS CONSERNING LIFE INSURANCE
NOK million
Premium reserve
- of which IBNS
Premium fund/deposit fund
Other technical reserves
- of which IBNS
Guaranteed
pension
248,572
2,221
1,550
Savings
Insurance *)
268,345
14
5,431
3,280
715
702
587
Total Store-
Total Store-
Euroben
brand Group
brand Group
(other)
9,367
11
2020
2019
531,715
473,375
5,526
2,266
702
587
4,813
2,016
649
607
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.
MARKET VALUE ADJUSTMENT RESERVE
NOK million
Equities
Interest-bearing
Total market value adjustment reserves at fair value
2020
3,102
4,069
7,170
2019
4,424
1,076
5,500
NOK million
pension
Savings
Insurance *)
(other)
2020
2019
Guaranteed
Total Store-
Total Store-
Euroben
brand Group
brand Group
Total insurance liabilities - life insurance
01.01
Premium income
Capital return
Insurance claims
Change in conditional bonuses
Fees
Change in IBNR/RBNS
Surplus to additional statutory reserve
Other changes
Total change in insurance liabilities in inco-
me statement
Yield tax
To additional statutory reserve
Change in premium fund
Other
Translation differences
Total insurance liabiliteis
- life insurance 31.12.
241,674
219,803
6,668
11,815
-14,949
-127
-1,488
54
-2,535
132
33,302
16,418
-11,922
-562
-501
6,216
2,812
224
-1,191
-882
402
148
-431
36,734
1,512
-70
135
105
553
8,156
-105
-10
11,923
-880
8,346
476,040
437,845
23
430
-447
164
-55
-2
114
-9
-10
925
42,804
28,887
-28,509
37
-2,988
456
-2,535
-224
31,216
45,705
-25,938
-1,778
-2,800
-7
-880
-794
37,929
44,725
-184
135
105
-347
229
-186
-166
21,004
-6,406
250,123
268,345
6,849
9,367
534,683
476,040
*) Including personal risk and employee insurance of the Insurance segment.
See note 39 for insurance liabilities - P&C.
158
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Note 39: Technical insurance reserves - P&C insurance
ASSETS AND LIABILITIES - P&C INSURANCE
NOK million
Reinsurance share of insurance technical reserves
Total assets
Premium reserve
Claims reserve
- of which IBNS
- of which administration reserve
Total liabilities
See note 38 for insurance liabilities - life insurance.
Note 40: Other current liabilities
NOK million
Accounts payable
Accrued expenses
Appropriations restructuring
Appropriations earnout
Other appropriations
Governmental fees and tax withholding
Collateral received derivates in cash
Liabilities in connection with direct insurance
Liabilities in connection with reinsurance
Liabilities to broker
Liabilities tax/tax appropriations
Minority SPP Fastighet KB
Other current liabilities
Book value 31.12
SPECIFICATION OF RESTRUCTURING RESERVES
NOK million
Book value 01.01
Increase in the period
Amount recognised against reserves in the period
Change due to currency
Book value 31.12
159
2020
56
56
695
650
620
30
1,345
2020
173
776
54
122
189
407
8,141
905
126
2,769
211
1,798
539
16,209
2020
57
27
-34
4
54
2019
26
26
537
594
566
28
1,131
2019
169
965
57
423
106
298
2,929
1,196
6
500
29
1,140
458
8,274
2019
38
50
-32
57
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 41 Hedge accounting
Fair value hedging of interest rate risk and cash flow hedging of foreign exchange risk
Storebrand uses fair value hedging for the interest rate risk. The hedged items are financial assets and liabilities measured at amorti-
sed 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.
Hedge effectiveness is monitored at an individual security level.
Storebrand uses cash flow hedging for the credit margin. The hedged items are liabilities measured at amortised cost. Derivatives
are recognised at fair value. The proportion of the profit or loss on the hedging instrument that is deemed to be effective hedging is
recognised in total comprehensive income. The proportion is subsequently reclassified to profit or loss in step with the hedged item’s
effect on earnings. Hedge effectiveness is 94 per cent per 31.12.20.
HEDGING INSTRUMENT/HEDGED ITEM
2020
Book value 1)
2019
Book value 1)
Recog-
nised of
compre-
Conract/
hensive
nominal
Recog-
nised of
compre-
hensive
Assets
Liabilities
Booked
income
1,101
3,420
284
141
-173
8
-2
-7
value
2,773
-2,238
-500
Assets Liabilities
Booked
income
1,070
3,243
493
-55
19
-9
-5
15
Contract/
nominal
value
2,557
-2,238
NOK million
Interest rate swaps
Subordinated loans
Debt raised through
issuance of securities
-284
1) Book values as at 31.12.
Hedging of net investment in Storebrand Holding AB
In 2020, Storebrand used cash flow hedging of the foreign exchange risk linked to Storebrand’s net investment in Storebrand Holding
AB. Three-month rolling currency derivatives were used, and the spot element of these was used as a hedging instrument. The effe-
ctive share of the hedging instruments is recognised in total comprehensive income. There is partial hedging of the net investment in
Storebrand Holding AS and it is therefore expected that the hedge effectiveness in the future will be about 100 per cent. Expenses of
NOK 868 million were recognised in total comprehensive income in connection with the hedging of Storebrand Holding AB, compared
with income of NOK 322 million in 2019.
HEDGING INSTRUMENT/HEDGED ITEM
2020
Book value 1)
2019
Book value 1)
Contract/
Conract/
nominal value
Assets
Liabilities
nominal value
Assets
Liabilities
-4,700
-3,650
27
3,815
-4,700
-3,650
27
3,426
10,045
9,045
NOK million
Currency derivatives
Loan used as hedging instrument
Underlying items
1) Book values at 31.12.
160
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Storebrand hedges an exposure in the reference interest rate EURIBOR 3M.
Storebrand hedges an exposure of EUR 300 million nominal value in EURIBOR 3M.
Storebrand follows market developments relating to the discontinuation of reference interest rates. New reference interest rates will
influence the management of customer portfolios, but the scope and efficiency will particularly depend on the future for NIBOR and
STIBOR
LIBOR for different currencies will be available until the end of 2021, but the transition to new “overnight interest rates” appears to be
progressing faster than first assumed. This may result in some of the “Panel banks” not providing data to maintain the LIBOR interest
rates until the end of 2021. This could make the LIBOR interest rates less attractive to use and the transition to new “overnight” refe-
rence interest rates” before the end of 2021 may be in all of the parties’ interests. The transition to new reference interest rates and
specification of “fallbacks” will be calculated by ISDA and published by Bloomberg. To ensure the wording of the agreements between
the market players, ISDA will release a “Protocol” at the end of Q1 2020 and it is expected that most market players will accede to the
“Protocol”. Storebrand Asset Management has the ambition of acceding to the “Protocol” on behalf of the life insurance companies in
the Group. NIBOR and STIBOR will not be immediately affected, and the administrator of these reference interest rates has an ambi-
tion of also continuing these beyond 2021. GBP LIBOR is expected to be replaced by SONIA (Sterling Overnight Index Average). USD
LIBOR is expected to be replaced by SOFR (Secured Overnight Financing Rate), and EUR LIBOR will be replaced by EUR ESTER. The
transfer to “overnight interest rates” for the major currencies may also influence the continuation of NIBOR. NIBOR will then be able to
be replaced with NOWA (Norwegian Overnight Weighted Average).
The derivative that hedges the EURIBOR 3M risk is a cross currency swap of EUR 300 million nominal value.
Note 42: Collateral
NOK million
Collateral for Derivatives trading
Collateral received in connection with Derivatives trading
Total received and pledged collateral
2020
3,380
-8,828
-5,448
2019
904
-3,939
-3,035
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 she-
et and classified as other receivables and other current liabilities in Notes 34 and 40 respectively.
.
NOK million
Book value of bonds pledged as collateral for the bank's lending from Norges Bank
Booked value of securities pledged as collateral in other financial institutions
Total
2020
1,703
151
1,854
2019
904
151
1,055
Securities pledged as collateral are linked to lending access in Norges Bank for which, pursuant to the regulations, the loans must be
fully guaranteed with collateral in interest-bearing securities and/or the bank’s deposits in Norges bank. Storebrand Bank ASA has four
161
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
F-loan in Norges Bank as per 31.12.2020.
Of total loans of NOK 31.5 billion, NOK 21,1 billion has been mortgaged in connection with the issuing of covered bonds (covered bond
rate) in Storebrand Boligkreditt AS.Loans in Storebrand Boligkreditt AS are security for covered bonds in the company, and these assets
have therefore been mortgaged through the bondholders’ pre-emptive rights to the security in the company.
Storebrand Boligkreditt AS has over-collateralisation (OC) of 16 per cent. The company must maintain the applicable OC that the rating
agency requires if the company wishes to retain the current AAA rating. This requirement was 9.13 per cent at the end of 2020. The statu-
tory OC is 2 per cent. Through commitments from previous prospectuses for covered bond issues, the company is obligated to maintain
OC of up to 9.5% until these securities mature. Storebrand Boligkreditt AS has security that is NOK 1.3 billion more than what the present
rating requires. Storebrand Bank ASA therefore considers the security to be adequate.
Note 43: Contingent liabilities
NOK million
Guarantees
Unused credit limit lending
Uncalled residual liabilities re limited partnership
Loan commitment retail market
Total contingent liabilities
2020
3,063
8,251
2,962
14,276
2019
1
3,072
7,297
1,466
11,837
Guarantees principally concern payment guarantees and contract guarantees.
Unused credit facilities concern granted and unused overdrafts and credit cards, as well as unused facility for credit loans secured by
property.
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.
Note 44: Securities lending and buy-back agreements
COVERED BONDS - STOREBRAND BANK GROUP
NOK million
2020
Transferred bonds still recognised on the statement of financial position
Liabilities related to the assets
2019
403
403
Transferred bonds that are included in buyback agreements (repos) are not derecognised, since all risk and return on the securities are
retained by Storebrand Bank ASA.
Note 45: Information related parties
Companies in the Storebrand Group have transactions with related parties who are shareholders in Storebrand ASA and senior employ-
ees. These are transactions that are part of the products and services offered by the Group‘s companies to their customers. The transa-
ctions are entered into on commercial terms and include occupational pensions, private pensions savings, P&C insurance, leasing of
premises, bank deposits, lending, asset management and fund saving. See note 22 for further information about senior employees.
Internal transactions between group companies are eliminated in the consolidated financial statements, with the exception of transactions
between the customer portfolio in Storebrand Livsforsikring AS and other units in the Group. See note 1 Accounting Policies for further
information.
For further information about close associates, see notes 29 and 40.162
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes 85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes 167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818. Governance9. Sustainability assurance10. Appendix STOREBRAND ASA
Income statement
NOK million
Operating income
Income from investments in subsidiaries
Net income and gains from financial instruments:
- equities and other units
- bonds and other fixed-income securities
- financial derivatives/other financial instruments
Other financial income
Operating income
Interest expenses
Other financial expenses
Operating expenses
Personnel expenses
Other operating expenses
Total operating expenses
Total expenses
Pre-tax profit
Tax
Profit for year
Note
2020
2
3
3
3
4, 5, 6
6
3,028
4
64
-3
1
3,095
-30
6
-40
-56
-96
-120
2,975
7
-171
2,804
Statement of total comprehensive income
NOK million
Profit for year
Other result elements not to be classified to profit/loss
Change in estimate deviation pension
Tax on other result elements
Total other result elements
Note
2020
2,804
5
-15
4
-11
2019
3,230
2
50
-6
1
3,278
-51
-40
-62
-102
-153
3,125
-173
2,952
2019
2,952
-8
2
-6
Total comprehensive income
2,793
2,946
163
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
STOREBRAND ASA
Statement of financial position
NOK million
Fixed assets
Deferred tax assets
Tangible fixed assets
Shares in subsidiaries and associated companies
Total fixed assets
Current assets
Owed within group
Other current receivables
Investments in trading portfolio:
- equities and other units
- bonds and other fixed-income securities
- financial derivatives/other financial instruments
Bank deposits
Total current assets
Total assets
Equity and liabilities
Share capital
Own shares
Share premium reserve
Total paid in equity
Other equity
Other equity
Non-current liabilities
Pension liabilities
Securities issued
Total non-current liabilities
Current liabilities
Debt within group
Provision for dividend
Other current liabilities
Total current liabilities
Total equity and liabilities
Note
31.12.20
31.12.19
7
13
8
44
27
20,893
20,964
41
27
20,042
20,110
16
3,139
3,166
9
10,12
11,12
12
5
12,14
16
15
57
4,894
61
8,166
29,130
2,339
-2
10,521
12,858
12,609
25,467
157
1,001
1,158
910
1,519
76
2,505
29,130
16
44
3,260
3
34
6,523
26,633
2,339
-5
10,521
12,856
9,794
22,650
154
1,309
1,463
900
1,517
103
2,520
26,633
Lysaker, 9 February 2021
Board of Directors of Storebrand ASA
Didrik Munch (sign.)
Chairman of the Board
Martin Skancke (sign.)
Karin Bing Orgland
Laila S. Dahlen (sign.)
Marianne Bergmann Røren (sign.)
Martin Skancke (sign.)
Karl Sandlund (sign.)
Fredrik Atting (sign.)
Magnus Gard (sign.)
Hans Petter Salvesen (sign.)
Bodil ChaterineValvik (sign.)
Odd Arild Grefstad (sign.)
Group Chief Executive Officer
164
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
STOREBRAND ASA
Statement of changes in equity
NOK million
Share capital 1)
Own shares
Share premium
Other equity
Total equity
Equity at 31. December 2018
2,339
-2
10,521
10,521
8,395
2,952
-6
2,946
21,253
2,952
-6
2,946
-1,514
-1,514
-63
36
-6
9,794
2,804
-11
2,793
1,517
-1,519
33
-10
-68
38
-6
22,650
2,804
-11
2,793
1,517
-1,519
36
-10
10,521
12,609
25,467
Profit for the period
Total other result elements
Total comprehensive income
Provision for dividend
Own share bought back 2)
Own share sold 2)
Employee share 2)
Equity at 31. December 2019
2,339
Profit for the period
Total other result elements
Total comprehensive income
Reversed dividend
Provision for dividend
Own share sold 2)
Employee share 2)
Equity at 31. December 2020
2,339
1) 467 813 982 shares with a nominal value of NOK 5.
2) In 2020, 526 935 shares were sold to our own employees.
Holding of own shares 31. December 2020 was 416 255.
-5
2
-5
3
-2
165
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix STOREBRAND ASA
Statement of cash flow
NOK million
Cash flow from operational activities
Net receipts/payments - securities at fair value
Payments relating to operations
Net receipts/payments - other operational activities
Net cash flow from operational activities
Cash flow from investment activities
Payments - purchase/capitalisation of subsidiaries
Net receipts/payments - sale/purchase of property and fixed assets
Net cash flow from investment activities
Cash flow from financing activities
Payments - repayments of loans
Receipts - new loans
Payments - interest on loans
Receipts - sold own shares to employees
Payments - buy own shares
Payments - dividends
Net cash flow from financing activities
Net cash flow for the period
Cash and cash equivalents at start of the period
Cash and cash equivalents at the end of the period
2020
-1,577
-112
3,163
1,473
-1,144
-1,144
-800
500
-30
26
-304
26
34
61
2019
-1,408
-128
4,157
2,621
-629
-1
-630
-500
1
-58
33
-68
-1,399
-1,991
0
34
34
166
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix STOREBRAND ASA
Notes to the financial statement
Note 1:
Note 2:
Note 3:
Note 4:
Note 5:
Note 6:
Note 7:
Note 8:
Note 9:
Accounting policies
Income from investments in subsidiaries
Net income for various classes of financial instruments
Personnel costs
Pensions costs and pension liabilities
Remuneration to the CEO and elected officers of the company
Tax
Parent company’s shares in subsidiaries and associated companies
Equities
Note 10:
Bonds and other fixed-income securities
Note 11:
Financial derivatives
Note 12:
Financial risks
Note 13:
Tangible fixed assets
Note 14:
Securities issued
Note 15:
Shareholders
Note 16:
Information about close associates
Note 17:
Number of employees/person-years
167
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 1: Accounting policies
Storebrand ASA is the holding company of the Storebrand Group. The Storebrand Group is engaged in life and P&C insurance, banking
and asset management, with insurance being the primary business. The financial statements of Storebrand ASA have accordingly been
prepared in accordance with the Norwegian Accounting Act, generally accepted accounting policies in Norway, and the Norwegian
Regulations relating to annual accounts for nonlife insurance companies. Storebrand ASA has used the simplified IFRS provisions in the
regulations for recognition and measurement.
Use of estimates and discretionary assumptions
In preparing the annual financial statements, Storebrand has made assumptions and used estimates that affect the reported value of
assets, liabilities, revenues, costs, as well as the information provided on contingent liabilities. Future events may cause these estimates
to change. Such changes will be recognised in the financial statements when there is a sufficient basis for using new estimates. The
most important estimates and assessments are related to the valuation of the company’s subsidiaries and the assumptions used for
pension calculations.
Classification and valuation policies
Assets intended for permanent ownership and use are classified as fixed assets, and assets and receivables due for payment within one
year are classified as current assets. Equivalent policies have been applied to liability items.
Profit and loss account and statement of financial position
Storebrand ASA is a holding company with subsidiaries in the fields of insurance, banking and asset management. The layout plan in
the Regulations relating to annual financial statements for nonlife insurance companies has not been used, a custom layout plan has
been used.
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 write-
downs. 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.
A prerequisite for recognition is that this is earned equity by a subsidiary. Otherwise, this is recognised as an equity transaction, which
means that the ownership interest in the subsidiary is reduced by dividends or group contributions.
Tangible fixed assets
Tangible fixed assets for own use are recognised at acquisition cost less accumulated depreciation. Write-downs are made if the book
value exceeds the recoverable amount of the asset.
Pension liabilities for company’s own employees
Storebrand ASA have defined-contribution pension, but have some pension obligation that are recorded as defined-benefit pension.
The defined-contribution pension scheme involves the company 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 company
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.
Tax
The tax cost in the profit and loss account consists of tax payable and changes in deferred tax. Deferred tax and deferred tax assets
are calculated on the differences between accounting and tax values of assets and liabilities. Deferred tax assets are recorded on the
balance sheet to the extent it is considered likely that the company will have sufficient taxable profit in the future to make use of the
tax asset. Deferred tax is applied directly against equity to the extent that it relates to items that are themselves directly applied against
equity.
168
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Currency
Current assets and liabilities are translated at the exchange rate on the balance sheet date. Shares held as fixed assets are translated at
the exchange rate on the date of acquisition.
Financial instruments
Equities and units
Equities and units are valued at fair value. For securities listed on an exchange or other regulated market, fair value is determined as the
bid price on the last trading day immediately prior to or on the balance sheet date.
Any repurchase of own shares is dealt with as an equity transaction, and own shares (treasury stock) are presented as a reduction in
equity.
Bonds and other fixed income securities
Bonds and other fixed income securities are included i the statement of financial position from such time the company becomes party
to the instrument’s contractual terms and conditions. Ordinary purchases and sales of financial instruments are recognised on the trans-
action date. When a financial asset or a financial liability is initially recognised in the financial statements, it is valued at fair value. Initial
recognition includes transaction costs directly related to the acquisition or issue of the financial asset/liability.
Financial assets are derecognised when the contractual right to the cash flows from the financial asset expires, or when the company
transfers the financial asset to another party in a transaction by which all, or virtually all, the risk and reward associated with ownership of
the asset is transferred.
Bonds and other fixed income securities are recognised at fair value.
Fair value is the amount for which an asset could be sold for, or a liability settled with, between knowledgeable, willing parties in an arm’s
length transaction. For financial assets that are listed on an exchange or other regulated market place, fair value is determined as the
bid price on the last trading day up to and including the balance sheet date, and in the case of an asset that is to be acquired or a liability
that is held, the offer price.
Financial derivatives
Financial derivatives are recognised at fair value. The fair value of such derivatives is classified as either an asset or a liability with changes
in fair value through profit or loss.
Bond funding
Bond loans are recorded at amortised cost using the effective interest rate method. The amortised cost includes the transaction costs on
the date of issue.
Note 2: Income from investments in subsidiaries
NOK million
Storebrand Livsforsikring AS
Storebrand Bank ASA
Storebrand Asset Management AS
Storebrand Forsikring AS
Storebrand Facilities AS
Storebrand Helseforsikring AS
Total
Group contribution from Storebrand ASA, see note 8
169
2020
2,222
80
620
105
1
3,028
2019
2,200
244
568
153
65
3,230
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 3: Net income for various classes of financial instruments
NOK million
income
on realisation
gain/loss
2020
2019
Dividend/
Net
interest
Net gain/loss
unrealised
Net income from equities and units
Net income from bonds and other fixed income securities
Net income from financial derivatives
Net income and gains from financial assets at fair value
– of which FVO (Fair Value Option)
– of which trading
72
72
72
2
2
2
Note 4: Personnel costs
NOK million
Ordinary wages and salaries
Employer's social security contributions
Personnel costs 1)
Other benefits
Total
1) See the spesification in note 5
4
64
-3
66
69
-3
4
-9
-3
-7
-5
-3
2020
-21
-5
-8
-6
-40
2
50
-6
47
52
-6
2019
-20
-6
-8
-6
-40
Note 5 : Pensions costs and pension liabilities
Storebrand Group has country-specific pension schemes.
Storebrand’s employees in Norway have a defined-contribution pension scheme. In a defined-contribution scheme, the company allocates
an agreed contribution to a pension account. The future pension depends upon the amount of the contributions and the return on the
pension account. When the contributions have been paid, the company has no further payment obligations relating to the defined-contri-
bution pension and the payment to the pension account is charged as an expense on an ongoing basis. For regulatory reasons, there can be
no savings in the defined-contribution pension for salaries that exceed 12G (G = National Insurance Scheme basic amount). Storebrand has
pension savings in the savings product Extra Pension for employees with salaries exceeding 12G.
The premiums and content of the defined-contribution pension scheme are as follows:
– Saving starts from the first krone of salary
– Savings rate of 7 per cent of salary from 0 to 12 G (the National Insurance basic amount “G” was NOK 101,351 as at 31 December 2020)
– In addition, 13 per cent of salary between 7.1 and 12 G is saved
– Savings rate for salary over 12 G is 20 per cent
The Norwegian companies participate in the Joint Scheme for Collective Agreement Pensions (AFP). The private AFP scheme provides a life-
long 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.
170
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
RECONSILIATION OF PENSION ASSETS AND LIABILITIES IN THE STATEMENT OF FINANCIAL POSITION
NOK million
Present value of insured pension benefit liabilities
Pension assets at fair value
Net pension liabilities/assets for the insured schemes
Present value of the uninsured pension liabilities
Net pension liabilities in the statement of financial position
CHANGES IN THE NET DEFINED BENEFITS PENSION LIABILITIES IN THE PERIOD
NOK million
Net pension liabilities 01.01
Interest on pension liabilities
Pension experience adjustments
Pensions paid
Net pension liabilities 31.12
CHANGES IN THE FAIR VALUE OF PENSION ASSETS
NOK million
Pension assets at fair value 01.01.
Pension experience adjustments
Net pension assets 31.12
2020
2
-7
-5
163
157
2020
161
3
15
-15
165
2020
7
7
2019
2
-7
-5
159
154
2019
168
4
8
-19
161
2019
7
-1
7
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
Properties and real estate
Bonds at amortised cost
Loan
Equities and units
Bonds
Other short term financial assets
Total
Booked returns on assets managed by Storebrand Livsforsikring were:
2020
15 %
34 %
20 %
12 %
17 %
3 %
100 %
4.4 %
2019
13 %
36 %
13 %
15 %
20 %
1%
100 %
3.6 %
171
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix NET PENSION COST BOOKED TO PROFIT AND LOSS ACCOUNTS IN THE PERIOD
NOK million
Net interest/expected return
Total for defined benefit schemes
The period's payment to contribution scheme
Net pension cost booked to profit and loss accounts in the period
OTHER COMPREHENSIVE INCOME (OCI) IN THE PERIOD
NOK million
Actuarial loss (gain) - change in discount rate
Actuarial loss (gain) - experience DBO
Loss (gain) - experience Assets
Remeasurements loss (gain) in the period
MAIN ASSUMPTIONS USED WHEN CALCULATING NET PENSION LIABILITY AS PER 31.12.
Economic assumptions :
Discount rate
Expected earnings growth
Expected annual increase in social security pension
Expected annual increase in pensions in payment
Disability table
Mortality table
2020
2019
3
3
4
8
2020
9
6
15
2020
1.5 %
1.75 %
1.75 %
0.0 %
KU
4
4
4
8
2019
8
1
8
2019
2.2 %
2.00 %
2.00 %
0.0 %
KU
K2013BE
K2013BE
Financial assumptions :
The financial assumptions have been determined on the basis of the regulations in IAS 19. Long-term assumptions such as future infla-
tion, real interest rates, real wage growth and adjustment of the basic amount are subject to a particularly high degree of uncertainty.
In Norway, a discount rate based on covered bonds is used. Based on the market and volume trends observed, the Norwegian covered
bond market must be perceived as a deep market.
Specific company conditions including expected direct wage growth are taken into account when determining the financial assumptions
.
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 insur-
ance companies and pension funds. Storebrand has used the mortality table K2013BE (best estimate) in the actuarial calculations at
31 December 2020.
172
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Note 6: Remuneration of the CEO and elected officers of the company
NOK thousand
Chief Executive Officer 1)
Salery
Other taxable benefits
Total remuneration
Pension costs 3)
Chairman of the Board
Board of Directors including the Chairman
Remuneration paid to auditors
Statutory audit
Other reporting duties
Tax advice
Other non-audit services
2020
7,373
209
7,582
1,451
871
5,077
1,083
818
226
50
2019
6,899
191
7,090
1,353
855
4,730
1,055
688
74
25
1) Odd Arild Grefstad is the CEO of Storebrand ASA and the amount stated in the note is the total remuneration from the Group. He has a guaranteed salary for 24 months after the
ordinary period of notice. All work-related income including consulting assignments will be deducted.
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.
3) Pension costs include accrual for the year. See also the description of the pension scheme in Note 5.
For further information on senior employees, the Board of Directors and the Board’s statement on fixing the salary and other remuneration of senior employees, see note 22 in the
Storebrand Group.
Note 7: Tax
The difference between the financial results and the tax basis for the year is provided below.
NOK million
Pre-tax profit
Dividend
Tax-free group contribution
Permanent differences
Change in temporary differences
Tax base for the year
TAX COST
NOK million
Payable tax group contribution
Change in deferred tax
Tax cost
173
2020
2,975
-30
-2,253
-30
13
675
2020
-169
-2
-171
2019
3,125
-219
-2,202
-21
-22
662
2019
-168
-5
-173
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
CALCULATION OF DEFERRED TAX ASSETS AND DEFERRED TAX ON TEMPORARY DIFFERENCES AND LOSSES
CARRIED FORWARD
NOK million
Tax increasing temporary differences
Other
Total tax increasing temporary differences
Tax reducing temporary differences
Securities
Operating assets
Accrued pension liabilities
Gains/losses account
Total tax reducing temporary differences
Net tax increasing/(reducing) temporary differences
Net deferred tax asset/liability in the statement of financial position
RECONCILIATION OF TAX COST AND ORDINARY PROFIT
NOK million
Pre-tax profit
Expected tax at nominal rate
Tax effect of:
'dividends received
'permanent differences
changes from previous year
Tax cost
Effective tax rate
2020
2019
1
1
-9
-1
-154
-2
-165
-165
41
2019
3,125
-781
55
551
3
-173
6 %
-18
-157
-2
-177
-177
44
2020
2,975
-744
8
567
-2
-171
6 %
174
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 8: Parent company’s shares in subsidiaries and associated companies
Forretnings-
Eierandel/
kontor
stemmeandel
2020
2019
Bokført verdi
Oslo
Oslo
Oslo
Oslo
Oslo
Oslo
Værdal
100%
100%
100%
100%
100%
50%
25%
14,813
2,493
2,637
843
25
78
4
14,303
2,493
2,746
394
25
78
4
20,893
20,042
NOK million
Subsidiaries
Storebrand Livsforsikring AS 1)
Storebrand Bank ASA
Storebrand Asset Management AS 2)
Storebrand Forsikring AS 3)
Storebrand Facilities AS
Jointly controlled/associated companies
Storebrand Helseforsikring AS
AS Værdalsbruket 4)
Total
1) Group contribution in 2020 of NOK 511 million as capital contribution.
3) Dividend of NOK 120 million was posted as a repayment of capital.
2) Group contribution in 2020 of NOK 229 million as capital contribution.
4) 74.9 per cent owned by Storebrand Livsforsikring AS.
Note 9: Equities
NOK million
Equities
Total equities
Note 10: Bonds and other fixed-income securities
NOK million
Bond funds
Total bonds and other fixed-income securities
Modified duration
Average effective yield
175
Fair value
2020
57
57
Fair value
2020
4,894
4,894
0.3
0.67%
2019
44
44
2019
3,260
3,260
0.5
2.10%
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Note 11: Financial derivatives
NOK million
Total derivatives 2020
Total derivatives 2019
Gross nominal
Gross booked value
Gross booked
volume 1)
fin. assets
fin. liabilities
Net
amount
600
11
7
3
Note 12: Financial risks
CREDIT RISK BY COUNTERPARTY
Bonds and other fixed-income securities at fair value
Category of issuer or guarantor
NOK million
Fair value
Fair value
Fair value
Fair value
AAA
AA
A
BBB
Not rated
Fair value
Total
Fair value
State and state guaranteed
Company bonds
Supranational organisations
Other
Total 2020
Total 2019
COUNTERPARTIES
NOK million
Bank deposits
37
1,179
278
1,494
121
224
496
721
173
1,984
693
1,984
383
693
29
2,554
A
Fair value
61
261
4,353
278
1
4,894
3,260
Total
61
The rating classes are based on Standard & Poors’s
Interest rate risk
Storebrand ASA has both interest-bearing securities and interest-bearing debt. A change in interest rates will have a limited effect on
the company’s equity.
176
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Liquidity risk
UNDISCOUNTED CASH FLOWS FOR FINANCIAL LIABILITIES
NOK million
0-6 months
7-12 months
2-3 years
4-5 years
Total value
Securities issued/bank loans
Total financial liabilities 2020
Total financial liabilities 2019
Derivatives related to funding 2019
7
7
517
5
7
7
323
-10
516
516
526
510
510
1,042
1,042
1 366
-6
Carrying
amount
1,001
1,001
1 309
-3
Storebrand ASA had as per 31 December 2020 liquid assets of NOK 4,9 billion.
Currency risk
Storebrand ASA has investments of SEK 51 million.
Note 13: Tangible fixed assets
EQUIPMENT, FIXTURES & FITTINGS
NOK million
Acquisition cost 01.01
Accumulated depreciation
Carrying amount 01.01
Additions
Disposals
Carrying amount 31.12
2020
2019
34
-7
27
-1
27
34
-7
26
1
27
2019
305
502
501
1,309
Property, plant and equipment mainly includes art that is not depreciated.
Note 14: Securities issued
NOK million
Bond loan 2014/2020 1)
Bond loan 2020/2025
Bond loan 2017/2020
Bond loan 2017/2022
Total bond and bank loans 2)
Interest rate
Currency
value
2020
Net nominal
Fixed
Variable
Variable
Variable
NOK
NOK
NOK
NOK
300
500
500
500
500
501
1,001
1) Loans with fixed rates are hedged by interest swaps, which are booked at fair value through profit and loss. Changes in values of loans that can be related to the hedged risk are included
in the carrying amount and included in the result.
2) Loans are booked at amortised cost and include earned not due interest.
Signed loan agreements and drawing facility have covenant requirements.
Storebrand ASA has an unused drawing facility of EUR 200 million, expiration december 2024.
177
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Ownership
interest
in %
11.0
7.2
6.1
4.0
3.0
2.9
2.8
2.3
2.2
2.2
2.1
2.0
2.0
1.6
1.4
1.4
1.4
1.3
1.1
1.0
57%
Note 15: Shareholders
THE 20 LARGEST SHAREHOLDERS
Folketrygdfondet
Allianz Global Investors
T Rowe Price Global Investments
EQT Fund Management
KLP
Vanguard Group
Handelsbanken Asset Management
M&G Investment Management
DNB Asset Management
Storebrand Asset Management
BlackRock
Varma
Danske Bank Asset Management
Highclere International Investors
Solbakken AS
Nordea Asset Management
HSBC Trinkaus & Burkhardt
Deka Investment
Dimensional Fund Advisors
BMO Global Asset Management (UK)
Foreign ownership of total shares
178
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix Note 16: Information about close associates
Senior employees
Odd Arild Grefstad
Lars Aa. Løddesøl
Geir Holmgren
Heidi Skaaret
Staffan Hansén
Jan Erik Saugestad
Karin Greve-Isdahl
Trygve Håkedal
Tove Selnes
Terje Løken
Board of Directors
Didrik Munch
Laila Synnøve Dahlen
Martin Skancke
Karin Bing Orgland
Karl Sandlund
Marianne Bergmann Røren
Fredrik Åtting
Bodil Catherine Valvik
Hans-Petter Salvesen
Magnus Gard
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.
TRANSACTIONS BETWEEN GROUP COMPANIES
NOK million
Profit and loss account items:
Group contributions and dividends from subsidiaries
Purchase and sale of services (net)
Statement of financial position items:
Due from group companies
Payable to group companies
Note 17: Number of employees/person-years
Number of employees
Number of full time equivalent positions
Average number of employees
179
2020
3,028
-47
3,139
910
2020
7
7
7
Number of
shares 1)
194,520
120,564
85,072
94,788
83,561
100,554
20,962
16,135
21,955
16,502
40,000
15,500
27,500
27,000
3,000
0
18,500,000
870
0
1,633
2019
3,230
-47
3,166
900
2019
6
6
7
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Storebrand ASA and the Storebrand Group
– Declaration by the members of the Board and
the CEO
On this date, the Board of Directors and the Chief Executive Officer have considered and approved the annual report and
annual financial statements for Storebrand ASA and the Storebrand Group for the 2020 financial year and as at 31 December
2020 (2020 Annual Report).
The consolidated financial statements have been prepared in accordance with the EU-approved International Financial Repor-
ting Standards (IFRS) and the associated interpretations, as well as the other disclosure obligations stipulated in the Norwe-
gian 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.
Lysaker, 9 February 2021
Board of Directors of Storebrand ASA
Didrik Munch (sign.)
Chairman of the Board
Karin Bing Orgland (sign.)
Laila S. Dahlen (sign.)
Marianne Bergmann Røren (sign.)
Martin Skancke (sign.)
Karl Sandlund (sign.)
Fredrik Åtting (sign.)
Magnus Gard (sign.)
Hans-Petter Salvesen (sign.)
Bodil Catherine Valvik (sign.)
Odd Arild Grefstad (sign.)
Chief Executive Officer
180
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Independent auditors report
To the General Meeting of Storebrand ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Storebrand ASA, which comprise:
• The financial statements of the parent company Storebrand ASA (the Company), which
comprise the statement of financial position as at 31 December 2020, the income statement,
statement of total comprehensive income, statement of changes in equity and statement of
cash flow for the year then ended, and notes to the financial statements, including a summary
of significant accounting policies, and
• The consolidated financial statements of Storebrand ASA and its subsidiaries (the Group),
which comprise the statement of financial position as at 31 December 2020, the income
statement, statement of comprehensive income, statement of changes in equity and statement
of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies.
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.
• The accompanying consolidated financial statements give a true and fair view of the financial
position of the Group as at 31 December 2020, and its financial performance and its cash flows
for the year then ended in accordance with International Financial Reporting Standards as
adopted by the EU.
Basis for Opinion
We conducted our audit in accordance with laws, regulations, and auditing standards and practices
generally accepted in Norway, including International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company and the
Group as required by laws and regulations, and we have fulfilled our other ethical responsibilities in
PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo
T: 02316, org. no.: 987 009 713 VAT, www.pwc.no
State authorised public accountants, members of The Norwegian Institute of Public Accountants, and
authorised accounting firm
181
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
To the General Meeting of Storebrand ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Storebrand ASA, which comprise:
• The financial statements of the parent company Storebrand ASA (the Company), which
comprise the statement of financial position as at 31 December 2020, the income statement,
statement of total comprehensive income, statement of changes in equity and statement of
cash flow for the year then ended, and notes to the financial statements, including a summary
of significant accounting policies, and
• The consolidated financial statements of Storebrand ASA and its subsidiaries (the Group),
which comprise the statement of financial position as at 31 December 2020, the income
statement, statement of comprehensive income, statement of changes in equity and statement
of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies.
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.
• The accompanying consolidated financial statements give a true and fair view of the financial
position of the Group as at 31 December 2020, and its financial performance and its cash flows
for the year then ended in accordance with International Financial Reporting Standards as
adopted by the EU.
Basis for Opinion
We conducted our audit in accordance with laws, regulations, and auditing standards and practices
generally accepted in Norway, including International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company and the
Group as required by laws and regulations, and we have fulfilled our other ethical responsibilities in
PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo
T: 02316, org. no.: 987 009 713 VAT, www.pwc.no
State authorised public accountants, members of The Norwegian Institute of Public Accountants, and
authorised accounting firm
Independent Auditor's Report - Storebrand ASA
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
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.
The group’s activities are largely unchanged compared to last year. We have not identified regulatory
changes, transactions or other material events that qualified as new key audit matters for our audit of
the 2020 financial statements.
Key Audit Matter
How our audit addressed the Key Audit Matter
Valuation of life insurance liabilities
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.
In our audit we have considered and tested the design
and effectiveness of established controls for review of
used assumptions and calculation methods, including
the company’s internal recalculations of the insurance
liabilities. We also examined whether management had
established effective controls that ensured good data
quality for the calculation of the insurance liabilities.
This included controls related to data collection, data
processing, reconciliation of the insurance systems and
IT General Controls relevant for financial reporting.
Those controls we elected to base our audit on, was
working efficiently.
We also performed independent calculations for a
selection of insurance obligations using our internal
actuarial models and compared these with the
company’s calculations. We used our internal actuaries
for this work. The comparison did not indicate any
deviations of significance.
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.
182
(2)
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Independent Auditor's Report - Storebrand ASA
Valuation of investment properties
The Group has investment properties that
mainly consists of office and retail
properties. We have focused on
investment property because it represents
an estimate and a substantial part of the
assets in the Group’s statement of
financial position.
These properties are measured at fair
value and classified in level 3 according to
IFRS 13. Valuation of the properties
involves use of assumptions which are
subject to management judgement.
Important assumptions for the value of
individual properties are primarily
expected future cash flows and discount
rate.
The basis for management’s estimate is
an internal valuation model and external
valuations. Management obtain
observations of market data from various
market participants. Management
considers reasonableness of their own
estimates through obtaining valuations
from external valuers for a sample of
properties on a continuing basis. The
valuers were engaged by management.
Refer to note 1, 2, 12 and 33 in the
financial statements for management’s
further description of investment
properties, the methods used and the
assumptions the valuations are based on.
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.
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.
In our assessment of the valuation, we challenged the
assumptions for expected future cash flows and
discount rate by comparing a sample of properties
against information from relevant external sources.
Substantial changes in value from previous periods was
subject to discussions with management. We concluded
that assumptions were consistent with information
from relevant sources and that explanations regarding
substantial changes in value were based on changes in
the information from relevant sources.
We also assessed the qualifications, competence and
objectivity of the external valuers. We reviewed the
engagement letters with the valuers to assess whether
there were any clauses or fee provisions that may have
affected their objectivity or in any other way limited
their engagement. We did not find any indications of
such circumstances.
We compared the internal valuations against the
valuers estimates on values for a sample of properties.
We challenged management on substantial deviations
and obtained explanations on deviations. We assessed
management’s explanations as reasonable.
We also assessed and came to the conclusion that the
information about investment properties in the notes to
the financial statements were in accordance with the
accounting principles and provides an adequate
183
(3)
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Independent Auditor's Report - Storebrand ASA
Independent Auditor's Report - Storebrand ASA
Valuation of investment properties
The Group has investment properties that
Through our audit we have assessed and tested design
mainly consists of office and retail
properties. We have focused on
and effectiveness of established controls for review of
applied assumptions and calculation methods,
investment property because it represents
including the company’s internal valuation of
an estimate and a substantial part of the
investment properties. We particularly examined
assets in the Group’s statement of
whether management had established controls to
financial position.
These properties are measured at fair
value and classified in level 3 according to
IFRS 13. Valuation of the properties
involves use of assumptions which are
subject to management judgement.
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.
Important assumptions for the value of
We obtained, read through and understood the internal
individual properties are primarily
valuation model. We concluded that the model contains
expected future cash flows and discount
the elements required by the financial reporting
rate.
The basis for management’s estimate is
an internal valuation model and external
valuations. Management obtain
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.
observations of market data from various
In our assessment of the valuation, we challenged the
market participants. Management
assumptions for expected future cash flows and
considers reasonableness of their own
discount rate by comparing a sample of properties
estimates through obtaining valuations
against information from relevant external sources.
from external valuers for a sample of
Substantial changes in value from previous periods was
properties on a continuing basis. The
valuers were engaged by management.
Refer to note 1, 2, 12 and 33 in the
financial statements for management’s
further description of investment
subject to discussions with management. We concluded
that assumptions were consistent with information
from relevant sources and that explanations regarding
substantial changes in value were based on changes in
the information from relevant sources.
properties, the methods used and the
assumptions the valuations are based on.
We also assessed the qualifications, competence and
objectivity of the external valuers. We reviewed the
engagement letters with the valuers to assess whether
there were any clauses or fee provisions that may have
affected their objectivity or in any other way limited
their engagement. We did not find any indications of
such circumstances.
We compared the internal valuations against the
valuers estimates on values for a sample of properties.
We challenged management on substantial deviations
and obtained explanations on deviations. We assessed
management’s explanations as reasonable.
We also assessed and came to the conclusion that the
information about investment properties in the notes to
the financial statements were in accordance with the
accounting principles and provides an adequate
Valuation of financial assets measured at
fair value
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.
Most of the financial assets that are
measured at fair value is based on quoted
prices in active markets (level 1
investments), or derived from observable
market information (level 2 investments).
Routines and processes that ensures an
accurate basis for the valuation is
important for these assets.
For financial assets that is measured
based on models and certain assumptions
that is not observable (level 3
investments), we focused on assessing
both the models and the assumptions
underlying the valuation.
Refer to note 1, 2 and 12 in the financial
statements for a further description of
management’s valuation of financial
assets measured at fair value.
New tax rules and uncertain tax
positions
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.
description of the method and the underlying
assumptions that is used for the valuation.
In our audit we considered design and tested
effectiveness of Storebrand’s established controls over
valuation of financial assets measured at fair value.
Particularly we focused on those controls that ensured
complete and accurate use of quoted market prices and
other observable masterdata, return on investments
controls and IT General Controls relevant for financial
reporting. In our opinion, the controls that we have
chosen to base our audit on are working effectively.
For financial assets measured through use of models
and assumptions that are not observable, we assessed
valuation principles, the models and assumptions that
were used. We found that the models and assumptions
were reasonable and used consistently.
For a sample of investments, we also tested that fair
value was in accordance with external valuations. We
considered the reliability of the sources of information,
when relevant. Our tests did not reveal substantial
deviations.
We also assessed and found that the information in the
notes regarding the Group’s valuation principles and
fair value determination were sufficient and adequate.
We have reviewed and challenged management
assessment of the uncertain tax positions. Management
obtained external legal opinions as a basis for their
conclusions. We evaluated the competence, integrity
and objectivity of the external legal advisors. We
evaluated the external legal opinions, and whether the
arguments used by the legal advisors are reasonable
and that the considerations were neutral.
We also assessed the information regarding the
uncertain tax positions in the financial statements. We
found that the information meets the requirements in
the accounting standards.
(3)
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Independent Auditor's Report - Storebrand ASA
Other information
Management is responsible for the other information. The other information comprises information in
the annual report, except the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Board of Directors and the Managing Director for the
Financial Statements
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.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern. The financial statements of the Company use the going concern basis of accounting insofar as
it is not likely that the enterprise will cease operations. The consolidated financial statements of the
Group use the going concern basis of accounting unless management either intends to liquidate the
Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
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:
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Independent Auditor's Report - Storebrand ASA
•
identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error. We design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's or the Group's internal control.
•
•
•
•
evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company and the Group's ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Company and the Group to cease to continue as a going concern.
evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves a true and fair view.
obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide the Board of Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818.Governance9.Sustainability assurance10.Appendix
Independent Auditor's Report - Storebrand ASA
Report on Other Legal and Regulatory Requirements
Opinion on the Board of Directors’ report
Based on our audit of the financial statements as described above, it is our opinion that the
information presented in the Board of Directors’ report and in the statements on Corporate
Governance and Corporate Social Responsibility concerning the financial statements, the going
concern assumption and the proposed allocation of the result is consistent with the financial
statements and complies with the law and regulations.
Opinion on Registration and Documentation
Based on our audit of the financial statements as described above, and control procedures we have
considered necessary in accordance with the International Standard on Assurance Engagements
(ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial
Information, it is our opinion that management has fulfilled its duty to produce a proper and clearly
set out registration and documentation of the Company’s accounting information in accordance with
the law and bookkeeping standards and practices generally accepted in Norway.
Oslo, 9 February 2021
PricewaterhouseCoopers AS
Thomas Steffensen
State Authorised Public Accountant
Note: This translation from Norwegian has been prepared for information purposes only.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 78Statement of total comprehensive income 79Statement of financial position 80Statement of changes in equity 82Statement of cash flow 83Notes 85Storebrand ASAIncome statement 163Statement of total comprehensive income 163Statement of financial position 164Statement of changes in equity 165Statement of cash flow 166Notes 167Declaration by member of the Board and the CEO 180Independent auditor´s report 1818. Governance9. Sustainability assurance10. Appendix
8
Corporate
governance
189 Corporate governance
197 Companies in the Storebrand Group
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Good corporate governance is important to ensure that an
enterprise can achieve its defined goals, including best possible
utilisation of resources and good value creation. The Storebrand
Group (hereinafter referred to as Storebrand) works continuously
on improving both the overall decision-making processes and the
day-to-day management of the company.
Storebrand’s corporate governance principles have been laid down
in accordance with the Norwegian Corporate Governance Board’s
(NUES) Code of Practice. The Board of Directors of Storebrand
ASA (hereafter referred to as the board) and management an
annual review of Storebrand’s corporate governance policies and
compliance therewith. Storebrand reports in accordance with
section 3-3b of the Norwegian Accounting Act and the NUES Code
of Practice.
Storebrand publishes an integrated annual report presenting
financial, social, environmental and governance issues that are
material for Storebrand and our stakeholders. The materiality
analysis is can be found on page 16-17 above.
Statement in line with the Norwegian Code of Practice for
Corporate Governance (NUES) of
17 October 2018
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.
2. Business (no deviations from the code of practice).
Storebrand ASA is the parent company in a financial group, and its
statutory object is to manage its equity interests in Storebrand’s
subsidiaries in compliance with the current legislation. Storebrand’s
main business areas encompass pensions and savings, insurance
and banking. The Articles of Association are available in their
entirety on the Storebrand’s website www.storebrand.no.
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.
Storebrand aims to be a world-class savings group that delivers
better pensions – simple and sustainable. Storebrand’s strategy
and corporate values are described in the framework “Our driving
force” which represents a common direction for how Storebrand
will deliver attractive results to customers and owners.
Storebrand’s strategy is to deliver profitable growth within
established focus areas through simple and sustainable solutions.
The Board conducts ongoing evaluations of the goals, strategy
and risk profile. More information about “Our driving force” and
focus areas can be found in the section this is Storebrand in the
annual report.
Since 1995 Storebrand has been focussed on sustainable
investments, taking an active position on how both the customers
and their own funds are invested. Storebrand believes that
companies that integrate environmental, social and governance
considerations
in their business activities reduce risk and
create new opportunities for the business activities and capital
owners. Our work with sustainable investing is described in
detail in the chapter a driving force for sustainable investments
in the directors report above. This includes our principles for
sustainable investments, which are approved by the group board
and integrated throughout the group’s operations.
Storebrand’s sustainability principles summarise how the work is
an integral part of the Group’s overall objectives and governance
and control processes. The principles were updated in 2018 and
include all parts of the business, including investments, product
development, procurement, employee follow-up and house
operations.
These principles are:
• We base our business activities on the UN Sustainable
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.
• We are a responsible employer.
• 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 use the precautionary principle when it comes to mitigating
social and environmental risk.
• We are transparent about our work and our sustainability
results.
The Board of Directors adopts Storebrand’ s overall goals for
the work on sustainability, which is in line with these principles.
The group management is responsible for realizing the strategic
goals. An overall strategic goal in 2020 has been to strengthen
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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.
Through our materiality analysis, we have defined the group’s
focus areas. These are financial capital and investment universe,
customer relations, our employees and keeping our house in
order. In our integrated report, page 24, 31, 41, 65 and 73, detailed
targets and results are presented for all these areas.
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.
https://www.storebrand.no/en/sustainability/sustainability-library
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 Board of Directors has adopted and made known a dividend
policy whereby Storebrand aims to pay a dividend of over 50 per
cent of the group profit after tax. The ambition of the Board is to
pay an ordinary dividend per share of at least the same nominal
level as in the previous year. Normally, dividends are paid when
there is a sustainable solvency margin of more than 150 per cent.
With a solvency margin above 180 per cent, the Board’s intention
is to propose extraordinary dividends or the buyback of shares.
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.
At the same General Meeting, the Board of Directors was
authorised to buy back shares for a maximum value of NOK
233,906,991. The total holdings of treasury shares must, however,
never exceed 10 per cent of the share capital. The buyback of
treasury shares may be a tool for the distribution of surplus capital
to shareholders in addition to dividends. In addition, each year
Storebrand ASA sells shares to employees from its own holdings
in connection with the share purchase scheme and long-term
incentive schemes for employees of Storebrand. Accordingly, it
is appropriate to authorise the Board of Directors to buy shares
in the market to cover the aforementioned needs or any other
needs. This authorisation is valid until the next Annual General
Meeting. Otherwise, there are no provisions in Storebrand ASA’s
Articles of Association that regulate the buyback or issuance of
shares
Apart from this, there are no provisions in Storebrand ASA’s
Articles of Association that regulate the buyback or issuance of
shares.
Deviation from the Code of Practice: The Board’s authorizations
to increase the share capital and buy back shares are limited
to defined purposes. However, no provision was made for the
General Meeting to vote on each individual purpose to be covered
by the authorizations.
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.
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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.
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.
The access to electronic voting and the use of proxy allows
shareholders to cast their votes without even attending the
general meeting. All shareholders are thus given an opportunity
to exert influence on Storebrand through the use of the right to
vote.
The Chairman of the Board, at least one representative from the
Nomination Committee and the external auditor must attend
the General Meeting. The board members of Storebrand ASA
are not obligated to attend but are encouraged to attend. The
Group Chief Executive Officer, executive management team and
the Group Legal Director participate from the management. The
minutes of the General Meeting are available on Storebrand’s
website in both Norwegian and English. The General Meeting is
opened by the Chairman. The Board of Directors endorses an
independent meeting chairman elected by the General Meeting.
The General Meeting shall:
• consider the annual accounts, consisting of the income
For a complete account of shareholder matters, see section 6.
statement, the balance sheet and the annual report,
5. Freely negotiable shares (No deviation from the code of
practice)
Shares in Storebrand ASA are listed on Oslo Børs (Oslo Stock
Exchange). The shares are freely negotiable, and the Articles of
Association do thus not contain any restrictions with regard to
the negotiability of the shares. All the shares carry equal rights, cf.
point 4 above.
6. General Meeting (No deviation from the code of practice)
Pursuant to the Articles of Association, Storebrand ASA’s General
Meeting shall be held by the end of June each year. The General
Meeting was held on 10th April 2020. All shareholders with a
known address will receive notice of the General Meeting, which
will be sent out no later than 21 days prior to the General Meeting.
Pursuant to the Articles of Association, the deadline for giving notice
of attendance shall be set at no later than five calendar days prior
to the General Meeting. In accordance with Storebrand’s Articles
of Association, the opportunity to make other agenda papers
available on the Storebrand website is exercised, cf. Section 5-11a
of the Norwegian Public Limited Companies Act. A shareholder
may nevertheless demand to receive agenda papers by post
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.
• including the consolidated income statement and balance sheet,
and the auditor’s report,
• decide upon adoption of the income statement and balance
sheet,
• decide upon adoption of the consolidated income statement
and balance sheet,
• decide upon the allocation of profit or manner of covering losses
in accordance with the adopted balance sheet, and upon the
distribution of dividends,
• elect the auditor,
• appoint members to the Nomination Committee, and this should
include the Chairman of the Nomination Commit- tee, elect
members to the Board of Directors, and this should include the
Chairman of the Board Directors,
• consider the Board’s statement on the fixing of salaries and
other remuneration to executive personnel, • adopt the
remuneration of the members of the Board of Directors and
board committees,
• adopt the remuneration of the members of the Nomination
Committee,
• adopt the remuneration of the auditor,
• and transact any other business listed on the agenda.
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majority. Pursuant to Norwegian law, however, a special majority
is required for certain decisions, including decisions about setting
aside pre-emptive rights in connection with any share issues,
mergers, spin-offs, amendments to the Articles of Association,
or authorizations to increase or reduce the share capital. Such
decisions require approval by at least two-thirds of both the votes
cast and the share capital represented at the General Meeting.
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 nomination committee’s mandate in accordance with the
company statutes is to propose candidates and remuneration
for the Board of Directors and Nomination Committee, through
recommendations to the General Meeting
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 day-
to-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).
None of the members elected by the General Meeting have
any employment, professional or consultancy relationship with
Storebrand beyond their appointment to the Board of Directors.
The backgrounds of the individual board members are described
in the annual report and on Storebrand’s website. The composition
of the Board of Directors satisfies the independence requirements
set forth in the Code of Practice. There are few instances of
disqualification during the consideration of matters by the Board
(none in 2020). An assessment of the individual board members’
independence is noted in the list of governing and controlling
bodies under the heading “Members of Storebrand ASA’s Board
of Directors and Committees”. An overview of the number of
shares in Storebrand ASA owned by members of governing
bodies as at 31 December 2020 is included in the notes to the
financial statements for Storebrand ASA (Information on related
parties). None of the board members have held office for more
than ten years.
9. Work of the Board of Directors (No deviation from the
code of practice)
Duties of the board of directors
In 2020, 15 board meetings were held, one of which was held at
the subsidiary SPP in Stockholm. Storebrand’ s future strategy
is discussed at the Board’s annual strategy meeting, which
establishes guidelines for the management’s preparation of plans
and budgets in connection with the annual financial plan, which
must be approved by the Board.
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 Board has established guidelines that give board members
and senior employees a duty to familiarise Storebrand with the
essential interests they may have in matters that the Board
is to consider. This also applies to interests that do not imply
disqualification, but which may be necessary to take into account
when matters are considered. Reference is made to Item 4 above.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. GovernanceCorporate Governance 189Companies in the Storebrand Group 1979. Sustainability assurance10. Appendix 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.
The Board conducts an annual evaluation of its work and
methods, which provides a basis for changes and measures. The
report from the Board’s evaluation, or relevant excerpts, will be
made available to the Nomination Committee, which will use the
evaluation in its work.
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 Audit Committee assists the Board by reviewing, evaluating
and, where necessary, proposing appropriate measures with
respect to the Group’s overall controls, financial and operational
reporting, risk management/control, and internal and external
auditing. The Audit Committee held nine meetings in 2020,
including a joint meeting with the Risk Committee. The external
and internal auditors participate in the meetings. The majority of
the Committee members are independent of the company.
The main task of the Risk Committee is to prepare matters to
be considered by the Group’s Board of Directors in the area of
risk, with a special focus on Storebrand’s risk appetite and risk
strategy, including the investment strategy. The Committee
should contribute
forward-looking decision-making support
related to the Board’s discussion of risk taking, financial forecasts
and the treatment of risk reporting. The Risk Committee held
seven meetings in 2020, including a joint meeting with the Audit
Committee
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.
10. Risk management and internal control (No deviation
from the recommendation)
Overall management and control
The Board of Directors has drawn up general policies and
guidelines for management and control. These policies deal
with the Board’s responsibility for determining Storebrand’s
appetite for risk and risk profile, approval of the organisation of
the business, assignment of areas of responsibility and authority,
requirements concerning reporting lines and information, and risk
management and internal control requirements. The Board’s and
Chief Executive Officer’s areas of responsibility are defined in the
rules of procedure for the Board and the instructions for the Chief
Executive Officer, respectively. The Board of Directors has drawn
up instructions for Storebrand’s subsidiaries that are to ensure
that they implement and comply with Storebrand’s management
and control policies and guidelines.
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
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Financial Supervisory Authority of Norway, as well as its own
supervisory bodies and external auditor.
Risk management and internal control
The assessment and management of risk are integrated into
Storebrand’s corporate governance. This management system
shall ensure that there is a correlation between goals and actions
at all levels of Storebrand and the overall policy of creating value
for Storebrand’s shareholders.
Storebrand’s financial and operational goals are defined annually
in a board-approved business plan. The business plan builds on
separate decisions on risk strategy and investment strategies,
and includes three-year financial forecasts, budgets and action
plans. The Board of Directors receives ongoing reports on the
status of the strategy implementation.
Storebrand Compass is the company’s monitoring tool. It
provides comprehensive reports for management and the Board
concerning financial and operational targets. In addition, the
Board of Directors receives risk reports from the risk management
function, which monitors the development of key figures for risk
and solidity.
Risk assessment forms part of the managerial responsibilities in
the organisation. Its purpose is to identify, assess and manage
risks that can hinder a unit’s ability to achieve its goals. The process
covers both the risk of incurring losses and failing profitability
linked to economic downturns, changes in the general conditions,
changed customer behaviour, etc., and the risk of incurring losses
due to inadequate or failing internal processes, systems, human
error or external events. Developments in the financial markets
are important risk factors in relation to Storebrand’s earnings
and solvency position. In addition to assessing the effects of
sudden shifts in the equity markets or interest rate levels (stress
tests), scenario analysis is used to estimate the effect of various
sequences of events in the financial markets on Storebrand’s
financial performance and solvency. This provides important
premises for the Board’s general discussion of risk appetite, risk
allocation and capital adequacy.
The responsibility for Storebrand’s control functions for risk
management and internal control lies with the Chief Risk
Officer function under the management of the Group Chief Risk
Officer. The Group Chief Risk Officer reports directly to the Chief
Executive Office. The Chief Risk Officer function is responsible for
supporting the Board and group management team with respect
to the establishment of a risk strategy and operationalisation
of the setting of limits and monitoring of risk raking across
Storebrand’s business areas.
Storebrand has a common internal audit function, which conducts
an independent review of the robustness of the management
model. The internal audit function’s instructions and annual
plan are determined by the Board pursuant to the current
legislation, regulations and international standards. The internal
audit function produces quarterly reports for the boards of the
respective Storebrand companies.
The appraisal of all Storebrand employees is integrated into
corporate governance and is designed to ensure that the adopted
strategies are implemented. The policies for earning and paying any
variable remuneration to Storebrand’s risk managers comply with
the regulations relating to remuneration in financial institutions,
cf. Section 12 below. The Chief Risk Officer and employees with
control functions related to risk management, internal control and
compliance only have fixed salaries.
interim financial statements,
Financial information and Storebrand’s accounting process
Storebrand publishes four
in
addition to the ordinary annual financial statements. The financial
statements must satisfy legal and regulatory requirements and be
prepared in accordance with the adopted accounting policies and
be published according to the schedule adopted by the Board of
Storebrand ASA.
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.
A series of risk assessment and control measures have been
established in connection with the preparation of the financial
statements. Assessments relating to significant accounting items
and any changes in principles etc. are described in a separate
document (assessment item memo). The Board’s Audit Committee
conducts a preparatory review of interim financial statements
and annual financial statements, focusing in particular on the
discretionary valuations and estimates that have been made prior
to consideration by the Board.
Monthly and quarterly operating reports are prepared in which
the results by business area and product area are analysed
and assessed against set budgets. The operating reports are
reconciled against other financial reporting.
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from the code of practice)
The General Meeting determines fixes the Board’s remuneration
annually on the basis of the recommendations of the Nomination
Committee. The fees paid to the members of the Board are not
linked to earnings, option schemes or similar arrangements.
Members of the Board and Board Committees do not receive
incentive-based remuneration; instead they receive a fixed
annual compensation, either per year or per meeting the member
attends, or a combination of such remuneration. The shareholder-
elected members of the Board do not participate in Storebrand’s
pension schemes. None of the shareholder-elected members
of the Board carry out any duties for Storebrand beyond their
appointment to the Board. More detailed information on the
remuneration, loans and shareholdings of board members can
be found in Note 23 (Group) and Notes 6 and 17 (ASA). Board
members are encouraged to hold shares in the company
12. Remuneration to senior management (No deviation
from the code of practice)
The Board of Directors decides the structure of the remuneration
for senior executives in Storebrand, and guidelines on the
remuneration (previously the executive remuneration statement)
are presented to the general meeting. The remuneration consists
of fixed salary, variable remuneration, pension scheme and other
personnel benefits that are common for a financial group. The
remuneration shall motivate good efforts for long-term value
creation and resource utilization in the company. The board’s
stance is that the total remuneration should be competitive, but
not leading within the industry.
The salary of the group management is determined based on
the level of responsibility and complexity of the position. An
annual assessment is carried out based on external market data
to ensure remuneration is adequate in relation to equivalent
positions in the market..
Storebrand shall have an incentive model that supports Company
strategy, with emphasis on the customer’s interests and long-
term perspective and an ambitious model of cooperation, as well
as transparency that enhances the Storebrand’s reputation. The
Group’s executive management only receive fixed salaries and
use a percentage of their fixed salaries to purchase shares in
Storebrand with a lock-in period of three years. This is to clarify
that the Storebrand’s top management acts in accordance with
the long-term interests of the owners.
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.
More detailed information about the remuneration of executive
personnel may be found in Note 23 (Group) and Notes 6 and 17
(ASA), and in the Board’s statement on the fixing of salaries and
other remuneration to executive personnel, which is included
in the notice of the General Meeting and available at www.
storebrand.no. Executive personnel are encouraged to hold
shares in Storebrand ASA, even beyond the lock-in period.
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.
the
from
takeover
(No deviation
14. Corporate
recommendation)
The Board of Directors has prepared guidelines for how to act
in the event of a possible takeover bid for the company. These
guidelines are based on the Board of Directors ensuring the
transparency of the process and that all the shareholders are
treated equally and given an opportunity to evaluate the bid that
has been made. It follows from the guidelines that the Board
of Directors will evaluate the bid and issue a statement on the
Board’s opinion of the bid, in addition to obtaining a valuation
from an independent expert. In addition, the Board of Directors
will, in the event of any takeover bid, seek whenever possible
to maximise the shareholders’ assets. The guidelines cover the
situation before and after a bid is made.
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
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meetings in which interim financial statements are reviewed and
all meetings of the Audit Committee, unless the items on the
agenda do not require the presence of the auditor. The Board
has decided that the external auditor must rotate the partner
responsible for the audit assignment every seven years, and
Storebrand shall carry out a tender process for the selection of
external audit companies at least every ten years. Each year, the
work and independence of the external auditor is evaluated by
the board’s audit committee. The auditor also holds an annual
meeting with the board without the administration being present.
The other companies in Storebrand have the same auditor as
Storebrand ASA.
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.
Storebrand has issued guidelines with respect to employees
holding positions of trust in external companies, which regulate,
for example, the number of external board positions.
Further information on Storebrand’s corporate governance may
be found at www.storebrand.no > About Storebrand > Facts on
Storebrand, where we have also published an overview of the
members of Storebrand’s governing and controlling bodies, CVs
for the members of Storebrand ASA’s Board of Directors, the
Articles of Association, and ownership policies.
in accordance with Section 3-3b, second
Statement
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).
2. The Norwegian Code of Practice for Corporate Governance is
available at www.nues.no.
3. Any deviations from the Code of Practice are commented on
under each section in the statement above, see the deviations
discussed in Item 3.
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.
6. The composition of the governing bodies and a description
of the main elements in the current rules of procedure and
guidelines can be found in Items 6, 7, 8 and 9 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.
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Companies in the
Storebrand Group
Organisation number
Ownership interest
STOREBRAND ASA
STOREBRAND LIVSFORSIKRING AS
Storebrand Holding AB
SPP Konsult AB
SPP Spar AB
SPP Pension & Försäkring AB
SPP Fastigheter AB 57)
SPP Hyresförvaltning
Storebrand & SPP Business Services AB
916 300 484
958 995 369
556734-9815
556045-7581
556892-4830
556401-8599
556745-7428
556883-1340
556594-9517
Euroben Life & Pension Designated Activity Company
CIN 31 42 39
Storebrand Eiendomsfond Invest AS
Storebrand Eiendom Trygg AS
Storebrand Eiendom Vekst AS
Storebrand Eiendom Utvikling AS
Storebrand Pensjonstjenester AS
Storebrand Infrastruktur AS
AS Værdalsbruket 58)
Norsk Pensjon AS
Benco Insurance Holding BV
Storebrand Bank ASA
Storebrand Boligkreditt AS
Storebrand Asset Management AS
SPP Fonder AB
Storebrand Fastigheter AB
SKAGEN AS
Cubera Private Equity AS
Cubera Private Equity AB
Storebrand Forsikring AS
Storebrand Facilities AS
Storebrand Helseforsikring AS
995 871 424
876 734 702
916 268 416
990 653 402
931 936 492
991 853 545
920 082 165
890 050 212
343 317 16
953 299 216
990 645 515
930 208 868
556397-8922
556801-1802
867 462 732
989 580 353
556812-8184
930 553 506
924 353 554
980 126 196
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
74,9 %
25,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0 %
100,0%
100,0 %
100,0 %
50,0 %
57) Euroben Life & Pension DAC owns 7.3%.
58) Storebrand ASA owns 25.1 per cent and Storebrand’s total ownership interest is 100 per cent for AS Værdalsbruket.
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Sustainability
Assurance
199 TCFD table
201 GRI-indeks
198
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Governance
Strategy
Disclose Storebrand’s
governance around climate-
related risks and opportunities.
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
TCFD Recommended Disclosures
Page
a Describe the Board’s oversight
of climate-related risks and
opportunities
53, 56 59)
a Describe the climate-related risks
and opportunities Storebrand
has identified over the short,
medium and long term
68-70
b Describe the management’s
53, 56 59)
b Describe the impact of
role in assessing and managing
climate-related risks and
opportunities
climate-related risks and
opportunities on Storebrand’s
businesses, strategy, and
financial planning
12-13, 57-65,
68-70, 73
c Describe the resilience of
Storebrand’s strategy, taking
into consideration different
climate-related scenarios
12-13, 57-65,
68-70
59) In Director’s Report under Risk
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Risk Management Metrics and
Disclose how Storebrand
identifies, assesses and
manages climate-related risks.
Targets
Disclose the metrics and targets
used to assess and manage
relevant climate-related risks and
opportunities where such
information is material.
TCFD Recommended Disclosures
Page
TCFD Recommended Disclosures
Page
a Disclose the metrics used by
Storebrand to assess climate-
related risks and opportunities
in line with its strategy and risk
management process.
37-39, 41,
57-65, 68-70
a Disclose the metrics used by
Storebrand to assess climate-
related risks and opportunities
in line with its strategy and risk
management process
37-39, 41,
57-65, 68-70
b Disclose Scope 1, Scope 2 and
Scope 3 GHG emissions, and
the related risks
41, 65, 73
b Disclose Scope 1, Scope 2 and
Scope 3 GHG emissions,
and the related risks.
41, 65, 73
c Disclose the targets used by
Storebrand to manage
climate-related risks and
opportunities and performance
against targets
37-39, 41, 65,
68-70, 73 60)
c Disclose the targets used by
Storebrand to manage
climate-related risks and
opportunities and performance
against targets.
37-39, 41, 65,
68-70, 73
60) In Director’s Report under Risk
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GRI-indeks
An index of the GRI indicators we are reporting on and where the report contains information about the indicators
follows below.
GRI
Ref.
Her følger en indeks med GRI-indikatorene vi rapporterer på og hvor i rapporten informasjonen om indikatoren finnes.
Organization profile
Account
Title
102-1
The name of the organisation
Storebrand ASA
GRI STANDARDER - OBLIGATORISKE INDICATOR
102-2
Activities, brands, products and
services
Described in chapter:
This is Storebrand and the sub-chapter About Storebrand
102-3
The location of the head office
Professor Kohts vei 9, Lysaker, Oslo, Norway
102-4
The places where your
organisation operates
Described in chapter:
This is Storebrand and the sub-chapters About Storebrand and Material issues
102-5
Ownership and legal form
Described in chapter:
Directors’ Report and sub-chapter Overview of companies in the
Storebrand Group
102-6
The markets covered
Described in chapter:
This is Storebrand and the sub-chapter About Storebrand
102-7
The size of the organisation
Described in the chapters:
This is Storebrand, sub-chapter About Storebrand
People under Key figures
Directors’ Report, sub-chapter Group’s Results 2020
Reporting
Full
Full
Full
Full
Full
Full
102-8
Information about employees
and other workers
Described in the chapters:
Partial
People in the sub-chapter Engaged, competent and courageous employees
People under Key figures
102-9
Supply chain
Described in the chapters:
Keeping our house in order in sub-chapter Sustainable practices throughout
our value chain
102-10
Significant changes in the
organisation and supply chain
DDescribed in the chapters:
Ceo’s foreword
Chairman’s foreword
102-11
Precautionary principle
or approach
Described in the chapters:
This is Storebrand Keeping our house in order
In the sub-chapter:
Sustainable practices throughout our value chain
Director’s Reort in the sub-chapter A driving force for sustainable investments,
Climate risks and opportunities
102-12
External initiatives
Described in the chapters:
This is Storebrand
Keeping our house in order
In the sub-chapter:
Full
Full
Full
Full
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
Initiatives:
UN PRI, UN Global Compact, Global Reporting Initiative, UN Sustainability
Goals. Task Force on Climate-related Financial Disclosures (TCFD), Paris
Agreement 2015, Carbon Disclosure Project, Global 100, UN Principles for
Responsible Business Conduct, UN Declaration of Human Rights, UN Environ-
mental Conventions, UN Principles for Sustainable Insurance, UNEP Finance
Initiative, Portfolio DecarbonisationCoalition, Accounting for Sustainability, UN
Convention Against Corruption, THE CORE CONVENTION, Montreal Pledge,
Tobacco-Free Portfolios, UN Principles for Empowering Women,SHIFT, CEOs
for a Sustainable Future, Know Chain the
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KAPITTEL11 - SUSTAINABILITY ASSURANCE
GRI
Ref.
Title
Account
102-13
Membership in organisations
Described in the chapters:
Reporting
Full
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
Organizations:
UNEP FI group working with Climate Risk, Climate Action 100+, Net-Zero Asset
Owner Alliance, Global Real Estate Sustainability Benchmark (GRESB),NORSIF,
SWESIF, PRI Investor Commitment to Support a Just Transition on Climate
Change
Strategy
102-14
Opinion from the chief
decision-maker
Described in:
The CEO’s foreword, Chairman’s preface
Ethics and integrity
102-16
Values, standards, principles and
norms
Described in chapters:
This is Storebrand
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,
Stakeholder engagement
102-40
List of stakeholder groups
Described in chapter:
This is Storebrand under the sub-chapter Material issues
102-41
Collective bargaining agreements
Described in chapter:
This is Storebrand under the sub-chapter Material issues
102-42
102-43
102-44
Identification and selection of
stakeholders
Described in chapter:
This is Storebrand under the sub-chapter Material issues
Approach to stakeholder
engagement
Described in chapter:
This is Storebrand under the sub-chapter Material issues
Important topics and questions that
have been addressed
Described in chapter:
This is Storebrand under the sub-chapter Material issues
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Full
Full
Full
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GRI
Ref.
Title
Reporting practices
Account
Reporting
102-45
Entities covered by the
organisation’s consolidated
financial statements
Described in chapter:
This is Storebrand under the sub-chapter Material issues
Described in the ”Why” section at the beginning of each sub-chapter
102-46
Defining report content and
topic boundaries
Described in:
Director’s report under the sub-chapter The Group’s profit 2020
102-47
List of material topics
Described in chapter:
This is Storebrand under the sub-chapter Material issues
102-48
Restatements of information
Changes occur and are described in the chapters:
People, Keeping our house in order and Directors’ report
Under the sub-chapters:
A driving force for sustainable investments and Climate risk and opportunities
For all chapters mentioned above, the changes in the table with key figures apply
102-49
Changes in reporting
No significant changes
102-50
Reporting period
January 1,20 20–December 31, 2015
102-51
Date of previous report
January 1,2019–December 31, 2019
102-52
Reporting frequency
Annual
102-53
Contact
https://www.storebrand.no/en/investor-relations
102-54
Reporting in accordance with
GRI standards
Described in chapter:
This is Storebrand under the sub-chapter Material issues
102-55
GRI Index
This table is the GRI index
102-56
External verification
Appears in the auditor’s report
Competitive long-term return to shareholders and customers (A)
103-1
103-2
Explanation of the material topic and
its boundary
The management approach and its
components
Described in chapter:
This is Storebrand under the sub-chapter Material issues
Described in the chapters:
Ceo’s foreword and Chairman’s preface
This is Storebrand
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
103-3
Evaluation of management’s
approach
Described in chapters:
Chairman’s preface
This is Storebrand
Directors’ Report in the sub-chapters:
A driving force for sustainable investments and Climate risks and opportunities
201-1
Direct financial value generated and
distributed
Described in chapters:
Corporate Governance and Directors’ report
In the sub-chapters:
Strategic highlights 2020, Group’s result 2020
201-2
Financial implications and other risks
and opportunities resulting from
climate change
Described in:
Directors’ report in the sub-chapters A driving force for sustainable invest-
ments and Climate risks and opportunities
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
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Full
Full
Full
Full
Full
Full
Full
Full
Full
Account
Reporting
GRI
Ref.
Title
A driving force for sustainable investments (B)
103-1
Explanation of the material topic and
its boundary
103-2
The management approach and its
components
103-3
Evaluation of management’s
approach
Described in the chapters:
Ceo’s foreword, Chairman’s preface
This is Storebrand in the sub-chapter About Storebrand
Directors’ Report in the sub-chapters:
Strategic highlights and A driving force for sustainable investments
Described in the chapters:
Ceo’s foreword, Chairman’s preface
This is Storebrand in the sub-chapter About Storebrand
Directors’ Report in the sub-chapters:
Strategic highlights and A driving force for sustainable investments
Described in the chapters:
Ceo’s foreword, Chairman’s preface
This is Storebrand in the sub-chapter About Storebrand
Directors’ Report in the sub-chapters:
Strategic highlights and A driving force for sustainable investments
FS10
Share and number of companies
in the portfolio that the reporting
organisation has interacted with on
environmental or societal conditions
Described in:
Directors’ report in the sub-chapter A driving force for sustainable
investments under Key figures
Active ownership and reduce ESG (environmental, social and governance) risk (C)
103-1
Explanation of the material topic
and its boundary
103-2
The management approach and its
components
Described in the chapters:
Ceo’s foreword, Chairman’s preface
This is Storebrand in the sub-chapter About Storebrand
Directors’ Report in the sub-chapters:
Strategic Highlights, A driving force for sustainable investments, Active owners-
hip, Exclusions and Climate risks and opportunities
Described in the chapters:
Ceo’s foreword, Chairman’s preface
This is Storebrand in the sub-chapter About Storebrand
Directors’ Report in the sub-chapters:
Strategic highlights, A driving force for sustainable investments, Active owners-
hip, Exclusions and Climate risks and opportunities
103-3
Evaluation of the management
approach
Described in the chapters:
Ceo’s foreword, Chairman’s preface,
This is Storebrand About Storebrand
Directors’ Report in the sub-chapters
FS11
412-3
Percentage of assets exposed to
positive and negative environmental
or social screening
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 under Key figures
Described in Directors’ report in the sub-chapter:
A driving force for sustainable investments in the sub-chapters Active owners-
hip and Exclusions
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GRI
Ref.
Title
Economic freedom in all phases of life (D)
Account
Reporting
103-1
103-2
103-3
Explanation of the material topic and
its boundary
Described in chapter:
Customer relations under the sub-chapter Greater financial security
and freedom
The management approach and its
components
Described in chapter:
Customer relations under the sub-chapter Greater financial security
and freedom
Evaluation of management’s
approach
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
Engaging, relevant and responsible advisory services (E)
103-1
103-2
103-3
418-1
Explanation of the material topic and
its boundary
Described in chapter:
Customer relations under the sub-chapter Engaging relevant and
responsible advice
The management approach and its
components
Described in chapter:
Customer relations under the sub-chapter Engaging relevant and
responsible advice
Evaluation of management’s
approach
Described in chapter:
Customer relations under the sub-chapter Engaging relevant and
responsible advice
Documented complaints about
privacy violations and loss of
customer data
Described in chapter:
Customer relationships under Key figures
Digital innovator In financial services (F)
103-1
103-2
103-3
STB-2
Explanation of the material topic
and its boundary
Described in chapter:
Customer relations under sub-chapter Digital innovator in financial services
The management approach and its
components
Described in chapter:
Customer relations under sub-chapter Digital innovator in financial services
Evaluation of management’s
approach
Described in chapter:
Customer relations under sub-chapter Digital innovator in financial services
Number of downloads of the
”My Money” app
Described in chapter:
Customer relationships under Key figures
STB-3
Automation of settlement processes Described in chapter:
Customer relations under sub-chapter Digital innovator in financial services
Simple and seamless customer experiences (G)
103-1
103-2
103-3
417-2
417-3
Explanation of the material topic
and its Boundary
Described in chapter:
Customer relationships under the sub-chapter Simple and
seamless customer experiences
The management approach and its
components
Described in chapter:
Customer relationships under the sub-chapter Simple and
seamless customer experiences
Evaluation of
management’s approach
Described in chapter:
Customer relationships under the sub-chapter Simple and
seamless customer experiences
Cases of non-compliance with
information and labelling of
products and services
Cases of non-compliance with mar-
ket communication requirements
Described in chapter:
Customer relationships under the sub-chapters Simple and seamless
customer experiences and Key figures
Described in chapter:
Customer relationships under the sub-chapters Simple and seamless
customer experiencesand Key figures
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
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GRI
Ref.
Title
A culture of learning (H)
Account
Reporting
103-1
103-2
103-3
404-1
Explanation of the material topic
and its boundary
Described in the chapter:
People under the sub-chapter A culture of learning
The management approach and its
components
Described in the chapter:
People under the sub-chapter A culture of learning
Evaluation of management’s
approach
Described in the chapter:
People under the sub-chapter A culture of learning
Average number of hours of training
per employee
Described in the chapter:
People under the subchapter A culture of learning
Committed, competent and courageous wizards (I)
103-1
103-2
103-3
STB-4
Explanation of the material topic
and its boundary
The management approach and its
components
Evaluation of management’s
approach
Described in the chapter:
People under the sub-chapter Engaged,
competent and courageous employees
Described in the chapter:
People under the sub-chapter Engaged,
competent and courageous employees
Described in the chapter:
People under the sub-chapter Engaged,
competent and courageous employees
Engagement scores all employees:
Storebrand’s score vs. the industry
average in Peakon
Described in:
Directors’ Report under the sub-chapter Progress on our most material
sustainability KPIs
Diversity and equal opportunities (J)
103-1
103-2
103-3
405-1
405-2
Explanation of the material topic and
its boundary
Described in chapter:
People under the diversity and equality sub-chapter
The management approach and its
components
Described in chapter:
People under the diversity and equality sub-chapter
Evaluation of management’s
approach
Described in chapter:
People under the diversity and equality sub-chapter
Wage differences between women
and men
Described in chapter:
People under Key figures
Diversity in governing bodies and
among employees
Described in chapter:
People under Key figures
Corporate governance and compliance: Privacy and combating financial crime (K)
103-1
Explanation of the material topic
and its boundary
Described in the chapter:
Keeping our house in order under sub-chaptert Corporate governance and
compliance: Privacy and combating financial crime, including Privacy and digital
trust, Counter-corruption,Counter-terrorism and terrorist financing
103-2
The management approach and its
components
103-3
Evaluation of management’s
approach
205-2
418-1
Communication and training on
policies and procedures for
combating corruption
Documented complaints about
privacy violations and loss of
customer data
Described in chapter:
Keeping our house in order under the sub-chapter Corporate Governance
and Compliance: Privacy and Combating Financial Crime, including Privacy and
Digital Trust, Counter-Terrorism, Counter-Terrorism and Terrorist Financing
Described in chapter:
Keeping our house in order under the sub-chapter Corporate Governance
and Compliance: Privacy and Combating Financial Crime, including Privacy and
Digital Trust, Counter-Terrorism, Counter-Terrorism and Terrorist Financing
Described in chapter:
Keeping our house in order under the sub-chapters Countering corruption and
Key figures
Described in chapter:
Keeping our house in order under the sub-chapter Corporate governance and
compliance: Privacy and combating financial crime and Key figures
206
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Partial
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GRI
Ref.
Title
Account
Reporting
Sustainable practices throughout the value chain (L)
103-1
103-2
103-3
308-1
Explanation of the material topic
and its boundary
Described in chapter:
Keeping our house in order under the sub-chapter Sustainable supply chain
The management approach and its
components
Described in chapter:
Keeping our house in order under the sub-chapter Sustainable practices
throughout our value chain
Evaluation of management’s
approach
Described in chapter:
Keeping our house in order under sub-chapter Sustainable practices
throughout our value chain
Suppliers assessed based on
environmental criteria
Described in chapter:
Keeping our house in order under the sub-chapters Sustainable practices
throughout our value chain and key figures
Corporate Social Responsibility (M)
103-1
Explanation of the material topic
and its boundary
103-2
The management approach and its
components
103-3
Evaluation of management’s
approach
Described in chapter:
Keeping our house in order under the sub-chapter Corporate Social
Responsibility and Corporate Governance and Compliance: Privacy and
Combating Financial Crime
Described in chapter:
Keeping our house in order under the sub-chapter Corporate Social
Responsibility and Corporate Governance and Compliance: Privacy and
Combating Financial Crime
Described in chapter:
Keeping our house in order under the sub-chapter Corporate Social
Responsibility and Corporate Governance and Compliance: Privacy and
Combating Financial Crime
415-1
Political contributions
We don’t make contributions to political parties.
Responsible resource use (N)
103-1
103-2
103-3
305-4
305-5
Explanation of the material topic and
its boundary
The management approach and its
components
Evaluation of management’s
approach
Described in chapter:
Keeping our house in order under the sub-chapter Responsible resource use
Described in chapter:
Keeping our house in order under the sub-chapter Responsible resource use
Described in chapter:
Keeping our house in order under the sub-chapter Responsible resource use
The intensity of greenhouse gas
emissions
Described in chapter:
Keeping our house in order under Key figures
Reduction in greenhouse gas
emissions
Described in chapter:
Keeping our house in order under Key figures
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
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Auditor's statement on sustainability
To: Board of Directors in Storebrand ASA
To: Board of Directors in Storebrand ASA
Til Styret i Storebrand ASA
Independent statement regarding Storebrand ASA’s sustainability
reporting
Ledelsens ansvar
Uavhengig uttalelse vedrørende Storebrands rapportering om bærekraft
Independent statement regarding Storebrand ASA’s sustainability
reporting
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.
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.
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
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
09.02.2021.
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).
Storebrand’s GRI Index for 2020 is an overview of which principles, aspects and indicators from
the The Global Reporting Initiative guidelines that Storebrand ASA use to measure and report on
Storebrand’s GRI Index for 2020 is an overview of which principles, aspects and indicators from
sustainability; together with a reference to where material sustainability information is reported.
the The Global Reporting Initiative guidelines that Storebrand ASA use to measure and report on
Storebrand’s GRI Index 2020 is available on Storebrand’s website
sustainability; together with a reference to where material sustainability information is reported.
(www.Storebrand.no/sustainability/reports). We have examined whether Storebrand has
Storebrand’s GRI Index 2020 is available on Storebrand’s website
developed a GRI Index for 2020 and whether mandatory disclosures are presented according the
Nøkkeltall for bærekraft er tabeller som viser indikatorer på bærekraft som Storebrand ASA måler
(www.Storebrand.no/sustainability/reports). We have examined whether Storebrand has
Standards published by The Global Reporting Initiative (www.globalreporting.org/standards)
og følger opp. Tabellene er tilgjengelige og inngår i Storebrand ASAs årsrapport for 2020,
developed a GRI Index for 2020 and whether mandatory disclosures are presented according the
(criteria).
nærmere bestemt til slutt i hvert av kapitlene «En pådriver for bærekraftige investeringer»,
Standards published by The Global Reporting Initiative (www.globalreporting.org/standards)
«Kunderelasjoner», «Mennesker» og «Orden i eget hus». De ulike tabellene er også tilgjengelig i
(criteria).
Key performance indicators for sustainability are the tables containing sustainability indicators
samleoversikten «Komplett liste med bærekraftsindikatorer» som er et vedlegg til årsrapporten.
that Storebrand ASA measure and control. The tables are available and included in Storebrand
Storebrand har definert nøkkeltallene og forklart hvordan de måles i noteverk til tabellene som er
Key performance indicators for sustainability are the tables containing sustainability indicators
tilgjengelig og inngår i årsrapporten (kriterier). Vi har kontrollert grunnlaget for målingene og har
ASA’s annual report 2020, specifically at the end of the four chapters titled «Financial capital and
etterberegnet målingene.
that Storebrand ASA measure and control. The tables are available and included in Storebrand
investment universe», «Customer relations», «People» and «Keeping our house in order».
ASA’s annual report 2020, specifically at the end of the four chapters titled «Financial capital and
Storebrand has defined the key performance indicators and explained how they are measured in
investment universe», «Customer relations», «People» and «Keeping our house in order».
the tables (criteria). We have examined the basis for the measurements and checked the
Storebrand has defined the key performance indicators and explained how they are measured in
calculations of the measurements.
Ledelsen er ansvarlig for Storebrand ASAs rapportering om bærekraft og for at det er utarbeidet i
the tables (criteria). We have examined the basis for the measurements and checked the
overensstemmelse med kriterier som beskrevet over. Ansvaret omfatter å utforme, implementere og
calculations of the measurements.
vedlikeholde en intern kontroll som ivaretar Storebrand ASAs rapportering om bærekraft.
Tasks and responsibilities of management
Management is responsible for GRI Index 2020 and that the Index is developed in accordance with the
Tasks and responsibilities of management
Standards published by The Global Reporting Initiative. Management is also responsible for key
Management is responsible for GRI Index 2020 and that the Index is developed in accordance with the
performance indicators for sustainability and that these are developed in accordance with the
Vi er uavhengige av selskapet i overenstemmelse med lov og forskrift og Code of Ethics for
Standards published by The Global Reporting Initiative. Management is also responsible for key
definitions given in the tables at the end of the chapters «Financial capital and investment universe»,
Professional Accountants (IESBA Code) og med de etiske kravene som er relevante for vårt oppdrag,
performance indicators for sustainability and that these are developed in accordance with the
«Customer relations», «People» and «Keeping our house in order». Their responsibility includes
og vi har oppfylt våre etiske forpliktelser i samsvar med disse kravene og IESBA Code. Vi anvender
definitions given in the tables at the end of the chapters «Financial capital and investment universe»,
developing, implementing and maintaining internal controls that ensure the development and
ISQC 1 [NORSK] – Kvalitetskontroll for revisjonsfirmaer som utfører revisjon og forenklet
«Customer relations», «People» and «Keeping our house in order». Their responsibility includes
reporting of the GRI Index and key performance indicators for sustainability.
revisorkontroll av regnskaper samt andre attestasjonsoppdrag og beslektede tjenester og
opprettholder et omfattende system for kvalitetskontroll inkludert dokumenterte retningslinjer og
developing, implementing and maintaining internal controls that ensure the development and
prosedyrer vedrørende etterlevelse av etiske krav, faglige standarder og gjeldende lovmessige og
reporting of the GRI Index and key performance indicators for sustainability.
regulatoriske krav.
Our independence and quality control
We are independent of the company in accordance with applicable laws and regulations and the Code
Our independence and quality control
of Ethics for Professional Accountants (IESBA Code) and with the ethical requirements that are
We are independent of the company in accordance with applicable laws and regulations and the Code
relevant to our independent statement, and we have fulfilled our ethical obligations in accordance with
of Ethics for Professional Accountants (IESBA Code) and with the ethical requirements that are
these requirements and IESBA Code. We use ISQC 1 - Quality Control for Firms that Perform Audits
relevant to our independent statement, and we have fulfilled our ethical obligations in accordance with
and Reviews of Financial Statements, and Other Assurance and Related Services Engagements and
these requirements and IESBA Code. We use ISQC 1 - Quality Control for Firms that Perform Audits
maintains a comprehensive quality control system including documented policies and procedures of
and Reviews of Financial Statements, and Other Assurance and Related Services Engagements and
the ethical standards, professional standards and applicable legal and regulatory claim.
maintains a comprehensive quality control system including documented policies and procedures of
the ethical standards, professional standards and applicable legal and regulatory claim.
The Auditors responsibilities
Our responsibility is to express an opinion on Storebrand ASA’s sustainability reporting based on our
control. We have performed our work and will issue our statement in accordance with the Standard on
The Auditors responsibilities
Our responsibility is to express an opinion on Storebrand ASA’s sustainability reporting based on our
control. We have performed our work and will issue our statement in accordance with the Standard on
PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
Vår oppgave er å gi uttrykk for en mening om saksforholdet basert på vår kontroll.
Vår uavhengighet og kvalitetskontroll
Revisors oppgaver og plikter
PricewaterhouseCoopers AS, Postboks 748 Sentrum, NO-0106 Oslo
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
208
PricewaterhouseCoopers AS, Postboks 748 Sentrum, NO-0106 Oslo
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assuranceTCFD-index 199GRI-index 201Auditor’s statement on sustainability 20810. Appendix
Assurance Engagements ISAE 3000: “Assurance engagements other than audits or review of historical
financial information".
Our work involves performing procedures to obtain evidence that Storebrand’s GRI Index 2020 and
key performance indicators for sustainability are developed in accordance with the Standards
published by The Global Reporting Initiative and the criteria for reporting and measurement that are
given in relation to each table containing key performance indicators. The procedures selected depend
on our judgement, including assessments of the risks that the sustainability reporting as a whole are
free from material misstatement, whether due to fraud or error. In making those risk assessments, we
consider internal control relevant to the preparation of the subject matter. Therefore, we design
procedures that are appropriate to the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of internal control. Our control also includes an assessment of whether the applied
criteria are appropriate and an assessment of the overall presentation of the subject matter.
Our controls include meetings with representatives from Storebrand ASA that are responsible for the
key areas covered by the sustainability reporting, including responsible for investing, HR and those
responsible for the sustainability reporting for Storebrand ASA’s own operations and real estate
portfolios; evaluating internal controls and procedures for reporting key performance indicators for
sustainability; collecting and reviewing relevant information that supports the presentation of key
performance indicators; evaluating the completeness and accuracy of the key performance indicators;
and controlling the calculations of key performance indicators based on an assessment of the risk that
the key performance indicators contain information that is incorrect.
In our opinion, sufficient evidence has been obtained and we consider that our work provides an
appropriate basis to form our conclusion.
Conclusion
In our opinion
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
Key performance indicators for sustainability are, in all material aspects, developed, measured and
reported in accordance with the definitions and explanations provided in relation to each table
containing key performance indicators.
Oslo, 9 February 2021
PricewaterhouseCoopers AS
Thomas Steffensen
State authorized public accountant
(This translation from Norwegian has been made for information purposes only)
(2)
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10
Appendix
209 Executive management CVs
213 Group Board of Directors CVs
219 Complete list of Sustainability Indicators
223 Definitions
210
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223 Executive management CVs
ODD ARILD GREFSTAD (1965)
LARS AA. LØDDESØL (1964)
Group Chief Executive Officer
Group Chief Financial Officer
Storebrand ASA
HEIDI SKAARET (1961)
Executive Vice President,
Retail Market
Storebrand ASA
Education
State-Authorised Public Accountant
Authorised Financial Analyst (AFA)
Previous positions
2011–2012: Managing Director,
Storebrand Life Insurance
2008–2011: Executive Vice President Finance and
Legal, Storebrand ASA
Group Chief Financial Officer
Education
Storebrand ASA
Education
MSc in Economics and Business Administration,
University of Washington, USA
MSc in Economics and Business Administration,
Previous positions
BI Norwegian Business School
2008–2012: Lindorff Group AB, Executive Vice
MBA, Thunderbird School of Global
President, Scandinavia Region, Managing Director
Management, USA (AGSIM)
of Lindorff AS in Norway.
2002–2008: Executive Vice President Finance,
Previous positions
Storebrand ASA
1998–2002: Manager of the Group Controller
Unit, Storebrand ASA
1997–1998: Group Controller, Life Insurance,
Storebrand ASA
2008–2011: Executive Vice President, Life and
Pensions Norway and Managing Director,
Storebrand Livsforsikring AS
2004–2008: Executive Vice President, Corporate
Market Life Insurance, Storebrand Livsforsikring AS
1994–1997: Vice President, Internal Auditing,
2001–2004: CFO, Storebrand ASA
2001–2008: IKANO Finans ASA, Managing Director
1987–2000: Managerial positions at Den norske
Bank ASA
1986–1987: Financial Services Officer, Bank of
America, San Francisco, USA
1981–1983: Nord-Video (Aftenposten, Gyldendal,
Mortensen), Sales Secretary
Storebrand ASA
1989–1994: External Auditing, Arthur Andersen & Co
1994–2001: Vice President/Relationship
Ownership in Storebrand
Manager, Citibank International plc
Number of shares as at
1990–1994: Asst. Treasurer, Scandinavian
31 December 2020: 94,788
Ownership in Storebrand
Number of shares as of
31 December 2020: 194,520
Airlines Systems
Ownership in Storebrand
Number of shares as of
31 December 2020: 120,564
211
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223
KAPITTEL12 - APPENDIX
STAFFAN HANSÉN (1965)
Executive Vice President,
SPP
Education
Licentiate degree (Economics),
Åbo Academy, Finland
PhD studies at the Finnish
Doctoral programme in Economics
Stockholm School of Economics
Previous positions
2013 to present: EVP, SPP Livförsäkring AB
2011–2013: CIO, Storebrand Livsforsikring AS
2008–2011: CIO, SPP Livförsäkring AB
2006–2008: Responsible for strategic allocation,
SPP Livförsäkring AB
2003–2006: Head of Government and Covered
Bond trading, Svenska Handelsbanken
1996–2003: Head of Fixed Income, Alfred Berg
Finland
1994–1996: Trainee, Pohjola Bank (OKOBANK)
Ownership in Storebrand
Number of shares as at
31 December 2020: 83,561
JAN ERIK SAUGESTAD (1965)
Executive Vice President,
Asset Management
Education
TERJE LØKEN (1975)
Executive Vice President
Digital & Innovation
Education
MSc in Engineering, Norwegian University of
Master Computer Science, NTNU Norway
Science and Technology (NTNU)
MBA (INSEAD in France)
Previous positions
2006–2015: Investment Director, Storebrand
Asset Management
1999–2006: Senior Portfolio Manager,
Storebrand Asset Management
1997–1999: Sector Head Equities, Energy/
Shipping, Handelsbanken Markets
1995–1997: Partner, Marsoft Capital
1992–1995: Head of Research, Christiania
Markets (now: Nordea Markets)
1990–1991: Junior Consultant, McKinsey &
Company
Ownership in Storebrand
Number of shares as of
31 December 2020: 100,554
Previous positions
2017-2019: Chief Digital Officer (CDO),
Storebrand Livsforsikring AS
2013-2016: Head of Digital and Mobile IT,
Storebrand Livsforsikring AS
2009-2013: Chief Architect (CTO), Storebrand
Livsforsikring AS
2008-2009: Enterprise Architect, Storebrand
Livsforsikring AS
2001-2008: Technology Manager (previously
Technical Lead, Sr. Software Engineer, Software
Engineer), Fast Search & Transfer
1999-2001: Computer Engineer, Sintef Tele
og Data
Ownership in Storebrand
Number of shares as of
31 December 2020: 16,502
212
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223 TRYGVE HÅKEDAL (1979)
Executive Vice President
Technology
Education
KARIN GREVE-ISDAHL (1979)
Executive Vice President
Sustainability, Communications and Industry Policy
Master of Science, Advanced Computing,
Education
Imperial College London
Bachelor of Science, Computing Science,
Newcastle University
Previous positions
2016-2019 SVP IT Strategy & Architecture,
Storebrand Group
2013-2015 Chief Architect & Head of IT Strategy,
Storebrand Group
2009-2013 Enterprise Architect, Storebrand Group
2008-2009 Analyst, Goldman Sachs
2006-2008 Consultant, Accenture
Master of International Relations,
Bond University, Australia
Bachelor of Communications,
Bond University, Australia
Previous positions
2014–2017: Vice President Communications,
Opera Software
2009–2014: Communications Director, SN Power
2008–2009: Business Reporter, TV 2
2005–2008: TV Reporter, CNBC/FBC Media
2004–2005: Researcher, CNBC Europe
2003-2004 Project Test Manager, Opera Software
Ownership in Storebrand
Ownership in Storebrand
Number of shares as of
31 December 2020: 16,135
Number of shares as of
31 December 2020: 20,962
GEIR HOLMGREN (1972)
Executive Vice President,
Corporate Market
Education
Cand. Scient degree with actuarial qualifications,
University of Oslo, Norway
MBA, Griffith University Brisbane, Australia
Previous positions
2013–2015: Executive Vice President,
Guaranteed Pension, Storebrand ASA
2011–2012: Manager Customer Service and
Product, Storebrand Livsforsikring AS
2003–2011: Product Manager,
Storebrand Livsforsikring AS
2002–2003: Product Manager Unit linked
Insurance, Storebrand Livsforsikring AS
2000–2002: Product Manager Defined Contribu-
tion Pensions, Storebrand Livsforsikring AS
1998–2000: Sales International Life Insurance,
Storebrand Livsforsikring AS
1997–1998: Actuary Trainee,
Storebrand Livsforsikring AS
1995–1997: Teacher, University of Oslo
Ownership in Storebrand
Number of shares as at
31 December 2020: 85,072
213
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223 KAPITTEL12 - APPENDIX
TOVE SELNES (1969)
Executive Vice President
People
Education
Master in Law, Oslo University
Previous positions
2015- 2019: HR Director, Storebrand Livsforsikring
2007-2015: Group Driector HR, Opera Software
2004-2007: HR Director, Eltel Networks
1997-2004: HR Manager East Norway Region, Avinor
1995-1997: Legal Advisor, Aetat
Ownership in Storebrand
Number of shares as of
31 December 2020: 21,955
214
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Group Board of Directors CVs
DIDRIK MUNCH (1956)
LAILA S. DAHLEN (1968)
Chairman of the Board at Storebrand ASA since 2017
Director of the Board at Storebrand ASA since 2013
Position
Position
Education
Norwegian Police University College
Cand. jur law degree
Previous positions
Group Chief Executive Officer, Schibsted Norway (2011–2018)
Group Chief Executive Officer, Media Norway (2008–2011)
Chief Executive Officer, Bergens Tidende (1997–2008)
Division Director, Corporate Market, DNB (1995–1997)
Regional Bank Manager, Corporate Market Bergen, DNB (1992–1995)
Various managerial roles at Nevi and DNB (1987–1992)
Attorney, Kyrre AS (1987–1987)
Police intendant I/II, the Bergen Police Department (1984–1986)
Police inspector, the Oslo/Bergen Police Department (1979–1984)
Positions of trust
Board Chairman, NWT Media AS
Board Director, Grieg Star Shipping
Board Director, Lerøy Seafood Group
Board Chairman, SH Holding (Solstrand Fjord Hotel)
Ownership in Storebrand
Number of shares as at 31 December 2020: 40,000
Position
CPO, Schibsted News Media
Education
State-Authorised Public Accountant, Norwegian School of Economics (NHH)
MSc in Economics and Business Administration, BI Norwegian Business School
Master of Science in Finance, University of Wisconsin, USA
Previous positions
SVP Product and UX, Schibsted Marketplaces/Adevinta ASA (2017-2019)
Product Director, Finn.no AS (2011–2017)
COO, Kelkoo/Yahoo, London (2007–2009)
VP Marketplace, Yahoo Europe, London (2006–2007)
Regional Manager Scandinavia and the Netherlands, Kelkoo/Yahoo, Stockholm
(2003–2006)
VP International Operations, Kelkoo, Paris (2000–2001)
Manager, PricewaterhouseCoopers, Oslo (1993–2000)
Positions of trust
Director, FINN.no AS
Board Director, Schibsted Products & Technology AS
Board Director, Lendo AS
Board Director, E24 AS
Ownership in Storebrand
Number of shares as at 31 December 2020: 15,500
215
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223 KAPITTEL12 - APPENDIX
KARIN BING ORGLAND (1959)
Director of the Board at Storebrand ASA since 2015
MARIANNE BERGMANN RØREN (1968)
Director of the Board at Storebrand ASA since 2020
Position
Self-employed
Education
MSc in Economics and Business Administration
Norwegian School of Economics (NHH)
Top Manager Programme (IMD, BI and Management in Lund)
Previous positions
Executive Vice President of DNB, and various managerial positions in the same
group (1985–2013)
Consultant, the Ministry of Trade and Shipping (1983–1985)
Board Director and Chairman of the Audit Committee at Norske Skog ASA
Board Director, Norwegian Finance Holding ASA
Board Director, Scatec Solar ASA
Board Director, HAV Eiendom AS
Director of Boligselskapet INI AS, Grønland
Board Chairman of Røisheim Hotell AS and director at Røisheim Eiendom AS
Chairman of Visit Jotunheimen AS
Positions of trust
Board Chairman, Entur AS
Board Chairman, GIEK
Board Director and Chairman of Audit Committee, KID ASA
Board Director and Chairman of Audit Committee , Grieg Seafood ASA
Ownership in Storebrand
Number of shares as at 31 December 2020: 27,000
Position
CEO, Mesta AS
Education
Master in Law, Oslo University
Previous positions
Danske Bank Corporate & Institutions (2007-2019)
Global Head of COO Office
Global Head of Risk
Global Head of AML Program
COO and Deputy Country Manager
Chief Legal Adviser
Managing Associate (lawyer) Thommessen (2005-2007)
Managing Associate and Associate (lawyer) Wiersholm (2001-2005)
Advisor and international coordinator Finanstilsynet (1999-2001)
Lawyer Advokatfirmaet Arthur Andersen (1998-1999)
Positions of trust
Member of nomination comittee, Telenor ASA
Board member, EBA
Ownership in Storebrand
Number of shares as at 31 December 2020: 0
216
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MARTIN SKANCKE (1966)
Director of the Board at Storebrand ASA since 2019
Director of the Board at Storebrand ASA since 2014
Position
Executive Vice President & CCO, SAS
Education
MSc Industrial Engineering and Management, University of Linkõping
Previous positions
EVP Commercial, SAS (2017-2020)
EVP & Chief Strategy Officer, SAS (2014-2017)
Vice President, Network, SAS (2009-2014)
Vice President, Commercial, SAS (2007-2008)
Vice President, Corporate Development, SAS (2006-2007)
Position
Independent consultant
Education
Authorised Financial Analyst Norwegian School of Economics (NHH)
MSc Econ,London School of Economics and Political Science
Intermediate level Russian,University of Oslo
International Finance Programme,Stockholm School of Economics
MSc in Economics and Business Administration (MBA) Norwegian School of
Economics (NHH)
Previous positions
Director, Business Strategies, SAS (2004-2006)
Special Adviser, Storebrand (2011–2013)
Consultant, McKinsey & Company (2001-2004)
Deputy Director General and Director General, the Ministry of Finance
Ownership in Storebrand
Number of shares as at 31 December 2020: 3,000
(1994–2001, 2006–2011)
Director General, the Office of the Prime Minister (2002–2006)
Management consultant, McKinsey & Company (2001–2002)
Positions of trust
Director of Norfund
Board Chairman of the Principles for Responsible Investment (PRI)
Director of Storebrand Livsforsikring AS
Ownership in Storebrand
Number of shares as at 31 December: 27,500
217
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223
FREDRIK ÅTTING (1968)
MAGNUS GARD (1978)
Director of the Board at Storebrand ASA since 2020
Position
Partner and CO-Head of EQT Public Value
Utdannelse
MSc (Stockholm School of Economics)
Previous positions
Various positions in EQT, Sweden, Hong Kong, Germany and England (1996-)
Associate, Enskilda Securities, Sverige (1993-1996)
Employee Representative of the Board at Storebrand ASA since 2019
Position
Team Lead, corporate market, new sales
Education
MSc Economics and Business Administration (NHH)
Previous positions
Head of marketing, partners, retail market (2020)
Sales Manager Pensions and Investment, Financial Advisory AS, Storebrand (2013-2019)
Positions of trust
Authorised Finanical Advisor, Storebrand (2007 – 2014)
Chairman of the nomitation committee, BHG Group AB
Account Manager, Mamut ASA (2004 – 2007)
Chairman of nomitation committee, Adapteo Plc
Ownership in Storebrand
Number of shares as at 31 December 2020: 0
Number of shares owned by the close associate, EQT Public Value
Investments S.à r.l, as of 7th December 2020: 18,500,000
Sales Executive, Rosa Index AS (2004)
Internship, Centennial AS (2003-2004)
Ownership in Storebrand
Number of shares as at 31 December 2020: 1 633
218
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223 HANS-PETTER SALVESEN (1968)
BODIL CATHERINE VALVIK (1973)
Employee Representative of the Board at Storebrand ASA since 2020
Employee Representative of the Board at Storebrand ASA since 2020
Position
Head of Union Representatives, The Finance Sector Union of Norway
Position
Head of Fund Administration in Storebrand Asset Management ASA
in Storebrand ASA
Education
Marketing Communications, BI Norges Markedshøyskole/NMH
People Management, Høyskolen i Akershus
Previous positions
Sales Manager Storebrand Bank ASA (2016-2020)
Sales Manager Storebrand Finansiell Rådgivning AS (2014-2016)
Head of Dialogue Marketing/CRM Storebrand ASA, (2012-2014)
Operational Manager Storebrand Baltic UAB (2010-2012)
Key Account Manager, Storebrand Bank ASA (2005-2010)
Web Manager/Project Management Storebrand Bank ASA (2003 – 2005)
Web Manager/Project Management Finansbanken ASA (2000-2003)
Employee Gjensidige Forsikring (1988-2000)
Ownership in Storebrand
Number of shares as at 31 December 2020: 0
Education
BA(Hons) Travel & Tourism Management, University of Northumbria at Newcastle
Previous positions
Manager, Customer Services, Public pensions, Storebrand Pensjonstjenester AS (2018-2020)
Manager, Customer Service, Pension & Savings, Storebrand PM (2013-2018)
Manager Customer Service Link and Mutal Funds, Storebrand Kapitalforvaltning (2007-2012)
Manager Customer Service Link, Storebrand Livsforsikring (2002-2006)
Manager for Helpline Link, Storebrand Livsforsikring (2001-2002)
Financial advisor, Storebrand Livsforsikring (1999-2001)
Ownership in Storebrand
Number of shares as at 31 December 2020: 870
219
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223 BODIL CATHERINE VALVIK (1973)
Employee Representative of the Board at Storebrand ASA since 2020
Head of Fund Administration in Storebrand Asset Management ASA
Position
Education
Previous positions
BA(Hons) Travel & Tourism Management, University of Northumbria at Newcastle
Manager, Customer Services, Public pensions, Storebrand Pensjonstjenester AS (2018-2020)
Manager, Customer Service, Pension & Savings, Storebrand PM (2013-2018)
Manager Customer Service Link and Mutal Funds, Storebrand Kapitalforvaltning (2007-2012)
Manager Customer Service Link, Storebrand Livsforsikring (2002-2006)
Manager for Helpline Link, Storebrand Livsforsikring (2001-2002)
Financial advisor, Storebrand Livsforsikring (1999-2001)
Ownership in Storebrand
Number of shares as at 31 December 2020: 870
Page 1, Photographer: Shutterstock
Page 5, Photographer: Ole Berg-Rusten, NTB
Page 8, Photographer: Johnér Bildbyrå AB / Sara Winsnes
Page 9, Photographer: Shutterstock
Page 18, Photographer: Johnér Bildbyrå AB
Page 20, Photographer: Johnér Bildbyrå AB / Mikael Svensson
Page 25, Photographer: Johnér Bildbyrå AB
Page 27, Photographer: Maskot / Offset.com
Page 32, Photographer: Johnér Bildbyrå AB
Page 33, Photographer: Johnér Bildbyrå AB / Hans Berggren
Page 39, Photographer: Johnér Bildbyrå AB / Henrik Trygg
Page 40, Photographer: Johnér Bildbyrå AB / Susanne Kronholm
Page 42, Photographer: Johnér Bildbyrå AB / Michael Jönsson
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Page 49, Photographer: Shutterstock
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Page 56, Photographer: Shutterstock
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Page 67, Photographer: Shutterstock
Page 72, Photographer: Fredrik Schlyter / Johnér Bildbyrå AB
Page 74, Photographer: Maskot / Offset.com
Page 188, Photographer: Johnér Bildbyrå AB
Page 198, Photographer: shutterstock
Page 210, Photographer: Caiaimage / Johner
Page 211-219, Photographer: Storebrand Archive
220
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223 Goal
2021
>10 %
Goal
2025
>10 %
>150 %
>150 %
>50 %
100 %
N/A
>50 %
100 %
N/A
N/A
N/A
N/A
N/A
Complete list of Sustainability KPIs
Investments
Key performance indicators
Return on equity
Solvency margin
Dividend ratio
Share of total assets screened for sustainability
NOK billion invested in fossil-free products 61)
Carbon footprint from equity investments: ton-
nes of CO2e per NOK 1 million in sales income
Result
2017
11.3 %
172 %
40 %
100 %
60
Result
2018
13.7 %
173 %
68 %
100 %
68
Result
2019
8.0 %
176 %
0%
100 %
277
Result
2020
8.6%
178%
65%
100%
379
(against index) 62)
28 (18)
22 (32)
18 (24)
12 (18)
N/A
Carbon footprint from bond investments: ton-
nes of CO2e per NOK 1 million in sales income
(against index) 63)
Total carbon emissions from equity invest-
ments: tonnes of co2
Exposure to high emission sectors64): NOK
New
New
New
7 (12)
9 (16)
New
New
3 661 218
3 261 366
billion / share of equity investments
New
37.7 / 19%
34.6 /13%
32.2 / 8%
N/A
N/A
N/A
Investments in solutions (solutions companies,
green bonds and property with
environmental certification):
NOK billion / share of total assets 65)
New
38.8 / 5.5 %
53.7 / 6.5 %
92,6 / 9,6%
10 %
15 %
Investments in green bonds: NOK billion/
share of total bond investments
New
8.4 / 2.9 %
12.4 / 3.1 %
22.2 / 5%
Investments in solution companies:
NOK billion/ share of total equity investments
New
New
24.3 / 9.3 %
50.3 / 13%
-
-
-
-
Investments in certified green property: NOK
billion/ share of total real estate investments
9.9 / 26 %
13 / 30 %
17 / 41 %
20.1 / 43 %
52 %
74 %
Companies excluded from the
investment universe of the Storebrand Group:
number/share of investment universe
New
171 / 5.9 %
182 / 4.3 %
215 / 4.6%
N/A
Companies excluded from MSCI
ACWI Index: number/share of MSCI ACWI
investment universe
Companies that have been
contacted to discuss ESG through active
ownership: number/share of investment
New
New
178 / 7.6%
198 / 8.1%
N/A
universe
New
314 / 10.8 %
408 / 9.7%
572 / 12%
N/A
Votes at general meetings to
promote Storebrand’s ESG criteria: number/
share of investment universe
New
530 / 41.6 %
151 / 4.3 %
503 / 13%
N/A
N/A
N/A
N/A
N/A
Energy intensity direct real estate investments:
kWh/m2
192 kWh/m2
201 kWh/m2
194 kWh/m2
181 kWh/m2
190 kWh/m2
181 kWh/m2
Water intensity direct real estate investments:
m3/m2
0.34 m3/m2
0.38 m3/m2
0.46 m3/m2
0.44
0.45 m3/m2
0.43 m3/m2
Waste quantity direct real estate investments:
kg/m2 /Share of waste sorted for recycling
8.2 / 71 %
9.4 / 74 %
9.2 / 69 %
8.1 / 72 %
73 %
80 %
Carbon footprint direct real estate investments:
tonnes co2e / kg CO2e per m2
9,368 /
10,35
GRESB score direct real estate investments
(value-weighted average)66)
9,675 / 9,9
9,692 / 9,1
8,456 / 7,9
8.2
6.5
76%
221
82%
85%
Increase
Increase
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223 Complete list of Sustainability KPIs
Customer relations
Result
Result
Result
Key performance indicators
67)
Customer satisfaction 68)
Market share: Savings, retail market Norway
Market position: Pension, corporate market
Norway
Proportion of women, pension savings
Recognised for sustainable value creation
2017
Nr. 4
22 %
Nr. 1
43 %
2018
Nr. 4
21 %
Nr. 1
43 %
(Retail Norway)
New 2019
New 2019
Recognised for sustainable value creation
(Corporate market Norway)
New 2019
New 2019
Customer satisfaction (Net Promoter System,
Enterprise Market Sweden)
Nr. 8
Nr. 7
2019
Nr. 4
20 %
Nr. 1
44 %
Nr. 3
Nr. 1
Nr. 5
Result
2020
Nr. 6
22 %
Nr. 1
44.2%
Goal
2021
Top 3
Goal
2025
Top 3
Increase
Increase
Nr. 1
Nr. 1
Increase
Increase
Nr. 5
Top 3
Nr. 1
Nr. 4
Nr. 1
Nr. 1
Nr. 7
Top 3
Top 3
Footnotes “Investments”:
61) 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.
62) 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.The ratio of funds to index is similar with the current and previous method, but the absolute values on the indicators will thus differ from previous years’ reported figures.
63) 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. The ratio of funds to index is similar with the current and previous method, but the absolute values on the indicators will thus differ from previous years’ reported figures.
64) The figure applies to equity investments. For more information, see the chapter on climate risks and opportunities, especially page 70. See also description in the list of definitions from page 225.
65) We have decided to set an overall target for 2020 and 2025, and not a target for each asset class.
66) The objective is for all our portfolios to achieve a 5 star GRESB rating. This means that the portfolio must be among the top 20% globally, and therefore cannot be directly translated into a score (which
is based on a value-weighted average).
Footnotes “Customer relations”
67) We have stopped reporting on two indicators from 2019 on 2019: a) GDPR courses (this is an important indicator to make sure that new routines are implemented, but we are confident that these
routines are working well and that all relevant employees receive GDPR training as part of the onboarding) and b) Sustainable Brand Index scores for the UK and Sweden (these indicators are replaced
by others). In addition, complaints are now discussed under chapter 5 below.
68) Net Promoter System, Retail Norway
222
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223 People
Key performance indicators
Sick leave Norway
Sick leave Sweden
Turnover rate for women group
Turnover rate for men group
Number of employees
New recruits to the group
Number of women hired during the year
Number of men hired during the year
Male employees under 30
Female employees under 30
Male employees 30-50
Female employees 30-50
Male employees over 50
Female employees over 50
Result
Result
Result
2018
2.7%
3.3%
N/A
N/A
2019
3.1%
2.5%
9.7%
9.2%
1,667
1,742
220
78
116
115
102
526
408
235
284
204
78
126
109
117
531
379
264
302
2020
2.3%
1.8%
6.1%
6.8%
1,824
285
124
161
119
112
572
425
268
302
Female directors on the Group Board
5 out of 9
4 out of 9
4 out of 10
Women in Group Executive Management Team
3 out of 9
3 out of 10
3 out of 10
Women at management level 3:
share of women / number of women
Gender balance all managers: share of women /
number of women
Average salary female employees, Norway (NOK)
Average salary male employees, Norway (NOK)
Average salary female employees, Sweden (SEK)
Average salary male employees,, Sweden (SEK)
Expanded top management, women's share of
men's salary per position category
(Hay Grade 21-25)
Employees up to middle managers, women’s
share of men’s salary per position category
(Hay Grade 13-20)
CEO - average worker pay ratio: CEO pay/
average worker pay
Goal
2021
Goal
2025
< 3.5%
< 3.5%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
40%
N/A
50%
50%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
40%
N/A
50%
50%
N/A
N/A
N/A
N/A
46%
39%
699,228
871,146
608,551
762,151
41%
38% / 24
39%
39% / 103
743,684
914,107
644,484
811,717
760,948
923,686
671,159
842,226
110%
100%
104%
100%
100%
99%
97%
100%
100%
8.2 : 1
8.9 : 1
N/A
N/A
99%
N/A
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223 Keeping our house in order
Key performance indicators
Result 2017
Result 2018
Result 2019
Result 2020
Goal 2020
Goal 2025
Environmentally certified purchases
(share of the total expenditure that
went to suppliers with certified
environmental management system) 69)
38 %
46 %
57 %
62%
60%
60 %
Share of purchasing volume that has
answered survey on sustainability of
suppliers 70)
New
New
New
17%
Increse
100%
Greenhouse gas emissions from own
operation (total) scope 1-3: tonnes of CO2 /
tonnes CO2 per FTE
1,484 / 0.9
1,444 / 0.9
1,519 / 0.92
477 / 0.28
0.71 71)
0.671)
Scope 1-emission: tonnes CO2 /
tonnes CO2 per FTE
1.9 / 0
1.4 / 0
1.1 / 0
1.2 / 0
Scope 2-emission: tonnes CO2 /
tonnes CO2 per FTE
320 / 0.19
201 / 0.13
179 / 0.11
164 / 0.09
Scope 3-emission: tonnes CO2 /
tonnes CO2 per FTE
1,162 / 0.71
1,241 / 0.77
1,339 / 0.81
313 / 0.18
CO2e-emissions per FTE due to air
travel: Scope 3,tonnes 73)
CDP rating
DJSI score/ percentile global
E-learning conducted, ethics: total /
share of man-years74)
E-learning carried out, anti-corruption
work: total / share of man-years 74)
E-learning completed, combating
money laundering and financial crime:
total / share of man-years74)
E-learning completed, privacy: total/
share of man-years 74)
Number of complaints processed by the
Financial Appeals Board 75)
Number of breaches of code of conduct/
Code of Conduct
Number of information security
incidents
Number of privacy events
0.64
B
69/74
New
New
New
New
New
New
3
N/A
0.69
A -
63/74
New
New
New
New
135
New
0
60
0.74
A -
75/81
89 %
87 %
89 %
New
192
9
30
48
-
-
-
-
A
-
-
-
-
A
0.15
A -
81/93
Top 10% 72)
Top 10% 72)
91%
90%
92%
85%
218
2
20
41
100 %
100 %
100 %
100 %
100 %
100 %
100%
100%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
69) 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%.
70) Applies to volume of our purchases in NOK to suppliers with over NOK 1 million in sales to Storebrand
71) We have set a target to reduce our emissions by 7,6% per year by 2025 with a 2019 baseline year. Due to the Covid-19 pandemic, our emissions in 2020 were abnormally low. We will consider adjusting our long-term targets
when the pandemic stabilises and working-life becomes more normalised.
72) A top 10% rank entails that Storebrand will be included in the Dow Jones Sustainability Wolrd Index. Score and percentile as expressed in the indicator can therefore not be directly compared with the target expressed here.
73) We have stopped reporting the average number of flights per FTE, as this is not a relevant indicator. The impact of air travel on the environment depends on how far you travel. This indicator is therefore replaced by kg
CO2equivalents per FTE related to flights will be replaced from 2019. Emissions from flights have been recalculated for 2017-2019 as a result of updates to the emission factors in our travel agencies’ systems.
74) 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.
75) The figures apply to our Norwegian enterprises, as these are complaints dealt with in the Financial Complaints Commission. SPP not included here.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223
Definitions of Key performance indicators
Definitions apply to the KPIs in Chapters 2 - 6 of this report, and all the KPIs in
the complete list of sustainability KPIs above
A driving force for sustainable investments
Return on equity: Return on equity
Solvency II: Common European regulatory framework for insurance regulation.
Under Solvency II, the size of the capital requirement will be determined by
how much risk the company is exposed to.
Dividend/Pay-out ratio: Dividend as a share of profit after tax. (see Dividend
Policy on p.51)
Per cent of AuM screened for sustainability: All companies in our investment
universe are screened for sustainability according to our standards: https://
www.storebrand.no/en/sustainability/investments
Fossil-free products: The companies in the portfolio may have no more than
5% of their revenues related to the production or distribution of fossil energy,
and the fossil reserves shall not exceed 100 million tonnes of CO2.
Carbon footprint in equity investments: Results per Q3 2020. Based on
TCFD’s definition. The fund’s total carbon footprint is the sum of the companies’
carbon emissions over the companies’ revenues, weighted for our ownership
of the respective companies. The unit of measure shows carbon emissions per
million fund currency in NOK. The method is the same for stocks and bonds.
Exposure to high-emitting sectors: Indicates our exposure to high-emitting
sectors in NOK and as a share of total equity investments. The definition of
high-emitting sectors follows the methodology recommendation of the Net Zero
Asset Owner Alliance, and includes the following GICS codes for each sector:
Aviation 20301010, 20302010
Chemicals 15101010, 15101020, 15101030, 15101040, 15101050
Energy, 10101010, 10101020, 10102010, 10102020, 10102030, 10102040,
10102050
Steel, 15104050
Shipping, 20303010
Cement 15102010
Utilities, 55101010, 55102010, 55103010, 55105010
Light duty automobiles, 25102010
Heavy duty automobiles, 20304020, 20104020
Aluminium, 15104010
Investment in solutions (solution companies, Green Bonds, and real
estate investments with Green Building Certificate): Total share of
managed capital invested in solution companies, through our portfolio of
clean technology, renewable energy and green bonds in equity and interest
rates in Storebrand and SPP. Direct real estate investments under operational
control in Norway and Sweden with environmental certification.
Investments in green bonds: Green bonds enable capital raising for new
and existing projects with environmental gains.
Investments in solution companies: The investment in solution companies,
through our portfolio of clean technology and renewable energy, among others,
in Storebrand and SPP.
Certified green property: Share direct real estate investments under operational
control in Norway and Sweden with environmental certification.
Energy consumption direct real estate investments: Temperature-adjusted
energy consumption per square meter of heated area in direct real estate
investments under operational control in Norway and Sweden. Consumption
measured by energy suppliers (electricity, district heating / cooling and other)
and registered in the environmental monitoring system.
Water consumption in direct real estate investments: Water consumption
in cubic metres per square meter of heated area in direct real estate investments
under operational control in Norway and Sweden. Consumption measured and
registered in the environmental follow-up system.
Carbon footprint direct real estate investments: CO2 emissions from direct
real estate investments under operational control, per square meter of heated
area. Includes direct and indirect emissions (scope 1-3), including the tenant’s
energy and water consumption as well as waste production. The carbon footprint
is calculated by CemaSys AS according to the Greenhouse Gas Protocol (GHG)
protocol. The Nordic mix emission factor is the basis for calculating location-
based emissions from electric power.
Waste sorting in direct real estate investments: Share of source sorted
waste from real estate including tenants. Residual waste is sorted mechanically
at the recycling plant, and mainly goes to energy recovery.
Customer relations
Net Promoter System: Net Promoter System: Net Promoter System (NPS) is
a measuring tool for customer satisfaction where the customer gives a score
from 0 to 10 with 10 as the best result.
Market share Savings Norway PM: Based on Q3 figures from Finans Norway
and VFF (Mutual Funds Association).
Market position BM occupational pension: Based on Q3figures from the
Finance Norway.
Share of female pension savers: Proportion of pension savers (customers)
who are women.
Association to profitable sustainability: Averages of the share that connects
Storebrand with sustainability, environmental responsibility and corporate social
responsibility.
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ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223
KAPITTEL12 - APPENDIX
Expected pension as a share of salary: Customers’ expected pension from
all sources (including private savings for pension, national insurance, AFP,
and occupational pension schemes in Norway), expressed as a percentage
of current salary.
People
Sickness absence: Number of sick leave days divided by number of working
days at end-December 2020
Number of employees: Number of employees at Storebrand and SPP as
of 31.12.20, including Værdalsbruket.
Leader level 1-3:
Level 1=CEO
Level 2=Group management
Level 3=Reports to group management, with the exception of personal
assistants
Gender balance all managers, proportion of women: Includes all female
managers with personnel responsibilities. For level 3, all female managers
are counted, except personal assistants
Turnover: Permanent employees who quit in 2020 with the exception of
voluntary severance agreements between employer and employee, reduction
in workforce or retirement, divided by average number of permanent
employees in 2020.
Number recruited: Number of recruits including permanent employees,
substitutes and internships in Norway and Sweden. The figures also include
recruited employees who left the group later in 2020.
Number of employees in different age groups/sex: Includes Norway
and Sweden. Discrepancies compared to the total number of employees
are due to the fact that gender is not registered for all employees and that
Værdaksbruket is not included in these figures.
Hay Grade: Hay Grade is a recognised job evaluation system used by
many larger companies in Norway and internationally. The system makes it
possible to compare pay for positions that have the same requirements for
competence, experience and complexity. The system is used to compare
wages for positions across the group and also against positions with the
same Hay Grade in the labour market. The figures only apply to Storebrand
in Norway. Hay Grade 21-25 includes roles except CEO.
CEO - Average Worker Pay Ratio: Basic salary for CEO relative to average
salary for all employees in Norway
Keeping our house in order
Environmental requirements for suppliers: Share of contracts with
suppliers where Storebrand has over 1MNOK in procurement where the
supplier is certified or meets requirements according to one or more of the
following environmental certification systems: Miljøbas, Miljøfyrtårn, Svanen,
ISO 14001, CO2 neutral.
226
Co2 emissions: CO2 emissions per man-year in Norwegian and Swedish
operations. Includes direct and indirect discharge; transport, other transport,
energy consumption and waste (scope1-3). The carbon footprint is calculated
by CemaSys AS according to the Greenhouse Gas Protocol (GHG) protocol.
The Nordic mix emission factor is the basis for calculating location-based
emissions from electric power.
CO2 emissions from air travel: Emissions from service trips the employees
of the Group’s Norwegian and Swedish operations have done by air.
Scope 1: Tonnes of CO2 equivalents, measured in accordance with Greehouse
gas protocol.
Scope 2: Tonnes of CO2 equivalents, measured in accordance with Greehouse
gas protocol.
Scope 3: Tonnes of CO2 equivalents, measured according to Greehouse
gas protocol.
Energy consumption: Temperature-adjusted energy consumption per
square metre of heated area at the head offices in Norway and Sweden.
Consumption measured by the energy supplier (electricity and district heating
/ cooling) and registered in the environmental monitoring system.
Water consumption: Water consumption in cubic metres per square meter
of heated area in the head offices of Norway and Sweden. Consumption
measured and registered in the environmental follow-up system.
Waste sorting/sorting grade: Share of waste sorted for recycling and
further handling at head offices in Norway and Sweden. The residual waste
is mechanically sorted at the recycling plant, and mainly goes to combustion
with heat recovery.
Paper consumption: Consumption of office paper (copy and bond paper),
envelopes, advertisements, including externally printed and regulatory letter
attachments in kilograms per full-time employee in both Norwegian and
Swedish operations.
CDP rating: Rating performed by carbon disclosure project.
E-learning course completed: Employee who is registered as completed in
our e-learning system.
Cases dealt with in the Financial Complaints Committee: Customers
complain storebrand to the Financial Complaints Commission for the
processing of cases. These are processed by the Financial Complaints
Committee on an ongoing basis.
Information security events: An information security incident is a suspected,
attempted, successful or imminent threat of unauthorised access, use,
disclosure, violation, alteration or destruction of information; disruption of
IT operations; or significant violation of the responsible use policy.
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71.This is Storebrand2.Customer relations3.People4.Keeping Our House in Order5.Director´s report6.Shareholder matters7.Annual Accounts and Notes8.Governance9.Sustainability assurance10.AppendixExecutive management CVs 209Group Board of Directors CVs 213Complete list of Sustainability Indicators 219Definitions 223 Storebrand ASA
Professor Kohts vei 9, Postboks 500, 1327 Lysaker, telefon 915 08880, storebrand.no
227
ContentsFacts and figures 2020 3Letter from the Group Chief Executive Officer 5Chairman’s foreword 71. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director´s report6. Shareholder matters7. Annual Accounts and Notes8. Governance9. Sustainability assurance10. Appendix