Storebrand ASA Annual Report 2021

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FY2021 Annual Report · Storebrand ASA

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Storebrand ASA

Annual report

2021

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Table of contents

Introduction
3 Facts and figures 2021

5 Foreword by our CEO

7 Foreword by the Chair

9 Highlights in 2021

1. This is Storebrand
12 About Storebrand

13 Organisation

16 Executive management

17 Board of Directors

2. Customer relations
21 Greater security and financial wellness

6. Shareholder matters

7. Annual Accounts and Notes

Storebrand Group

Income statement

93 Statement of total comprehensive income

94 Statement of Financial Position

96 Statement of changes in equity

97 Statement of cash flow

99 Notes

Storebrand ASA

180 Income statement

23 Engaging, relevant and responsible advice

180 Statement of total comprehensive income

24 Digital innovator in financial services

25 Simple and seamless customer experiences

26 Key performance indicators

3. People
28 A culture for learning

30 Engaged, competent and courageous employees

31 Diversity and equal opportunities

33 Key performance indicators

4. Keeping Our House in Order
35 Corporate governance and compliance

40 Responsible use of resources

41 Sustainable practices through our value chain

181 Statement of Financial Position

182 Statement of changes in equity

183 Statement of cash flow

184 Notes

197 Declaration by member of the Board and the CEO

198 Indepentent auditor’s report

8. Corporate governance
206 Corporate governance
214 Companies in the Storebrand Group

9. Sustainability Assurance
216 TCFD-index

220 GRI-index

226 Auditor’s Statement

10. Appendix
229 Executive management CVs

234 Group Board of Directors CVs

240 Sustainability indicators and definitions

247 Carbon Accounting Summary

248 Taxonomy reporting

always go back to this page for a

43 Corporate social responsibility

complete overview.

44 Key performance indicators

5. Director’s report
46 Strategy 2021-23

47 Strategic highlights 2021

51 The Group’s results 2021

56 Official Financial Statements of Storebrand ASA

57 Outlook

62 A driving force for sustainable investments

72 Risk

74 Climate risk and opportunities

84 Working environment and HSE

85 Progress on our most material sustainability KPIs

Facts and figures
2021

Number of employees

1 914

Return on equity2)

10.7 %

Assets under management, NOK billion

1 097

Investments in fossil free funds, NOK billion

483

Real estate investments with
green certificates4)

68%

Group profit1), NOK million

4 503

Solency ratio

175 %

Assets under management screened for
sustainability criteria

100 %

Investments in solutions3), NOK billion

123.1

Rank in Global 100 among insurance comapanies

No. 1

(third consecutive year)

1 Profit before amortisation and tax.

2 After tax, adjusted for amortisation of intangible assets.

3 Equity investments in solution companies, investments in green bonds, green infrastructure and investments in real estate with Green Building Certificate.

4 Capital Investment that we acquired in 2021 has not reported to GRESB, and the real estate assets managed by the company is not included in the figures for Green Building Certificate

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixDefined Contribution pensions Norway
– Annualised return last 5 years *)

Pension investment profiles Sweden
– Annualised return last 5 years **)

9.2 %

8.4 %

8.3 %

8.1 %

8.0 %

10.9 %

9.3 %

9.2 %

8.3 %

6.8 %

Storebrand

Competitors

SPP

Competitors

Unit Linked reserves

Total assets under

Written portfolio

(NOK billion)

management (NOK billion)

premiums (NOK billion)

+15%

308

+14%

1,097

+22%

6.45

5.29

268

962

2020

2021

2020

2021

2020

2021

Fee and administration income

Group profit ***) (NOK million)

Earnings per share, adj.

(NOK million)

+16%

6,607

5,676

+66%

4,503

2,711

for amortisation (NOK)

+29%

7.81

6.07

2020

2021

2020

2021

2020

2021

*) 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.

***) Result before amortisation and tax

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixForeword by our CEO

In 2021, we shifted into an even higher gear ensuring increased speed and growth,

while defining clear ambitions for the coming years. With a strong solvency ratio

and balance sheet, where Defined Contribution pensions now make up most of the

pension assets, we could spend less time on older products in run-off and devote

more attention to Storebrand’s future business.

Odd Arild Grefstad

Group Chief Executive Officer

Throughout the year, more and more customers signed up for our
market-leading digital products within pensions, savings, insurance,
banking, and asset management. The group delivered both strong
returns and long-term value to both customers and shareholders.
The group result before amortisation and tax reached NOK 4.5
billion, supported by the sale of Værdalsbruket as well as good
returns for customers in funds with performance fees. Excluding
positive one-off effects, earnings grew substantially in 2021, and we
are well on track to achieve our ambition of delivering a Group profit
before amortisation and tax of more than NOK 4 billion in 2023.

Since the winter of 2019/2020, the pandemic has changed the
professional and personal lives for most people. Throughout this
period, Storebrand’s employees have shown an impressive ability to
make the best of the situation. We quickly found new ways of working
that contributed to both customer and employee satisfaction, and

solid results. Storebrand has been present for our customers during
the pandemic. Throughout 2021, many customers confirmed that
Storebrand plays an important role as a contributor to their financial
security and freedom. We handled volatile markets throughout the
pandemic and provided secure and good returns to our customers
while strengthening our solvency.

The Norwegian and Swedish economies developed positively
throughout the year. The share of companies with payment
difficulties or at risk of going bankrupt fell sharply, and a record
number of employees were employed. In fact, at the beginning
of 2022, labour shortage was one of the biggest challenges in the
Nordic countries. Interest rates rose through 2021. This was a sign
of a healthier economy after a period of record-low interest rates,
and an advantage for Storebrand as a life insurance company and
manager of people’s pension money. Unfortunately, the spread
of Covid-19 increased towards the fall of 2021, resulting in new
restrictions that created challenges for both companies and
individuals. Although the uncertainty increased in the short term,
we saw clear signs that everyday life was returning to normal.

Within Defined Contribution pensions, we delivered record-high
returns within the most used pension profiles in Norway, both
in 2021 and on a three- and five-year basis. This means that
Storebrand’s customers have received the best return in the market.
We are proud to deliver market-leading returns through a distinctly
sustainable asset management, providing better pension for our
customers and contributing to a better world to retire in. In total,
Unit Linked products achieved 15 per cent growth. At the turn of
the year these products accounted for 51 per cent of the managed
pension assets. Among corporate customers in Norway, we had
both the highest customer satisfaction and loyalty.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixEarly last year, Individual Pension Accounts were introduced in
Norway. The scheme makes pensions simpler and clearer, and it
allows employees in the private sector to choose which company
will manage their pension funds. Storebrand met the change with
competitive solutions. Customers shall be confident that Storebrand
provides the best offer, whether they follow their employer’s
collective scheme, or choose a pension provider themselves.

At the end of the year, we entered into an agreement to buy Danica
in Norway. We look forward to combining our expertise and good
technical solutions with Danica’s strong and professional distribution
partners. We will take pride in serving Danica’s customers and
helping even more people gain access to market-leading products
and services.

In the public sector, which is one of our new focus areas, it was
a very exciting year. First, we could welcome Vestland County
Municipality. Then we won the trust of both Øygarden and
Bjørnafjorden municipalities, as well as several public organisations.
We demonstrated that there is money to be saved for municipalities
that put their pension schemes out to public tender, while at the
same time giving employees access to pension schemes that are
at least as good the ones they had before. The results will inspire
further efforts within the public sector in the time to come.

In Sweden, SPP continued to change the pension market by
delivering strong digital solutions and sustainable products and
services. This led to many new customers moving to SPP towards
the end of the year. SPP was recognised as the most digital pension
company in the Swedish market and delivered record-high results
in 2021.

Our investment in the Norwegian retail market resulted in significant
earnings growth and an increase in the number of customers and
employees. We gained market shares within savings, banking and
insurance. Storebrand was the fastest growing insurance company
in the Norwegian retail market, with an increase in market share
from 4.5 per cent to 6.0 per cent. The bank’s lending, primarily for
mortgages, grew by as much as 15 per cent. Continuously improving
digital services - including the app “Mine Penger” (“My money”) -
contributed to good experiences for our savings customers. Profit
in the retail market increased by 48 per cent in 2021, and we have
high growth ambitions going forward.

Storebrand is both one of the largest, and the fastest growing, asset
managers in the Nordic region. We are the gateway to investments in
the Nordic region for international customers. At the same time, we
offer a wide range of products to customers in the Nordic countries,
and we have cutting-edge sustainable investment solutions for
everyone. In 2021, we increased our total assets by more than NOK
130 billion and exceeded NOK 1,000 billion in total assets under
management. Our funds delivered solid returns in 2021. In a market
characterised by low interest rates, customers want to invest more
and more into private equity, real estate, and infrastructure. These
are asset classes we have a lot of experience with, and which will

be important for Storebrand’s growth and profitability in the future.
I am therefore pleased that in the autumn of 2021, the Danish
property manager Capital Investment became a part of Storebrand.

important

increasingly

Sustainability has become
for both
businesses and organisations, and for private individuals. With larger
investments improves our ability to make an impact. Storebrand is
an increasingly active driving force for sustainable business and
societal development. Through active ownership, we contribute to
important decisions in the companies we invest in. We also actively
engage in global networks, with suppliers we buy from, and through
products and services that we offer to our customers. Our goal is
to achieve net zero emissions in all our investments by 2050. By
2025, our intermediate goal is to reduce greenhouse gas emissions
from our investments by 32 per cent and increase the share of
investments in solution companies to 15 per cent.

Sustainability is about more than climate. Going forward, we will
emphasise our focus on nature, biodiversity and social challenges.
As inequality in the world deepens, it is important to strengthen
our commitment to issues such as equal pay, equal rights, and
the protection of social groups particularly vulnerable to climate
change. Storebrand was widely recognised for our sustainability
work in 2021. For the second year in a row, Storebrand was ranked
by the Dow Jones Sustainability Index as one of the world’s 10 per
cent most sustainable listed companies. In addition, we were again
named one of the world’s most sustainable insurance companies
by Corporate Knights Global 100. Institutional customers in Norway
and Sweden rated us as the best on sustainable investments.

In 2021, we further developed our workplaces to adapt everyday
work to hybrid models, with flexible schemes and a combination of
work and home offices. Our goal is for Storebrand to be a leading
and future-oriented workplace. Employee satisfaction surveys
showed that employees thrived even better in 2021 than before.
We continued to attract skilled employees and recruited as many as
250 new colleagues throughout the year.

The use of data and insights is becoming increasingly important in
the development of strategy, work processes, customer solutions,
products and services. We are at the forefront of moving our IT
infrastructure to cloud-based solutions. Digital sales also continued
to increase in 2021.

I look forward to an exciting new year, where our employees,
products and services will create a future to look forward to for
customers and shareholders, and with positive ripple effects for
the societies in which we operate. I would like to thank customers,
shareholders and employees who all contributed to Storebrand’s
progress in 2021.

Odd Arild Grefstad

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixForeword by the Chair

Storebrand’s business has a major impact on society. The world is facing a green shift,

and Storebrand intends to lead the way in sustainable value creation for customers,

shareholders, and society. We will deliver products and services tailored to meet

the needs of our customers and contribute to their financial security and financial

freedom.

Didrik Munch

Chair, Storebrand ASA

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixIn recent years, Storebrand has carried out a successful strategic
turnaround operation. While Storebrand previously was a manager
of capital-intensive guaranteed pensions primarily, the company
is now transformed into a leading manager of savings for both
companies and individuals. In addition, we are a steadily growing
insurance player. We will build on this position going forward.

Storebrand achieved historically strong growth and very satisfactory
results in 2021. Thus, we are able to confirm the ambitious
growth targets for the years 2021-2023 that were announced at
Storebrand’s Capital Markets Day in 2020.

asset managers, with sustainable investments as a foundation.
We have set ambitious goals and are committed to adapting our
investment portfolio to the 1.5-degree target in line with the Paris
Agreement. This means that the investment portfolio must be
carbon neutral by 2050 at the latest. By 2025, Storebrand must
reduce greenhouse gas emissions from our investments by 32 per
cent, and at least 15 per cent of the portfolio must be invested in
solution companies that are particularly well positioned to help
achieve the UN Sustainable Development Goals. This requires a
close dialogue with the companies we invest in to help them reduce
emissions.

Our ambition is to deliver a group profit (before amortisation and tax)
of more than NOK 4 billion in 2023. Self-financed growth within what
we call “Future Storebrand”, will be a main contributor to increased
profitability. At the same time, Storebrand will manage the balance
sheet with guaranteed pensions in run-off in an efficient and safe
manner that both secures customers’ pension payments and frees
up capital for shareholders over time. With skilled employees, a high
degree of digitalisation, market-leading products and a solid financial
position, the group is well positioned to meet market developments.

Storebrand’s investments will provide good returns and long-term
value for both customers and shareholders. We are well on our
way to realising our ambition of becoming a Nordic powerhouse for
asset management. Storebrand offers a wide range of management
solutions. We have strengthened our
focus on alternative
investments and further developed our offering within sustainable
investments. The goal is both to be a preferred partner for Nordic
investors, and a gateway to the Nordic region for international
investors.

The board is very pleased with Storebrand’s results in 2021 and
believes the company is well positioned for the years to come.
Storebrand’s shareholders achieved a total return of 43 per cent in
2021, which was higher than the returns reported both by the Oslo
Stock Exchange and by European peers.

Storebrand faces exciting challenges. Competition is tough in both
the corporate and retail markets. Customers have increasingly high
expectations, and we must deliver on ambitious goals for profitable
growth and sustainable development. Time and time again,
Storebrand has demonstrated an ability to adapt to market and
societal developments. The group’s balance sheet is solid, and our
financial flexibility is good. Storebrand has paid increasing dividends,
made acquisitions to strengthen our customer offerings, and
secured long-term financing through debt issuances in international
markets. All this strengthens the basis for creating future growth and
shareholder value, while also contributing positively to a sustainable
development in the years to come.

Storebrand ensures good solutions and accessibility for customers
through cost-effective operations, innovation and digital solutions.
Value-adding self-service solutions provide flexibility for customers
and contribute to healthy margins in a pension market characterised
by strong competition. Our ambition is to maintain Storebrand’s
position as a leading provider of occupational pensions in both
Norway and Sweden.

is becoming

for pension savings

The market
increasingly
individualised. Retail customers expect us to meet their individual
needs at various stages of their lives. Therefore, it was satisfying
to note an increase in the number of customers who chose us as
their savings and insurance provider in 2021. We aim to help our
customers make good choices that provide both good returns for
them as well as a positive societal development. While our offering
to the retail market used to be a supplement to other activities, retail
savings and insurance products have become part of Storebrand’s
core business. We will continue to challenge the established players
in these markets.

Storebrand has grown to become one of the Nordic region’s largest

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixHighlights in 2021

January - March

April - June

estate

• Storebrand launched a Nordic sustainable
customers
countries were
opportunities.
remains promising.

real
throughout
for
looking
The market outlook

fund. More

the Nordic

investment

• Storebrand led a global investor group
that met with the Brazilian government to call
for stronger efforts to reduce deforestation.

• Storebrand

the

and

Confederation
of Norwegian Enterprise renewed an
occupational pension agreement comprising
the organisation’s 29,000 member companies
representing more than 592,000 man-years.

issued

• Storebrand Livsforsikring AS

its
first green bond. The issuance was a time-
limited subordinated bond of EUR 300
million. Storebrand continued to contribute
to a growing market for sustainable bonds
and stimulate the market for sustainable
investments and financing.

• Storebrand sold AS Værdalsbruket

to
Fabritius Gruppen AS. Værdalsbruket was
the country’s second-largest private forest
ownership company and had been owned by
Storebrand since 1935.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixQ3

July - September

October - December

• Total assets under management exceeded

NOK 1000 billion.

• Storebrand maintained its rank as best in
class among sustainable investments. For
the third consecutive year, the annual Prospera
survey in Norway and Sweden showed that
institutional clients ranked Storebrand Asset
Management best in class among sustainable
investments.

• Storebrand launched a new fund focused
on investments in solutions for the cities of
the future. By 2050, 70 per cent of the world’s
population will live in cities, which will require
smart urban planning and development.
Companies that help cities become better
live represent a great growth
places to
potential.

• Norway reopened after one and a half
years of pandemic restrictions. Storebrand
launched Future Storebrand, a flexible and
trust-based work model where employees and
teams may decide the physical locations for
their work.

• Storebrand acquired Capital

in
Denmark, strengthening the group’s position within
alternative investments in Norway, Sweden and
Denmark.

Investment

• Øygarden municipality chose Storebrand as its
pension provider. The pension scheme covered
around 9,000 current and former employees in the
municipality.

• Storebrand maintained its position as one of
the world’s most sustainable companies. For the
second year in a row, Storebrand was named by the
Dow Jones Sustainability Index as one of the world’s
10 per cent most sustainable listed companies.

• Bjørnafjorden municipality chose Storebrand as
its pension provider. The pension scheme covers
around 6,000 employees, members, and pensioners
in the municipality.

• Storebrand Studio went live. State-of-the art video
production and digital live broadcasts will enhance
Storebrand’s visual communication with customers,
stakeholders and employees.

• Storebrand Livsforsikring AS entered into an
agreement to purchase 100 per cent of the
shares in Danica Pensjonsforsikring AS Norway.
Pending approval by Norway’s Financial Supervisory
Authority and the Norwegian Competition Authority,
the acquisition was expected to take place during the
first half of 2022.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix1

This is Storebrand

12 About Storebrand

13 Organisation

16 Executive management
17 Board of Directors

Storebrand is a Nordic 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 and to consistently meet their
expectations. Our customers should be confident that we put their
needs first.

We have been an important 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 1,097 billion invested in more than 5,000
companies around the world.

More than 2 million people in Norway and Sweden have placed their
savings with us. We are committed to managing our customers’
money effectively and responsibly, helping them to fulfil their dream
of increased financial freedom and financial security for the future.
Assets under management shall be invested according to best
sustainable practices, ensuring good financial returns and a positive
impact on society. We shall make it easy for our customers to make
good choices, both for themselves and society. Our purpose is clear:
We create a brighter future.

Our driving force

Storebrand’s driving force is key to delivering on our purpose. We will be closest to the customer,
in a simple and sustainable way, delivering increased security and financial wellness. We do this by
being a brave pioneer and by leading the way in sustainable investments.

Engelsk

W HY

A brighter future

H OW

O
H
W

Close to our
customer

– simple and sustainable

Brave
pioneer

Security and
financial
wellness

A brighter future

Brave Pioneer

We work to ensure that more and more people can think about the future
with optimism. Both because they have a personal economy that allows
them to live the life they want, and because they see that what we do
together really contributes to the world moving in the right direction.

We believe that there is always room for improvement. This requires
courage to challenge the status quo and willingness to learn by trial and
error. We do not simply choose the path of least resistance, rather we act
in ways that are best for our clients based on our wealth of experience
and knowledge. Both as a corporation and as individuals.

Security and financial wellness

Close to our customer – simple and sustainable

Our products and services can significantly improve our customer’s well-
being - now and for the future. We ensure that what they value the most
is taken care of and enable them the freedom to realise their dreams.

We are committed to knowing the customer so well that we can provide
them with what they want and need. We will always have their best
interest at heart. This makes it easy for them to make good choices, both
for themselves and for the planet.

Storebrand

1867
The non-life insurance company

Norden is established as a

competitor to Storebrand.

1767
Almindelige Brand- Forsikrings-Anstalt

is established as a compulsory ﬁ re

insurance for buildings in

Norwegian cities.

1847
Private interests establish Christiania

almindelige Brandforsikrings-Selskab

for Varer og Eﬀ ecter. The company is

referred to as Storebrand.

1936
Storebrand buys Europeiske,

Norway’s leading travel insurer.

1990
Storebrand and UNI Forsikring

decide to merge and receive a

formal licence in January 1991.

1923
Storebrand buys almost all

the shares in Idun. With a few

exceptions, the rest is acquired

during the 1970s.

1978
Storebrand changes the logo and

introduces the “link” as an easily

recognisable trademark. The formal

name of the holding company changes

to the Storebrand Group Ltd.

1999

Storebrand, Skandia and Pohjola gather their

2009

non-life insurance activities in the new Nordic

Storebrand conﬁ rms that talks have

Swedish-registered company “If Skadeförsäkring

been held about a possible merger

ab”. Storebrand sells out ﬁ ve years later.

with Gjensidige. The talks ended

without result.

2017

Storebrand acquires SKAGEN and

celebrates its 250th anniversary.

2021

Storebrand’s Capital management

exceeds NOK 1000 billion.

1996

The company changes its name to

Storebrand ASA and establishes

Storebrand bank ASA.

2006

Storebrand re-enters

P&C insurance market.

2014

Storebrand Asset Management

exceeds NOK 500 billion.

2019

Storebrand acquires the investment

company Cubera Private Equity AS, which

manages several private equity funds in the

Nordic countries and internationally.

1814
After Norway’s secession

from Denmark, the
scheme is continued,

and the administration
transferred to Christiania.

1917
The life insurance company
Norske Folk is founded.

1925
Christiania Almindelige Forsikrings-

1963
Storebrand takes over

Norske Fortuna. Brage and
Fram merge and become

Aksjeselskap, referred to as Storebrand,
changes its name to Christiania almindelige

the country’s largest life
company.

Forsikrings-Aksjeselskap Storebrand.

1984
Norges Brannkasse and
Norske Folk become

UNI Forsikring.

1995
Storebrand establishes

sustainable investment in
Storebrand Asset Management.

1861
Storebrand’s owners establish

Norway’s ﬁ rst privately owned
life insurance company, Idun.

1998

Storebrand Helseforsikring

is established.

2007

Storebrand acquires the

Swedish pension company SPP

and forms the Nordic region’s

leading life insurance group.

2016

Storebrand launches “Our Driving Force”,

a mission statement with a vision to

create a future to look forward to.

2005

The Storting decides that all companies must

introduce occupational pensions (OTPs) by 2007.

2012

Storebrand launches its new vision: “Our

customers recommend us”. Odd Arild

Grefstad is appointed new CEO.

2020

Storebrand is included in the

Dow Jones Sustainability Index,

ranked as one of the world’s 10

per cent most sustainable listed

companies.

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 %)

Storebrand Holding AB

Storebrand Boligkreditt AS

SPP Fonder AB

SPP Spar AB

SPP Konsult AB

SPP Pensjon & Forsäkring AB

Storebrand Fastigheter AB

SKAGEN AS

Cubera Private Equity AS

Storebrand Eiendomsfond Invest AS

Storebrand Eiendom Trygg AS

Storebrand Eiendom Vekst AS

Storebrand Eiendom Utvikling AS

Storebrand Pensjonstjenester AS

Norsk Pensjon AS (25%)

Storebrand & SPP Business Services AB

SPP Fastigheter AB

SPP Fastigheter Komplementär AB

SPP Hyresförvaltning AB

Business Segments

Savings

Insurance

Guaranteed pensions

Other

Consists of products that
encompass pension savings
without interest rate guaran-
tees. This includes defined
contribution pensions in
Norway and Sweden, asset
management and savings and
banking products for private
individuals.

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 pen-
sion-related insurance in the
corporate market as well as
non-life insurance products,
and personal risk insurance
products in the Norwegian
retail market.

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.

This includes other companies
within the Storebrand Group,
including subsidiaries of Store-
brand Life Insurance and SPP.

Storebrand

1767

Almindelige Brand- Forsikrings-Anstalt

is established as a compulsory ﬁ re

insurance for buildings in

Norwegian cities.

1847

Private interests establish Christiania

almindelige Brandforsikrings-Selskab

for Varer og Eﬀ ecter. The company is

referred to as Storebrand.

1867

The non-life insurance company

Norden is established as a

competitor to Storebrand.

1936
Storebrand buys Europeiske,

Norway’s leading travel insurer.

1990
Storebrand and UNI Forsikring

decide to merge and receive a

formal licence in January 1991.

1923

Storebrand buys almost all

the shares in Idun. With a few

exceptions, the rest is acquired

during the 1970s.

1978
Storebrand changes the logo and

introduces the “link” as an easily

recognisable trademark. The formal

name of the holding company changes

to the Storebrand Group Ltd.

1999
Storebrand, Skandia and Pohjola gather their

non-life insurance activities in the new Nordic

2009
Storebrand conﬁ rms that talks have

Swedish-registered company “If Skadeförsäkring

been held about a possible merger

ab”. Storebrand sells out ﬁ ve years later.

with Gjensidige. The talks ended

without result.

2017
Storebrand acquires SKAGEN and

celebrates its 250th anniversary.

2021
Storebrand’s Capital management

exceeds NOK 1000 billion.

1996
The company changes its name to

Storebrand ASA and establishes

Storebrand bank ASA.

2006
Storebrand re-enters

P&C insurance market.

2014
Storebrand Asset Management

exceeds NOK 500 billion.

2019
Storebrand acquires the investment

company Cubera Private Equity AS, which

manages several private equity funds in the

Nordic countries and internationally.

1814

After Norway’s secession

from Denmark, the

scheme is continued,

and the administration

transferred to Christiania.

1917

The life insurance company

Norske Folk is founded.

1925

Christiania Almindelige Forsikrings-

1963
Storebrand takes over

Norske Fortuna. Brage and
Fram merge and become

Aksjeselskap, referred to as Storebrand,
changes its name to Christiania almindelige

the country’s largest life
company.

Forsikrings-Aksjeselskap Storebrand.

1984
Norges Brannkasse and
Norske Folk become

UNI Forsikring.

1995
Storebrand establishes

sustainable investment in
Storebrand Asset Management.

1861

Storebrand’s owners establish

Norway’s ﬁ rst privately owned

life insurance company, Idun.

1998
Storebrand Helseforsikring

is established.

2007
Storebrand acquires the

Swedish pension company SPP
and forms the Nordic region’s

leading life insurance group.

2016
Storebrand launches “Our Driving Force”,

a mission statement with a vision to
create a future to look forward to.

2005
The Storting decides that all companies must

introduce occupational pensions (OTPs) by 2007.

2012
Storebrand launches its new vision: “Our

customers recommend us”. Odd Arild
Grefstad is appointed new CEO.

2020
Storebrand is included in the

Dow Jones Sustainability Index,
ranked as one of the world’s 10

per cent most sustainable listed
companies.

In 2019, the UN released the results of the most thorough planetary
health check ever undertaken, the IPBES-report on biodiversity and
ecosystem services.5 The report is clear in its conclusion: Loss of
biodiversity and ecosystems occurs to an 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.6 The transition represents both financial risks
and opportunities for Storebrand as an investor and asset manager.
In 2021, the Intergovernmental Panel on Climate Change announced
the Code Red for Humanity in its latest report on climate change.7
The report states that climate change is intensifying continuously,
and that some changes are already irreversible.

The financial sector plays a key role in helping to achieve the UN
Sustainable Development Goals (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, we believe this will also result in higher returns for our
customers.

Companies with sustainability as a key part of their business strategy
have a stronger position for managing climate and sustainability
risks and capitalising 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.

Sustainability in Storebrand
Sustainability is integrated in our business strategy and implemented
across the entire business, including investments, products and
product development, procurement, employment policies and
business management.

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 every six months 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 (SDGs).

• We help our customers to live more sustainably through the

products and services we offer.

• 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 work with our customers, suppliers, authorities and
partners to achieve the UN Sustainable Development Goals.

• We are transparent about our work on sustainability and the

results we achieve.

We have identified three SDGs that may be significantly impacted
by how we manage the Group’s business and human resource
processes. At the end of relevant chapters of this report, figures are
provided that show how far we have come in this work.

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).

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 work actively towards equal opportunities and
gender balance in work and economic life (target
5.5).

5) The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services. Media Release: Nature’s Dangerous Decline ‘Unprecedented’; Species Extinction

Rates ‘Accelerating’. https://www.ipbes.net/news/Media-Release-Global-Assessment

6) IPCC. Special Report, Global Warming of 1.5 °C. https://www.ipcc.ch/sr15/

7) IPCC. Sixth Assessment Report. https://www.ipcc.ch/assessment-report/ar6/

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is StorebrandAbout Storebrand 12Organisation 13Executive management 16Board of Directors 172. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixProducts and Services
Storebrand is a leading financial player in the Nordic market and
will continue to 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.8 In 2021,
Prospera ranked Storebrand first in the sustainable investment
category in both Norway and Sweden. We also scored best among
the major financial institutions in the Ethical Banking Guide in
Norway, and we were included on the Dow Jones Sustainability
Index’s list of the world’s 10 per cent most sustainable companies
for the second year in a row. These were important recognitions
of Storebrand’s efforts to operationalise sustainability and integrate
sustainability in our investment products.

Communication and stakeholder dialogue
Strategic ambitions, target setting, reporting, and communication
about sustainability are important success criteria in our work.
We are transparent about our sustainability efforts and report in
accordance with several leading reporting standards, including
the Global Reporting Initiative (GRI), Task Force on Climate-related
Financial Disclosures (TCFD) and Carbon Disclosure Project (CDP),
in line with the expectations of several key stakeholders. In addition,
we engage in international sustainability initiatives such as The Net
Zero Asset Owner Alliance and Climate Action 100+ to support the
development of international metrics and targets, and to positively
influence investee companies. As one of the founding members of
Net Zero Asset Owner Alliance, we have supported the development
of a Target Setting Protocol that has received recognition from
António Guterres, the UN Secretary General.9

All our funds are managed according to the Storebrand standard. By
the end of 2021, 11.2 per cent of our capital was invested in what we
call solutions – companies that contribute to the SDGs, investments
in green bonds, green infrastructure, and certified green real estate
investments. In addition, almost 44 per cent (NOK 483 billion) of
assets under management were invested in fossil-free funds. All
assets under management in our Swedish branch SPP Funds were
invested in funds consisting of companies that had no connections
to the fossil fuel sector.

We have identified eight SDGs (below) where Storebrand can have
the greatest impact through our investment activities. The goals are
used actively, for example when applying Storbrand’s sustainability
rating. The protection of peace, justice and strong institutions (SDG
16) are key considerations when making investment decisions (see
page 68). For Specific measures and objectives related to these
sustainability goals in our asset management are described in the
chapter Driving force for sustainable investments.

This illustrates our strong commitment to SDG 17: collaboration
and partnerships 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 to integrate sustainability information
into their reporting cycle (target 12.6).

8) The Storebrand Standard applies to all self-managed funds and pension funds, and shall contribute to ensuring our customer’s long-term returns.

Read more about the criterias here: https://www.storebrand.no/asset-management/barekraftige-investeringer/storebrandstandarden

9) Net Zero Asset Owner Alliance has developed a second edition of the Target Setting Protocol:

https://www.unepfi.org/net-zero-alliance/resources/target-setting-protocol-second-edition/

Lars Aa. Løddesøl

Heidi Skaaret

Staffan Hansén

Group CFO and

Executive Vice President

CEO, SPP

EVP Strategy and Legal

Retail Market

Jan Erik Saugestad

Terje Løken

Executive Vice President

Asset Mgmt.

Digital and Innovation

Geir Holmgren

Executive Vice President

Corporate Market

Odd Arild Grefstad

Trygve Håkedal

Karin Greve-Isdahl

Tove Selnes

CEO

Storebrand ASA

Executive Vice President

Technology

Communications, Sustainability

People

and Business Policy

See Appendix on page 229 for Executive management CVs

Martin Skancke

Karin Bing Orgland

Christel Elise Borge

Board Director

Fredrik Åtting

Board Director

Karl Sandlund

Marianne Bergmann Røren

Board Director

Didrik Munch

Board Chair

Bodil Catherine Valvik

Hans-Petter Salvesen

Hanne Seim Grave

Employee Representative

See Appendix on page 234 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 shareholder-elected
directors are independent and do not have significant business
relations with Storebrand. All directors are non-managerial staff.

More information on the role of each committee can be found on page 210.

The Strategy Committee

The Audit Committee

Leader
Didrik Munch

Members
Fredrik Åtting
Christel Elise Borge
Hans-Petter Salvesen

Leader
Karin Bing Orgland

Members
Martin Skancke
Hanne Seim Grave

The Risk Committee

The Compensation Committee

Leader
Didrik Munch

Members
Marianne Bergmann Røren
Hans-Petter Salvesen

Leader
Martin Skancke

Members
Fredrik Åtting
Bodil Catherine Valvik

The Nomination Committee

Leader
Per Otto Dyb

Members (shareholder-elected)
Leiv Askvig
Nils Halvard Bastiansen
Anders Gaarud
Liv Monica Stubholt

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. Our operating environment will be adjusted
and shaped in line with societal developments. The materiality analysis
will therefore be continuously updated through ongoing dialogue with
our most important stakeholders: Shareholders, customers, employees,
authorities, and NGOs. In 2022, we will develop an updated materiality
analysis to incorporate the double materiality concept proposed by
the European Financial Reporting Advisory Group (EFRAG) in its work
for the elaboration of EU non-financial reporting standards under the
Corporate Sustainability Reporting Directive (CSRD).

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. The analysis is publicly available.10

The dialogue with stakeholders is conducted through interviews,
surveys, and direct dialogue. We also extract information collected
through interaction with stakeholders, such as general meetings,
customer surveys and meetings, as well as participation in committees
and initiatives aimed at solving a wide range of sustainability issues.

Based on the materiality analysis, we identified four focus areas and
related material topics in 2020, and how we will work on these going
forward.

10) See Storebrands Sustainability Library:

https://www.storebrand.no/en/sustainability/sustainability-library/_/attachment/download/a66150fc-0f46-4c2d-8aa1-cbb3d5ebc00d:d12bc8eb4126c99c0ae94c0e72b9d8b0e6ad0c1a/Materiality%20analysis%20report%202019.pdf

Financial capital and investment universe

Competitive long-term returns to
shareholders and customers

A diving force for sustainable investments

Active ownership and reducing ESG
(environmental, social and governance) risk

Customer relations

Greater security and financial wellness

Engaging, relevant and responsible
advice

Digital innovator in financial services

Simple and seamless customer experiences

Our people

A culture for learning

Engaged, competent and courageous employees

Diversity and equal opportunities

Keeping our house in order

Governance and compliance

Sustainable practices through our value chains

Corporate social responsibility

N Responsible use of resources

HIGH

MODERATE

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n

Significance of business impact

Financial capital and investment universe

1.
2. Customer relations
3. Our people
4. Keeping our house in order

The material topics are ranked according to the degree of influence
they have on our stakeholders’ assessments and their decisions related
to Storebrand, and to the extent to which they affect our business.
The materiality analysis forms the structure of this annual report
and includes input from our stakeholders. The financial capital and
investment universe, and the three underlying material topics, are
consistently ranked by our stakeholders as very significant. They are
also very relevant to the Group’s strategy and risk management and
therefore are included in the Director’s Report. Topic A: Competitive
long-term returns to shareholders and customers are covered through
other chapters in the report such as Customer relations, the Director’s
report, and the accounts. Topic B and C have been merged into one
chapter; Driving force for sustainable investment.

Other material themes are also ranked with high importance, including
topic E: Engaging, relevant and responsible advice, G: Simple and
seamless customer experiences, and K: Governance and compliance:

privacy, information security, anti-corruption, 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 results. The key figures for
each focus area are reported to Executive 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 220. The guidelines
of the International Integrated Reporting Council (IIRC) are also used
as a basis 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 93
per cent of the group’s employees. The figures do not include smaller,
local offices or Cubera, as these are not considered material due to
their size. See page 214 for more information about companies in
the Storebrand Group.

Customer relations

21 Greater security and financial wellness

23 Engaging, relevant and responsible advice

24 Digital innovator in financial services

25 Simple and seamless customer experiences

26 Key performance indicators

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relationsGreater security and financial wellness 21Engaging, relevant and responsible advice 23Digital innovator in financial services 24Simple and seamless customer experiences 25Key performance indicators 263. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixGreater security and financial wellness

We shall help our customers achieve security and financial wellness
by offering long-term savings, banking, and insurance solutions.
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 robust structures for risk management, we 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, in a simple and sustainable way.

Why
Recent reforms to the Norwegian and Swedish pension systems
entail greater individual flexibility and responsibility for their own
long-term financial situation, including pensions. With increased
life expectancy in general, Norwegians in the future 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 Individual Pension Account
(“Egen pensjonskonto”) in February 2021. It is intended to provide
better oversight and control over your own pension and increase
payouts. In December 2021, the Swedish government proposed to
extend the transfer right for Unit-linked insurance and custodian
insurance covered before 1 July 2007. It will be easier and cheaper
for employees in Sweden to move pension funds saved from
1 July 2007 to today. The rules on fees (maximum SEK 600) shall
also include insurance policies covered prior to 1 July 2007. The
regulatory amendments are proposed to enter into force on 1 July
2022.

Goals and ambitions
Storebrand aims 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 savings, 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 possible returns. We provide information and advice
to our corporate customer so that they, in turn, may 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-ups. Through digital
solutions, customer seminars, and advisory services, 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 coherent communication.
Overall, Storebrand is a preferred provider of pension services.

The Storebrand brand in Norway is communicated to the market
through the communication concept
(“Gode
Penger”). Storebrand shall be known for its ability to create value for
customers through sustainable investments. In 2021, we developed
several new products and services that support this strategy.

“Good Money”

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 these types of pension and savings products in the
Swedish market.

Approach
We provide information in a coherent manner and make good
advice readily available to help our customers gain an overview
of their personal finances. Development of digital tools and the
improvement of digital communication are important instruments,
both in the Norwegian and Swedish markets.

The “My Money” (“Mine Penger”) 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 “Smart Pension” (“Smart Pensjon”) 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 advisory services.

In 2021, 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. SPP also developed a fully digital
service for employees to choose when and how they want their
pension payouts.

SPP also continued to develop the digital tool called “Your climate
footprint” (“Ditt klimatavtrykk”). 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. In 2021 our financial advisors received training in the
usage and communication of this tool. In Norway, a pilot project was

We are continuously working to
stimulate, and expand access, to
banking and insurance services, and
financial services for all (target 8.10).

(“Bærekraftsdashboard”). Corporate customers

launched to further develop a similar tool entitled the “Sustainability
Dashboard”
in
Sweden gave feedback that the tool is useful for communication
with their own employees. Several companies also want to use the
tool in recruitment campaigns and in their corporate sustainability
reporting.

Results
Storebrand works to increase customers’ awareness related to their
pensions and savings. We contribute to this through communication
about products and services, both on our own website, in direct
customer dialogue, in the app “My Money”, and in social media.

More than 700,000 people checked their pension on Storebrand’ s
website in Norway in 2021. Throughout the year, more than 200,000
customers downloaded the “My Money” app, which was launched in
a new version in 2021.

In Sweden, more than 428,000 customers logged into SPP’s website
to attain information about their pension, while over 4,000 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. More than 72.9 per cent of all private customers who
retired in 2021 chose a fully digital pension payment solution.11

11) Private customers who retired earlier than the agreed retirement age is not included in this calculation.

Why
Customers often find it complicated to get a complete overview
of their own finances, pension and insurance policies, rights, and
payments through the different stages of life. We work continuously
to improve and simplify information for the benefit of our customers.
Relevant and responsible advisory services are prerequisites for
good customer satisfaction. We help customers select products
and services that are relevant and appropriate for their current life
situation.

Goals and ambitions
We aim to provide products and services that contribute to security
and financial wellness for our customers. We deliver pension and
savings capital growth through professional management tailored
to fit individual risk profiles and time horizon preferences.

In Norway, our ambition is for 70 per cent of our advisors across
savings, banking, and insurance to be authorised.12 In Sweden, all our
advisors are certified in line with requirements from the authorities.

Approach
The starting point for all customer contact is the principle of putting
the customer first. This is reflected in our service standards:

The interaction between digital and physical customer service will
become increasingly important. Storebrand’s, teams work closely
together to deliver first-class customer services and develop new
initiatives.

Results
In 2021, Storebrand was ranked 1st in the Norwegian Customer
Barometer’s annual measurement of customer satisfaction in the
corporate market, with a satisfaction score of 74 points (out of 100).
Storebrand received the highest loyalty score among corporate
customers. Sustainability was an important driver of loyalty and trust.
This confirmed that our commitment to profitable sustainability will
become an important differentiator in both the corporate and retail
markets.

In the market for mutual funds, we had a market share of 4.4 per
cent at the end of 2021.13 In the market for Unit-linked savings, we
had a market share of 16.9 per cent at the end of 2021.14

In the non-life insurance market, we had a market share of 5.9 per
cent.

In the market for banking, we had a market share of 1.8 per cent per
Q3 in 2021.15

•

Trustworthy – I keep what I promise, and I am a professional.

Caring – I treat everyone individually, help them, and give
advice.

SPP has grown significantly in the Swedish market. SPP has positioned
itself well, offering sustainable management of employees’ pension
funds and efficient digital services.

Enthusiastic – I am positive and exceed expectations.

Efficient – I make the customer journey easy and improve your
organisation.

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. Information about
our authorisation and competency requirements is available to
customers across our digital platforms.

Market position,
pension:

Corporate Market
Norge

12) The figures will be affected by turnover in the organisation

13) Securities funds consist of an equity savings account and an investor account.

14) Figures for retail customers. Source: https://vff.no/siste-m%C3%A5ned.

15) Market share for banking is measured in loans.

Why
A well-maintained and advanced technology platform is required
to adopt emerging technologies, create innovative digital services,
and meet our customers’ digital expectations. Storebrand’s platform
is continuously improved to offer strong financial products and
services to our customers.

Storebrand Forsikring launched an automated electronic health
declaration that both streamlined and improved the experience
for our customers when buying products. Storebrand Forsikring
also launched a digital sales advisory solution for property damage,
in addition to new innovative solutions for digital sales tailored to
product packages for the SME market segment.

Goals and ambitions
We work to increase the number of satisfied and loyal customers
through good, digital customer experiences. The interaction between
digital services and automated processes is key for both distribution
and operations, as well as for our ability to ensure profitable growth
and a future-oriented Storebrand in the years to come.

Storebrand Bank launched several new digital solutions. The
Bank’s partnership with Huseierne, a homeowner’s membership
organisation, and Nordvik, a real estate broker, was further
strengthened. Huseiernes’ service for security deposit accounts was
improved, in addition to a new integration to Nordvik’s real estate
agent system that generates potential leads to Storebrand.

Approach
We work systematically to develop excellent digital customer
experiences through automated processes based on a solid
technological platform and infrastructure. Increasingly advanced
use of data and artificial intelligence, in combination with leading
expertise, are critical success factors to creating good digital
In 2021, digital service development,
customer experiences.
technology and data resources were merged into one, common
business unit called “Storebrand Digital”.

Integrated machine learning models were incorporated into key
business processes across the Group. In addition, several core
systems were modernised. Migrating Storebrand’s IT solutions to a
cloud-based infrastructure continued at full speed in 2021.

Results
During 2021, we had more than 4.4 million visits on www.storebrand.
no. The number of page views increased by approximately 11 per
cent from the previous year. The “Mine Penger” (“My Money”) app
was used by 30,000 customers every month and served as a digital
hub for Storebrand’s savings services. Additionally, the number
of digital sales of insurance and savings increased by 32 per cent
and 38 per cent, respectively, compared to 2020. The share of
digital sales in our sales channels for both insurance and savings
accounted for 40 per cent of the total volume.

In 2021, customers’ defined contribution pension schemes were
transferred to their Individual Pension Account. This arrangement
entailed that customers’ pension funds gained from previous and
current employers were collected in one pension account. More
than 700,000 pension agreements were managed and 99 per cent
of these processes were automated.

SPP has nearly completed the implementation of a new core system
that enables further digitalisation and innovation of products and
services. By the end of 2021, 97 per cent of all pension agreements
were converted to the new solution. The share of people who
received pension funds digitally increased from 15 per cent to 80 per
cent in 2021. The number of manual cases processed by SPP was
reduced by 30 per cent in 2021 following the introduction of digital
services such as self-service solutions for corporate customers.

Through artificial intelligence and machine learning, we were able
to improve the accuracy of risk-based pricing for group disability
pensions by 15 per cent in the period 2019 - 2021. The basis for
value creation through smart use of data was further strengthened
in 2021. Among other things, Storebrand exposed 10 per cent
more insurance fraud than previous years. Storebrand’s use of
machine learning to detect insurance fraud took second place in
the “Dataforeningens’ Innsiktspris” (Data Association’s Insight Award)
for 2021.

During 2021, the system portfolio of Storebrand Asset Management
AS was moved from two local data centers to Microsoft Azure cloud.

Why
In line with technological development, demands for improved
customer experiences have increased significantly. Customers
expect a seamless interaction between advisory service and
customer service across digital and serviced channels.

Surveys showed that customers wanted a trusted partner
at important life events, and that good advice and customer
experiences were considered more important than (actual) product
properties. Increased use of digital meetings and webinars were
important tools to improve customer dialogue in 2021.

Goals and ambitions
Our aim and ambition are to offer personalised experiences to each
of our customers, across digital and serviced channels.

Through dialogue with existing and potential customers, we
continued to develop product offerings aimed at affluent persons
and people approaching retirement age (“Smart Pensjon”). Customer
needs in connection with home purchases will have priority in 2022.

Approach
Storebrand invests in technology, services and concepts that ensure
relevance for our customers in the channels they prefer.

In 2020, we introduced Salesforce as an IT platform for customer
dialogue and follow-up across channels. The system allows for
customer dialogue logged in one channel to be identified, retrieved
and followed up in another. Increasingly, customers will experience
that we recognise them, regardless of which channel they use to
communicate with us. Going forward, we will continue to develop
Salesforce to strengthen our customer offering in line with customer
and market expectations.

Our core deliveries were also strengthened in 2021. New loan
customers were assigned an individual contact person at the bank.
Insurance claims settlement processes were improved, and we
established a separate advisory system to service customers across
banking and savings.

Results
Our digital platform for customer dialogue, Salesforce, gained
traction throughout 2021. The platform was integrated with several
digital sales and advisory services within savings and insurance.
External partners also gained access to the platform.

The product concept for affluent persons performed well due
to distinct value propositions, efficient presentations and sales
activities, as well as close dialogue with customers.

The digital service “Smart Pensjon” (“Smart Pension”) was further
developed with, among other things, a new solution for simulating
withdrawal of pensions and start-up of private savings schemes.
Customer satisfaction increased by 15 per cent, to 7.0 (scale from
1 - 10) from 2020 to 2021. The share of digital sales through this
service increased by 400 per cent from 2020 to 2021.

For more key performance indicators (KPIs) and detailed KPI definitions, see page 242.

Results

2020

No. 6

2021

No. 5

Goals

2022

Top 3

Goals

2025

Top 3

21.7 %

19.6 %

Increase

No. 1

No. 5

No. 4

No. 2

No. 3

No. 1

Top 3

No. 1

Key performance indicators

Customer Satisfaction 16

Market share: Savings, retail market

Norway

Market share: Pension, corporate

market Norway

Recognised for sustainable value

creation (Retail market Norway)

Recognised for sustainable value

creation (Corporate market Norway)

2018

No. 4

21 %

No. 1

New

2019

No. 4

20 %

No. 1

No. 3

No. 1

16) Net Promoter System, retail market Norway

People

28 A culture for learning
30 Engaged, competent and courageous employees

31 Diversity and equal opportunities

33 Key performance indicators

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. PeopleA culture for learning 28 Engaged, competent and courageous employees 30 Diversity and equal opportunities 31 Key performance indicators 334. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixA culture for learning

«People first, digital always» is the title of Storebrand’s People
strategy. The strategy enables our organisation to adapt to
continuous changes in an increasingly digitalised society and deliver
on ambitious business targets.

For the second consecutive year, the pandemic affected our ways
of working. We continued to facilitate flexible working arrangements
and hybrid working models. Storebrand will build on this experience
to develop the workplace of the future to benefit employees, the
company, and society. Through our Future Storebrand initiative,
we invited managers and employees to define and share their
thoughts. Although digital solutions and flexible work patterns
provide both efficiency and freedom, we see that physical meetings
and gatherings strengthen the diversity of opinion, interpersonal
relations, and a sense of belonging.

New ways of working contributed to an increase in the Group’s
employee engagement score, to a record 8.4 out of 10, in our
bi-monthly employee survey. This progress, combined with the
company’s solid financial results, gives motivation and energy to
further develop Storebrand as a future-oriented employer and
workplace.

Why
Storebrand believes that all employees should have the opportunity
to develop their skills continuously. Building competencies to
ensure personal development and skills refinement is essential, and
it contributes to Storebrand delivering value to our customers. Our
goal is that employees should learn throughout their time with us
and thereby strengthen their opportunities in the job market should
they decide to seek employment elsewhere.

Storebrand offers courses and training programs and stimulates
through daily assignments. We strive
learning experiences
to facilitate exciting tasks, new challenges, and collaboration
across business units. Managers and employees have a shared
responsibility to provide continuous feedback to ensure continuous
improvement. Employees are encouraged to acquire new insights
and experiences.

Goals and ambitions
Our ambition is to build a learning culture characterised by
psychological safety. We strive towards having a culture where
you can experiment, make mistakes, be open about what you
master, and create a safe space to provide input, express
different perspectives and receive feedback. Phychological safety
is a prerequisite for innovation in a hybrid work model. We urge
employees to contribute to the learning of their colleagues, and we
aspire to achieve a genuine team spirit that exceeds the desire for
individual success.

Approach
In 2021, we selected a group of employees from different parts
of the Group to share their views on psychological safety on our
internal social media channels. Group members published weekly
posts about what psychological safety meant to them and how each
employee could contribute to cultural improvements. The program
was well received and evolved into a workshop titled “Psychological
safety - what, why and how?”, and more than 30 management teams
and business units have later completed this workshop. The content
was further converted into an e-learning course for new employees
as part of their digital onboarding program.

In 2021, we also had a fully digital event, titled “Our new working day”
for all our employees. The purpose was to strengthen internal unity
and customer-centricity. The main topics include how to balance
the needs of individuals, and society, and to raise awareness of
challenges and opportunities in our new hybrid working day.
Storebrand engaged with the entire organisation through live
broadcasts from our new digital TV studios in our offices in Lysaker
and Stockholm. In addition, participants completed digital teamwork
activities, and employees were divided into small teams and played a
new interactive game about challenges and interactions in a hybrid
work model.

As we put lifelong learning and development on the agenda, we also
conducted in-depth interviews with employees to understand their
experiences about learning. We focused primarily on learning and
development experiences during change and digital transformation.
We interviewed more than 100 employees and 20 managers across
more than 20 teams and conducted follow-up conversations with
managers to discuss how to meet employees’ expectations and
needs.

We continued our work to further develop digital competence
among our employees, and we see that successful hybrid working
models depend on efficient use of digital tools for knowledge
sharing and collaboration. Storebrand expects managers to take
responsibility for self-development and continuous development of
leadership skills. Managers can choose between a range of courses
and programs tailored to support different roles and needs. In
2021, we offered a digital leadership development program called
Storebrand Leadership Weekly, which focused on trust and change
management.

We also implemented the Storebrand Future Impact programme
for young talents with one to three years’ work experience. The
program aims to train future leaders and change agents and
primarily develops three skills: self-management, relationships
and collaboration, and complex problem-solving. The participants

In 2021, we recruited 30 digital enthusiasts, strengthening our
already numerous pool of digital change agents in Norway and
Sweden. These employees play an important role in improving our
use of digital solutions for collaboration.

In 2021, we launched Storebrand Inclusive Leadership, a programme
designed to raise awareness of how leaders can foster and develop
teams with employees of diverse backgrounds and competencies.

Storebrand also facilitated informal arenas where leaders could
come together to reflect and share experiences. Examples included
a practical leadership lunch, an onboarding program for new
managers, and a buddy program. In addition, Storebrand hosted
management meetings within the various business units and all

In 2021, we carried out our annual summer internship program,
Storebrand Sandbox. Sandbox is a leading fintech program in Norway
and Sweden, where students with different study backgrounds solve
real challenges facing Storebrand and our customers. Sandbox
invites young talents to get to know Storebrand and broadens our
network among potential employees. The program also contributes
to Storebrand’s learning culture, demonstrating the importance of
learning, failing, collaborating, and innovating.

Our digital learning platform, Campus Storebrand, provides access
to various inspiration and professional development, including digital
internal courses and links to various external course providers.

Results
The social media posts about psychological safety were read
by between 1,000 and 1,200 employees every week during the
campaign period from January to May 2021. The series increased
the demand for more information and knowledge about the topic.
Following the series, People facilitated more than 20 workshops on
psychological safety in various management groups, business units,
and teams across the company. The focus on psychological safety
will continue in 2022.

More than 1,200 employees participated in our annual employee
day. The day included an interactive digital group game about hybrid
working models. More than 1,000 employees responded to an
evaluation survey about the game, which scored 4.6 out of 5.

More than 120 employees celebrated of The International Day for
Failure, which became the most visited StorebrandTalks in 2021.17

In-depth interviews with managers and employees conducted in
2021 gave us valuable knowledge and reassurance that we have
the right approach to developing a learning culture. Development
courses and training were considered significant, but everyday
learning was valued higher – especially when presented with
challenging tasks and working together with skilled colleagues.
Feedback and recognition when developing new skills and
competencies also were appreciated.

In 2021, more than 24 middle managers participated in the digital
leadership program, Storebrand Leadership Weekly. Approximately
90 managers participated in the program Storebrand Inclusive
Leadership. We arranged four leadership guilds and five practical
leadership lunches where all managers in Norway could attend or
watch the recording.

The war for talent continued in 2021, and we took steps to position
Storebrand as an attractive employer among students and young
employees. Universum’s ranking of Norway’s most attractive
employers named Storebrand as one of the increasingly attractive
companies among IT graduates in 2021.

Our graduate program Storebrand Future Impact had 26 participants
in 2021. Our goal was to develop effective ambassadors for change,
both in Storebrand and society at large. The program began with
two digital introductory sessions during the autumn of 2021, and we
have planned three physical gatherings and a project assignment
in 2022.

For the summer program, Storebrand Sandbox, we received close
to 1000 applications for the program. A total of 20 students were
accepted, of whom 15 work in Norway and five in Sweden. The
students were majoring in economics, technology, psychology, IT,
entrepreneurship, and design. Once again, the program was an
essential catalyst for innovation. Through interdisciplinary teams,
students solved current challenges that Storebrand was facing.

In 2021, we offered more than 200 courses through Campus
Storebrand, our digital learning platform. More than 2,000 employees
participated in one or more of them. Employees completed 7,185
hours of e-learning, averaging 3.63 hours of learning per person.
In addition, employees completed digital courses via external web-
based platforms. These courses do not show up in the statistics
above. Employees also learn from sharing insights and experiences
on our internal sharing platforms such as Yammer, Teams, and
Sharepoint, for which we do not keep statistics.

We use the employee survey provider Peakon to distribute regular
employee surveys to ensure frequent and continuous feedback on
employee satisfaction. In 2021, the score for development increased
from 7.8 to 8.0 out of 10. The score for guidance increased from 8.0
to 8.1 out of 10, while the score for career development increased
from 7.5 to 7.7, and the score for learning increased from 8.1 to 8.3.

17) StorebrandTalks is our internal arena for sharing knowledge and inspiration across the organisation. Employees share experience, work, or expertise in a 30-minute broadcast or lecture

once a month where we invite the whole organisation to participate. We share recordings right after the talks so that everyone can see them when it suits them best.

Why
Storebrand’s employees are our primary source of innovation,
development, and growth. Employees who are brave pioneers who
dare to innovate and challenge prevailing norms are essential for
Storebrand to secure a bright future for our customers and society.

to strengthen employee satisfaction,

Goals and ambitions
Our ambition
job
satisfaction, and employee engagement through meaningful work,
strong leadership, a motivating work environment, development
opportunities, and confidence in management. Our managers must
define clear objectives and encourage employees to collaborate
with peers to achieve collective and individual goals.

Female managers
in group

39%

Transparency is a prerequisite for employee motivation, trust, and
safety. All employees shall feel confident to raise issues with the
management and others in the Group. Storebrand also has its own
ethical guidelines.

Approach
Storebrand relies on trust from customers, partners, authorities,
shareholders, and society. The organisation should be known for
high ethical standards to gain trust. All employees shall act with
diligence, accountability and legality. Storebrand uses e-learning
for training in ethics, anti-corruption, anti-money laundering, and
terrorist financing, as well privacy issues and digital trust. Annual
completion of the courses is mandatory to ensure responsible
business practices in line with our Code of Conduct.

Storebrand has established an external third-party notification
channel through an auditor company, and the whistle-blower
channel is communicated in our onboarding program for new
starters and via the Storebrand intranet.18 We also have well-
established procedures for dealing with complaints, harassment,
and other inappropriate behavior. In 2021, we received no alerts
or complaints about harassment or other inappropriate behavior
through the third- party notification channel.

Our driving force is to be close to our customers and to help them
achieve financial safety and freedom, ensuring a brighter future.
Our driving force requires us to act as brave pathfinders. Every year,
an employee receives the Storebrand Brave Pioneer Award. The
nomination process in 2021 was transparent, and all candidates
were nominated via our internal social media platform, leading to a
record turnout and number of nominations.

Employees answer employee surveys regularly (every two weeks
or monthly via Peakon) to measure workplace engagement and
satisfaction with work, management, collaboration, sustainability,
perceived self-determination, and freedom of opinion. Executive
management follows up these strategically anchored objectives.

18) Our third-party notification channel is through the audition company BDO: https://u.bdo.no/storebrand

Our goal of being a smart and agile organisation is supported by
Peakon, which allows us to follow the data in real time for continuous
improvement.

At Storebrand, we encourage a good work-life balance for all
employees. After the pandemic outbreak in 2020, we facilitated
increased flexibility in work hours and choice of workplace. What
employees delivered was more
important than where they
performed their work, but we continued to value physical meetings
and collaboration. Throughout 2021, we worked continuously to
develop a hybrid working model. To support the teams’ autonomy,
flexibility, ability to adapt and learn, we developed conversation tools
to facilitate discussions about succeeding in our new workday. The
office premises were upgraded with different zones for interaction
and concentration to make it more attractive to return to the office
when pandemic restrictions were removed. From now on, we will
design our future workplace to ensure and maintain a good balance
between efficiency, interaction, creativity, competence development,
and engagement.

Results
In 2021, an average of 85 per cent of employees completed
e-learning courses in ethics, anti-corruption, anti-money laundering,
anti-terror financing, privacy, and digital trust.

All members of the Board and senior management completed
annual courses in ethics, anti-corruption, anti-money laundering,
terror financing, privacy, and digital trust, as part of the Group’s
risk management. Find more information about this in the chapter
Corporate governance.

In 2021, our employees signed off on our privacy and information
security guidelines through “Workday”, our People system. All
employees must review and confirm the guidelines annually to show
that they have read and understood the content.

An average of 80 per cent of employees responded to the
employee engagement survey at least once in the last three months
throughout 2021. The score for engagement rose from 8.3 to 8.4
out of 10 throughout 2021.

In 2021, our employee engagement surveys showed an improved
(including core values,
score on organisational adaptation
sustainability, and equality), self-determination,
freedom of
opinion, relationship with colleagues, support from the leader, and
meaningful work tasks. The results showed room for improvement
within the physical working environment to meet post-pandemic
demands. We conducted several experiments to strengthen agile
collaboration and work processes in the organisation. In the latter
half of 2021, the scores for workplace environment increased from
7.7 to 8.0 out of 10.

In 2021, the Board received regular reports on the share of female
managers at management levels 1-4. At the end of 2021, 39 per cent
of managers at these levels were women.

Throughout 2021, we improved our recruitment and interview
process to make it as digitally inclusive and gender-neutral as
possible at every stage. The interview team shall consist of women
and men, and there must be at least one female and one male
candidate in the final round for leadership positions. In addition, in
2021 we entered into a collaboration with the Norwegian Labour
and Welfare Administration (NAV) to employ people with reduced
working capacity or persons who, for various reasons, had been
outside the labour market for a prolonged period. The objective was
to offer the best and most inclusive journey for potential candidates
and help Storebrand become an attractive and inclusive workplace.
We offer permanent employees paid parental leave beyond the
statutory requirements of Norway and Sweden and pay 100 per
cent salary during parental leave for all employees, regardless of
gender.

for women,

Results
Ten women from different parts of the Group were selected
to participate in FiftyFifty, a talent and leadership development
programme
initiated the
programme in cooperation with external partners as part of our
250th anniversary in 2017. AFF, a leadership and organisational
development consultancy in Norway, is now in charge of the
programme. The 75 participants from nine different companies
in the programme collaborate to develop initiatives that promote
equality for themselves, their companies, and society.

in 2021. Storebrand

For the mentoring programme for women, we received over 50
applications. We established 35 mentor pairs across the Group with
participants from Norway and Sweden.

As many as 90 leaders completed the course Storebrand Inclusive
Management in 2021, where leaders in groups of 15 participants
leaders can
attended six digital gatherings addressing how
contribute to building an inclusive organisation. The course was
developed based on a successful pilot in the spring of 2021. The
programme continues in 2022.

The goal is to ensure at least 40 per cent female participation in
our leadership and talent development programmes. Among
the participants in the Storebrand Academy, 40 per cent were
women and 60 per cent men. In the Storebrand Leadership Weekly
Programme, 60 per cent were women and 40 per cent men. An
equal number of women and men attended our summer internship
programme, Sandbox. In the graduate programme Storebrand
Future Impact, the female share of participants were 75 per cent
and the remaining 25 per cent were men.

At the end of 2021, we had four employees recruited through our
cooperation with the Norwegian Labour and Welfare Administration
(NAV). The arrangement contributes to an increased understanding
of diversity and creates a more inclusive work environment.

At the end of the year, the share of women among all Storebrand
managers (management levels 1-6) was 37 per cent. Three out of
nine members (33 per cent) of the Group Executive Management
were women. Among the managers who reported directly to the
Group Executive management, 37 per cent were women. 50 per
cent of the Board directors of Storebrand ASA were women.

When recruiting for management positions in 2021, we invited
at least one female and one male candidate in the final round of
interviews.

We reviewed the Group’s salary levels in connection with the wage
adjustment process in 2021. The review showed slightly lower
average earnings among female employees than male employees.
The finding led to several measures, including an annual salary
revision involving business unit leaders and executive managers. In
addition, we introduced changes to our recruitment, development,
and succession planning processes to make them more inclusive.
We will continue with these measures in 2022.

In our employee surveys in Peakon, questions related to gender
equality and inclusion achieved a steady score of 8.7 out of 10
throughout 2021.

The average age of Storebrand Group employees was 43 years at
the end of the year. The average tenure was ten years in Norway and
nine years in Sweden.

Per 31 December 2021, the Storebrand Group had a total of 1,914
employees. There was a good gender balance among permanent
employees in both Norway and Sweden, as shown in the table below.

Sick leave has been low and stable for several years. In 2021, the
absence rate was 2.5 per cent in our Norwegian operations and
1.6 per cent in our Swedish operations. No physical injuries were
reported in the Storebrand Group in 2021.

Gender distribution*

Norway

men 811

woman 654

Sweden

men 199

woman 219

Total

men 1017

woman 875

Not specified 3

* All figures are permanent employees only as of 31.12.21. Capital Investment is not included.

For more key performance indicators (KPIs) and detailed KPI definitions, see page 243.

Key performance indicators

Women in Board of Directors

Results

2018

Results

2019

Results

2020

Results

2021

5 out of 9

4 out of 9

4 out of 10

5 out of 10

Women in Group Executive Management

3 out of 9

3 out of 10

3 out of 9

Women at management level 3: share of women

Women at management level 1-4: share of women

Gender balance all managers: share of women

46 %

New

39 %

41 %

New

39 %

38 %

39 %

37 %

39 %

37 %

Expanded top management, women's share of men's salary

Goals

2022

50 %

40 %

50 %

2025

50 %

per position category (Hay Grade 21-25)

110 %

100 %

104 %

97 %

100 %

Employees up to middle managers, women’s share of

men’s salary per position category (Hay Grade 13-20)

99 %

97 %

100 %

Keeping our house
in order

35 Corporate governance and compliance

40 Responsible use of resources

41 Sustainable practices through our value chain

43 Corporate social responsibility

44 Key performance indicators

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance 35Responsible use of resources 40Sustainable practices through our value chain 41Corporate social responsibility 43Key performance indicators 445. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixCorporate governance and compliance:
Privacy and digital trust

Ethical guidelines and ethical practices at all levels of the organisation
are prerequisites for gaining trust from customers, authorities,
shareholders, and society in general. Our guidelines and routines
apply to all levels of our organisation and aim to guide the behaviour
and decisions of our employees.

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.

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 are in safe
hands and handled in a responsible manner. Therefore, we rely on
proper security measures, established procedures and processes
for privacy security. Moreover, our employees receive training in
how to handle of personal and sensitive 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. So long as our customers continue to trust us with their
data, 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.19

Approach
In our privacy guidelines, you will find purpose limitation, a description
of roles and responsibilities and requirements for data processing.
We work systematically with information security. Through an internal
control system, we set requirements for, monitor, and continuously
improve privacy 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 high, those affected 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

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.20 In addition,
on our website we provide advice and recommendations on how
our customers can reduce their risk of online fraud. Fraudulent
activities online often aim to steal personal information from the
victims that may be misused by the fraudsters.

Our approach to securing personal information and other types
of information against illegal and unwanted activity, is described
further in the chapter Information security.

Results
E-learning courses on privacy issues is mandatory for all employees
to complete each year. In addition, departmental training is carried
out as needed. 89 per cent of the Group’s employees completed a
mandatory privacy course in privacy in 2021.

In 2021, 125 incidents related to the processing of personal data
were reported. We reported 31 of these as discrepancies to the
Data Protection Authority, in accordance with the EU General Data
Protection Regulation (GDPR). This is an increase in incidents from
2020. The increase is due to both the transition of incidents to a
joint technical platform which includes SPP as well as an increased
internal awareness of the fact that incidents should be reported.

All incidents from 2021 have been handled properly and closed.
The Norwegian Data Protection Authority did not issue any fines,
warnings, or other actions for Storebrand to take, in order to meet
GDPR discrepancies in 2021.

19) The Personal Data Act includes national legislation as well as the EU General Data Protection Regulation (GDPR).

20) For more information on digital security and privacy: https://www.storebrand.no/om-storebrand/sikkerhet-og-personvern

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance 35Responsible use of resources 40Sustainable practices through our value chain 41Corporate social responsibility 43Key performance indicators 445. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixCorporate governance and compliance:
Countering corruption

Why
Corruption is one of the major causes of poverty in many parts of the
world. It is prohibited in all countries where Storebrand operates.
Corruption can result in reduced trust in Storebrand as a company,
and in the financial and insurance industry in general. Corruption is
detrimental to healthy competition in all industries. Therefore, we
must work systematically to prevent this form of crime.

We expect that both employees and hired consultants behave in
ways suited to build and maintain trust, both in them as individuals,
and in the Group as a whole. As a general rule, no one is allowed
to receive favours, gifts or invitations from Storebrand’s suppliers
or business partners. In cases where it may still be accepted, our
guidelines specify acceptable threshold values in the relevant
currency for each country.

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
to ensure that there is no corruption in our relationship with them,
and that they are aware and conscious about how to fight against
corruption within their own business.

Gifts given on behalf of Storebrand are subject to the same threshold
value. No one must give or receive gifts with an expectation of
reciprocity, nor achieve any form of advantage, personally or for the
benefit of Storebrand’s subsidiaries.

All events held on behalf of Storebrand shall be consistent with
our role in society. All content shall be business appropriate and
relevant and otherwise adhere to our guidelines for events.

All employees and board members shall complete the Group’s
anticorruption programme. Exceptions are made for employees on
leave or long-term sick leave.

Approach
Our ethical guidelines establish our expectations to how our
employees, temporary staff and consultants should contribute to
uncover, reject and report any attempts of corruption or corrupt
behaviour. Our ethical guidelines are approved by the Board
of Storebrand ASA and the Boards of all subsidiaries. In addition
to these guidelines, we have other internal regulations aimed
at countering corruption. The Group’s compliance function is
responsible for informing all employees on the Groups work to
counter corruption.

The Group’s compliance functions are responsible for information
and training related to anti-corruption work. Each employee is
responsible for understanding and acting in accordance with
our anti-corruption guidelines. Employees must also complete
mandatory training each year, and compliance with this procedures
is followed up by management. New employees complete the
mandatory training as part of their onboarding programme.
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.

Storebrand has established both an internal and external notification
channel. Employees who suspect corruption or other financial
misconduct shall report this using one of our reporting channels. If
the report is delivered through our external channel, the one who
reports (whistleblower) can choose to remain anonymous.

Results
89 per cent of the Group’s employees completed a mandatory
course on countering corruption in 2021.21

No cases related to corruption were uncovered or reported to
the Group in 2021. One case of internal misconduct involving and
external partner was uncovered. There were two cases of breaches
to Storebrand’s Code of Conduct and one breach of internal
misconduct. These three matters were handled as personnel
matters with written or oral warnings as a result.

Breaches to Storebrands Code of Conduct:22

Category

Bribery/Corruption

Internal misconduct

Internal misconduct with agents 23

Other violations of ethical rules

Discrimination

Number in 2021

21) Figures do not include Cubera Private Equity, as this company has its own Anti-corruption Programme.

22) Internal misconduct among agents are not included in the key performance indicator on breaches to the ethical guidelines (Code of Conduct).

For a complete list of definitions see appendix Sustainability indicators and definitions on page 240.

23) It was registered one internal misconduct at an insurance broker in 2021.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance 35Responsible use of resources 40Sustainable practices through our value chain 41Corporate social responsibility 43Key performance indicators 445. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixCorporate governance and compliance:
Information security

Why
As a financial institution, the Group’s digital infrastructure is critical.
We are an attractive target for a variety of threat actors, in large due
to the nature of our work and the value of our customers, partners,
employees, and our position in the market. Digital attacks are
becoming increasingly sophisticated, and in combination with hybrid
work patterns, this increases the risk of not detecting unwanted
activity. This challenge applies to Storebrand, our partners and
suppliers. If we become a victim of a cyber-attack, the potential
consequences may include a temporary loss of services, decline in
our customers’ trust in us, and high financial costs for restoring our
systems and data.

Information security is about ensuring that information is correct,
and available only for the people who need to access to the
information, when they need it. The Group’s approach to ensuring
good information security is through people, processes, and
technology. Our business operations largely evolve around the use,
communication, and storage of different types of information – both
electronically and physically. Therefore, it is highly important for
Storebrand to work systematically and continuously with information
security. Good information security is a prerequisite for maintaining
our customer’s trust, the reputation of the Group, and our ability to
be competitive and deliver services.

Goals and ambitions
In order to engage our customers, whilst developing and building
long-term relationships with them, the Group work continuously to
deliver first-class customer experiences. This requires us to have
stable and secure IT-solutions. It is therefore a prerequisite for
Storebrand to be able to conduct financial activities, and to increase
our ability to innovate, to have and maintain good information
security. Our continuous work with information security help us to
manage cyber risk, maintain an acceptable threat level, and thus our
ability to take care of the information we possess.

Approach
One of Storebrand’s most important tasks is to maintain and ensure
good solutions for an increasingly hybrid workday. This means
that all employees, no matter where they work from, have access

to secure and stable IT solutions, that adhere to Storebrand’s
information security policies and requirements. Additionally, the IT
solutions must be able to deal with the dynamic threat landscape
that Storebrand, and the financial services industry, is facing. When
the pandemic hit in 2020, Storebrand put considerable effort in
to adapting to new ways of working, new technical solutions and
a distributed workforce working in several physical locations. It
was therefore, and still is, a priority for Storebrand to ensure good
information security at home, as well as in the office. In 2021, we
were therefore very well equipped to handle a lasting hybrid working
life – and 2022 is no different.

The Group’s Security department sets the premise for all security
activities in the Group. In the autumn of 2021, we split the security
department into two lines of defense. The first line of defense is
an operational unit (Security Operations) in the Storebrand Digital
business unit. This unit is responsible for security monitoring, and
for detecting and handling incidents. The second line of defense,
also called the CISO-function (the Chief Information Security Officer-
function) is an independent control function integrated in the
Group’s Governance, Risk & Compliance-function. This means that
the CISO-function is at the same level as other independent control
functions in the Group. The responsibility of the CISO-function
includes security governance, offensive security, and resilience and
continuity management. The CISO reports directly to the Board and
the CEO’s of the Group’s subsidiaries, on topics such as changes to
the threat landscape and cyber risk. The Group’s board and executive
management has defined cyber risk as the highest operational risk
in the Group. Information security and the management of cyber
risk is by this given high priority in the Group.

The Group has an Information Security Management System
(ISMS), which is based upon specifications and requirements set
out in ISO/IEC27001/2, an internationally recognised standard for
information security.24 The ISMS is an internal control system that
ensures that Storebrand has a systematic and verifiable approach
to information security. The ISMS makes it possible for the Group
to adjust the requirements we set for information security when
needed. The management system is a fundamental part of the
Group’s risk-based approach to business operations. All business

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.

24) ISO 27001 is an international starndard for information security management

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance 35Responsible use of resources 40Sustainable practices through our value chain 41Corporate social responsibility 43Key performance indicators 445. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendixareas in Storebrand are required to follow best practices for
information security as described in the management system. The
system sets requirements, verifies, and continuously improves
information security in our daily routines, customer solutions and in
collaboration with our partners. Additionally, information security is
well integrated into our risk management processes.

is a member of the Nordic Financial CERT, a joint Nordic operations
center that shares information regarding threats, attacks, and other
activities among Nordic financial institutions. Storebrand contributes
with information sharing in the network. In this way, we help to map
and understand developments within the threat landscape, both
internally and externally.

The Group faces a complex and dynamic threat landscape where
we experience daily attempts of cyber-attacks. The techniques
used for cyber-attacks vary from attempts of social engineering to
threat actors attempting to break into our IT systems. A common
denominator is that the attacks are becoming increasingly advanced
and hard to detect. Cooperation with external parties, partners and
authorities has been, and continue to be, a crucial factor of success
in managing cyber risk and potential threats.

During 2021, the Group has implemented several measures to
identify, protect, detect, respond to- and recover from potential
cyber-attacks. One such effort, has been the strengthening of the
Group’s efforts in the area of resilience and business continuity. A
new Head of Resilience & Business continuity has been employed,
and dedicated resources for resilience and business continuity has
been appointed in each of the business units within the Group.
In the fourth quarter of 2021, the Group also conducted a crisis
management exercise, based on a complex cyber-attack-scenario,
targeting critical parts of the Group’s infrastructure.

Storebrand has established a separate first line of defense function
for handling security incidents, CSIRT (Computer Security Incident
Response Team). The team is actively searching for potential threats
to, and vulnerabilities within, our systems, and responds to all tips
regarding incidents, breaches and/or attacks. In addition, Storebrand

Knowledgeable, motivated, and aware employees are an important
part of Storebrand’s preventive security work, thus we updated our
security culture program strategy in 2021. For eight years in a row,
the Group spent October focusing our efforts on our annual Security
Awareness Month. The theme for 2021 was “Security outside the
office,” addressing risks and security challenges with a distributed
workforce and hybrid working model.

Results
The ever-changing threat landscape the Group is facing, requires a
well-established risk management system for information security.
Storebrand therefore works continuously with areas such as
awareness and training, management and control, resilience and
continuity, threat intelligence, and incident management, amongst
others.

We will continue this work in 2022. In particular, the Group will
focus on improving our Business Continuity Management System
(BCMS), which is based on requirements set out in the standard ISO
2230125. This is a mutually compatible management system with our
ISMS. Whilst the ISMS works to manage risk ensuring confidentiality,
integrity, and availability of our information, the BCMS manages risks
of major deviations and disasters that may lead to significant loss,
disruption or re-organisation of key business processes.

25) ISO 22301 is an international standard for business continuity management

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance 35Responsible use of resources 40Sustainable practices through our value chain 41Corporate social responsibility 43Key performance indicators 445. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixCorporate governance and compliance:
Anti-money laundering and terror financing

Why
We are a key player in the Nordic financial market. Therefore,
we have a clear 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 this in a
serious manner in accordance with our responsibilities. Good
routines and management focus on anti-money laundering (AML)
are important for maintaining our reputation.

Goals and ambitions
Storebrand shall act consistently and in compliance with all 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 mandatory training each year.

Approach
We have established policies to avoid money laundering and terror
financing. The guidelines have been reviewed and approved by the
Board of Storebrand ASA and are based on our Code of Conduct
and relevant legislation. These guidelines and additional measures
have been implemented throughout the Group.

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 reports to identify and
report suspicious transactions or behaviour.

Any activity that we suspect is in breach of the Norwegian Anti-
Money Laundering Act of 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 2021, 15 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 28 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 2021, 90 per cent of our employees completed the mandatory
training course in anti-money laundering, financial crime, and terror
financing.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance 35Responsible use of resources 40Sustainable practices through our value chain 41Corporate social responsibility 43Key performance indicators 445. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixResponsible use of resources

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 is why we work to ensure that our own
operations are as sustainable as possible.

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 2022.26 For our own operations, we
aim to reduce greenhouse gas emissions by 7.6 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 2019.27

We continuously work to become more energy efficient, reduce
waste production, increase the proportion of waste sorted, and
reduce our carbon footprint in connection with business travel and
commuting.

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.28 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 business travel. 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 business 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-

12.5 We aim to significantly reduce the amount
of waste
reduction,
through prevention,
recycling and reuse.
12.6 We encourage companies to implement
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.

related projects. Due to Covid-19, the number of flights carried out
by employees at Storebrand were reduced to a minimum in 2020,
but increased somewhat towards the end of 2021. 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 2021, employees were given the opportunity to buy private
electric bikes at a discounted price with an interest-free loan from
Storebrand. During the year, all meeting rooms in our headquarter
in Lysaker were equipped with video equipment. The refurbishment
of the headquarter in Stockholm will be completed in 2022, including
updated video equipment in the meeting rooms.

In order to reduce unnecessary waste, we have decided to remove
all disposable cups from our offices. Employees who bring their
own cup receive a discount in the coffee shop at our main 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 unable to reduce through our own operations
are compensated by purchasing emission quotas and investing in
carbon-positive projects.

Results
Due to Covid-19, emissions from operations and the number of
business trips were significantly reduced in 2021. Internal carbon
pricing and new travel guidelines were introduced. 27 employees
used the offer to buy electric bikes for personal use at a discounted
rate, financed with an interest-free loan from Storebrand.

In 2021, Storebrand ordered the planting of 42,500 mangrove trees.
Since 2020, we have planted 73,750 trees through the Worldview
Foundation. We have also purchased climate quotas from a forest
conservation project in Kenya through Wildlife Works and ordered
negative emission quotas from Climeworks through direct carbon
capture and storage.

26) So that the goal of limiting average global warming to 1.5 ° C by 2050 is achieved, in accordance with the Paris Agreement.

27) For more information about the findings in the UN’s Emissions Gap Report 2019: https://wedocs.unep.org/bitstream/handle/20.500.11822/30797/EGR2019.pdf?sequence=1&isAllowed=y

28) Storebrand has a climate strategy that will help to limit global warming to 1.5 degrees. A key measure is that our investments must be carbon neutral by 2050, with specific intermediate targets along the way. At the same time,

Storebrand as a Group must be carbon neutral. Through this, Storebrand helps to limit physical climate change.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance 35Responsible use of resources 40Sustainable practices through our value chain 41Corporate social responsibility 43Key performance indicators 445. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixSustainable practices through our value chain

Why
Procurement is an area where we can have a major impact by
influencing our suppliers towards more sustainable practices. We
have increased the use of outsourcing in order to focus internal
resources on core business activities and to ensure efficient
operations. This requires proper procedures for the monitoring
of working conditions, safeguarding human rights, and managing
environmental issues throughout the value chain.

Our ambition for 2021 was to maintain the share of environmentally
certified purchasing volume of at least 60 per cent, following our
achievement of this target in 2020.29 Even though we achieved the
target of purchasing volume from environmentally certified suppliers
in 2021, 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 per cent.

Goals and ambitions
A key objective is to avoid the use of suppliers whose production
processes or products violate international agreements, national
legislation, or Storebrand’s internal guidelines. Through our own
activities and procurement activities, we aim to contribute to
sustainable development, and to ensure that human rights and
workers’ rights are not infringed.

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 environment 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
introduce sustainable working methods
and integrate information about
sustainability into their reporting routines.
12.7 We promote sustainable
procurement practices.

13.2 We incorporate action on climate
change into our policies, strategies and
plans.

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.30
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 in
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
Asset Management’s exclusion list.31 Our purchasing policy is based
on the Group’s governing documents and related procedures, which
are revised annually. 32

We have developed a 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.

We select - Sustainability is weighted at least at least 20 per cent 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.

29) Eco-Lighthouse, EMAS, ISO14001 and Swan Mark

30) This target allows suppliers to compensate for emissions they are unable to cut in the short term through the purchase of climate quotas.

31) For more information about Storebrand’s list of exclusions: https://www.storebrand.no/en/asset-management/sustainable-investments/exclusions

32) Among the governing documents are “Guidelines for outsourced activities”, “Guidelines for the award of powers of attorney”, “Rules for ethics”, “Guidelines for combating corruption”, “Guidelines for anti-money laundering,

terrorist financing and financial crime measures”, “Guidelines for handling conflicts of interest”, “Guidelines for events”, “Information Security Management Document”, and “Governing Document for the Processing of Personal Data”.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance 35Responsible use of resources 40Sustainable practices through our value chain 41Corporate social responsibility 43Key performance indicators 445. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixWe 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.

We map all suppliers with annual sales volume to Storebrand of
more than 1 million NOK, through a questionnaire divided into the
following main areas related to sustainability:

•
•
•
•

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
monitored each year. 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
considered to entail the greatest risk and impact on sustainability
are outsourcing (including offshoring), damage settlement (car and
property), and property management in general.

Results
In 2021, contracts worth more than NOK 1 million totaled around
NOK 3.34 billion. This accounts for more than 91 per cent of our
total purchasing volume and includes the management and
development of direct real estate investments. Of this volume, 60.3
per cent comprise suppliers that are environmentally certified in
accordance with our purchasing policy. This volume is divided into
339 suppliers, of which 68 (20 per cent) are certified according to a
recognised environmental management standard.

In 2021, we worked actively with larger and strategic suppliers to
promote our goal of achieving a carbon-neutral purchasing portfolio.
Through these dialogues, we experienced a large commitment
among suppliers to be carbon neutral by 2025. We also conducted
a survey among suppliers with more than NOK 1 million in turnover.
Many suppliers found that it was demanding to answer the survey.
We therefore see a need to standardise reporting. In collaboration
with suppliers, we will in 2022 continue to look for more appropriate
ways to collect information and standardise reporting.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance 35Responsible use of resources 40Sustainable practices through our value chain 41Corporate social responsibility 43Key performance indicators 445. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixCorporate social responsibility

biogas used to operate the solution. Cycle UB’s product solution can
help to solve a global problem in the aquaculture industry, that has
major environmental consequences.

As a result of the two-day program for “youth companies”, we
selected 10 winners that received a total of NOK 50 000 stipend for
their ideas. In addition to the stipend, the youth companies were
offered a few hours of mentorship with a Storebrand employee to
further develop their ideas, service design, upscaling, and strategy.

In 2021, NOK 500 000 was awarded to 23 “We cheer on” projects
around Norway, and 400 000 SEK were awarded to similar projects
in Sweden. All the projects contributed to a future to look forward
to.

In cooperation with Goodify we launched an internal competition
over four weeks around Christmas that we called “GoodieChallenge”.
Employees who perfomed good deeds in this period earned points
and could win small gifts. 44 unique deeds were performed and a
total of 86 employees downloaded the Goodify app.

Why
As a leading financial institution in Norway and Sweden, we have an
important social responsibility. The sustainability work means that
we are actively engaged in the society we operate in through our
primary business as a provider of financial services to over 2 million
customers in Norway and Sweden, as a responsible employer, and
by engaging in socially beneficial activities beyond this.

Goals and ambitions
We will take social responsibility by providing financial support
and knowledge about sustainability. We also want to enable more
employees to spend time on activities related to corporate social
responsibility.

Approach
Ungt Entreprenørskap (“Young Entrepreneurship”) is a non-profit
organisation that encourages young students to establish and run
their own businesses. We have helped create a sustainability award
to stimulate young students’ engagement to continue to want to
learn how to run a sustainable business. In 2021, we introduced
a two-day program for youth companies where the students had
the opportunity to discuss their ideas with a jury consisting of
employees in Storebrand. The jury gave advice and feedback on how
sustainable and feasible the young students’ ideas were. Financial
support and mentorship were given to the youth companies that
had the best ideas.

Every six months, Storebrand organises the “We cheer on”-
competition. This is a social responsibility initiative where we
provide financial support for various social projects that contributes
to making a future to look forward to. Financial support can be
given to projects both in Norway and abroad. Volunteering is an
important part of Norwegian culture, and a great deal of volunteer
work is done annually, including in sports and leisure activities. This
is something we want to support.

In 2021, Storebrand collaborated with Goodify to motivate
employees to participate more actively in volunteering and carry
out good deeds in society.

Results
As many as 318 youth companies competed in the sustainability
category through Ungt Entreprenørskap (“Young Entrepreneurship”),
in 2021. Cycle UB won the award for the development of a solution
for collecting and utilising sludge from fish farms. The prototype
managed to collect as much as 42 per cent of the sludge that comes
from fish farms. Additionally, they had thought about how to make
the process circular, by reusing the sluge for fish feed as well as for

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance 35Responsible use of resources 40Sustainable practices through our value chain 41Corporate social responsibility 43Key performance indicators 445. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixKey performance indicators

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 93 per cent of the group’s employees. For more key performance indicators (KPIs) and detailed KPI
definitions, see page 245.

Key performance indicators

Results 2018

Results 2019

Results 2020

Results 2021

Goals 2022

Goals 2025

Environmentally certified purchases

(share of the total expenditure that went

to suppliers with certified

environmental management system) 33

46 %

57 %

62 %

60 %

55 %

60 %

Greenhouse gas emissions from own

operation (total) scope 1-3: tonnes of

CO2 / tonnes CO2 per FTE

1,444 / 0.9

1,519 / 0.92

477.4 / 0.28

320 / 0.18

0.71

Scope 1-emission: tonnes CO2 /

tonnes CO2 per FTE

1.4 / 0

1.1 / 0

1.2 / 0

0.5 / 0

Scope 2-emission: tonnes CO2 /

tonnes CO2 per FTE

201 / 0.13

179 / 0.11

164 / 0.09

130.6 / 0.07

Scope 3-emission: tonnes CO2 /

tonnes CO2 per FTE

1,241 / 0.69

1,339 / 0.74

313 / 0.18

188.9 / 0.11

CO2e-emissions per FTE due to air

travel: Scope 3, tonnes per FTE 34

CDP-rating

0.69

0.67

A -

0.1

A -

0.07

A -

N/A

0.6

N/A

DJSI score/global percentile

63 / 74

75 / 81

81 / 93

82 / 92

Top 10 %

E-learning conducted, ethics: total / share

of man-years

New

1,518 / 89 %

1,660 / 91 %

1,694 / 91 %

100 %

E-learning carried out, anti-corruption

work: total / share of man-years

New

1,479 / 87 %

1,642 / 90 %

1,659 / 89 %

100 %

E-learning completed, combating money

laundering and financial crime: total /

share of man-years

New

1,523 / 89 %

1,678 / 92 %

1,673 / 90 %

100 %

E-learning completed, privacy: total /

share of man-years

Number of complaints processed by the

Financial Appeals Board 35

Number of breaches of Code of Conduct

Number of information security incidents

Number of privacy incidents 36

New

135

New

1,368 / 75 %

1,662 / 89 %

100 %

192

218

198

125

N/A

33) Since we achieved the target for 2021, new targets have been set for 2022 and 2025.

34) CO2 emissions from air travel have been recalculated for 2018–2020 as a result of updates to the emission metrics in our travel agencies’ systems.

35) The figures apply to our Norwegian companies, as these are complaints processed by the Financial Appeals Board Norway. SPP is not included here.

36) The Privacy Ombudsman’s assessment is that the increase in incidents is primarily related to increased awareness of reporting incidents, and not a real increase in the number of non-conformities compared with previous

years. In addition, a new reporting tool has made it possible to include SPP (Sweden) in the figures.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in OrderCorporate governance and compliance 35Responsible use of resources 40Sustainable practices through our value chain 41Corporate social responsibility 43Key performance indicators 445. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix5

Directors’ report

46 Strategy 2021-23

47 Strategic highlights

51 Group Results

56 Official Financial Statements of Storebrand ASA

57 Outlook

62 A driving force for sustainable investments

72 Risk

74 Climate risks and opportunities

84 Working environment and HSE

85 Progress on our most material sustainability KPIs

Future
Storebrand
Growth focus in
capital-light business
areas in front book

Strategic
differentiators

Capital
Management of
capital and back
book balance sheet

Leading Provider
Occupational Pensions
Norway & Sweden

Nordic Powerhouse
in Asset Management

Growing Challenger
in Norwegian Retail
Market

Leadership in Sustainability

Digital Frontrunner

Growing ordinary dividends
form earnings

NOK 10bn capital release
from back book by 2030

Storebrand aims to help customers achieve greater security and
financial wellness by offering long-term savings and insurance
solutions. Our goal is to deliver sustainable solutions tailored to
the customer’s individual needs. 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 Future
Storebrand, and capital release from the guaranteed pensions
business which is in run-off.

customer insight. We are well on the way to achieve our ambition
to deliver a group profit (before amortisation and tax) of more than
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. Read more about our work with social responsibility
in the chapters Customer relations, People, and Keeping our house
in order.

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

The interaction between our business areas provides synergies in
the form of capital, economies of scale, and value creation based on

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 products with interest rate
guarantees. Our goal is to release an estimated NOK 10 billion of
capital by 2030, while maintaining a strong solvency position and a
balance sheet adapted to our risk and business.

In 2021, we shifted into an even higher gear ensuring increased speed
and growth. With a strong solvency ratio, a stable financial market that
developed positively, and a balance sheet where the share of Defined
Contribution pensions in growth exceeded the share of guaranteed
pensions in run-off, we were able to strengthen our focus and deliveries
in our growth strategy. Strong growth in the core business contributed
to a larger customer base, an increased operating profit for the Group,
as well as higher dividends to our shareholders.

The summer of 2021 marked a positive reopening of the economy
after a prolonged period of restrictive measures due to the Covid-
19 pandemic. However, by the end of the year, the outbreak of the
Omicron variant contributed to renewed insecurity in the society and a
need for new infection control measures. Storebrand has maintained
operations fully and we have continued to follow our strategy throughout
the period. The main impact of Covid-19 on Storebrand’s business is
the increased risk of lower employment and more disability in society,
which can lead to higher claims. In response to this, Storebrand has
made the necessary adjustments in provisions and prices. Throughout
the pandemic, we have managed volatile markets and adapted our
portfolios to ensure a good return on both our customers’ funds and
our own financial investments.

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 2021, we reached a milestone
by managing more than NOK 1,000 million of assets, managing a total
of NOK 1,097 million of assets. This is our main revenue driver. In
addition, we will build on existing savings and pension relationships
with individuals by offering related products and solutions within retail
insurance and banking in Norway.

Leading provider of occupational pensions in Norway and
Sweden
In 2021, we once again delivered the market’s best return to our
Defined Contribution pension customers, compared to comparable
investment profiles. This applies to both our largest and most common
investment profiles with high and moderate equity content, which
achieved a return of 20.6 per cent and 13.4 per cent, respectively.
The return on the profiles is also the market’s best over the last three
and five years. Norwegian customers also received their Individual
Pension Accounts in 2021. Employees’ funds from previous pension
capital certificates were combined into the same account as their
active Defined Contribution account they have with current employers.

The vast majority of employees at Storebrand’s corporate customers
chose to continue pension savings through employers’ agreements
with us. Only 2.5 per cent chose to move pension management to an
alternative provider. For Storebrand, the total one-off effect from the
automatic transfer of pension capital certificates was NOK -6 billion in
net transferred capital.

After consolidation in the market and intense competition ahead of
the introduction of the Individual Pension Account, Storebrand was
the second largest provider of Defined Contribution pensions at the
end of 2021, with a market share of 27 per cent (by the end of Q3).
In December, Storebrand entered into an agreement to buy Danica,
Norway’s sixth largest provider of Defined Contribution pensions
with a 5 per cent market share. Approval of the transaction from the
authorities is expected in the first half of 2022. Through Danica, we
will strengthen our presence in the market for small and medium-
sized companies and increase distribution power. In total, Storebrand
managed NOK 158 billion within Unit Linked products in Norway at the
end of the year.

At the same time, we strengthened our position in the market for public
sector occupational pensions, where we won tenders that will give us
a total of NOK 5.5 billion in transferred reserves at the beginning of
2022. We also took over the management of closed pension funds that
contribute to earnings growth in the area Guaranteed pension.

SPP continued to grow in the Swedish pension market, supported
by being the most sustainable and digitally innovative provider. The
“Hållbarhetskartan” (“Sustainability Map”) was launched in early 2021.
The service provides companies and their employees with information
about the sustainability profile in their pension savings. We also
continued to attract customers in the transfer market, but intense
competition resulted in a net transfer of funds of NOK -4 billion. Despite
this, SPP delivered its strongest result ever and total funds in Unit Linked
insurance grew to NOK 150 billion. The ongoing capital release from
guaranteed products in run-off resulted in a dividend corresponding to
137 per cent of the result for 2021.

Storebrand also provided insurance coverage to corporate customers
equivalent to NOK 2 billion in insurance premiums in 2021. At the same
time, we launched our P&C insurance offering for small and medium-
sized companies. Together with contracts taken over from Insr through
the year, these amounted to NOK 217 million in written premiums at
the end of 2021.

High equity content

20.6 %

2021

17.0 %

17.1 %

16.2 %

19.4 %

14.6 %

Last 3 years

Last 5 years

17.0 %

14.6 %

15.9 %

16.3 %

16.5 %

15.3 %

12.3 %

10.9 %

10.6 %

11.4 %

Storebrand

Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5

Storebrand

Competitor 1

Competitor 2

Competitor 3

Competitor 4

Competitor 5

Storebrand

Competitor 1

Competitor 2

Competitor 3

Competitor 4

Competitor 5

Moderate equity content

2021

Last 3 years

Last 5 years

13.4 %

10.9 %

10.8 %

11.2 %

12.2 %

12.4 %

11.9 %

12.2 %

9.7 %

11.3 %

10.7 %

11.4 %

9.2 %

7.9 %

8.0 %

8.3 %

8.4 %

8.1 %

Storebrand

Competitor 1

Competitor 2

Competitor 3

Competitor 4

Competitor 5

Storebrand

Competitor 1

Competitor 2

Competitor 3

Competitor 4

Competitor 5

Storebrand

Competitor 1

Competitor 2

Competitor 3

Competitor 4

Competitor 5

Nordic Powerhouse in Asset Management
The progress for Storebrand Asset Management continued in 2021,
with the strengthening of our position within alternative investment
classes, solid excess returns for our customers through active
management, and new steps to ensure sustainable management of
the invested funds.

To strengthen the distribution of funds in the international market,
we launched several of our most sustainable funds on The Asset
Management Exchange (AMX) in Ireland. This opened for several
British pension funds to consider Storebrand as an asset manager.
At the end of 2021, new platforms in Ireland and Luxembourg
accounted for NOK 11 billion of total assets.

Within alternative investments, we acquired the Danish property
manager Capital Investment, which managed properties worth NOK
21 billion. We also entered into Nordic partnerships in infrastructure
investments and continued our focus on Private Equity through
Cubera. In total, we raised NOK 9 billion in customer funds
within alternative investments. Among our active funds, several
funds achieved significant excess returns for our customers, and
contributed to earnings growth from performance-based fees. The
main contributor was SKAGEN Global which had an excess return of
about 12 per cent compared with the benchmark index.

We also took further steps to consolidate our position as a world
leader in sustainable investment. At the end of the year, we managed
NOK 483 billion in fossil-free investments, and NOK 123 billion in
solutions. Solutions are defined as either investments in companies
that Storebrand’s investment team believes contribute to sustainable
development and help us achieve the UN’s sustainability goals, or
through investments in green bonds, environmentally certified real
estate and green infrastructure. By 2025, we aim to reduce direct
greenhouse gas emissions from investments in equities, bonds and
real estate by 32 per cent. In the same period, we will increase the
proportion of investments in solutions to 15 per cent.

37) Return based on comparable investment profiles with moderate equity content (ca. 50%) and high equity content (ca. 80%) within an active defined contribution pension scheme . Source: Norsk Pensjon.

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 of insurance and savings have increased by 32 and 38
per cent, respectively, over the past year. The digital sales share in
our own channels accounted for 40 per cent of the total volume for
both insurance and savings.

The degree of automation when establishing an Individual Pension
Account and merging customers’ pension funds was over 99 per
cent. In SPP, the proportion of individuals who retire digitally has
increased from 15 per cent to 80 per cent in 2021. Through the
use of machine learning, we have improved the price model for
pension related disability insurance by 15 per cent and artificial
intelligence means that we now detect 10 per cent more insurance
fraud compared to through traditional techniques. The work with
machine learning and insurance fraud achieved 2nd place in the
Dataforeningens Innsiktspris (Data Association’s Insight Award) for
2021.

More information about our digital initiatives is described in the
chapter on Customer relations under the section Digital innovator in
financial services.

Corporate governance
Good corporate governance is important for us to achieve our goals.
Storebrand works continuously to improve both the overall decision-
making processes and the day-to-day management of the company.
Read more about our work in the chapter Corporate Governance.

Management of capital and balance sheet
For the past ten years, Storebrand has succeeded in transforming its
business from capital-intensive products with guaranteed returns,
to fast-growing and self-financing capital-light products. Total assets
have more than doubled since 2012. At the end of the year, 73
per cent of the total assets under management were related to
the capital-light business, and less than 49 per cent of the pension
assets on the balance sheet were guaranteed reserves.

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
greater security and financial wellness.

The combination of an increased distribution power, acquisition
of customer portfolios and strong demand in the retail market
contributed to an exceptionally strong growth in 2021. The profit
from the retail market increased by as much as 42 per cent
compared with the previous year, mainly driven by:

•

72 per cent growth in net sales of fund-based savings to NOK
4.2 billion, and 24 per cent growth in assets under management,
which amounted to NOK 52 billion at the end of the year.
Growth in the bank’s mortgage loan balance for by 15 per cent,
to NOK 57 billion.
Premium growth of more than NOK 1 billion within P&C
insurance and private risk coverage. This corresponds to a
growth of 54 per cent, of which approximately 28 per cent of
the growth came from the Insr portfolio and organic growth
amounted to 26 per cent.

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 2021. 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. We are also constantly developing our work to assess climate
as a financial risk. We have incorporated climate risk assessments
into our ongoing risk monitoring, management and reporting to
supervisory authorities. Storebrand is determined to lead and
develop the sustainability agenda within the financial industry in the
years to come.

Our sustainability position has been highly recognised in 2021.
Storebrand was once again 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 third 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.

The solvency ratio was 175 per cent at the end of 2021 – a decrease
of 3 percentage points from last year’s solvency ratio including
transitional rules at the end of 2020. Without transitional rules, we
strengthened the solvency ratio by 9 percentage points from 166
per cent in 2020. Regulatory input factors in the solvency calculation,
modelling changes and growth in the business weakened solvency,
while a higher interest rate level combined with a good excess
return from positive financial markets contributed to increases in
the solvency. In total, new subordinated loans also contributed
6 percentage points, and we sold AS Værdalsbruket, which had
a positive effect on profit of NOK 546 million and strengthened

solvency by 2 percentage points. The result in 2021 helped to
strengthen the solvency margin by about 12 percentage points.

Storebrand wants to contribute to a growing market for sustainable
bonds and stimulate the market for sustainable investments and
financing. As the first Nordic insurance company, Storebrand
Livsforsikring AS issued a green subordinated bond in the first
quarter of 2021. The bond issue is a non-perpetual subordinated
bond of EUR 300 million. The green bond qualifies as Tier 2 capital
under the solvency regulations for insurance companies. 39

Financial targets
Storebrand has the following financial targets:

Return on equity 40

Future Storebrand (Savings and Insurance)

Run-off business (Guaranteed and Other)

Goal

Status 2021

> 10 %

10.7 %

33 %

5 %

52 %

Dividend pay-out ratio 41

> 50 %

Solvency ratio (Storebrand Group)

> 150 %

175 %

38) Based on a pro forma distribution of IFRS equity per business area. The capital is distributed based on the capital consumption under Solvency II and CRD IV. The Savings and Insurance segments

are calibrated to a solvency margin of 150%, while the rest of the capital is allocated to the Guaranteed pension segment including Other.

39) Green Bond Allocation Report 2021: https://www.storebrand.no/en/investor-relations/rating-and-funding/_/attachment/inline/d0a9246a-8cf8-452f-a187-fff440653b9e:31d168bdf3de4eb26fbb

ee7ed6acd32718a0ac53/Green%20Bond%20Allocation%20Report%202021.pdf

40) After tax, adjusted for amortisation of intangible assets. This document contains Alternative Performance Measures (APMs) as defined by the European Securities and Markets Authority (ESMA).

This is a summary of APMs used in financial reporting at storebrand.com/ir. The income statement is based on reported IFRS results for the individual companies.

41) After tax.

The Storebrand Group’s financial statements have been prepared
in accordance with the International Financial Reporting Standards
(IFRS). In accordance with Norwegian accounting legislation, the
board of Storebrand ASA confirms that the annual accounts have
been prepared on the assumption of continued operations. No
significant incidents have occurred after the balance sheet date.

Financial items and risk result life was NOK 1,372 million (NOK 278
million). This year’s result includes a positive effect on profit of NOK
546 million from the sale of AS Værdalsbruket. In addition, increased
net profit sharing for guaranteed products and an improved risk
result, after a period of weak results during the Covid-19 pandemic,
contributed positively.

Our financial result is reported by the following business segment:
Savings, Insurance, Guaranteed Pension and Other, as well as on a
consolidated Group level.

Amortisation of intangible assets amounted to NOK -527 million
(NOK -492 million). The increase is mainly due to the acquisition of
new businesses as well as customer portfolios from Insr.

NOK million

Fee and administration income

Insurance result

Operational cost

Operating profit

2021

2020

6,607

5,676

1,201

825

-4,678

-4,068

3,130

2,433

Financial items and risk result life

1,372

278

Profit before amortisation

Amortisation

Profit before tax

Tax

Profit after tax

4,503

2,711

-527

-492

3,976

2,219

-846

136

3,130

2,355

Profit before tax was NOK 3,976 million (NOK 2,219 million).

The Group ended the year with a tax income of NOK -846 million
(NOK 136 million). The tax income in 2020 was the result of new
information and interpretation of the transitional rules for 2018.
The estimated normal tax rate for the Group is 19-22 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 3,130 million (NOK 2,355 million).

Savings

NOK million

2021

2020

Fee and administration income

5,215

4,392

Operational cost

Operating profit

-2,927

-2,611

2,288

1,781

Financial items and risk result life

-51

Profit before amortisation

2,355

1,730

Financial results
Fee and administration income increased by 19 per cent to NOK
5,215 million (NOK 4,392 million). Income growth in Defined
Contribution pensions in Norway was 5 per cent, despite the
introduction of Individual Pension Accounts in 2021 contributing to
reduced income margins. Within asset management, income growth
was 29 per cent, driven by excess returns in funds with performance
fees contributing NOK 550 million (NOK 234 million). Higher net
interest margin and good volume growth led to a significant increase
in the bank’s contribution.

Storebrand achieved a Group profit (before amortisation) of NOK
4,503 million (NOK 2,711 million). The figures in parentheses show
the corresponding figures for last year.

Fee and administration income increased by 16 per cent to NOK
6,607 million (NOK 5,676 million), driven mainly by strong underlying
growth in assets under management. Excess returns in funds with
performance fees contributed NOK 550 million (NOK 234 million).
Adjusted for this, the growth was 11 per cent compared to last year.

The insurance result was NOK 1,201 million (NOK 825 million) and
resulted in a combined ratio of 94 per cent (97 per cent). This is
somewhat weaker than the targeted combined ratio of 90-92
per cent. This year’s improvement is due to weak results in 2020
in products with disability coverage as a result of the covid-19
pandemic.

(NOK
Operating expenses amounted to NOK -4,678 million
-4,068 million). Adjusted for costs related to acquired business,
performance-related results and currency movements, operating
expenses were NOK -4,410 million – in line with the target of keeping
costs nominally flat at NOK 4.4 billion for 2021.

Total operating profit was NOK 3,130 million (NOK 2,433 million).

Total growth in assets under management for Storebrand Asset
Management was NOK 134 billion (14 per cent) to NOK 1,097 billion.
Good returns during the year, in addition to NOK 43 billion in net
capital inflows and NOK 21 billion from the acquisition of Capital
Investment, contributed to the growth.

The bank’s retail lending balance grew by NOK 7.5 billion (15 per
cent) to NOK 57.0 billion.

Financial and risk result life was NOK 67 million (NOK -51 million).
The loss in 2020 is mainly due to model-based provisions for loan
losses in the bank.

Profit before amortisation increased to NOK 2,355 million (NOK
1,730 million) - an increase of 36 per cent in 2021.

Balance sheet and market development
Assets under management grew significantly in 2021.

Unit Linked reserves grew by 15 per cent to NOK 308 billion. Positive
market development and growth in paid-in premiums contributed
positively, while net transfers of total assets contributed negatively
with NOK -13.6 billion (NOK 5.4 billion). The reason for negative
net transfers of capital is mainly a one-off effect in 2021 related
to the automatic transfer of pension capital with the introduction
of Individual Pension Accounts in the Norwegian market. Intense
competition in the Swedish market also led to negative transfers in
the Swedish business.

Key figures Savings

NOK million

Unit Linked Reserves

Unit Linked Premiums

2021

2020

308,351

268,331

21,212

20,185

AuM Asset Management

1,096,556

962,472

Retail Lending

57,015

49,474

Insurance

NOK million

Insurance pemiums f.o.a.

Claims f.o.a.

Operational cost

Operating profit

Financial result

Profit before amortisation

2021

2020

5,175

4,331

-3,974

-3,506

-875

-712

326

113

423

204

Written premium NOK million

P&C & Individual life

Health & Group life*

2021

3,301

1,775

1,369

2020

2,144

1,870

1,274

Pension related disability insurance

Nordic

Total written premium

6,445

5,288

* Includes the entire written premium for Storebrand Helseforsikring AS (50/50 joint

venture with Munich Health)

Guaranteed pension

NOK million

Fee and administration income

Operational cost

Operating profit

Risk result life & pensions

Net profit sharing

Profit before amortisation

2021

2020

1,631

1,511

-890

-861

741

650

187

504

136

1,432

805

Financial results
The fee and administration income amounted to NOK 1,631 million
(NOK 1,511 million). Growth in public sector occupational pensions and
the takeover of closed pension funds contributed to increased income.
Over time, fee income is expected to gradually decline because the
products are mainly in long-term run-off.

Operating expenses amounted to NOK -890 million (NOK -861 million).

Risk result life & pension was NOK 187 million (NOK 19 million).
The improvement in earnings is due to an improvement in the risk
result related to Defined Benefit pensions, partly explained by price
adjustments that were introduced after weak results in 2020.

Net profit sharing, after further strengthening of the buffer capital,
was NOK 504 million (NOK 136 million), driven by good returns in both
Norwegian and Swedish products. The booked return was on average
4.5 per cent in Norway against an average customer guarantee of 3.1
per cent. In Sweden, the average return was 3.7 per cent against an
average guarantee of 2.8 per cent.

Profit before amortisation was NOK 1,432 million (NOK 805 million).

Balance sheet and market development
At the end of the year, guaranteed reserves amounted to NOK 291
billion. This is an increase of NOK 3 billion in 2021, but NOK 10 billion
adjusted for currency effects. The increase is due to growth in public
sector occupational pensions, takeover of closed pension funds
and good returns. Net outflows, excluding transfers, amounted to
NOK -10.2 billion (NOK -10.1 billion) as a result of larger pension
payments being paid out than premium payments being paid in. As
a share of the total balance sheet, the reserves correspond to 48.5
per cent (51.7 per cent) at the end of the year, a reduction of 3.2
percentage points since last year.

Insurance claims increased to NOK -3,974 million (-3,506 million),
but the claims ratio ended at 77 per cent, which is slightly better
than 81 per cent the year before. The high claims ratio in 2020
was mainly a result of the Covid-19 pandemic which led to reserve
strengthening for all products with disability coverage. The claims
ratio in 2021 was more normalised, but still characterised by high
levels of claims related to disability coverage within the group life
product.

Total operating costs for the year were NOK -875 million (NOK -712
million) and resulted in a marginal increase in the cost ratio from
16 per cent to 17 per cent in 2021. The cost increase is related to
increased staffing and sales commissions in external distribution
channels, as well as the acquisition of Insr’s customer portfolios.

The total combined ratio was 94 per cent (97 per cent) and the total
operating profit was NOK 326 million (NOK 113 million) for the year.
It is somewhat weaker than the target combined ratio of 90-92 per
cent. The growth products P&C and Individual Life achieved a strong
combined ratio of 88 per cent (89 per cent), while Group Life and
Pension related disability insurance achieved weaker combined
ratios of 110 per cent (123 per cent) and 96 per cent (91 per cent),
respectively.

The financial result was NOK 97 million (NOK 91 million). The
investment portfolio for insurance amounted to NOK 9.6 billion
at the end of 2021 (NOK 8.8 billion) and achieved a return of 3.3
per cent. The investments are primarily in fixed income securities
booked at amortised cost or with a short maturity.

Profit before amortisation was NOK 423 million (NOK 204 million).

Balance sheet and market development
The total growth in written portfolio premiums amounted to 22 per
cent in 2021. Most of the growth was in P&C and Individual Life,
which grew by NOK 1.2 billion, equivalent to 54 per cent. Of this,
transfers from Insr amounted to NOK 610 million in 2021 (NOK 740
million in total). Pension related disability grew by 7 per cent while
Health and Group Life decreased by 5 per cent. Written premiums
at the end of the year was NOK 6.4 billion, of which NOK 3.3 billion
is in the retail market and NOK 3.1 billion in the corporate market.

Key figures Insurance

Claims ratio

Cost ratio

Combined ratio

2021

77 %

17 %

94 %

2020

81 %

16 %

97 %

contribute to increased costs and a lower operating profit. The
Financial items and risk result life was NOK 518 million, an increase
from last year’s NOK 83 million. The strong financial result is mainly
explained by a positive effect of NOK 546 million from the sale of AS
Værdalsbruket.

Key figures Guaranteed Pension

NOK million

Guaranteed reserves

2021

2020

290,862

287,614

Guranteed reserves in % of total reserves

48.5 %

51.7 %

Net inflows and outflows, excluding

transfers

-10,268

-10,058

Average booked return in Norway

Average guarantee in Norway

Average value-adjusted return in Sweden

Average guarantee in Sweden

4.5%

3.1%

3.7%

2.8%

4.8%

3.1%

4.4%

3.2%

Buffer capital in % of customer reserves in
Norway

11.2 %

11.0 %

Buffer capital in % of customer reserves in
Sweden

17.8 %

11.4 %

Other

Dividend for 2021
Storebrand has established a framework for capital management
that links dividends to the solvency ratio. 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 ratio 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.

The Board has carefully reviewed the solvency position, liquidity
position and the 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 3.50 per share for 2021,
equal to NOK 1,645 million, to the Annual General Meeting.

NOK million

2021

2020

Fee and administration income

For more information about historical dividends, Storebrand’s share
and other shareholder matters, see the chapter Shareholder matters.

Operational cost

Operating profit

-246

-120

-225

-111

Financial items and risk result life

518

Profit before amortisation

293

-28

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.

Eliminations NOK million

2021

2020

Fee and administration income

-260

-236

Operational cost

Financial results

Profit before amortisation

260

236

Financial results
The operating profit was NOK -225 million, a decrease from the
previous year (NOK -111 million). Transaction costs related to the
acquisition of Capital Investment and the process with Danica

Storebrand’s dividend policy:

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. The balance sheet must form a sound
foundation and support the Group’s growth strategy at the same
time as released capital is repaid to the owners.

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
2021, the solvency ratio for the Group was 175 per cent. Storebrand
uses the standard model for the calculation of Solvency II. Prudent
in
risk management and regulatory adjustment mechanisms
the solvency regulation compensate for occasionally challenging
financial market conditions.

Storebrand aims to pay an ordinary dividend of more than 50 per cent of Group profit 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 sustainable

solvency ratio above 150 per cent. If the solvency ratio is above 180 per cent, the Board of Directors intends to propose special dividends or

share buy backs.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 46Strategic highlights 2021 47The Group’s results 2021 51Official Financial Statements of Storebrand ASA 56Outlook 57A driving force for sustainable investments 62Risk 72Climate risk and opportunities 74Working environment and HSE 84Progress on our most material sustainability KPIs 856. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixStorebrand Livsforsikring Group’s solidity 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 1.3 billion in 2021. Issuances of new loans and redemptions
as well as exchange rate changes resulted in a net increase of
NOK 2.0 billion in subordinated loans in 2021. The market value
adjustment reserve has been reduced by NOK 0.9 billion as a result
of rising interest rates, and amounts to NOK 6.3 billion at year-end.
Conditional bonuses have been strengthened by NOK 3.0 billion
and amount to NOK 13.8 billion. Booked returns have contributed
to increasing the additional statutory reserves. Additional statutory
reserves amounted to NOK 13.6 billion at the end of the year, an
increase of NOK 2.2 billion for the year. The excess values of bonds
and loans valued at amortised cost has been reduced by NOK 5.5
billion this year due to rising interest rates, and amounts to NOK 3.4
billion at the end of the year. Excess values of bonds and loans at
amortised cost is not recognised in the accounts.

Storebrand Bank Group had a pure core capital adequacy ratio
of 15.4 per cent and capital adequacy ratio of 20.3 per cent at
the end of 2021. 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 57 per cent.

Storebrand ASA (holding) held liquid assets of NOK 4.8 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 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 2025.
Storebrand ASA recognised dividend and group contributions from
subsidiaries of NOK 4,542 million in 2021. The dividend allocated to
shareholders amounted to NOK 1,645 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 2021, the A-rating of Storebrand Livsforsikring
AS and Storebrand Bank ASA was affirmed with a stable outlook.
Storebrand Boligkreditt AS is rated AAA and the holding company
Storebrand ASA is rated BBB.

Storebrand ASA is the holding company in the Storebrand Group, and
the financial statements have been prepared in accordance with the
Norwegian Accounting Act, the generally accepted accounting policies
in Norway and the Norwegian Regulations relating to annual accounts
for insurance companies.

Storebrand ASA reported a pre-tax profit of NOK 4,505 million in
2021, compared to NOK 2,975 million in 2020. Group contributions
from investments in subsidiaries amounted to NOK 4,542 million,
compared to NOK 3,028 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

classified to profit/loss

Change in estimate deviation pension

Tax on other result elements

Total other result elements

2021

4,542

144

-180

4,505

-258

4,248

2020

3,028

-96

2,975

-171

2,804

2021

4,248

2020

2,804

-1

-15

-11

Total comprehensive income

4,252

2,793

Allocation of the profit
Storebrand ASA reported a profit of NOK 4,248 million in 2021,
compared to NOK 2,804 million in 2020. The Board proposes a
dividend of NOK 1,645 million to the Annual General Meeting,
corresponding to an ordinary dividend of NOK 3.50 per share for
the financial year 2021.

Allocation of the profit for the year for Storebrand ASA

NOK million

Profit for the year

Allocations

Transferred to other reserves

Provision for shared dividends

Total allocations

2021

4,248

2020

2,804

2,602

1,645

4,248

1,285

1,519

2,804

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.

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. These
amounted to 48.5 per cent at the end of 2021, 3 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 13 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.

There is still uncertainty about the consequences of Covid-19
and how it will affect financial markets going forward. With a solid
solvency ratio of 175 per cent and more than 13 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.

Financial Results
In Norway, the market for Defined Contribution pensions has
experienced strong structural growth in recent years. Going forward,
high single-digit growth in premiums and double-digit growth in total
assets are still expected. With the introduction of Individual Pension
Accounts, the fees were reduced throughout the market. This will
have a negative effect on earnings in 2022, but the expected growth
and own profitability measures will bring results back to previous
levels in 2023.

Our ambition is that Storebrand remains the market leader in
pensions in the private sector by offering attractive and competitive
customer solutions, while at the same time running a cost-
effective business. The acquisition of Danica, pending regulatory
approval, strengthens our ambition in the pension market. From
July 2022, there will be increased requirements for which income
is pensionable, which will increase the premium volume in the
Norwegian market by approx. NOK 3 billion annually. We also
have the ambition to take a 1 per cent market share annually,
corresponding to NOK 5 billion in annual net inflow of assets, in the
market for public sector occupational pensions. Storebrand aims to
achieve further synergies across customers, products and capital by
expanding our non-life insurance offering to corporate customers.

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 our competitive
advantages in digital, sustainable solutions, and a strong market
position. The market is expected to grow by about 8 per cent
annually, supported by
increasing relocation volumes. SPP’s
ambition is to grow between 14 and 16 per cent annually, twice as
much as the overall market growth, by being the leading player in
the transfer market.

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
of 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 by the end of 2023,
compared to 2020, while maintaining a stable fee margin.

The retail market has evolved into and increasingly larger part of
Storebrand and accounted for 25 per cent of the Group’s profits
in 2021. The individualisation of the pension and savings market is
expected to increase further. Non-life insurance, particularly P&C
insurance, is an important growth area. The ambition is to grow
more than 10 per cent annually within savings, mortgage lending
and insurance.

Storebrand’s ambition from the Capital Market Day in 2021 was to
achieve a Group profit (before amortisation and tax) of NOK 4 billion
in 2023. We managed this already in 2021 with help from the sale
of AS Værdalsbruket and significant performance fees from excess
returns in active funds. The full effect of the regulatory change
related to Individual Pension Accounts in 2021 will have a negative
contribution in 2022 of approx. NOK 100 million. The full positive
effect of the Danica acquisition (given government approval) will
come in 2023. Strong growth in all focus areas will contribute to
further earnings growth in the coming years.

In the period 2012-2020, Storebrand reported flat nominal costs,
adjusted for acquisitions, currency, and performance related costs.
In 2021, we delivered on our cost target of NOK 4.4 billion. We expect
the cost base to increase to NOK 4.9 billion in 2022, due to growth
initiatives and increased wage pressure. The growth initiatives
include investments in the public sector, non-life insurance in the
market for small and medium-sized enterprises, and the recently
acquired Capital Investment. Should revenue growth not materialise,

Capital management
Storebrand aims to maintain a solvency ratio of at least 150 per cent.
At the end of 2021 it was 175 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 percentage points 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. We expect that approximately NOK 10 billion
in capital will be released by 2030.

Realisation of the Group’s ambitions is expected to lead to a rising
return on equity over time. We expect to deliver more than a 10 per
cent return on equity by the end of 2023 and beyond.

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.

International regulations
Solvency II revision
The European Commission presented proposals for changes in the
Solvency II standard model in September 2021. The Commission’s
proposals differ significantly compared to earlier proposals from The
European Insurance and Occupational Pension Authority (EIOPA).

The main purpose of the revision is to ensure that insurance
companies continue to invest in accordance with the political
priorities of the EU, especially with regards to financing the post Covid-
19 recovery, by facilitating long-term investments and increasing
the capacity to invest in European business. The Commission
particularly emphasises the importance of the insurance sector’s
role in financing the green transition and helping society to adapt
to climate change. The proposed new model also intends to correct
regulatory deficiencies and make the insurance sector more robust.

Storebrand currently applies what is commonly known as the
standard model. Changes to the standard model could increase
the solvency capital for Norwegian and Swedish insurers. The
Commission’s proposals appear to reflect Norwegian interest rates
better than earlier proposals from EIOPA. The Commission also
proposes changes that could have offsetting effects to increased
capital requirements, such as a reduced risk margin. Several changes
are also proposed in the calculation of the volatility adjustment as
well as an increased interval for the symmetric adjustment for equity
risk. As they are currently outlined, the Commission’s proposals are
not expected to have a significant overall impact on Storebrand’s
solvency ratio.

The Commission has not outlined a timeline for the further process
on adapting changes in the standard model. 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 until
2024-2025. The Commission will also consider a phasing-in period
of five years for new rules related to the calculation of interest rate
risk and the new extrapolation method for interest rates will be
phased in gradually until the end of 2031.

Sustainable finance
The EU’s goal of a carbon neutral Europe by 2050 requires significant
investments. The EU’s Action Plan on Sustainable Finance is
expected to increase the share of sustainable investments, promote
long-termism, and define which financial products may be defined
as sustainable.

EU taxonomy for sustainable finance activities
The EU Taxonomy is a main part of the EU’s Action Plan on
Sustainable Finance. While the taxonomy regulations entered into
force on 12 July 2020 in the EU, the new requirements will only apply
from 2022 for the first two environmental goals (climate change
mitigation and climate change adaptation), and from 2023 for the
other four environmental goals (sustainable use and protection
of water and marine resources, transition to a circular economy,
pollution prevention and control, and protection and restoration of
biological diversity and ecosystems). Legislative measures including
the EU Taxonomy and sustainability disclosures were passed by the
Norwegian Parliament (Stortinget) in December 2021.

The new regulations entail a mapping of the legislative requirements
for their products and services. Large, listed companies will be
required to report on the proportion of their turnover, investments
and operational costs that are covered by the EU Taxonomy. In 2023,
companies must report on the share of turnover, investments and
operational costs that are defined as environmentally sustainable
activities in accordance with the technical criteria that the EU has
prepared for each economic activity.

A challenge of implementing the new rules for sustainable finance
is to get correct and necessary data. See appendix on page 248
for an overview of how much of our business is covered by the EU
Taxonomy. The Taxonomy’s reporting requirements are increasing
step by step, and we will report on the share of our business that will
be classified as sustainable in the years to come.

Markets in Financial Instruments Directive (MiFID II) and Insurance
Distribution Directive (IDD)
In April 2021, the European Commission adopted a revision in
existing MiFID II and IDD regulations that require businesses to
map sustainability in the same way as financial risk. Companies
that provide investment advice must obtain information about
customers’ preferences related to sustainability, in addition to
mapping their experience and knowledge of investments. The
mapping of sustainability risks and preferences will become an
integral part of the suitability assessment made by companies that
offer financial products. Supplementary provisions on sustainability
in MIFID II and IDD are being considered for incorporation into
Norwegian law through the EEA Agreement. These regulatory
changes will take effect in the EU in the second half of 2022.

Corporate Sustainability Reporting Directive (CSRD)
In April 2021, the European Commission adopted a proposal to
prepare a new Corporate Sustainability Reporting Directive (CSRD)
to replace the previous Non-Financial Reporting Directive (NFRD).
CSRD aims to raise sustainability information to the same level
as financial information. The proposal aims to improve the flow of
information on sustainability within corporate governance. This will
make sustainability reporting from companies more consistent,
so that finance players, investors and the general public can use
comparable and reliable sustainability information. Storebrand’s
annual report will be in line with this regulation.

Sustainable Finance Disclosure Regulation (SFRD)
Another important part of the EU’s Action Plan on Sustainable
Finance is the EU’s Sustainable Finance Disclosure Regulation
(SFDR). The Sustainable Finance Disclosure Regulation (Hereafter
the Disclosure Regulation) is intended to help clients make informed
investment decisions. It requires Storebrand, as a financial player, to
be transparent about how we manage sustainability risk, potential
negative consequences of our investments, and the sustainability
of our products.

The Disclosure Regulation divides financial products into three
categories that affect the degree of sustainability information to be
disclosed by companies. The three categories are:

•

Financial products that have sustainability as the main objective
(defined as an Article 9 financial product): Investments in
companies or projects that contribute to an environmental or a
social sustainability goal. This may be investments in companies
that produce renewable energy or have services that contribute
to increased equality. In addition, the companies invested in
must not harm any other sustainability goals.
Financial products that promote environmental or social
aspects, but that do not have sustainability as the main objective
of its investment (defined as an Article 8 financial product): It
may be funds that have sustainability requirements, such as
avoiding fossil fuels or having the lowest possible emissions,
but where the entire investment does not focus solely on
sustainability.
All other financial products (defined as Article 6 financial
products): This is a broad “other” category that includes
everything from funds that completely ignore sustainability to
funds that analyse sustainability and take sustainability risk
into account without meeting the EU’s requirements under the
Disclosure Regulation.

We welcome the Disclosure Regulation as it should provide
increased transparency on financial savings products and make it
easier to compare data across the financial sector.

Changes in IFRS
A new accounting standard for insurance contracts, IFRS 17,
is set to be implemented in 2023. The purpose is to introduce
common accounting rules for insurance contracts and improve
the comparability of insurance accounts. IFRS 17 entails, among
other things, market valuation of liabilities, separation of insurance
cohorts in the accounts, income recognition over the contract
period rather upfront, and an amended profit and loss statement.
Storebrand will implement IFRS 9 for financial instruments at the
same time. For Storebrand’s consolidated financial statements, the
new standards will lead to changes in the valuation of insurance
contracts, classification of fixed income investments and how profits
are recognised. Estimated effects for Storebrand will be presented
closer to implementation. Whether IFRS 17 is implemented in the
statutory reporting requirements is decided by national regulations
in each country. Storebrand expects that its property and casualty
business will be required to implement IFRS 17 in the statutory
reporting. For the life insurance business, IFRS 17 is not expected to
be applied in the statutory reporting requirements. The effects from
the implementation of IFRS 17 is thus not expected to affect the
Solvency calculations nor dividend capacity significantly.

Norwegian regulations
Savings in Norwegian Defined Contribution pensions
In December 2021, new legislation was adopted making pension
contributions mandatory for all of employees’ income, not just
income above 1G (G = NOK 17 Interim Report Storebrand Group
106,399) for employees working more than 20 per cent and are
above the age of 13. Companies need to adapt to the new legislation
before 1 July 2022. It is estimated that the changes will increase total
savings in the Defined Contribution pension market by about NOK
3 billion per year.

Individual pension savings
The savings limit in the IPS scheme for individual, tax-favoured
pension savings has been reduced from NOK 40,000 to NOK 15,000
per year, with effect from the tax year 2022. The tax rules will
continue unchanged. In this sense, this is still a favorable scheme,
which is nevertheless weakened by a sharp reduction in how much
it is allowed to save.

Changes announced in the government platform
The government parties have announced in the Hurdal platform
that a sales tax on health insurance will be introduced, in order to
reduce the use of such insurances.

The governing parties have also announced a revenue-neutral
reorganisation of the financial tax, in which the increased employer’s
contribution for financial companies will be removed.

Public Occupational Pensions
The Norwegian parliament also passed new legislation in December
2021 regulating the buffer capital within public occupational pension
schemes. The new legislation merges the market value adjustment
reserves with the additional statutory reserves into a more flexible
customer buffer fund which can cover negative returns. There is
no cap on the size of the new buffer fund. The new regulation will
facilitate competition in the market for public occupational pensions
and is expected to be positive for Storebrand’s growth ambitions in
this market.

Paid-up policies
New legislation was passed for Paid-up policies in December 2021.
The final changes are:

•

The ability for providers to build additional statutory reserves
separately for individual contracts. This will allow for profit
sharing and increased benefits on contracts with sufficient
additional statutory reserves.
Faster pay-outs for small paid up-policies. Providers can reduce

the pay-out period for paid up-policies so that annual payments
equal 0.3G (G = NOK 106,399). Policyholders can demand a
reduced payout period so that annual payments equal 0.5G.
The policyholder and provider also have the option to enter
into an agreement to reduce the pay-out period so that the
annual payments equal 1G. This can reduce longevity risk and
duration risk for the affected contracts.
Providers will be allowed to compensate customers who
convert guaranteed paid-up policies to investment choice. It
will still be possible to offer conversion without compensation.
If compensation is offered, it should reflect the value of the
guaranteed returns the customer surrenders. The legislation
change passed regarding more flexible buffer capital
management within public occupational pensions mentioned
above was not passed for paid-up policies. The Ministry of
Finance has however announced that it may consider further
regulatory changes.

The Financial Supervisory Authority of Norway’s proposal for a
flexible buffer fund, where exchange rate adjustment funds and
additional provisions are merged into a new customer-distributed
buffer fund that can cover negative returns, has so far only been
introduced for municipal pension schemes. This happened through
the Norwegian Parliament’s (Stortinget) consideration of Prop. 223
L. The Ministry of Finance announced there that it would assess the
need for further regulatory changes later.

Transparency Act
The Transparency Act has been passed by the Parliament and will
enter into force on 1 July 2022. The Norwegian Consumer Authority
has been given the task of providing guidance and supervision of
the Transparency Act. The law imposes a number of obligations on
larger businesses related to human rights and working conditions,
and gives both consumers and others the right to information about
the companies’ handling of these.

All eligible companies are obliged to carry out due diligence
assessments in line with the OECD’s guidelines for multinational
companies. The requirement for the scope of the due diligence
assessments must be proportionate to the size of the business, and
the assessments must be carried out regularly.

Disclosures of the due diligence assessments shall be published
each year. The statement must meet the minimum requirements
under the Transparency Act, but can also be more comprehensive.
The report can be published in several places, but must as a
minimum be easily accessible on the company’s website.

The Transparency Act gives the opportunity for anyone to demand
to receive information from companies about how they handle
actual and potential negative consequences that have been
assessed in the due diligence assessments. The right to information

includes both general information about how the company handles
negative consequences, and specific information related to goods
and services.

Adaptations to the new regulatory requirements has been
implemented both
in departments that are responsible for
processes that are directly affected by new obligations and at Group
level to identify the need for adaptations in group-wide processes,
including those related to reporting and transparency.

Swedish regulations
New transfer market regulation
To promote the transfer of pension rights, additional fee restrictions
were introduced on 1 April 2021 for the repurchase and transfer
of unit-linked and custodial insurance. Insurance companies can
only charge an administration fee that corresponds to direct costs
for the transaction, and the amount can not exceed 0.0127 basic
amounts (equivalent to approximately SEK 600 in 2021).

On the question of the right of transfer for agreements entered
into before 1 July 2007, the Swedish Government has proposed in
a proposition that the right shall apply regardless of when a unit-
linked and custodian insurance agreement has been entered into.
The Swedish government has proposed that the fee restrictions for
relocation and repurchase should also apply to these contracts. The
new legislative amendments are proposed to take effect on 1 July
2022. The Swedish Parliament is expected to consider the proposals
in the spring of 2022.

SPP supports a more open relocation market. In the past, this has
been voluntary for insurance companies, and something SPP allows.

Premium pensions (PPM) of the national retirement pension system
A negotiated fund market is implemented as a second step in the
reform of PPM, and a new set of rules was presented by the Swedish
government on 22 December 2021. The fund market will continue to
give pension savers the freedom to choose how the funds are to be
invested. A new authority - Fondstorgsnemnda - which will negotiate
funds and manage the fund market is also proposed. Increased
demands will be placed on funds in the fund market; they must be
suitable for pension savings, cost-effective, sustainable, controllable
and of high quality. The Swedish government plans to present a
proposition to the Swedish Parliament on 22 March 2022 and the
legislative amendments are proposed to take effect on 1 June 2022.

PPM fund platform is a large distribution channel for SPP’s funds. We
envisage that the new fund platform will offer fewer funds at a lower
price, but it is too early to say anything about the consequences of
this.

Storebrand manages our customers’ savings over several decades
and we therefore have a long-term perspective. We take an
integrated approach to sustainable investments, in which we
combine our sustainability strategy with our investment strategy.
We believe that companies that have a good understanding of how
to manage sustainability risks and opportunities have a competitive
advantage that will enable them to deliver better returns, while
contributing positively to sustainable development.

In recent years, the debate about sustainability has largely focused
on cutting greenhouse gas emissions to reduce global warming.
Going forward, the global sustainability agenda will increasingly also
revolve around topics such as biodiversity and ecosystems to solve
climate challenges. In addition, the resilience of safeguarding good
working conditions and social and economic justice in the transition
to a low-emission society has received increased attention. To achieve
long-term positive effects, it is important to view environmental and
social conditions, and corporate governance in context.

We believe that investments in companies that are well-positioned
to deliver on the UN Sustainable Development Goals will deliver
better risk-adjusted returns for our customers over time. A main
goal is to positively support the achievement of the UN’s Sustainable
Development Goals (SDGs), without causing harm or having a
negative impact on society and the environment.

With this in mind, we strive to:

1. Contribute to positive influence by allocating more capital to
investments in solution companies (see below for definition),
green bonds, certified real estate and green infrastructure.
2. Exercising active ownership and excluding companies to reduce

the negative impact our investments can have.

This approach enables us to be a driving force for sustainable
investments that contribute to positive change and development,
while reducing financial risk.

Directing capital towards sustainable solutions
Storebrand aims to be a driving force for lasting change in the way
companies are managed, while ensuring the best possible return for
customers and owners. We fundamentally believe that investing in
companies well-positioned to deliver on the SDGs, will deliver better
risk-adjusted long-term returns for our clients. We therefore put
capital into action to fund socially beneficial, sustainable solutions
aligned with the achievement of the SDGs; and we reduce exposure
to activities that impact society and the environment negatively.

Storebrand works to
increase our positive contribution to
sustainability by directing more capital to investments that are well-
positioned to deliver solutions to global sustainability challenges, as
described through the SDGs. We do this by increasing investments
in solution companies, green bonds, investments in real estate and
infrastructure that support the SDGs. One of our goals is to invest
15 per cent of our assets under management in solution companies,
green bonds, green infrastructure, and certified real estate by 2025.

Since 2012, Storebrand has developed and integrated a proprietary
Sustainability Score to identify companies that have the potential to
deliver good returns, while helping to solve sustainability challenges.
All our portfolio managers can use the Sustainability Score in a
way that is aligned with the investment strategy and risk profile of
individual funds and portfolios.

Through proprietary analysis, we identify what we call “solution
companies”. These are companies that help achieve the SDGs
through products, services and operations, without causing
significant harm. The companies that are categorised as solution
companies are included in a database that is updated regularly.
The database is a valuable tool for fund managers in their work on
sustainable investments and serves as the basis for our thematic
solution portfolios (for example, on renewable energy, smart
cities and equal opportunities), or as part of broader investment
portfolios. At the end of 2021, 13 per cent of our equity investments
were invested in solution companies. During the year, Storebrand
launched two new solution funds; one with a focus on sustainable
cities and one with a focus on equal opportunities.

We integrate sustainability throughout our real estate business
and aim to be the Nordic region’s leading player in sustainable
real estate management. The share of our buildings that were
environmentally certified (BREEAM or equivalent) increased from 43
per cent in 2020 to 68 per cent in 2021. We reduced emissions from
our real estate investments, from 7.9 kg CO2 per m2 in 2020, to 5.9
CO2 per m2 in 2021. In 2021, three out of four reporting companies
with direct real estate investments achieved a 5-star rating from the
Global ESG Benchmark for Real Assets (GRESB). The Danish-based

company Capital Investment, which we acquired in 2021, has not yet
reported to GRESB, and the properties that the company manages
are not included in the figures for certification and greenhouse gas
emissions above.

Storebrand also manages capital for infrastructure investments that
enable the transition to a green economy. The transition away from
fossil fuels will require significant investment in renewable energy
infrastructure, both from the public and private sector. Sustainable
infrastructure is a key focus area in the EU Commission’s Investment
Plan for Europe, that aims to mobilise EUR 650 billion of public
and private investment by 2027 to transition to a climate-friendly
economy in the coming years. During 2021, Storebrand Asset
Management established and raised capital for a fund that invests
in sustainable infrastructure. Throughout the year, the fund made
three direct investments in a US onshore wind farm, an offshore
wind farm in the UK and 65 electric train sets in the UK. Each
investment has a positive sustainability impact.

HOW WE CONTRIBUTE TO THE UN SUSTAINABLE DEVELOPMENT GOALS THROUGH INVESTMENTS IN SOLUTIONS

We invest in companies that deliver climate

solutions and contribute to achieving the Paris

Agreement.

We invest in companies that promote energy

efficiency and enable increased production,

distribution and use of renewable energy

in the global energy mix. We increase

investments in infrastructure, grid, storage

and clean energy technology.

We invest in companies that deliver solutions

in sustainable management and efficient use

of natural resources. We promote circular

economy and waste reduction in the product

life cycle.

We promote safe drinking water solutions

at an affordable price, improved sanitation,

water quality, efficient water consumption,

management of water resources and

recovery of water-related ecosystems.

We ensure exposure to companies that

contribute to sustainable urban development,

transport systems, and reduce the impact of

cities 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 promote companies that contribute

to good health and quality of life. We are

increasing exposure to companies that

are helping more people access necessary

health services, medicines and vaccines,

health

insurance, and companies that

prevent deaths as a result of unsatisfactory
water and sanitation conditions.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 46Strategic highlights 2021 47The Group’s results 2021 51Official Financial Statements of Storebrand ASA 56Outlook 57A driving force for sustainable investments 62Risk 72Climate risk and opportunities 74Working environment and HSE 84Progress on our most material sustainability KPIs 856. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixBiodiversity and ecosystems: Our goal is that our investment
portfolio will not contribute to deforestation by 2025. During
identified companies with high
2021, we surveyed and
exposure and insufficient risk management. Next, we selected
50 companies for further targeted engagement to achieve
better forest protection in operations and supply chains. Based
on this dialogue, we have chosen to cooperate with companies
that show a willingness to improve. Divestments are considered
in companies that do not have a satisfactory response. To help
promote international regulation in this area, we also signed
the Finance for Biodiversity Pledge, which is described below in
the section on multilateral engagement.
Resilient supply chains: Respect for labour rights in supply
chains has been an important issue for Storebrand for many
years. Dialogue on these topics helps to ensure healthy
operations in the enterprises through robust supply chains,
while helping to reduce maternity, child labour, forced labour
and low living standards. Throughout the year, we established
a partnership through the Platform for Living Wages Financials
(PLWF), focusing on achieving a decent living wage, in the
clothing, food and retail sectors.
Corporate sustainability disclosure: Storebrand believes
that all companies should report according to standardised
and company-specific sustainability indicators. We therefore
highlight the importance of consistent, reliable and verifiable
reporting on sustainability indicators in our dialogue with our
portfolio companies. Increased transparency also depends on
reporting tools, such as the work of the Taskforce on Nature-
related Financial Disclosures (TNFD), which Storebrand helped
launch this year, and continues to provide advisory support.

Together with more than 50 members of The Institutional Investors
Group on Climate Change (IIGCC), Storebrand has stated clear
expectations about companies’ management of physical climate
risk. We want companies to demonstrate how they deal with the
physical effects of climate change in their businesses. In 2021,
we contacted 50 of the companies we have invested in that are
highly exposed to climate risk, to require them to comply with our
expectations. Expectations include strategic planning using climate
scenarios, integration of climate adaptation in business decisions,
and reporting in line with the TCFD recommendations.

•

Active ownership
We set requirements for the companies we invest in and use our
position as owners to influence the companies for improvement. To
reduce negative impact, we have a clear and transparent process
to ensure that companies meet our sustainability risk standards.
This, combined with a structured corporate governance process,
reduces our exposure to sustainability-related risks, such as climate
risk. During 2021, we defined even more demanding criteria to the
boards and management of the companies we invest in, and further
developed our general principles of engagement. We also initiated
several international initiatives.

Five principles of engagement guide Storebrand’s active ownership:

•

1. Creating shareholder value: Our activities shall contribute to

long-term value creation in a responsible manner.

2. Aiming for a positive impact: Our activities should be driven by
the goal of creating a real difference, not symbolic value.
3. Nordic approach: We focus on topics and issues where Nordic
actors have real influence and/or have a major impact on
Nordic stakeholders.

4. Multi-stakeholder engagement: We work with a wide range of
stakeholders, including governments, organisations, businesses
and investors.
Targeted engagement: We strive to gain the greatest possible
influence by concentrating our commitment to companies
where we have a significant stake.

•

We have chosen to prioritise four themes for active ownership for
2021-2023:

•

The race to net zero: Storebrand is committed to achieving
net zero greenhouse gas emissions in all our assets under
management by no later than 2050, in line with the Paris
Agreement. This entails a decarbonised portfolio across
all asset classes. In line with this commitment, we have set
an intermediate target of reducing the carbon footprint of
Storebrand’s total equity, corporate bond and real estate
investments by at least 32 per cent by 2025 with a base year in
2018. Storebrand was one of the founders of the UN-backed
Net-Zero Asset Owner Alliance initiative in 2019. We also
became a member of the Net Zero Asset Managers Initiative
in 2021.

Dialogue with companies
Storebrand accounted for 154 of the dialogues with companies we
have invested in. In other cases, we took the initiative together with
other companies: 67 initiatives were with Storebrand in a leading
role, and 358 with Storebrand as a contributor. A total of 87 per cent
of the initiatives took place proactively, while 3.2 per cent took place
on a reactive basis and 9.7 per cent were not categorised.43

The dialogues took place mainly in the form of e-mail, letters and
digital meetings. In the vast majority of cases, the dialogue took
place with investor contacts or sustainability teams. In 16 per cent of
cases, we were in contact with the CEO of the companies in question.

What types of companies we engaged with (sectors)
Most of the initiatives included companies in the materials sector,
consumer goods, financial services and manufacturing.

Geography
The majority of the companies we had dialogue with in 2021 were
based in the US, Japan, Sweden and Norway.

What aspects of ESG we engaged on (ESG categories)
In 2021, our engagements with companies dealt with several topics
within ESG and we addressed as many as 12 of the UN Sustainable
Development Goals. Just over half of the dialogues dealt with climate
issues, including climate change, emissions, deforestation and the
use of chemicals, while 29 per cent focused on social issues such as
human rights, working conditions and wage conditions. 18 per cent
of the dialogues were about corporate governance.

Outcomes of engagements concluded
During 2021, we conducted and concluded 33 dialogues. We
achieved the outcomes we sought in eight of the dialogues, while we
did not achieve the desired outcomes in six of them. In the remaining
18 dialogues, we consider the outcomes to have been neutral. In
cases where the engagements concluded successfully, the result
was first and foremost an increased awareness and understanding.
In some cases, the companies changed their practices or committed
to implementing concrete changes.

Voting
In 2021, we voted at the Annual General Meeting of 947 companies
based in a total of 47 countries. Nearly 30 per cent of the meetings
we attended took place in the United States. The financial sector
accounted for the largest amount – 247 meetings – while the
utilities sector accounted for the lowest number with 57 meetings.

ENGAGEMENTS BY ESG CATEGORY

53 % - Environment

29 % - Social

18 % - Governance

ESG ENGAGEMENTS - ESG ISSUES

Tema

Number of
engangements

Percentage
distribution

GHG emissions

Climate change

Deforestation

Chemicals

Human rights in conﬂict zones

Climate change ﬁnancing

Forced labour

Access to medicines

Living wages

Human Rights

161

104

Sustainability reporting and disclosure

Healthy food and nutrition

Coal ﬁnancing

Biodiversity

Indigenous Peoples rights

26.8 %

17.3 %

13.3 %

8.5 %

6.2 %

4.7 %

4.3 %

3.5 %

3.0 %

2.0 %

1.8 %

1.5 %

1.3 %

1.0 %

0.7 %

42) The number of dialogues is higher than the number of companies because in some cases we have contact with several people on different topics in the same company.

43) Proactive dialogues / initiatives mean internal pre-planned engagements in a case (e.g. dialogue with 20 companies with the highest emissions), while reactive means that we respond to a response that

has been notified of a case (e.g. from a third party).

20.5 %
Materials

12.3 %
Consumer Staples

10.8 %
Financial

8.8 %
Consumer
Discretionary

11.6 %
Industrials

9.7 %
Energy

7.7 %
Utilities

5.8 %
Healthcare

5.5 %
Information
Technology

3.3 %
Communication
Services

2.8 %
Real
Estate

1.2 %
None/Other

ESG ENGAGEMENTS - GEOGRAPHY

FINISHED ENGAGEMENTS -
RESULTS

FINISHED ENGAGEMENTS -
OUTCOMES

Country

Number of
engagmenets

Percentage
distribution

United States

133

22.1 %

Japan

Sweden

Norway

Germany

United Kingdom

France

China

Switzerland

Canada

9.5 %

7.8 %

7.2 %

4.7 %

4.2 %

3.5 %

3.2 %

2.7 %

ESG ENGAGEMENT BY CATEGORY

25 % - Successful

19 % - Unsuccessful

56 % - Neutral

MEETINGS VOTED BY
MARKET

52 % - Increased understanding/information

21 % - Failed/no outcome

15 % - Company committed to changes

9 % - Company changed practice

3 % - None

VOTE ALIGNMENT
WITH MANAGEMENT

24.7 % - USA

4.7 % - United Kingdom

11.4 % - China

3.5 % - Cayman Islands

6.1 % - Norway

3.2 % - Sweden

5.9 % - India

2.7 % - Canada

5.5 % - Japan

27.2 % - Other Markets

90 % - Votes With Mgmt

10 % - Votes Against Mgmt

Type

Number of
engagements

Percentage
distribution

5.2 % - Australia

Proactive

Reactive

Other

524

87.20 %

3.20 %

9.70 %

with a total of USD 46 trillion in assets under management and USD
10 trillion in assets under management, respectively.

Protection and sustainable management of oceans, forests,
wetlands and other sensitive ecosystems are essential for long-term
social and economic stability. Environmental destruction reduces
nature’s ability to continue to generate the ecosystem services that
businesses and societies depend on. Industry players depend on
input factors such as water, materials and minerals. In addition,
for example, they need erosion control and flood protection to
ensure stable production processes. A lack of understanding
of the relationship between natural capital and industry activity
is described as called “hidden” risks. The value of natural capital
is estimated at more than NOK 100,000 billion globally. Loss of
nature can thus have major economic consequences for business
and social development. Activities to avoid loss of biodiversity are
therefore high on Storebrand’s agenda. In 2022, we will continue
our work to establish nature-related risk as a concept, in the same
way as climate risk.

At the forefront of the COP26 and COP15 conferences, we joined
forces with 77 other financial institutions in the Finance for
Biodiversity Pledge that urged the world’s governments to act
immediately to stop and reverse biodiversity loss. The statement
calls for the creation of a more ambitious Global Biodiversity
Framework (GBF) that drives the expectations of financial institutions
and businesses to align financial flows to global biodiversity goals.

This year, we also signed the Business Call for a UN Treaty on
Plastic Pollution. Plastic pollution is a problem that is not dealt
with effectively by current legal and political frameworks. A global
treaty on plastic pollution can help drive the transition to a circular
economy for plastics, which Storebrand supports by committing to
exercising responsible investment practices on this topic.

Out of 18,016 proposals for consideration, we voted in 18,003
cases. In 90 per cent of cases, we supported proposals from
the management of the companies, while we voted against the
management’s recommendation in 10 per cent of cases.

Storebrande against proposals from the management dealt
with, among other things, extraordinary compensation schemes,
reporting and plans related to climate risk, reporting on matters
related to human rights, as well as the independence of the board
and a lack of diversity. For example, we voted against a proposal
from the management of the energy company Equinor for targets
for climate change in the short, medium and long term. Our
rationale was that companies we invest in should adopt targets
for greenhouse gas emissions in line with the Paris Agreement.
The Equinor management’s proposal received a majority with the
support of the Norwegian state, but Storebrand’s vote sent a strong
signal that investors want ambitious and concrete climate targets
both in the short and long term.

Multilateral cooperation to support active ownership
Many sustainability challenges are so extensive that they can only
be solved through multi-party involvement and cooperation, for
example authorities, trade associations, environmental and human
rights organisations and trade unions.

Several of the initiatives and alliances we have engaged in in recent
years focus on the priority areas for active ownership in 2021-2023
as discussed above.

In 2021, we joined the Platform for Living Wages Financials (PLWF) to
contribute to a positive development in the living wages in within the
clothing, food and agricultural and retail sectors.

Another example of this type of collaboration is the Task force
on Nature-related Financial Disclosures (TNFD), a framework for
businesses that will help organisations manage biodiversity risks.
Storebrand is an advisory participant in the TNFD Forum, a cross-
sectoral competence body that supports the work of TNFD.

Business engagement at the political level is also important to
stimulate change and promote sustainability initiatives. During
2021, we led and supported several broad initiatives to influence
the COP26 United Nations Climate Conference and COP15 United
Nations Biodiversity Conference sustainability negotiations. Both
conferences brought together governments around the world to
agree on national commitments and set new long-term goals for
climate and natural issues. An important element of the negotiations
was to create broad support among financial players for revised
frameworks and commitments based on climate-based research
that will contribute to achieving sustainability. Storebrand has
been active in leading and supporting several important and broad
sustainability collaboration initiatives.

The Global Investor Statement to Governments on the Climate Crisis
and the Finance for Biodiversity Pledge were among the initiatives
we actively engaged in. These initiatives involved financial institutions

We take measures to avoid corruption and bribery, as a result of inadequate corporate governance and systematic

failure to uncover fraud and corruption. In Myanmar, we have also led a major investor initiative to reduce the risk of

contributing to human rights violations. Some of the cases involved led to exclusions. Company reporting is another

of our main topics: We have highlighted the importance of consistent, reliable and verifiable reporting on sustainability

indicators in our dialogue with our portfolio companies during the period.

Biodiversity and ecosystems are one of our priority engagement topics – they play a crucial role in supporting

sustainable value creation and meeting climate commitments. We are committed to achieving a deforestation-free

portfolio by 2025. We work with portfolio companies to communicate our expectations for improved forest protection

in operations and supply chains. Prior to the COP15 negotiations, Storebrand finance for Biodiversity Pledge signed,

and called for urgent government action on climate issues. In the Nordic countries, we have also worked on a set of

expectations and dialogues with forestry companies.

We continue our engagement with companies in the aquaculture sector, with a focus on climate issues and impacts

on biodiversity. This year we have also collaborated with Grieg Seafood, WWF and the Norwegian Institute for Marine

Research (NINA), on a pilot project to improve the aquaculture sector’s reporting on influences and dependences on

nature.

The transition to a low-emission society and net zero emissions in 2050 is one of our priority topics. Storebrand has been

a member of the Taskforce on Nature-related Financial Disclosures working group, which was launched this year, with

the aim of creating a reporting framework that helps organisations manage biodiversity risk and identify opportunities.

We also announced clear expectations of companies in tackling climate risk and have focused on dialogues with the

20 largest emitters in our portfolios. Prior to COP26, we were a signatory of Call to Action for the decarbonisation of

shipping, which clarifies an expectation for governments to increase their ambitions and commit to decarbonising

shipping by 2050. During this period, Storebrand also signed the Global Investor Statement to governments on the

climate crisis and called for urgent government measures to achieve climate targets.

We work with companies to reduce water consumption and greenhouse gas emissions in intensive livestock production.

In addition, we have engaged them to raise environmental standards in important sectors, such as palm oil, soy, cattle

and timber. In 2021, we signed the UN Treaty on Plastic Pollution to help drive the transition to a circular economy for

plastics.

We are engaged with companies in our portfolio where we address issues of working conditions, including the living

wage. We have joined the Platform for Living Wages Financials (PLWF) initiative and are working with other investors

to address issues of the living wage and create structures that support workers’ working conditions. The platform

contributes to a positive development in the living wage in the clothing, food and agricultural and retail sectors.

One of our most important engagement issues is supply chain resilience, including the issue of forced labour, where

we have continued to focus on China and the Xinjiang region, through direct dialogues and with the Investor Alliance

on Human rights. Storebrand wants to raise awareness of international labour rights, particularly in high-risk sectors

such as the textile industry. We seek to improve our policies and contribute to both better relationships between

management and employees and working conditions in our supply chains.

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 required companies to establish the right practices and measures to protect their employees from

Covid-19.

Storebrand has worked actively to mitigate the impact of the pandemic on companies, society, the economy and

financial markets. As a result, Storebrand is committed to acting in support of investor statement on Coronavirus

Response.

We address serious breaches of standards by our portfolio
companies through a structured, policy-driven, and predicable
process, in which exclusion is generally a final resort.

In case of serious behavioural violations of our standards, we usually
begin by engaging in dialogue with the company. If we conclude that
the company poses an unacceptable risk of breaching our standards,
we sell our existing investments in the company and exclude it from
our investment portfolio.44

In case of product-based breaches, our exclusion process is based
on more data analysis than dialogue. We have agreements with third-
party databases that document and report to us the percentage
of revenue that companies receive from specific classifications of

products. If a company’s revenue from the excluded product classes
rises above our threshold levels, we automatically exclude the
company. The detailed product-based threshold levels vary, rising
to a maximum of 5 per cent of total revenue.

In 2021, the exclusion process resulted in the exclusion of 67
companies from our investment portfolios consisting of over 5,000
companies. A total of 7 companies were re-included, after observed
and sustained returns to the required standards. As of December
31st, 2021, there are 257 companies of the MSCI ACWI Index on our
exclusion list, while an additional 517 companies are excluded from
certain funds based on our extended criteria.

Companies excluded based on the Storebrand standard,
by category, as of 31 December 2021

Conduct-based exclusion - Environment

Conduct-based exclusion - Corruption

Conduct-based exclusion - Human Rights

and International Law

Tobacco

Controversial weapons

Climate - Coal

Climate - Lobbying

Climate - Oilsand

Unsustainable Palmoil

Cannabis

Total number of companies

*) For further description of our exclusion methods, see Storebrand’s exlusion list.

133

257*

Human rights in Myanmar

After a military coup against Myanmar’s democratically elected government in early 2021, Storebrand has

been taking a leading role regarding investor engagement to help secure human rights in the country.

Following the coup, the military government that took control over the country carried out actions against pro-

democracy protesters. These actions have resulted in hundreds of deaths and several thousand people being

arrested, tortured and injured. Furthermore, an estimated 700,000 people hailing from Myanmar’s Rohingya

ethnic minority group have been forced to seek refuge outside the country. The Myanmarese military

government’s actions were met with international protests, condemnations and sanctions from the United

States, the European Union and many other countries, multilateral institutions and organisations around the

world.

Storebrand led the work to formulate a joint statement from the international business community, in

cooperation with the Investor Alliance for Human Rights and the Heartland Initiative. One outcome is this work

was the formal publication of the Investor Statement on Human Rights and Business Activities in Myanmar

which was signed in June 2021 by 77 investors globally. The statement called on companies operating in

Myanmar to identify the risk of human rights violations in their own value chain, take measures to reduce risk,

report publicly on development, and participate in collective measures to support human rights in the country.

Storebrand carried out due diligence related to companies operating in Myanmar to identify links to the

military junta government and potential human rights violations.

44) For a detailed description of our exclusions and methodology see: https://www.storebrand.no/asset-management/barekraftige-investeringer/utelukkelser

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 the

economic crime.

revenue comes from the production or distribution

of weapons (handguns and military weapons).

Companies that cause or contribute to serious and

systematic violations of international law and human

rights in war zones.

Government bonds

issued by countries that are

systematically corrupt, that systematically suppress

fundamental social and political rights, or against which

the UN Security Council has adopted sanctions.

Companies where more than 5 per cent of their

revenue comes from the production or distribution

of controversial weapons, including nuclear weapons,

land mines, cluster munitions, biological weapons and

chemical weapons.

Companies involved in serious environmental damage.

Companies where more than 5 per cent of their

Companies that receive more than 5 per cent of their

of fossil fuels, or which have more than 100 million

revenues from coal or oil sands-based activities.

tonnes of CO2 in fossil reserves.

revenues come from the production or distribution

Companies that contribute to severe and/or systematic

deforestation through non-satisfactory production of

palm oil, soy, cattle or timber.

Companies that deliberately and systematically work

and lobby to counteract the objectives enshrined in

the Paris Agreement.

Companies with

serious

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 where more than 5 per cent of their

revenue comes from the production or distribution of

revenue comes from the production or distribution

tobacco or drugs.

of alcohol.

Key performance indicators 45

Key performance indicators

Results 2018

Results 2019

Results 2020

Results 2021

Goals 2022

Goals 2025

Return on equity

Solvency Margin

Dividend ratio

Share of total assets screened for

sustainability

NOK billion invested in fossil-free products 46

Carbon footprint from equities investments:

tonnes of CO2e per NOK 1 million in sales

13.7 %

173 %

68 %

100 %

8.0 %

179 %

0 %

100 %

277

8.6 %

178 %

65 %

100 %

379.2

10.7 %

175 %

52 %

100 %

483

income (against index) 47

22 (32)

18 (24)

12 (18)

Carbon footprint from bond investments:

tonnes of CO2e per NOK 1 million in sales

income (against index) 48

New

7 (15)

9 (16)

9 (17)

Exposure to high emitting sectors: NOK billion

/ share of equity investments

37.7 / 19 %

34.6 / 13 %

32.2 / 8%

42.5 / 9%

Investments in solutions (solutions compa-

nies, green bonds, green infrastructure and

property with environmental certification):

NOK billion / share of total assets 49

38.8 / 5.5 %

53.7 / 6.5 %

92.6 / 9.6%

123.1 / 11.2 %

Investments in green bonds: NOK billion/

share of total bond investments

8.4 / 2.9 %

12.4 / 3.1 %

22.2 / 5%

25.7 / 6 %

Investments in green infrastructure:

NOK billion / share of total infrastructure

investments

New

1.5 / 100 %

Investments in solution company equities:

NOK billion/ share of total equity

investments

New

24.3 / 9.3 %

50.3 / 13 %

62.6 / 13 %

Investments in certified green property:

NOK billion/ share of total real estate

>10 %

>150 %

>50 %

100 %

N/A

13 %

N/A

>10 %

>150 %

>50 %

100 %

N/A

15 %

N/A

investments 50

13 / 30 %

17 / 41 %

20.1 / 43 %

33.3 / 68 %

75 %

90 %

Companies that have been contacted to dis-

cuss ESG through active ownership: number/

share of investment universe 51

314 / 10.8 %

408 / 9.7 %

572 / 12 %

601 / 12 %

Carbon footprint direct real estate

investments: tonnes CO2e / kg CO2e per m2

10,818 / 9.96

10,228 / 9.12

8,456 / 7.9

6,703 / 5.9

N/A

8.6

N/A

6.5

45) For a complete list of sustainability indicators and definitions, see Appendix on page 240.

46) Fossil-free products are one of several ways to achieve our overall goal of net zero emissions, and we have therefore not set a specific goal for how much to invest in fossil-free products.

47) The method for calculating carbon footprints has been further developed for the annual report 2021. Data are obtained through Trucost (S&P Global)’s systems and weighted by market value per position. For index figures,

corresponding calculations are weighted per index and it is weighted together with the portfolios’ indices based on portfolio values. This represents a coverage ratio of 96.7% in our carbon footprint from equity investments, and a

coverage ratio of 93.8% for indices.

48) The method for calculating carbon footprints has been further developed for the annual report 2021. Data is obtained through Trucost (S&P Global)’s systems and calculated data from the management, weighted by market value

per position. For index figures, corresponding calculations are weighted per index and it is weighted together with the portfolios’ indices based on portfolio values. This represents a coverage ratio of 48.8% in our carbon footprint

from bond investments, and a coverage ratio of 92.1% for indices.

49) We have decided to set an overall goal for resp. 2022 and 2025, instead of one target for each asset class.

50) Capital Investment, which we acquired in 2021, has not yet reported to GRESB, and the properties the company manages are not included in the figures for certification.

51) The number of companies we have engaged in has increased at the same time as the investment universe has increased. Number of engagements as a share of the investment universe will thus be the same as in 2020.

Our risk management framework is designed to ensure that we
take the appropriate risk for delivering returns to customers and
shareholders, 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.

One of the biggest financial risks associated with Covid-19 has been
the risk associated with rising unemployment as a result of a weak
economy. This has historically led to an increase in disability and
related claims. Storebrand has strengthened its reserves to meet
the increased uncertainty. The autumn of 2021 marked a reopening
of Norwegian society, but the renewed infection pressure towards
the end of the year means that the risk is still higher than usual.

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.

The Board assesses the risk in the Own Risk Solvency Assessment
(ORSA) process. The greatest risk for Storebrand is the financial
market risk. In the short term, troubled financial markets, especially
falling stock, credit and real estate markets, may result in investment
losses, or falling interest rates may increase the insurance liability.
In the longer term, persistently low interest rates are a risk because
it becomes more difficult to achieve the guaranteed return on
investment. Other risk areas include business risk, insurance risk,
counterparty risk, operational risk, climate risk and liquidity risk.

Covid-19 has had a limited impact on Storebrand’s operations. The
reorganisation of work routines during the pandemic took place
without significant adverse events, and the customer service and
deliveries were affected only to a small degree. Increased use of
digital services in the normal working day has, however, reinforced
the need to take care of and further develop IT security solutions.
Overall, we saw a stable development in the number of reported
incidents in 2021. The number of customer and process-related
incidents was at the same level as in 2020. However, the number
of “high-risk incidents” was somewhat higher, where we reported
several cases to the Norwegian Data Protection Authority in 2021.

The risk landscape varies between business areas. The main risks are
described per business area below. Risks associated with regulatory
changes are discussed in the section Outlook above.

Insurance
Insurance consists of personal 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 payout
in the event of death, but Storebrand’s risk from this is limited. In
P&C 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 United 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.
Operational risks, including regulatory compliance, are the 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.

The financial markets developments have been positive for
Storebrand throughout the year, with rising stock markets and
interest rates at the same time as credit spreads remained stable.

Guaranteed pensions
Guaranteed Pension encompasses savings and pension products
with guaranteed interest rates. The greatest risks are financial
market risk and longevity risk.

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 return.
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 a zero per cent guarantee.

Storebrand wants to grow in the guaranteed public occupational
pension market and received new customers in 2021. 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. 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 over many 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 26. 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. 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.

Climate risk often is divided into two categories: physical risk
(consequences of changes to the climate and the environment)
and transition risk (consequences of the transition to a low-carbon
society).

Physical climate risk is impacted by the extent and speed of climate
change. A common reference for total physical climate risk is the
average global temperature increase since the pre-industrial age.
The United Nations states that the global temperature rise already
is 1.1 degrees.52 The development the next decade is expected to be
a consequence of previous years’ emissions. Decisions made during
the next few years will affect the risk significantly in the long term.

policies in order to reach the Paris agreement targets, dropping
interest rates or oil price, or reduced petroleum activities. As part
of our work to reduce risk, we mapped Storebrand’s exposure
in the fossile fuel sector last year, particularly in terms of income
from pension products, as well as disability coverage related to the
industry and related sectors.

We use the recommendations from the Task Force on Climate-
Related Financial Disclosures (TCFD) as a framework for reporting of
climate-related financial risks.54 Storebrand’s impact on the climate
is described elsewhere in this report, mainly in the chapter Keeping
our house in order and in the chapter A driving force for sustainable
investments.

The transition risk will be influenced by how extensive and fast the
transmission to a low-carbon society will take place. The transmission
will be affected by politics, regulatory demands, technological
development, business priorities and consumer preferences.

We have established an index to describe where the TCFD-
recommended disclosures are addressed in this report. The index
is included in the appendix on page 216.

Why
Both climate change and the transmission to a low-carbon society
represent both challenges and opportunities for Storebrand. Every
year, we assess how climate risk may impact the Group’s operations,
financial situation, framework conditions, and reputation. The
assessment provides a basis on which to analyse measures to
reduce risks or exploit opportunities.

Climate change and the transition to a low-carbon society could
impact our business significantly. The consequences may be further
enhanced by changes to the oil price and activities in the oil and gas
industry.

In 2020, Storebrand developed a climate strategy to contribute to
global warming being limited to about 1.5 degrees.53 A key element
is to ensure carbon-neutral investments by 2050, at the latest, with
specific sub-goals along the way. Measures to reduce risks and
maximise opportunities are described in the chapter A driving force
for sustainable investments.

Our approach
Storebrand assesses climate risk based on the same framework
as other business risks. Overall risks, including climate risk, are
described in a risk analysis report addressed by the Group Executive
Management and Board twice a year. The risk analysis includes
assessments of business and reputation risks related Storebrand’s
strategy to uphold a leading sustainability position. Climate risk also
is addressed in the annual ORSA-report55, which is sent to Norway’s
Financial Supervisory Authority following approval by the Storebrand
Board. Climate risk also is a part of the risk review conducted by
all Group subsidiaries. Climate risk, particularly physical risk, is very
long term and therefore is assessed in based on a longer time
perspective than other risks.

Scenarios for climate risk assessments
As historical events have a limited relevance for climate risk, it is
necessary to assess risks related to various scenarios. Storebrand
bases our annual assessment on three scenarios:

The effects on investments and obligations may be sudden, in the
form of market volatility, or gradual, through lower returns and
lasting low interest rates. Policy or regulations may also entail risk if it
is difficult to meet targets due to limited technological or investment
opportunities. Examples could be an abrupt change to Norway’s

•

Rapid transition to a low carbon society, meeting the target of
limiting global warming to 1.5 degrees
Somewhat slower transition, but global warming is nevertheless
limited to about 2 degrees
Emissions continue to be high and global warming reaches or
exceeds 3 degrees

52 IPCC. Sixth Assessment Report. https://www.ipcc.ch/assessment-report/ar6/

53) Storebrand Climate Policy for Investments: https://www.storebrand.no/asset-management/barekraftige-investeringer/var-klimastrategi/_/attachment/inline/4378826b-d7e2-4dc7-a16d-62e1300f2b12:9f73b6f864f81af51ca

8045668e4bc5f026a2674/86128%20STB_Clima_policy_investment_rapport.pdf

54) Since the launch of the TCFD recommendations in 2017, we have been working on these recommendations: https://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdf. In this annual report, the

climate risk descriptions are also adapted to the greatest possible extent to the updated recommendations for reporting that were launched in the autumn of 2021: https://assets.bbhub.io/company/sites/60/2021/07/2021-

Metrics_Targets_Guidance-1.pdf

55) Own Risk and Solvency Assessment, ORSA

High

Disorderly

Divergent
Net Zero
(1,5C)

s
k
s
i
r
n
o
i
t
i
s
n
a
r
T

Too little, too late

Delayed
transition

Net Zero
2050
(1,5C)

Below
2C

NDCs

Current
policies

Orderly

Low

Hot house world

High

Physical risks

Positioning of scenarios is approximate, based on an assessment of physical and transition risks out to 2100.

Storebrand uses scenarios developed by the Network for Greening
the Financial System (NGFS).56 The network has been established by
central banks and supervisory authorities to establish a framework
for assessing and handling of climate risk, as well as to encourage the
financial sector to support the transition to a low-carbon economy.
The scenarios will be further developed, including quantitative
stress tests, as a basis for supervisory processes and analyses of
financial stability.

NGSF has defined six scenarios with risk varying along two
dimensions.

1. How serious will the physical consequence of global warming

be?

2. Will the transition be a controlled or disruptive process?

(transition risk)

NGFS outlines two scenarios that lead to zero emissions in 2050.
The scenario “Net Zero 2050” expects a rapid transition, with a high
degree of coordination among nations and sectors. The transition
risk in this scenario therefore is seen as low, despite the speed
of the transition. The “Divergent Net Zero” scenario considers the

transition risk significantly higher, as the use of oil as transportation
fuel is phased out very quickly while the use of fossil energy for
industrial activities declines more slowly. The physical risk is about
the same in both scenarios because global warming is limited to 1,5
degrees.

Storebrand has chosen «Divergent Net Zero» as a basis for the
“Speedy transition” scenario. Norway could be particularly exposed
to transition risk because of a rapid phasing out of oil and gas as
energy sources. In addition, ambitions and preferred means are
likely to vary significantly among various stakeholders.

Storebrand’s “Delayed transition” scenario is based on the NGFS-
scenario carrying the same name. In this scenario, emissions
continue to rise up until 2030, after which policy becomes
significantly restrictive. This is expected to result in a rapid decline in
emissions after 2030, towards zero in 2050, keeping global warming
below 2 degrees. In this scenario, transition risk is about the same
as for «Speedy transition» but it is postponed until after 2030. The
physical climate risk in this scenario is expected to be somewhat
higher than for “Speedy transition.”

56) Scenarios updated June 2021: https://www.ngfs.net/sites/default/files/media/2021/08/27/ngfs_climate_scenarios_phase2_june2021.pdf

A: Speedy transition

B: Delayed transition

C: Current policies

The scenario is based on the NGFS ”Divergent
Net Zero”. Climate policies are subject to a
major shift, and the technological development
happens fast. The zero emission target by
2050 is reached. Global warming is contained
at less than 1.5 degrees. Costs related to the
transition will be considerable, accelerated by a
lack of coordination among nations and sectors.
The use of oil for transporation is phased out
rapidly, while the reduction in the fossil share
for energy supply and industry are variable.
The scenario is based on moderate use of CO2
capture and storage.

The scenario is based on the NGSF ”Delayed
Transition”-scenario. The absence of regulations
lead to economical growth in the wake of Covid-19
are based on fossil energy. The CO2 emissions
grow up until 2030. Policies then become stricter
and include a significant increase in the price of
CO2. This leads to a rapid decline in emissions
post 2030, towards zero in 2050. The overall
emission decline is sufficient to ensure a global
warming below 2 degrees.

The scenario is based on the NGSF ”Current
Policies” scenario. Limited awareness of the
climate crisis combined with shortsighted political
priorities prevent the implementation of future
restrictions. Measures implemented to reduce
emissions are continued. Emissions increases
until 2080. Global warming is expected to reach
about 3 degrees, with a significant risk of an
even further increase. This will lead to large
and irreversible climate change.

It is useful to understand what the various scenarios mean for
conditions that affect Storebrand’s risks. A global temperature
increase is a key indicator of physical risk, while carbon costs are a
key indicator of the global temperature development. Carbon price
development is a main indicator of transition risk. In Norway, the
demand and price development for oil and gas are key indicators for
transition risk. Both the transition and physical climate changes could
affect economic growth and the financial markets. The development
of the Norwegian economy will influence out customers, whose
behaviour, in turn will impact Storebrand’s future earnings. At the
same time, the global effects on global financial markets will affect
Storebrand as an asset manager.

Areas where climate-related risks can affect Storebrand
Climate risk affects several parts of our business. At the same time,
it is important to understand that both the source of risk and the
way the risk affects the business can be different. Therefore, it is
important that separate assessments are made for each of the
areas listed below.

•
•
•
•
•
•

•

Storebrand’s investments, both securities and real estate
Storebrand’s life insurance liabilities
Storebrand’s non-life insurance liabilities
Storebrand’s asset management
Storebrand’s banking business
Risk that Storebrand’s customers may be affected by climate
risk
Reputation risk, especially linked to Storebrand’s strategy
choice to be a leader in sustainability
Regulatory risk from non-compliance with new requirements
for climate adaptation or reporting

Further in this chapter, we will focus on the areas that are most
important in different parts of our business. For each area,
implemented and planned measures that affect the risk are
described, in addition to assessments of any new measures that can
contribute to reducing risks or realising opportunities from climate
change.

Climate risk for investments
Storebrand’s largest climate-related financial risks and opportunities
are considered to be in the transition to a low-emission society.
Our investments may be affected by climate policy and regulations,
stricter emission requirements, a changed cost structure and market
preferences. Our most important measures to reduce these risks
and exploit potential opportunities are described in the chapter A
driving force for sustainable investments.

Climate risk can affect Storebrand’s return through two mechanisms:

•

Climate-related factors affecting returns from the financial
market as a whole, for example because economic growth is
affected by physical climate change or due to a less effective
policy to achieve zero emissions (absolute climate risk).
Effects of Storebrand investing differently from the broad
market, for example by failing to invest in some industries or
companies and investing more in solution companies (relative
climate risk).

The main difference between the scenarios above is the long-term
negative effect of physical climate risk. The risk is greatest in the
scenario “Current policies “, while it is least in the “Speedy transition”
scenario. One challenge is that the negative effects of climate
change are not evident to the individual company and consumer,
especially in the short term. It is therefore important that authorities
and other actors adjust framework conditions and preferences so
that companies and private individuals can adapt both behaviours
and attitudes in the interest of society.

In 2020, we launched a new climate strategy for our investments,
with the goal of entering into investments that greatly contribute
to climate change. We no longer invest in companies that receive
more than 5 per cent of the revenues from coal, oil sands-based
activities, are involved in serious and / or systematic unsustainable
production of palm oil, soy, cattle and timber. Storebrand will not
invest in companies that consciously and systematically work against
the goals agreed in the Paris Agreement. We expect companies to
support effective policy measures aimed at reducing climate risk
and limiting temperature rise to 1.5 degrees. This support should
apply to all commitments made by the company in all geographical
regions, and to political commitments made indirectly, through
third-party organisations acting on behalf of the company or with
the company’s financial support.

Based on the targets for carbon-neutral investments by 2050 and
intermediate targets for emission reductions, we established a
framework in 2021 with the following targets for 2025:

Emission targets for equity, corporate bonds and real
estate investments: We have a goal of reducing the carbon
footprint58
in equities,
corporate bonds and real estate by at least 32 per cent by 2025
(base year in 2018).

in Storebrand’s total

investments

Direct capital towards solution companies: Storebrand has
a goal that 15 per cent of our total investments will be invested
in what we define as solutions by 2025. This includes equity
investments in solution companies59, green bonds, certified
green real estate and investments in green infrastructure.

Be an active owner and driver force: In 2021, we had our
focus on the 20 companies with the highest emissions.60 The
impact work took place mainly in collaboration with other
investors, including Climate Action 100+. In addition, we held
meetings with the management of the 20 companies in which
we had ownership interests and which represented the largest
emissions:

Storebrand’s most important contribution is to ensure that the
Group’s investments are carbon neutral by 2050. Through active
ownership, we work systematically to ensure that the companies
that we invest in do their part to reduce emissions. Our work
is carried out in direct dialogue with individual companies, and
through several strategic collaborations, such as in the Net Zero
Asset Owner Alliance, the Net Zero Asset Manager Alliance, and the
Climate Action 100+.

Relative climate risk
Storebrand’s investment strategy means that our investments have
deliberate deviations from the global market index. This is partly
a consequence of Storebrand Asset Management’s sustainability
strategy that applies to all investments, and partly a consequence of
Storebrand Livsforsikring and SPP Pension & Försäkring having their
own requirements as part of the investment strategy. We make a
number of adjustments to reduce the relative climate risk to which
our investments are exposed, including:

•

•
•

•

Excluding companies that contribute to serious environmental
damage.57
Excluding companies that actively work against the objectives
of the Paris Agreement.
Excluding companies in the fossil sector in parts of the portfolio.
Setting requirements for a minimum average sustainability
condition, which also includes climate-related conditions.
A minimum of 15 per cent of the portfolio must be invested in
solutions by 2025.

57) We exclude companies that contribute to serious environmental damage, including companies that receive more than 5 per cent of the revenues from coal, oil

sands-based activities, and companies that are involved in serious and / or systematic unsustainable production of palm oil, soy, cattle and timber. Read more about

our exclusions here: https://www.storebrand.no/asset-management/barekraftige-investeringer/utelukkelser

58) Calculated as Weighted Average Carbon Intensity, see definitions on page 240-241 in the appendix Sustainability indicators and definitions.

59) See definitions for investments in solutions on page 241 in the appendix Sustainability indicators and definitions.

60) Calculated based on the share of owned share capital in the company multiplied by the company’s total Scope 1-2 emissions.

Industry & Materials

•

Angang Steel Co Ltd.

Elkem ASA

Haci Omer Sabanci Holding AS

JFE Holdings Inc

Jiangxi Copper

LafargeHolcim Ltd

• Nippon Steel Corp

• Norsk Hydro ASA

• O-I Glass Inc

•

SSAB Svenskt Stål

• Waste Management Inc

•

Yara International ASA

Shipping

•

DFDS A/S

Odfjell SE

• Wallenius Wilhelmsen ASA

• Wilh Wilhelmsen Holding ASA

Oil & Gas

•

Equinor ASA

Gazprom PJSC

LUKOIL PJSC

SFL Corp Ltd

information,

Equities and bonds are valued on an ongoing basis based on
all available
including climate-related risks and
opportunities. The valuation reflects, to some extent, that the
authorities’ target of zero emissions in 2050 may have consequences
for oil and gas demand, and earnings for oil and gas shares and that
the price of carbon emissions may be higher in the future. Similarly,
the financial market has priced in that companies that invest in
renewable energy, or that can in other ways take advantage of
opportunities in the green shift, can achieve increased earnings in
the future (high valuation in relation to current results is a measure
of this).

Lower future returns for fossil fuel companies than solution
companies are due to the climate effects being larger or coming
faster than expected. It is therefore likely that Storebrand will have
a somewhat lower climate risk than the market in the scenario
“Speedy transition”. In the scenarios “Delayed transition” or “Current
policies”, it is likely that Storebrand will have a somewhat higher
climate risk than the market because we were early in developing a

strategy to realise the goal of zero emissions. The risk must be seen
in connection with Storebrand’s total investments being broadly
diversified, which means that the deviation risk in the portfolios is
limited, including the effects of climate risk.

Exposure for different technologies
The overview of companies in high-emitting sectors (Figure 3)
is based on each individual company being assessed as a whole,
based on its own main business. An oil and gas company is defined
in the overview as 100 per cent fossil sector, even though it has
activities within green energy or technology.

Storebrand has performed a more granular analysis for selected
investment portfolios based on methodologies from PACTA. As
an example, the PACTA analysis is used for “Storebrand Balansert
Pensjon”, which is the largest investment profile for Defined
Contribution pensions in Storebrand Livsforsikring.

Financial exposure to climate relevant sectors

Financial exposure to climate relevant sector

Emissions exposure from climate relevant sectors

PACTA analyses the industries with the largest greenhouse gas
emissions. Overall, the analysed industries account for approximately
75 per cent of greenhouse gas emissions globally. Measured as a
proportion of investments, the analysed industries amounted to
approximately 6 per cent of the equity and bond investments for
Storebrand Balansert Pensjon, while they accounted for 43 per

cent of emissions from the equity investments and 20 per cent of
emissions from the bond investments. The proportion of emissions
covered by the analysis was significantly lower than 75 per cent.
This was due to Storebrand having lower exposure than the rest
of the market to the analysed sectors. Non-analysed sectors are
considered to be relatively larger contributors to emissions.

Figure 5: Storebrand Balansert Pensjon, exposure to different technologies for selected industries compared to index

Forward-looking analysis
Both the carbon footprint and exposure to industries or technologies
provide a snapshot of risks. We believe it is more important to look
at how companies work towards reducing the footprint in line
with the zero-emission target. Storebrand assesses, among other
things, whether companies we plan to invest in have committed to
emission targets based on scientific facts. We also closely monitor
the proportion of companies in our portfolios that have set science-
based targets.

The PACTA tool provides an opportunity to assess how the
companies’ plans will affect the composition of technologies over
time. Figure 12 shows what exposure to one of the expected future
that our portfolio, as well as the world market index looks like. This
is compared with what is required to be in line with the two degree-
target or below (Aligned portfolio / benchmark).

The analysis above assumes that Storebrand owns the same
companies in five years. The portfolio’s exposure over time can
be influenced through dynamic goals for the investment strategy.
Examples may be not investing in bonds issued by fossil fuel
companies maturing after 2030 or setting gradually increasing
targets for the share of solution companies. By investing fossil-free,
we can also reduce our risk, but this will not help the world reach
its emission targets today. Therefore, investments in companies
moving in the right direction may be effective, even if they have large
emissions in the short term.

Figure 6: Storebrand Balansert Pensjon, exposure in five years based on the companies’ plans

Listed Equity: Future technology mix as % of sector based on ETP2017: B2DS
scenario compared to iShares MSCI ACWI ETF as a subset of Global Market.

Sector

Aluminium

Aviation

Cement

Chemicals

Energy

Heavy duty automobiles

Light duty automobiles

Shipping

Steel

Utilities

Grand Total

2018

(BNOK)

2019

(BNOK)

2020

(BNOK)

2021

Change 2018-2021

(BNOK)

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

2.3

3.6

0.9

12.4

9.1

2.3

5.8

1.2

1.8

3.3

42.5

1.1

0.5

0.6

5.6

-6.7

1.7

2.1

0.3

1.0

-1.3

4.8

Other key performance indicators can be seen in the chapter A driving force for sustainable investment on page 71.

Key indicators

•

Carbon footprint in equity investments: 12 tonnes of CO2
equivalents per NOK 1 million in sales revenue (against 18
index) 61
Carbon footprint in bond investments: 9 tonnes of CO2
equivalents per NOK 1 million in sales revenue (against 17
index) 62
Carbon intensity in real estate investments: 5.9 tonnes of CO2
equivalents per m2.
Exposure to high-emitting sectors: NOK 42.5 billion / 9 per cent
of total total assets.
Number of active dialogues related to climate and environmental
risks and opportunities: 318
Number of companies that have been excluded due to serious
climate and environmental damage: 176
Equity investments in fossil energy, NOK billion / share of equity
investments: NOK 9.1 billion / 1.8 per cent.

Real estate investments
Storebrand manages direct real estate investments equivalent to
NOK 74.6 billion, which amounts to 6.8 per cent of assets under
management.63 Physical risk is largely related to the effects of
extreme weather on physical assets.

Acute physical climate risk is already affecting real estate, also
in Scandinavia, even though the risk is far lower than in the most
vulnerable parts of the world. The risk increases over time, especially
during the “Current policies” scenario. Extreme rainfall and flooding
stand out as the most important single factors. Micro-location and
the robustness of properties affect exposure to damage, increased
insurance costs and other costs. Chronic physical risk such as heat
waves and sea level rise are more long-term, but can have both
direct and indirect financial effects. In the worst case, property can
become unusable and unchangeable.

Transition risk in the form of increased public requirements and
fees, increased climate-related market requirements, as well as
reputational risk of having too low climate ambitions or not achieving
own targets, is most relevant in the “Speedy transition” scenario
and then the “Delayed transition” scenario. Under the scenarios
“Current policies” and “Delayed transition”, there is a risk of lower
returns in the short or medium term as a result of over-investment
or premature investment in relation correct market values. Timing
is critical to reduce risk. It will be important both on the cost and
revenue side, and may be able to have a double effect. The general
long-term nature of real estate investments can dampen the effect
by getting return on investments at a later stage in the event of a
delayed transition.

Climate risk can affect growth, liquidity and absolute returns in
real estate because real estate investments generally have higher
costs and reduced growth opportunities. Gaining relative returns
through appropriate managing and prevention of risks, and utilising
opportunities in the transition to the low-emission society, varies
from the market in general.

The main strategy for reducing risk is through active ownership.
Proactive analysis and implementation of measures will optimise
adaptation to future climate change and a 1.5-degree emission
pathway, both on the portfolio and individual properties. This is
better for society, rather than leaving property with lower climate
efficiency to investors who do not have an active strategy. Selection

61) The source for the calculations of carbon footprint is based on data from our data supplier in Q3 2021.

62) The source for the calculations of carbon footprint is based on data from our data supplier in Q3 2021.

63) 74.6 billion including Capital Investment.

Key indicators for climate risk in real estate:

•

Requirements regarding energy efficiency and greenhouse
improve energy efficiency
gas emissions: measures to
and waste management are assessed and implemented
continuously on the properties, and result
in reduced
greenhouse gas emissions from operations.

Long-term goal of 100 per cent environmentally certified
property.

Sustainability ranking of real estate: The management of
our direct real estate investments is ranked by GRESB in four
different portfolios, and the portfolios are among the best in
Northern Europe with a similar composition. In 2021, three
out of four portfolios are ranked among the top 20 per cent
globally, and awarded the maximum of 5 stars. 64

2018

2019

2020 202165

Goal

2025

Carbon emissions

kgCO2e/m2 per year 66

9.96

9.12

7.9

5.9

Reduce

Certified green real

estate, percentage share

AuM 67

30 %

41 %

43 %

68%

90%

GRESB-score

76.4 % 81.7 % 84.8 % 88.6% Increase

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.

The biggest climate-related risk is more damage and higher
compensation for property insurance due to precipitation that
leads to water intrusion. The risk is mainly associated with buildings
where the lowest floor is below ground level. The risk has increased
because there are more frequent storms with heavy rain in a
concentrated area, with the greatest consequences in densely
populated areas. Although it can cause flooding in a large area, it
is not described as a natural catastrophe and must therefore be
covered by Storebrand. Major incidents that are directly caused by
landslides, storms, floods (rivers and streams that cross their banks),
storm surges, earthquakes or volcanic eruptions, on the other hand,
are covered by the natural perils pool and internal reinsurance.

Even if physical risk is central to non-life insurance, transitional
risk may occur. One possible risk is that fewer people want or
need to own their own car. Measures to mitigate climate change
may accelerate such a trend. Cars will then to a greater extent be
owned by public transport actors, and this will change the market
from a private market to a large customer market. For a small player
like Storebrand Forsikring, it can be a threat. Increased use of car
sharing of privately owned cars will also lead to changes in the need
for insurance.

Our most important 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. We
improve the risk assessment, among other things, by analyzing
the risk of extreme precipitation and floods in various areas. At
the same time, we give a higher price for insurance of buildings
with basements in risk areas.

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.

Rewarding damage prevention: We actively communicate
with our customers, encouraging damage prevention measures,
such as securing property during periods prone to flooding.

64) Capital Investment, which we acquired in 2021, has not yet reported to GRESB and is thus not included in the data base.

65) Capital Investment, which we acquired in 2021, is not included in the data base.

66) Certifiable properties in operation.

67) Sustainability certification is BREEAM or equivalent, can also be LEED, Svanen or Miljöbyggnad. The total assets of Capital Investment, which was acquired in 2021, are not included.

•

Share of insurance premiums from electric car insurance: 22
per cent in 2021.

• 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.

•

Climate risk as an asset manager
Storebrand Asset Management manages more than NOK 1,000
billion, both for Storebrand’s own companies and other institutional
customers and private individuals. New EU standards for classifying
funds (Sustainable Finance Disclosure Regulation, SFDR) highlights
the importance of adapting to sustainability measures and makes
it easier to compare different suppliers. In order for funds to
be marketed as “green” or “sustainable”, they must promote
sustainability as part of the investment strategy (an Article 8 financial
product) or have sustainability as an investment objective (an Article
9 financial product).68 In 2021, Storebrand and SPP classified all their
fixed income and equity funds as Article 8 or Article 9 under the
SFDR standard.

There is a risk in linking sustainability and climate to Storebrand’s
brand and customer message if customers are more concerned
with other things when they make the decision to purchase funds.
Increased awareness of the importance of sustainability, especially
climate, means that the risk is considered low.

Storebrand has a wide range of funds, including specialised funds
with sustainability as an investment goal through investing in solution
companies. This degree of sustainability alignment in investments
carries the risk of lower returns than the market and competitors.
Storebrand’s solution fund received a strong return in 2020, but
had a weak period from February to May in 2021. Such results are
expected, and the long-term return is good, both in absolute terms
and relative to the broad market.

Risk of customers being affected by climate risk
If climate risk has a negative effect on Storebrand’s customers, it
may lead to a reduced business volume and thus lower revenues.
The consequences of this are particularly significant for Defined
Contribution pensions. The annual savings premium (2021) was
NOK 20 billion, of which NOK 13 billion was in Norway. Given
that Storebrand Livsforsikring maintains a market share of
approximately 30 per cent for Defined Contribution pensions in
Norway, growth in premiums be reliant on employee numbers in
Norwegian companies as well as the increased or decreased wage
growth effect on possible changes in savings rates. A scenario
with negative economic effects in the transition to a low-emission
society can affect all these conditions negatively. With no changes
in the transition pathway, 1 per cent lower growth in the number
of employees or 1 per cent lower wage growth will result in a NOK
130 million lower premium in the first year. The effect will grow and
accumulate over time if the change is prolonged.

The risk of negative effects from transition risk can be particularly
high for customers in the fossil fuel sector. A review of the customer
base shows that Storebrand has a significant exposure to the fossil
fuel sector.

As an appendix to this report, we have prepared a TCFD index.
This provides an overview of how we respond to the various
recommendations for reporting, as well as which pages of the annual
report more detailed information can be found. The index ensures
transparency, and makes it easier to find relevant information. The
table is on page 216.

68) For more information on the Sustainable Finance Disclosure Regulation (SFDR), see Regulatory changes in Director’s Report, page 59.

Managers are encouraged to discuss ethics, ethical dilemmas,
information security, financial crime and HSE in departmental
meetings. We monitor whether this is implemented and implement
further measures when necessary.

Storebrand’s sick leave rate among employees has been at a stable
low level for many years. Sick leave among employees was 2.5 per
cent in Norway and 1.6 per cent in the Swedish business in 2021.
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. Sick leave and
overtime are regularly followed up in the Cooperation Committee
(SU) in each business unit, which consists of the executive manager,
union representatives, safety representatives and the People
Business Partner. For members of the Working Environment
Committee and safety representatives, there is a requirement for a
mandatory HSE course.

There were no (zero) injuries to a staff member in 2021. No damage
to property was reported, and no accidents were otherwise reported
in the Storebrand Group in 2021.

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 also our compilation of sustainability indicators
and definitions on page 240. A separate remuneration report has
been prepared by the Board of Storebrand ASA and is available on
on our website, www.storebrand.no.

Insurance for the Board members and the company’s
management
The Board and senior executives are covered by the company’s
ongoing board liability insurance. This is placed with insurers with
a solid rating.

The insurer will, within the framework of the insurance coverage,
compensate for loss of assets as a result of claims made against
the insured for personal management responsibility during the
insurance period.

Key performance indicators

Carbon footprint from equity investments:

Status

2020

Status

2021

Target

2025

tonnes of CO2e per NOK 1 million in sales income (against index)

12 (18)

N/A 69

Carbon footprint from bond investments:

tonnes of CO2e per NOK 1 million in sales income (against index)

9 (16)

9 (17)

N/A 69

Carbon intensity property investments: CO2/m2

7.9 tonn

5.9 tonn

6.5 tonn

Exposure to high emission sectors:

NOK billion/share of equity investments

32.2 / 8 %

42.5 / 9 %

N/A

Investments in solutions: NOK billion/ share of total AUM

92.6 / 9.6 %

123.1 / 11.2 %

15 % of AUM

Property investments with green certificates: share of property investments

43 %

68 %

90 %

Company dialogues on ESG: number/share

572 / 12 %

601 / 12 %

Gender balance managment all levels: share of women

Women in Group Executive Management Team

Engagement score all employees:

39 %

3 / 10

37 %

3 / 9

N/A

50 %

Storebrand score/ industry average in Peakon, scale from 1-10

8.3 (7.8)

8.4 (7.8)

> 8.0

s
t
n
e
m
t
s
e
v
n

e
p
o
e
P

69) Target to reduce the carbon footprint of the Storebrand Group’s total equity, corporate bond and real estate investments by at least 32 perc ent by 2025 with a base year in 2018.

The Board of Directors and the CEO have today considered and approved the annual report and annual accounts for Storebrand ASA and
Storebrand Group for the financial year 2021 and as of 31 December 2021 (annual report 2021).

The consolidated financial statements have been prepared in accordance with the EU-approved IFRS and associated interpretative statements,
as well as the additional Norwegian disclosure requirements that follow from the Accounting Act to be applied as of 31 December 2021.
The parent company financial statements have been prepared in accordance with the Accounting Act, the Annual Accounts regulations,
and additional requirements in the Norwegian Securities Trading Act. The annual report for the group and parent is in accordance with the
requirements of the Accounting Act and Norwegian Accounting Standard no. 16 as of 31 December 2021.

In the best belief of the Board and the CEO, the annual accounts for 2021 have been prepared in accordance with current accounting
standards and the information in the accounts gives a true and fair view of the parent company’s and group’s assets, liabilities, financial
position and results as a whole as of 31 December 2021. In the best belief of the Board and CEO, the annual report provides a correct and
fair view of important events during the accounting period and their influence on the annual accounts of Storebrand ASA and the Storebrand
Group. In the best belief of the Board and the CEO, the description of the most key risk and uncertainty factors the company faces in the next
accounting period, as well as the description of related parties’ significant transactions, are also provided in a correct and fair view.

Lysaker, 8 February 2022

Board of Directors, Storebrand ASA

Didrik Munch (sign.)

Board Chair

Karin Bing Orgland (sign.)

Martin Skancke (sign.)

Marianne Bergmann Røren (sign.)

Christel Elise Borge (sign.)

Karl Sandlund (sign.)

Fredrik Åtting (sign.)

Hanne Seim Grave (sign.)

Hans-Petter Salvesen (sign.)

Bodil Catherine Valvik (sign.)

Odd Arild Grefstad (sign.)

Group Chief Executive Officer

Shareholder matters

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixShare Capital, rights issue and number of shares
Storebrand’s share is listed on the Oslo Stock Exchange (Oslo Børs)
under the ticker code STB. Storebrand ASA’s share capital at the
end of 2021 was NOK 2,360 million. The company has 471,974,890
shares with a nominal value of NOK 5. In 2021, the share capital was
increased by NOK 21 million through the issuance of 4,160,908 new
shares in a private placement to the sellers of Capital Investment.
As of 31.12.2021, the company owned 1,839,776 own shares
corresponding to 0.4 per cent of the shareholding. The company
has not issued options that could lead to the dilution of existing
shareholders.

Shareholders
Storebrand ASA is among the largest companies listed on Oslo Børs
measured in terms of number of shareholders. The company has
shareholders from almost all Norwegian municipalities and from 48
countries. At the end of the year, Storebrand was the 11th largest
company to be included in the Oslo Stock Exchange’s benchmark
index (OSEBX).

Share purchase scheme for employees
Storebrand ASA has every year since 1996 offered employees to buy
shares in the company through a separate scheme. The purpose has
been to link employees more closely to the economic development
of the company. In 2021, just over half of the Group’s employees
subscribed for a total of 391,365 shares.

Share-based remuneration for executive management
Storebrand’s executive management team will work to ensure that
the Group develops for the benefit of customers, shareholders
and employees. The Board of Directors of Storebrand ASA believes
that the share remuneration model, in which a substantial part
of the Group management’s remuneration is paid in the form of
shares in Storebrand ASA, provides good incentives for Executive
management to act in line with the long-term interests of customers
and owners. The table below shows how much of gross salary went
to share purchases in 2021, actual equity exposure and normative
equity exposure at the end of 2021. For more information, please
refer to the Storebrand ASA Report on Salaries and Other Remuneration
to Executive Personnel available on our website.

Foreign ownership
At the end of 2021, the share of shares owned by foreign investors
amounted to 50.9 per cent, compared with 56.6 per cent at the end
of 2020.

Trading volume for shares in Storeband
In 2021, 289 million Storebrand shares were traded, down from 585
million shares in 2020. Turnover was NOK 22,931 million in 2021,
down from NOK 30,552 million in 2020. Relative to the average
number of shares, the turnover rate of the share was 62 per cent.

GEOGRAPHICAL DISTRIBUTION

49 % - Norway

13 % - USA

11 % - Sweden

9 % - Germany

9 % - England

9 % - Other countries

Name

Odd Arild Grefstad

Staffan Hansén

Lars Løddesøl

Heidi Skaaret

Jan Erik Saugestad

Geir Holmgren

Karin Greve-Isdahl

Terje Løken

Trygve Håkedal

Tove Selnes

Share-based
remuneration as a share
of gross salary

Actual equity
exposure

Normative equity
exposure

41%

39 %

37 %

38 %

37 %

29 %

27 %

25 %

244 %

135 %

199 %

186 %

157 %

171 %

79 %

60 %

50 %

77 %

200 %

150 %

100 %

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixShare price performance last 10 years

Time period 2011-12-31 to 2021-12-31.

Source: https://www.storebrand.no/en/investor-relations/share/share-graph

Share price performance
Storebrand had a total return of +43 per cent through 2021. In the
corresponding period, the OSEBX index of the Oslo Stock Exchange
ended at +19 per cent, while the European insurance index Beinsur
had a total return of +12.7 per cent in the corresponding period,
measured in NOK.

Dividend policy
Storebrand aims to pay an ordinary dividend of more than 50 per
cent of Group profit 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
sustainable solvency ratio above 150 per cent. If the solvency ratio
is above 180 per cent, the Board of Directors intends to propose
special dividends or share buy backs. In 2021, NOK 3.25 per share
was paid in ordinary dividend for the financial year of 2020.

Capital gains taxation
Dividends for personal shareholders are taxable. Dividends after
deduction for a shielding amount shall be multiplied by 1.6. This
amount is taxed at the tax rate for capital income (22 per cent),
which gives a real tax on dividends of 35.2 per cent. The deduction
for risk-free return is calculated by multiplying the share’s basis for
shielding (normally the purchase price of the share) by a shielding
rate. The shielding rate is set by the Directorate of Taxes in January
of the year after the income year. It is a rounded amount based
on the average three-month interest rate on Treasury bills with a
supplement of 0.5 percentage point reduced by the capital income
tax rate. Dividends within the deduction for risk-free return are tax-
free.

Storebrand share

Highest closing price (NOK)

Lowest closing price (NOK)

Closing price on 31/12 (NOK)

2021

92.08

62.30

88.52

2020

2019

74.24

34.73

64.20

73.98

50.86

69.02

2018

75.20

59.48

61.64

2017

70.45

46.97

66.9

2016

47.10

28.45

45.92

Market cap 31/12 (NOK million)

41,779

30,034

32,289

28,836

31,296

20,660

Annual turnover (1000s of shares)

288,998

585,004

335,202

445,614

427,632

589,322

Average daily turnover (1000s of shares)

Annual turnover (NOK million

Rate of turnover (%)

1,147

22,931

61.6

2,321,

30,552

125.1

1,346

21,348

71.7

3,094

30,477

95.3

2,450

25,359

94.9

2,780

21,249

131

Number of ordinary shares 31/12 (1000s of shares)

471,975

467,814

449,910

Earnings per ordinary share (NOK)

Dividend per ordinary share (NOK)

Total return (%)

6.68

3.50

42.9

5.02

3.25

-7.0

4.43

16.8

7.89

3.0

-4.7

5.28

2.1

49.1

4.73

1.55

31.4

201320142015201620172018201920202021102030405060708090Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixGeneral meeting
Storebrand has one class of shares. Each share gives one vote.
The annual general meeting is held every year before the end of
June. Shareholders wishing to participate in the general meeting
must register with the company no later than 16:00 on the third
business day before the general meeting. Shareholders who have
not registered their arrival before the deadline may participate in
the general meeting, but not have the right to vote.

Shareholders’ contact with the company
Shareholders should generally contact their bank or operator of
their securities account for questions or notification of changes,
such as change of address.

Insider trading
As one of Norway’s leading financial institutions, Storebrand relies
on having a professional relationship with the financial market and
the regulatory authorities. The company therefore emphasises that
routines and guidelines satisfy the formal requirements set by the
authorities for securities trading. On this occasion, the company
has prepared its own guidelines on insider trading and self-dealing
based on relevant laws and regulations. The company has its own
control system that ensure that the routines are complied with.

Investor relations
Storebrand attaches importance to having extensive and effective
communication with the financial market. Continuous dialogue
with owners, investors and analysts is a high priority. The Group
has its own investor relations entity. This entity is responsible for
establishing and coordinating the contact between the company
and external connections such as stock exchanges, analysts,
shareholders and other investors. All quarterly reports, press
releases and presentations for the individual quarterly results can
be found on the Group’s website: http://www.storebrand.no/ir.

The 20 largest shareholders
Based on a screening of the shareholder list per. 31.12.2021

Fund Manager

Folketrygdfondet

Allianz Global Investors

T Rowe Price Global Investments

EQT Fund Management

Alfred Berg

KLP

Vanguard Group

Handelsbanken Asset Management

DNB Asset Management

Storebrand Asset Management

Danske Bank Asset Management

HSBC Trinkaus & Burkhardt

OM Holding AS

BlackRock

Nordea Asset Management

M&G Investments

Solbakken AS

Lannebo Fonder

BMO Global Asset Management (UK)

SSGA

Current rank

Change in 2021

Ownership in %

51,635,337

10.94

32,864,528

-1,000,840

28,069,733

18,500,000

-301,859

16,530,966

13,903,960

14,529,651

12,586,072

9,850,928

9,841,124

9,473,167

9,231,445

9,191,705

8,824,187

8,391,240

7,550,343

7,040,521

6,766,008

4,999,840

4,553,133

4,484,480

291,819

-924,012

-3,050,365

-419,877

-771,911

-167,350

2,817,735

4,167,970

-1,350,740

813,074

7,040,521

4,999,840

-164,374

47,517

6.96

5.95

3.92

3.50

3.08

2.67

2.09

2.01

1.96

1.95

1.87

1.78

1.60

1.49

1.43

1.06

0.96

0.95

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix7

Annual Accounts
and Notes

Storebrand Group
92

Income statement

Statement of total comprehensive income

Statement of Financial Position

Statement of changes in equity

Statement of cash flow

99 Notes

Storebrand ASA
180

Income statement

180 Statement of total comprehensive income

181 Statement of Financial Position

182 Statement of changes in equity

183 Statement of cash flow

184 Notes

197 Declaration by member of the Board and the CEO
198

Independent auditor’s report

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate 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

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

Note

21,22,23,24

2021

53,681

220

720

53,776

780

-2,834

4,101

275

2,164

790

5,698

119,781

-52,529

-50,615

-4,827

-5,784

-836

-686

-115,278

4,503

-527

3,976

-846

3,130

3,121

3,130

6.68

467.1

2020

44,188

785

-397

212

687

14,632

3,550

5,771

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

2,355

5.02

467.2

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSTOREBRAND GROUP

Statement of total comprehensive income

NOK million

Profit/loss for the year

Note

2021

3,130

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

Exchange rate adjustments

Gains/losses from cash flow hedging

Total other comprehensive income elements that may be reclassified to profit/loss

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

131

139

-139

140

-167

-52

-219

-79

3,051

3,042

3,051

2020

2,355

-110

-83

-95

305

-33

273

178

2,532

2,515

2,532

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote

31.12.21

31.12.20

STOREBRAND GROUP

Statement of Financial Position

NOK million

Assets company portfolio

Deferred tax assets

Intangible assets and fair value adjustments on purchased insurance contracts

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

1,104

6,667

1,266

387

10,31,32

12,955

10,31

10,31,33

38,503

8,13,34

Accounts receivable and other short-term receivables

31,35

11,024

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

8,13,31,36

543

8,10,13,31,37

27,706

10,13,31,38

10,31

903

489

3,543

54,912

160,101

7,141

10,31,32

104,974

10,31,32

10,31,33

8,441

23,051

8,13,34

33,376

13,34

31,35

1,659

638

8,13,31,36

8,10,13,31,37

10,13,31,38

10,31

277,783

140,810

2,916

7,443

6,443

614,689

774,790

1,780

6,303

1,397

283

10,639

103

31,058

7,018

384

28,833

1,389

722

2,775

59,845

152,701

6,167

92,846

13,026

23,769

32,067

1,609

404

230,446

148,162

8,587

7,665

10,290

575,061

727,763

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNOK million

Equity and liabilities

Paid-in capital

Retained earnings

Hybrid capital

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

31.12.21

31.12.20

13,192

24,291

226

37,709

11,441

33,693

9,31

12,858

22,839

226

35,923

9,110

29,319

39,40

575,457

536,028

181

832

9,13,31

10,13,31,38

9,31,41

502

17,239

24,924

208

1,840

1,210

14,643

54,912

737,081

774,790

352

849

1,653

15,506

20,649

114

851

1,355

16,209

59,845

691,840

727,763

Lysaker, 8 February 2022
Board of Directors of Storebrand ASA

Didrik Munch (sign.)
Board chair

Karin Bing Orgland (sign.)

Martin Skancke (sign.)

Marianne Bergmann Røren (sign.)

Christel Elise Borge (sign.)

Karl Sandlund (sign.)

Fredrik Åtting (sign.)

Hanne Seim Grave (sign.)

Hans-Petter Salvesen (sign.)

Bodil Cahterine Valvik (sign.)

Odd Arild Grefstad (sign.)
Chief Executive Officer

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSTOREBRAND GROUP

Statement of changes in equity

NOK million

capital 1)

premium

equity

differences

equity 2)

earnings

capital 3)

interests

equity

Own

paid in

translation

Other

retained

Hybrid

controlling

Total

Currency

Total

Non-

Majority’s share of equity

Equity at 31 December 2019

2,339

-5

10,521

12,856

910

19,355

20,264

2,345

298

-128

170

226

298

2,217

2,515

33,398

2,355

178

2,532

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

Profit for the period

Total other comprehensive
income elements

Total comprehensive
income for the period

Equity transactions with
owners:

Own shares

Issues of shares

Hybrid capital classified as
equity

Paid out interest hybrid capital

Dividend paid

Other

-10

-35

35,923

3,130

-79

3,051

-104

341

-9

-1,513

37,709

Equity at 31 December 2020

2,339

-2

10,521

12,858

1,208

21,631

22,839

-10

226

-59

3,121

-167

-79

-7

320

-7

341

-167

3,208

3,042

-97

-1,513

-9

Equity at 31 December 2021

2,360

-9

10,842

13,192

1,041

23,249

24,291

226

1) 471,974,890 shares with a nominal value of NOK 5.

2) Includes undistributable funds in the risk equalisation fund amounting to NOK 547 million and security reserves amounting NOK 154 million.

3) Perpetual hybrid tier 1 capital classified as equity.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSTOREBRAND 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

Receipts - sale of investment properties

Payments - purchase of 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

Receipts - sale of subsidiaries

Payments - purchase of subsidiaries

Net receipts/payments - sale/purchase of fixed assets

Net receits/payments - sale/purchase of associated companies and joint ventures

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

Payments - interest on hybrid capital

Net cash flow from financing activities

Net cash flow for the period

2021

2020

31,510

-22,151

-7,313

2,942

918

-64

-222

-5,851

5,582

5,350

-6,762

1,733

-6,524

178

721

-1,859

3,674

-8,839

-3,489

815

-408

-292

-4

111

6,430

-2,106

-260

4,211

-1,072

-388

-1,150

-144

-1,513

-9

4,043

665

28,825

-21,606

7,285

366

953

-102

-187

-5,197

3,816

14,152

-1,801

1,102

-12,270

-511

-2,657

-16,137

-1,984

-220

-48

-269

9,012

-7,048

-371

499

-872

-388

1,205

-10

2,052

-201

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSTOREBRAND 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

2021

2,878

3,611

3,543

3,611

2020

3,160

-81

2,878

103

2,775

2,878

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 activiti-
es are included from the insurance companies, and these cash flows are invested in financial assets that are also defined as opera-
ting 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 invest-
ments 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. Pay-
ments 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.

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSTOREBRAND GROUP

Notes

Business and risk
Note 1:

Corporate information and accounting policies

Statement of financial position
Note 28:

Intangible assets and fair value adjustments on pur-

Note 29:

Note 30:

Note 31:

Note 32:

Note 33:

Note 34:

Note 35:

Note 36:

Note 37:

Note 38:

Note 39:

Note 40:

Note 41:

Other
Note 42:

Note 43:

Note 44:

Note 45:

Note 46:

Note 47:

chased 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

Sold/liquidated operations

Note 2:

Note 3:

Note 4:

Note 5:

Note 6:

Note 7:

Note 8:

Note 9:

Note 10:

Note 11:

Note 12:

Note 13:

Note 14:

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

Climate risk

Valuation of financial instruments and properties

Solidity and capital management

Income statement
Note 15:

Premium income

Note 16:

Note 17:

Note 18:

Note 19:

Note 20:

Note 21:

Note 22:

Note 23:

Note 24:

Note 25:

Note 26:

Note 27:

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

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 1: Corporate 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 2021 were approved by the Board of Directors of Storebrand ASA on 8 February 2022.

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 assumptions that affect assets, liabilities, revenue, expenses, the notes to the financial statements and information on
potential liabilities. Actual amounts may differ from these estimates. See Note 2 for further information.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR MATERIAL ITEMS ON THE BALANCE SHEET
For the most part, the asset side of the Group’s balance sheet comprises financial instruments and investment properties and a
differentiation is made between assets in the company portfolio (shareholders) and assets belonging to the customer portfolio. This
split is due to the fact that the Group has a significant life insurance business in which customer assets must be kept separate from
the company’s assets.

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 de-
ferred 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 acco-
rdance 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 inco-
me 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.

100

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixIFRS9 - 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

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

1.1.2021

31.12.2021

Booked value

Fari value

Booked value

Fari value

13,065

9,986

9,976

116,511

125,604

126,371

129,726

103

FVOCI

54,534

54,533

61,138

294

416

7,422

11,661

191,928

201,021

209,640

212,985

15,506

1,653

20,649

9,110

16,209

63,127

15,506

1,653

20,738

9,115

16,209

63,221

17,239

502

24,924

11,441

14,643

68,749

502

25,000

11,441

14,643

68,824

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

1.1.2021

31.12.2021

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

230,830

278,326

176,995

168,516

8,386

7,931

Derivatives

Total financial assets

Financial liabilities

Derivatives

Total financial liabilities

FVP&L/ Hedge
accounting

9,977

3,820

426,188

458,593

FVP&L/ Hedge

accounting

964

2,048

101

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixA 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.

Balance Sheet items — not covered by IFRS 9
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.

The liabilities side of the balance sheet primarily comprises of insurance liabilities, however also includes items such as financial liabilities
and minority shares of managed securities funds. With the exception of derivatives and minority shares, financial liabilities are measured
at amortised 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 2021.
For changes in estimates, see Note 2 for further information.

Storebrand selected early implementation of “Interest Rate Benchmark Reform—Amendments to IAS 39 and IFRS 7” (IBOR Reform) that
was issued in September 2019. The discontinuation of LIBOR rates has had no impact other than for hedge accounting (see note 42)
because all ISDA/CSA agreements have been renegotiated, and EURSTR + 8.5bps has replaced EONIA based on the “fallback” calculation
under the auspices of ISDA.

5. New IFRS that have not entered into force
New standards and changes in standards that have not come into effect

IFRS 17:
IFRS 17 replaces IFRS 4 Insurance Contracts and introduces new requirements for the recognition, measurement, presentation and
disclosure of issued insurance contracts. The standard was adopted by the European Union in 2021 and will enter into force from 1
January 2023. The purpose of the new standard is to establish uniform practices for the accounting treatment of insurance contracts and
greater transparency between insurance companies.

102

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixIFRS 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. The unearned profit is the sum total of each contract’s service margin and is recognised as income
over the contract’s service period in line with how the insurance services are provided. Loss-making contracts must be recognised immedi-
ately.

As a starting point, the retrospective transition method must be applied upon transition to IFRS 17, however the modified retrospective
transition method or application is permitted or application based on the fair value on the transition date if retrospective application is
impracticable.

IFRS 17 will be introduced into Storebrand’s consolidated financial statements. The implementation date is 1 January 2023, with a requi-
rement that comparable figures are stated for 2022. The financial regulatory authorities in Norway and Sweden have yet to decide on the
rules for the company accounts of the legal entities, however it is expected that only the Group’s P&C insurance companies will introduce
IFRS 17 into the company accounts. The life insurance companies are expected to follow equivalent regulations to those that presently
apply for the company accounts, and discrepancies will arise between the legal company accounts of the life insurance activities and the
consolidated values from the activities in the consolidated financial statements.

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 inclu-
ded 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 Hol-
ding 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 ow-
nership 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 elimina-
ted 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.

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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 decisi-
on-maker. Four segments are reported for:
•
•
•
• Other

Savings
Insurance
Guaranteed Pension

There are some differences between the result lines used in the income statement and the segment results. The Group’s income sta-
tement 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 recogni-
sed 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 expe-
cted to benefit from the acquisition so that it can subsequently be tested for impairment. If the discounted cash flow for the cash-genera-
ting 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.

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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 properties
are properties leased to tenants outside the Group. In the case of properties partly occupied by the Group for its own use and partly let to
tenants, the identifiable tenanted portion is treated as an investment property. All properties are measured at fair value and the changes
in value are allocated to the customer portfolios.

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
Financial assets held to maturity
Financial assets, loans and receivables

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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).

•
•

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
Loans and receivables are non-derivative financial assets with fixed or determinable 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. Deriva-
tives 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.

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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.

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
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 acqu-
ired 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 compani-
es, 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 (admi-
nistration 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 admi-
nistration costs expected to be financed by future premium receipts.

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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 customer assets in the guarantee portfolio and Garanti90.

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 histo-
rical 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 as they are accrued, 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 assig-
ned 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 insu-
rance 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.

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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 assuming the portfolio has a net unrealised excess value. The portion of the current
year’s net unrealised gains/losses on financial current assets denominated in foreign currencies that can be attributed to fluctuations in
exchange rates is not transferred to the market value adjustment reserve. The foreign exchange fluctuations associated with investments
denominated in foreign currencies are largely hedged through foreign exchange contracts on a portfolio basis. Similarly, the change in the
value of the hedging instrument is not transferred to the market value adjustment reserve, but is charged directly to the profit and loss
account. Pursuant to accounting standard for insurance contracts (IFRS 4) the market value adjustment reserve is shown as a liability.

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
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.

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Pension costs and pension obligations for defined-benefit pension schemes are determined using a linear accrual formula and expected
final salary as the basis for the entitlements, based on assumptions about the discount rate, future salary increases, pensions and National
Insurance benefits, future returns on pension plan assets as well as actuarial estimates of mortality, disability and voluntary early leavers.
The net pension cost for the period comprises the total of the accrued future pension entitlements during the period, the interest cost on
the calculated pension liability and the calculated return on pension plan assets.

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.

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, IT systems and properties used by the Group for its own activities.

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 revaluati-
on 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 inco-
me statement.

Reference is made to Note 27 - Tax for further information.

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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 propo-
sed 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
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.

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 state-
ments 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 14 for Solvency II and in Note 27 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 3.1 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 impai-
rment 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
in the assumptions for future cost, mortality and other biometric assumptions may also have a significant impact on the recognised insu-

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendixrance 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, 39 and 40.

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 valuati-
on during a 3 year period.

Reference is also made to Note 13 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 investments
various valuation techniques are applied in order to fix fair value. These include private equity investments, investments in foreign proper-
ties, and other financial instruments where theoretical models are used in pricing. Any changes to the assumptions could affect recogni-
sed 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 13, in which the valuation of financial instruments at fair value is described in more detail.

Covid-19
Storebrand is impacted by Covid-19 and the uncertainty associated with future economic development.

Mutations and new waves of infection resulted in more stringent infection control measures and effects for the economy during 2021. Th-
ere is an uncertainty relating to future developments and the impact on Storebrand’s accounts. The risk associated with Covid-19 is consi-
dered to have declined over the course of the year, however there is a risk that the scaling down of financial and monetary policy support
packages could potentially weaken financial recovery. Negative financial market effects may be compounded by a high rate of savings, low
interest rates and good access to credit having contributed to good investment returns and high valuations. Both the stock market and
the property market are priced higher than before the pandemic. The risk for the property market is that demand for commercial space
will fall as a consequence of a faster transition to online trade and increased use of remote work.

There is still uncertainty associated with the effect of the outbreak of Covid-19 on the insurance risk at Storebrand Livsforsikring. The
assessment generally remains unchanged from 2020, however the uncertainty related to Covid-19 directly and financial uncertainty from
infection control measures on the business sector have been more extensive than estimated in 2020. At the same time, the uncertainty of
the insurance risk associated with the fall in oil prices during the first quarter of 2020 has proved less dramatic. There is thus considered
to have been grounds for the extraordinary provisions relating to Covid-19 and financial uncertainty that were made in 2020. There is
major uncertainty relating to these provisions and future developments. There is particular uncertainty associated with indications that Co-
vid-19 may in some cases result in delayed harmful effects. New mutations (Delta — Omicron) may also be of significance to the potential
effects of the virus. On the whole, there is still major uncertainty regarding the development of potential delayed harmful effects, and there
are thus grounds for maintaining the provisions.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixIn 2020, there were temporary regulations which stipulated that benefit periods for the work assessment allowance (AAP) were extended
by six months without consideration to the provisions concerning duration. The decision was applicable for jobseekers until 30 June 2021.
Some AAP decisions, which were initially due to be clarified during the 2020 financial year and the first half of 2021, have therefore been
deferred. In subsequent regulations, the extension has been expanded to apply until the end of June 2022. A reduction in unemploy-
ment has resulted in fewer people starting to receive AAP. At the same time, the option to access AAP for a longer period of time during
the pandemic has resulted in fewer people no longer receiving AAP and disability pensions from Storebrand Livsforsikring are therefore
maintained.

The Norwegian Institute of Public Health (FHI) recorded a “somewhat higher” mortality rate in the fourth quarter. Due to the increased
mortality rate in the community, a good accident result was expected during the period. The increased mortality rate is viewed in conne-
ction with the infection control measures potentially having contributed to people who did not die one year ago dying now. This refers to
delayed death, which occurs due to the limited prevalence of other infectious respiratory diseases and influenza viruses. An indication of
mortality deficit was observed in 2020. This trend is observed evenly across the products, however, factors such as different dynamics in
product regulations, previous provision levels and differences in portfolios mean that there are varied effects on the result. No significant
shifts in assumptions related to future mortality have been assumed in the provisions.

The developments relating to Covid-19 directly and the financial uncertainty are being closely monitored. A continuation of the situation
of high unemployment may lead to increased disability and result in higher provisions. The provisions as at 31 December 2021 are the
company’s best estimate and these provisions are considered adequate.

Storebrand has a risk management system which, through principles that have been adopted, manages and mitigates the impact of
volatile financial markets. Storebrand will continue to monitor the development of Covid-19 and its effects on the economy. A long-term
situation with high unemployment may result in higher levels of disability and increased liabilities. However, the current insurance liabilities
represent Storebrand’s best estimate of the insurance liabilities.

Covid-19 and the uncertain macroeconomic situation mean that there is greater uncertainty relating to several estimates at the end of
2021 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.

Management fee
In April 2021, the Financial Supervisory Authority of Norway sent an identical letter to all life insurance companies and pension funds
regarding the treatment of management fees to management companies for securities funds and other managers of ’fund’ structures.
A united industry, including Storebrand, is of the opinion that the Financial Supervisory Authority of Norway’s interpretation of the law is
incorrect. Both Finance Norway and the Norwegian Association of Pension Funds have therefore asked the Ministry of Finance to revi-
ew the Financial Supervisory Authority of Norway’s interpretation. Both associations have obtained opinions supporting the industry’s
position. The question in the case is whether the management fee the fund pays to the manager should be deducted from the return (net
entry) or should be covered by the company’s cost result as part of the premium (gross entry). For some investment classes, for example,
investments in infrastructure funds and private equity funds, for which investments are made in underlying funds to achieve effective
risk diversified management, costs are recognised in the funds included in the customer’s investment result. Storebrand considers the
industry’s legal understanding to be correct, and has therefore chosen to continue with previous practices, pending further clarification
from the Ministry of Finance. The estimated annual effect for Storebrand, given present allocations and investments, is approximately NOK
45 million.

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 estima-
tes.

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 27.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix

Note 3: Acquisition

Storebrand has acquired Capital Investment, which is a Danish real estate investment advisory and asset manager with close to DKK 20
billion in assets under management headquartered in Copenhagen. The acquisition includes two legal companies: Capital Investment A/S
and CI AM ApS. The transaction was completed on 30 September 2021.

Capital Investment delivers a comprehensive suite of real estate investment management services, handling the entire investment process
from the beginning to the end on behalf of national and international clients. Capital Investment has 18 employees.

The acquisition of Capital Investment is in line with Storebrand’s growth strategy within Nordic alternative investments and will further
build Storebrand’s position as a gateway to the Nordic market in asset management.

All shares in Capital Investment that were acquired by Storebrand ASA were transferred to Storebrand Asset Management AS as of 30
September 2021 as a contribution in kind.

Storebrand has paid the selling shareholders consideration for the shares amounting to NOK 692 million upon completion of the transa-
ction, divided between newly issued shares in Storebrand ASA and a cash consideration of NOK 351 million. Upon completion of the
transaction, 4,160,908 new shares have been issued in Storebrand ASA as a partial financing of the share acquisition by the capital incre-
ase having been carried out in return for contributions in the form of assets other than cash so that shareholders do not have preferen-
tial rights. The value of the consideration that Storebrand ASA is paying for the shares in Capital Investment is based on the price of the
shares in Storebrand ASA of NOK 82.02 per share. In addition, there may be additional consideration based on developments in results
and income in Capital Investment, estimated to NOK 93 million as of 30 September. The additional consideration has an upper limit of
NOK 273 million.

The acquisition of the shares in Capital Investment was made public on 31 August 2021, and the transaction has been approved by the
Financial Supervisory Authority of Norway and the Norwegian Ministry of Finance.

The table below shows the acquisition analysis. Excess value of NOK 242 million has been identified before deferred tax related to custo-
mer contracts and deferred tax of NOK 53 million has been calculated on the excess value. Goodwill amounts to NOK 586 million and this
item is not depreciated, but is tested yearly against impairment.

ACQUISITION ANALYSIS CAPITAL INVESTMENT

Book values in

the company

Excess value

upon acquistion

Book

values

Assets

Customer contracts

Other assets

Bank deposits

Total assets

Liabilities

Current liabilities

Deferred tax

Net identifiable assets and liabilities

Goodwill

Fair value at acquisition date

Conditional payment

Cash payment

242

189

242

269

205

581

785

692

The tables below show the distribution of the consideration and an overview of the profit in Capital Investment in 2021 prior to acquisition
and after acquisition on 30 September 2021.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSETTLEMENT OF CASH CONSIDERATION

Consideration shares

Paid in cash

Total

INCOME STATEMENT CAPITAL INVESTMENT 2021

Income

Profit

Amount

341

351

692

After acquisition

Before acquisition

Danica Pensjonsforsikring Norge
Storebrand Livsforsikring AS has 20. December 2021 entered into an agreement to buy 100% of the shares in Danica Pensjonsforsikring
AS, Norway (”Danica”). Danica, a subsidiary of Danske Bank, is the 6th largest provider of Defined Contribution pensions in Norway with
5% market share. Storebrand Livsforsikring AS will pay NOK 2.01 billion for the shares of Danica (adjusted for the change in the net asset
value of Danica in the period from 30 September 2021 to 31 December 2021). The conclusion of the transaction is expected in the first
half of 2022 and is subject to approval from the Norwegian Financial Supervisory Authority and the Norwegian Competition Authority.

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 business area encompasses long-term pension savings products that give customers a guaranteed rate of
return. The area includes defined contribution pensions in Norway and Sweden, paid-up policies and individual capital and pension insu-
rances.

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 Life Insurance and SPP. This also includes minority interests in securities funds and eliminations of intra-group
transactions included in the other segments.

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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix
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 Life Insurance AS
The return guarantees in group pension insurance with a return guarantee must be priced upfront. The level of the return guaran-
tee, 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 traditio-
nal 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.

Net profit sharing
Storebrand Livsforsikring AS
A modified profit-sharing regime was introduced for old and new individual contracts that have left group pension insurance policies
(paid-up policies), which allows the company to retain up to 20 per cent of the profit from returns after any allocations to additional
statutory reserves. The modified profit-sharing model means that any negative risk result can be deducted from the customers’ inte-
rest 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 ef-
fective 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 allocations to additional statutory reserves.

Any negative returns on customer portfolios and returns lower than the interest guarantee that cannot be covered by additional statu-
tory reserves must be covered by the company’s equity and will be included in the net profit-sharing and losses line.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix

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 insurance (KF portfolio), the company is entitled to charge an indexing fee if the group profit allows the inde-
xing of the insurance. Indexing is allowed up to a maximum equalling the change in the consumer price index (CPI) between the previous
two Septembers. Pensions that are paid out are indexed if the ratio between assets and guaranteed insurance liabilities in the portfolio as
at 30 September exceeds 107 per cent, and half of the fee is charged. The entire fee will be charged if the ratio between assets and gua-
ranteed insurance liabilities in the portfolio as at 30 September exceeds 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 Livforsikring 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.

GROUP PROFIT BY SEGMENT

NOK million

Savings

Insurance

Guaranteed pension 1)

Other 1)

Group profit before amortisation

Amortisation of intangible assets

Group pre-tax profit

2021

2,355

423

1,432

293

4,503

-527

3,976

2020

1,730

204

805

-28

2,711

-492

2,219

1) Comparing figures for previous periods have been revised. The result for Euroben has been moved from ”Other” to ”Guaranteed pension”.

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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 2)

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 2)

Group pre-tax profit

Savings

2021

5,215

2020

4,392

Insurance

Guaranteed pension

2021

2020

2021

1,631

2020 1)

1,511

1,201

5,175

-3,974

-875

326

423

825

4,331

-3,506

-712

113

204

-890

741

691

1,432

-2,927

2,288

2,355

-2,611

1,781

-51

1,730

Other 3)

Storebrand Group

2021

-239

2020 1)

-227

-225

518

293

116

-111

-28

2021

6,607

1,201

5,175

-3,974

-4,678

3,130

1,372

4,503

-527

3,976

-861

650

155

805

2020

5,676

825

4,331

-3,506

-4,068

2,433

278

2,711

-492

2,219

1) Comparing figures for previous periods have been revised. The result for Euroben has been moved from ”Other” to ”Guaranteed pension”.

2) Amortisation of intangible assets are included in Storebrand Group

3) Includes eliminations of group transactions

The Storebrand Group are represented in the following countries:

Segment/Country

Norway

Sweden

UK Netherlands

Denmark

Germany

Luxemburg

Ireland

Savings

Insurance

Guaranteed pension

Other

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixKEY 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 14 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.

2021

2020

6.68

37,709

21,212

308,351

1,096,556

57,015

6,445

77%

17%

94%

5.02

35,923

19,292

268,331

962,472

49,474

5,288

81%

16%

97%

290,862

287,614

48.5%

447

11.2%

17.8%

175%

74,074

20.3%

16.8%

51.7%

704

11.0%

11.4%

178%

72,766

18.7%

16.7%

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 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 GroupIndependent
control functons

Internal
auditing

Risk
management

Actuary
function

Compliance

Anti-money
laundering (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 associa-
ted 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 Committee 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 management 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 comp-
liance with the regulations (Compliance Function), for ensuring the insurance liabilities are calculated correctly (Actuary Function), for data protection
(Data Protection Officer), for money laundering (Anti Money Laundering) and for the bank’s lending. Relevant functions have been established for both
the Storebrand Group (the Group) and all of the companies requiring a licence. The independent control functions are organised directly under the
companies’ managing directors and report to the respective company’s board.

In terms of function, the independent control functions are affiliated with Governance Risk & Compliance (GRC). GRC is a knowledge community hea-
ded by the Group CRO. The Group CRO is responsible to the Group CEO and reports to the Board of Storebrand ASA. GRC’s task is to ensure that all
significant risks are identified, measured and appropriately reported. The GRC function shall be actively involved in the development of the Group’s risk
strategy and maintain a holistic view of the company’s risk exposure. This includes responsibility for ensuring compliance with the relevant regulations
for risk management and the consolidated companies’ operations.

The internal audit function is organised directly under the Board and shall provide the boards of the relevant consolidated companies with confirmation
concerning the appropriateness and effectiveness of the company’s risk management, including how well the various lines of defence are working.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix
Note 6: Operational risk

Operational risk is the risk of financial loss, damaged reputation or sanctions related to violations of internal or external regulations as
a result of ineffective, insufficient or defective internal processes or systems, human error, external events or rules and guidelines not
being followed.

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 and in 2021 the entire asset mana-
gement business was migrated to cloud. Risks increase in connection with the actual transformation, and the consequence of errors
can be greater when services are provided online. Cloud-based services and infrastructure have good inbuilt security solutions and re-
duce the risk associated with self-developed systems and, in the long term, outdated infrastructure. The asset management business
has a modern and standardised core system, combined with self-developed applications. The bank platform and insurance platform
are based on purchased standard systems that are operated and monitored through outsourcing agreements. There is a greater
degree of own development for the life insurance activities, while parts of the operation of this have also been outsourced. The unit
administration within defined-contribution occupational pension and unit linked products is managed in a purchased system solution.

In 2021, the security function was divided into two formal lines of responsibility. These consist of an independent second line placed
with the Group’s other control functions and an operational first line as an integrated part of infrastructure operations. Staffing was
increased for both lines of responsibility and expanded monitoring systems were also implemented. During the pandemic, the threat
landscape for information security and cyber-risk has changed in nature, and “home office fatigue”, combined with migration to cloud
platform, complex and manual processes, third-party vendors and dependency on key personnel have created increased short-term
uncertainty.

The latter has to some extent already been addressed through the reinforcement and division of responsibilities that took place earli-
er in the year. The control function has been given a defined mandate and resources have been allocated that specifically address the
expertise and awareness of employees now that we have a distributed work model. There is also an increased focus on and resources
assigned to monitor third-party suppliers and technical vulnerabilities in infrastructure.

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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixThe 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
necessary 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.

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.
Own pension accounts are also included in the Savings segment. In 2021, 1.5 million Norwegians received an own pension account.
During 2021, defined-contribution pensions from current and former employers were combined in the person’s own pension acco-
unt. There is no longer a requirement for 12 months of employment for employees to be able to take their accrued pension capital
with them. Storebrand has no insurance risks related to own pension accounts.

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, pregnancy 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 insu-
rance is considered to be limited based on the volume and underlying volatility of the products. Within P&C insurance, the risk of fire
in commercial buildings, housing cooperatives and residential homes, as well as personal injury for motor vehicle insurance constitute
the main risks.

Covid-19 and the impact on the insurance business
There is still uncertainty related to the effect of the Covid-19 outbreak on the insurance risk in the Group. See the reference to Co-
vid-19 under Note 2: Important accounting principles and discretionary assessments.

Rules for laid-off employees in private occupational pension schemes
The duration of the temporary statutory amendments which give employers the option to decide that laid-off employees shall conti-
nue as members of the private pension scheme has been extended until 28 February 2022. The employer can choose whether the
laid-off employees shall still be covered by the insurance coverage in the pension scheme. Laid-off employees who do not have their
insurance coverage continued are entitled to take out separate individual insurance (continuation insurance). The employees who
remain members of the pension scheme will not be issued with pension capital certificates, paid-up policies or pension certificates.
The temporary statutory amendments are not considered to be of significance to Storebrand Livsforsikring’s insurance risk.

Rules for pension from the first krone and day enter into force
The rules for pension from the first krone and day enter into force on 1 January 2022. The companies will be given until 30 June 2022
to adjust their pension schemes to the new rules. Among other things, the new rules entail that there will be requirements for all
private occupational pension schemes to save a minimum of 2 per cent of the members’ income and that the option of exempting
employees with salaries below 1 G (the National Insurance base amount) will be removed. Furthermore, the minimum requirement of

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendixhaving a 20 per cent position to be entitled to membership in the schemes has been abolished. Like the National Insurance scheme,
the age limit for membership has been reduced from 20 to 13 years. Employees are entitled to membership in the schemes when
their income exceeds the limits for reportable salary in the a-ordning (a-scheme)1. There will no longer be separate exemption rules
for seasonal workers.

The overall annual increased savings for Storebrand Livsforsikring are estimated at NOK 500 million. Increased savings also depend
on how companies with savings rates that are higher than the minimum rate will potentially adapt the pension scheme.

Introduction of buffer funds for municipal pension schemes
The introduction of buffer funds for municipal pension schemes will enter into force on 1 January 2022. The new rules entail the
introduction of a combined and customer-distributed buffer fund for municipal pension schemes effective from 1 January 2022. This
buffer fund replaces the current additional statutory reserves and market value adjustment reserves for these schemes. Among other
things, the rule change will facilitate a more neutral regulatory framework when transferring municipal pension schemes. The Ministry
of Finance has stipulated transitional rules in regulations which entail that transfer processes initiated before the new rules enter into
force must comply with the rules that applied at the time the decision to transfer was made. The new rules have no significance for
Storebrand Livsforsikring as at 31 December 2021.

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 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.

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.

1) The a-ordning is a coordinated method for employers to report information about employees and income to Statistics Norway, the Norwegian Labour and Welfare Administration (NAV) and

the Norwegian Tax Administration. This information will be sent electronically either via a service in Altinn or the employer’s payroll system and entered into force on 1 January 2015. Through the

scheme, employer reporting was simplified by going from five forms to one a-message (a-melding).

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixManagement 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 sum 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, assumes 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

2021

229

249

-3

-7

-1

500

2020

2021

2020

243

-26

-44

-33

153

-1

-22

139

134

-26

186

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 2021, and these therefore had no impact
on the results in the financial statements for 2021.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix
Sensitivity
The volatility of the risk results depends on the development in insurance risk, and the sensitivities indicate the uncertainty associated
with different insurance risks. Storebrand’s products have different insurance risks, however when calculating sensitivity, the starting
point is the same changes, since the development in, for example, disability in the community, is assumed to be the same across the
products. However, it is expected that there will be different effects on the risk results because the premium is calculated using a tariff
that is specific for the product. Some forms of coverage have a stronger tariff for which a better risk result is expected, while other
products have a weaker tariff for which the risk result is expected to be weaker. The tariff will also reflect any differences in the risk for
products taken out as a collective or individual agreement. It will also reflect the different waiting periods, i.e. the period from when
the claim is made until the right to compensation. The pension products typically have a waiting period of 12 months, while employee
insurance is paid out in the event of permanent disability.

In the table below, the following stress factors are used:
•
•
•
•

5% increase for disability
5% reduction for reactivation
5% increased mortality
5% increased longevity

STOREBRAND LIFE INSURANCE AND STOREBRAND INSURANCE

Guaranteed pension

NOK million

Mortality

Longevity

Disability

Recovering to work after
disability

Group pension

Occupational

private sector

pension

Paid-up policies

Individual with

guarantee

-4

-11

-6

-2

-11

-15

-66

-16

-3

-7

-4

Sum

-22

-87

-26

-16

The table above shows the sensitivity as a one-year gross effect on the risk result. It varies as to how the gross effect is 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 collective 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. The
risk result for individual insurance policies is included in the profit sharing between the customers and Storebrand.

Furthermore, the need for an increased premium reserve has been estimated as a result of a permanent change in the assumptions.
There has been an estimated increase in the premium reserve for increased longevity of NOK 1.6 billion and an increase of NOK 0.4
billion as a result of increased disability and reduced reactivation as stated above. Such a development may also entail the need for
an increased premium. Pursuant to Sections 3-15 and 3-16 of the Insurance Activity Act, increased premium reserves can be fully
or partly covered by the profit for the year on the risk result, risk equalization fund and future profit on the risk result if the Financial
Supervisory Authority of Norway has consented to the plan for strengthening reserves.

Insurance

Effect on profit before tax

5 per cent change in premium income

5 percentage point change in combined ratio

Effect NOK million

+/- 259

+/- 242

The table above shows the effect on earnings and equity before tax of a 5 per cent change in gross premiums earned and a 5 percen-
tage point change in the combined ratio. The combined ratio is the most commonly applied criterion for measuring profitability within
P&C insurance and may result from a change in claims frequency, level of compensation and/or operating costs.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSPP PENSION & FÖRSÄKRING

Guaranteed pension

Savings

Individual pension and

occupational pension

NOK million

Mortality

Longevity

Disability

Recovering to work after disability

insurance

Group pension

Unit Linked

-1

-9

-6

-7

-4

-21

-3

-4

Total

-5

-34

-9

-10

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.

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. Ne-
vertheless, 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 returns on the financial market than expected will therefore have a negative effect on Storebrand’s future inco-
me 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 dura-
tion 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 be-
cause it reduces the probability of achieving a return higher than the guarantee. Both short-term money market rates and long-term
interest rates increased in Norway in 2021. Long-term rates have increased 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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixASSET 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

with guarantee

without guarantee

Company

portfolios

12 %

37 %

1 %

21 %

12 %

16 %

1 %

2 %

0 %

2 %

15 %

81 %

1 %

0 %

1 %

29 %

19 %

42 %

0 %

7 %

1 %

100 %

Storebrand aims to take low financial risk for the company portfolios, and most of the funds were 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. The investment allocation was not significantly changed during 2021. 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.

The market risk is managed by segmenting the portfolios based on 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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixFINANCIAL ASSETS AND LIABILITIES IN FOREIGN CURRENCIES

NOK million

Net in balance sheet

Net sales

in currency

in NOK

Balance sheet items

excluding currency

derivatives

Forwad

contracts

Net position 2021

DKK

CHF

HKD

CAD

EUR

GBP

JPY

SEK

USD

NOK 1)

Other currency types

Insurance liabilities in SEK

Total net currency positions

162

110

200

233

1,625

128

338

261,046

4,595

62,478

-237

-128

-802

-406

-1,707

-267

-542

-9,918

-6,444

-1,319

-76

-18

-603

-172

-150

-140

-204

250,809

-1,851

61,158

-251,134

-102

-178

-682

-1,203

-807

-1,668

-1,567

244,595

-16,320

61,158

-312

-244,602

38,312

Net position

2020

in NOK

-176

-398

-797

-703

-1,454

-1,139

-969

234,084

-9,161

37,520

-144

-233,735

22,929

1) Equity and bond funds denominated in NOK with foreign currency exposurein i.a. EUR and USD NOK 57 billion.

The table above shows the currency positions as at 31 December 2021. The currency exposure is primarily related to investments in
the Norwegian and Swedish insurance business.

Storebrand Livsforsikring:
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. The company hedges most of the foreign exchange risk in the customer portfolios on an ongoing basis.
Most of the non-guaranteed pension profiles are currency hedged. Most of the fixed-interest portfolios for the guaranteed pension
portfolios are currency hedged, while approximately 70 per cent of global equity portfolios are currency hedged. Foreign exchange
risk due to subordinated loans in a foreign currencies is currency hedged.

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. Storebrand employs a currency hedging principle
called block hedging, which makes the execution of currency hedging more efficient.

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.

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 17 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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixThe percentage distribution of the insurance reserves by the various basic annual interest rates as at 31 December is as follows:

Interest rate

6 %

3.4 %

2.75 %

2.50 %

2.00 %

1.50 %

0.50 %

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

2021

0.2 %

39.8 %

0.4 %

28.9 %

1.7 %

10.5 %

14.3 %

0.1 %

1.8 %

0.6 %

2.5 %

3.8 %

2.3 %

3.2 %

0.1 %

3.1 %

2020

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 %

There is a 0 per cent interest rate guarantee for premium funds, defined-contribution funds, pensioners’ surplus funds and additio-
nal 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 trans-
fers 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 im-
portant risk management tool.

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 defi-
ned-benefit pension (KF) is closed to new members.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix
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

2021

10.2 %

0.1 %

4.9 %

50.6 %

4.9 %

0.1 %

5.3 %

0.0 %

1.4 %

3.5 %

10.8 %

2.4 %

5.9 %

2021

3.0 %

2.9 %

3.1 %

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 %

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.

Sensitivity analyses
The tables show the fall in value for Storebrand Life Insurance and SPP’s investment portfolios because 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 cate-
gory of asset. The stresses have been applied to the company portfolio and guaranteed customer portfolios as of 31 December 2021.
The effect of each stress changes the return in each investment 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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix
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 assumed
that the market changes occur over a period of time, then dynamic risk management would reduce the effect of the negative outco-
mes 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 2021, the customer buffers are of such a size that the effects on the result are significantly lower.

Stresstest 1

Resultatrisiko

Interest rate risk

Equtiy risk

Property risk

Credit risk

Total

Stresstest 2

Resultatrisiko

Interest rate risk

Equtiy risk

Property risk

Credit risk

Total

Storebrand Life Insurance

SPP Pension & Försäkring

NOK Million

Share of portfolio

NOK Million

Share of portfolio

4,811

-4,406

-2,723

-1,097

-3,415

2.1%

-1.9 %

-1.2 %

-0.5 %

-1.5 %

-283

-2,565

-1,333

-796

-4,977

-0.3%

-2.8 %

-1.4 %

-0.9 %

-5.4 %

Storebrand Life Insurance

SPP Pension & Försäkring

NOK Million

Share of portfolio

NOK Million

Share of portfolio

-4,814

-2,643

-1,588

-658

-9,703

-2.1 %

-1.1 %

-0.7 %

-0.3 %

-4.2 %

283

-1,539

-778

-478

-2,512

0.3 %

-1.7 %

-0.8 %

-0.5 %

-2.7 %

Storebrand Livsforsikring
For Storebrand Livsforsikring it is stress test 2, which includes an increase in interest rates, that makes the greatest impact. The overall
market risk is NOK 9.7 billion, which is equivalent to 4.2 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 5.0
billion, which is equivalent to 5.4 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 reduced
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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix

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.

UNDISCOUNTED CASH FLOWS FOR FINANCIAL LIABILITIES 1)

NOK million

Subordinated loan capital 2)

Loans and deposits from
credit institutions

Deposits from bank
customers

Debt raised from issuance of

securities

Other current liabilities

Uncalled residual liabilities
Limited partnership

Unused credit lines lending

Lending commitments

Total financial liabilities

Derivatives related to

funding

0-6

7-12

months

1,109

905

502

2-3

years

5,282

4-5

Total

booked

Total

booked

years

> 5 years

cashflows

value 2021

value 2020

3,361

3,290

13,947

11,441

9,110

502

1,653

16,752

150

242

17,239

15,506

3,302

14,457

4,870

13,416

3,516

57,719

-118

1,155

11,619

132

9,309

780

2,276

17,127

12,862

4,313

1,253

-96

13,556

18,340

-88

-2,357

26,165

14,643

4,870

13,416

3,516

94,297

-154

80,143

-284

24,924

14,643

20,649

16,209

68,749

-3

63,127

Total financial liabilities 2020

49,351

Derivatives related to funding

2020

-149

-209

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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSPECIFICATION OF SUBORDINATED LOAN CAPITAL 1)

NOK million

Issuer

Perpetual subordinated loan capital 2)

Storebrand Livsforsikring AS

Dated subordinated loan capital

Storebrand Livsforsikring AS 3) 4)

Storebrand Livsforsikring AS 3)

Storebrand Livsforsikring AS

Storebrand Livsforsikring AS 3)

Storebrand Livsforsikring AS 3) 5)

Storebrand Bank ASA

Nominal value

Currency

Interest

Maturity

2021

2020

Book value

1,100

900

750

1,000

900

1,000

500

250

300

150

125

300

NOK

SEK

NOK

EUR

NOK

Variable

Fixed

Variable

2024

2026

2021

2022

2025

2024

2025

2023

2031

2022

2025

2026

1,100

876

976

877

976

499

2,685

2,876

150

125

300

1,100

789

1,044

938

1,045

499

3,420

150

125

Total subordinated loans and hybrid tier 1 capital

11,441

9,110

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 42

4) The loan has been repaid on 11.10.21

5) 300 million EUR in Storebrand`s first green bond issuance in March 2021

SPECIFICATION OF LOANS AND DEPOSITS FROM CREDIT INSTITUTIONS

NOK million

Call date

2021

2022

Total loans and deposits from credit institutions

SPESIFICATION OF SECURITIES ISSUED

NOK million

Call date

2021

2022

2023

2024

2025

2026

2027

Book value

2021

502

Book value

2021

5,532

3,282

6,100

6,139

3,075

795

2020

1,653

1653

2020

1,637

6,011

4,766

4,997

3,239

Total securities issued

24,924

20,649

133

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixThe 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 200 million, expiration December 2025.

FINANCING ACTIVITIES - MOVEMENTS DURING THE YEAR

Subordinated

Liabilities to

Securities

loan capital

financial institutions

9,110

4,211

-1,072

-22

-629

-156

11,441

1,653

502

-1,652

-1

issued

20,649

6,430

-2,106

-48

502

24,924

NOK Mill.

Book value 1.1.21

Admission of new loans/liabilities

Repayment of loans/liabilities

Change in accrued interest

Exchange rate adjustments

Change in value/amortisation

Book value 31.12.21

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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixCREDIT RISK BY COUNTERPARTY

BONDS AND OTHER FIXED-INCOME SECURITIES AT FAIR VALUE

Category by issuer

or guarantor

NOK million

Government and
government
guaranteed bonds

Corporate bonds

Structured notes

Collateralised se-
curities

Total interest
bearing securities
stated by rating

Bond funds not
managed by
Storebrand

Non-interest bearing
securities managed
by Storebrand

AAA

BBB

NIG

Not rated

Fair value

2021

2020

Total

23,450

18,378

10,257

6,596

343

34,270

6,172

203

34,892

4,493

34,068

39,622

1,604

100,233

106,228

6,405

7,883

48,000

17,056

34,613

34,962

4,513

1,604

140,749

153,769

24,224

20,847

3,543

2,379

Total

Total 2020

48,000

56,989

17,056

19,147

34,613

32,182

34,962

39,776

4,513

5,675

1,604

168,516

176,995

INTEREST BEARING SECURITIES AT AMORTISED COST

Category of issuer or

guarantor

NOK million

Government and
government guaranteed
bonds

Corporate bonds

Structured notes

Collateralised securities

Total

Total 2020

AAA

BBB

NIG

Not rated

Fair value

2021

2020

Total

12,398

11,575

913

24,886

30,481

13,360

8,470

136

21,966

26,559

3,815

22,320

26,135

24,947

15,558

19,441

23,529

17,652

41,181

24,135

29,574

81,451

17,788

913

129,726

29,056

85,728

9,177

1,602

125,562

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixCOUNTERPARTIES

NOK million

Derivatives

Of which derivatives in
bond funds, managed
by Storebrand

Total derivatives
excluding derivatives
in bond funds

Total derivatives exclu-
ding derivatives in bond
funds 2020

Of which bank deposits
in bond funds, mana-
ged by Storebrand

Total bank deposits
excluding bank
deposits in bond
funds

Total bank deposits
excluding bank deposits
in bond funds 2020

Loans to financial
institutions

1) of which tied-up
bank deposit (tax
deduction account)

AAA

BBB

NIG

Not rated

Fair value

1,703

2,091

213

2021

4,113

2020

11,024

Total

201

293

1,047

1,611

1,889

213

3,820

Bank deposits 1)

318

4,311

3,771

5,393

7,574

114

134

11,690

9,977

14,569

1,674

1,704

1,504

318

3,769

5,900

9,987

3,626

9,265

124

13,064

103

324

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

fin. assets/

Net booked

Collateral

Cash

(+/-)

Securities

Net

(+/-)

exposure

Investments subject to netting
agreements

Investments not subject to netting

agreements

Total 2021

Total 2020

3,764

2,048

1,716

163

1,553

3,820

9,977

2,048

964

1,772

9,143

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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate 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

LOAN PORTFOLIO

CREDIT RISK FOR THE LOAN PORTFOLIO

Lending

to and

receivables

2021

176,448

2020

185,382

176,448

185,382

586

-914

NOK million

customers

creditlines

commitments

commiments

commitments

write- downs

commitments

from

Unused

Total

Unimpaired

Impaired

Individual

Net defaulted

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 receiva-

10,270

56,727

2,626

69,626

-101

-39

3,362

3,384

10,270

60,089

2,647

73,010

-101

-39

bles from customers 2021 1)

69,486

3,384

72,870

Total loans to and receivables

from customers 2020 2)

63,214

3,128

66,342

1) 2021:

- Of which Storebrand Bank

38,992

3,322

42,314

- Of which Storebrand

Livsforsikring

30,495

30,556

2) 2020:

- Of which Storebrand Bank

31,780

3,063

34,843

- Of which Storebrand

Livsforsikring

31,435

31,500

119

104

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.

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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixAs at 31 December 2021, Storebrand had loans to customers totalling NOK 69.5 billion net after provisions for losses of NOK 0.1
billion. Of this, NOK 12.9 billion was to the corporate market and NOK 56.7 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. Approximately 58 per cent of home loans have
a loan to value ratio within 60 per cent, 97 per cent are within 85 and 99 per cent are within a 100 per cent loan to value ratio. The
portfolio is considered to have a low credit risk.

TOTAL COMMITTMENTS BY REMAINING TERM

Loans to and

receivables

2021

2020

Loans to and

Unused

Total

receivables

Unused

Total

NOK million

from customers

credit line

commitments

from customers

credit line

commitments

Up to one month

1 - 3 months

4 months - 1 year

2 -5 years

More than 5 years

Total gross commitments

686

633

12,858

55,395

69,627

191

477

2,686

3,384

716

823

13,334

58,081

73,011

553

2,060

10,267

50,423

63,312

172

609

2,311

3,128

586

2,232

10,876

52,734

66,440

Default occurs after 90 days with arrears/overdrafts above both absolute and relative thresholds. All debtor commitments are consi-
dered defaulted if default has occurred for at least one of these. The absolute threshold is set at NOK 1,000 (per commitment), and
the relative threshold is 1% of total debtor exposure.

CREDIT RISKS BY CUSTOMER GROUPS

NOK million

commitments

write-downs

commitments

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 2021

Total 2020

121

-85

-66

-4

104

-4

-85

-3

In the case of default, Storebrand Bank ASA will sell the securities or repossess the properties if this is most suitable.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixTOTAL ENGAGEMENT AMOUNT BY REMAINING TERM TO MATURITY

NOK millionon

Overdue 1-30 days

Overdue 31-60 days

Overdue 61-90 days

Overdue more than 90 days

Total

Loans to and

receivables

2021

2020

Loans to and

Unused

Total

receivables

Total

from customers

credit line

commitments

from customers

commitments

142

143

223

387

223

387

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 Life Insurance 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.

Note 12: Climate risk

Storebrand is exposed to climate risk. This risk is not only commercial, but also applies to investments, including property, and the
insurance liabilities. Both physical climate change and risks associated with the transition to low emissions may have an impact. For
Storebrand, the transition risk is of the greatest importance, particularly in the short and medium term. A rapid transition to low
emissions could impact the Norwegian economy in general and the fossil fuel sector in particular. This could result in an increased
disability frequency and lower interest rates that increase insurance liabilities. For investments, the effect of climate risk is difficult to
differentiate from other factors that influence financial market developments.

Reference is made to further descriptions of climate risk in the annual report under the chapter “Climate risks and opportunities”.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix
Note 13: 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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixUnits
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 2021. 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 2021, 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 Nor-
way.

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 knowledge available about the market’s required rate of
return, including transactions and appraisals, is used when determining the cash flow.

Risk-free interest
Risk premium, adjusted for:
Type of property
Location
Structural standard
Environmental standard
Duration of the contract

The required rate of return is divided into the following elements:
•
•
•
•
•
•
•
• 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 Arealstatistikk, as well as data and observations from brokers.
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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixExternal 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 2021, external valuations were obtai-
ned for properties worth NOK 24.6 billion (98 per cent of the portfolio’s value as at 31 December 2021).

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
31.12.2021

Total financial assets 31.12.2020

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

31.12.2021

Total financial liabilities

31.12.2020

Level 1

Non-

Total

Observable

observable

fair value

Book

value

Quoted prices

assumptions

31.12.21

Total

fair value

31.12.20

Book

value

31.12.20

5,055

18,021

23,077

25,419

5,058

56,521

9,103

5,046

56,507

8,441

103

6,076

48,763

14,244

103

6,064

48,763

13,026

120,623

117,929

111,359

103,484

191,372

187,991

180,546

171,441

25,000

24,924

20,750

20,649

502

1,653

17,239

11,584

17,239

11,441

15,506

9,184

15,506

9,110

54,324

54,106

47,094

46,918

38,499

9,103

120,623

168,296

155,128

25,000

502

17,239

11,584

54,324

47,094

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixVALUATION OF FINANCIAL INSTRUMENTS AND PROPERTIES AT FAIR VALUE

NOK million

Assets:

Equities and units

- Equities

- Fund units

Total equities and fund units 31.12.21

Total equities and fund units 31.12.20

Loans to customers

- Loans to customers - corporate

- Loans to customers - retail

Loans to customers 31.12.21

Loans to customers 31.12.20

Bonds and other fixed-income securities

- Government bonds

- Corporate bonds

- Collateralised securities

- Bond funds

Total bonds and other fixed-income securities 31.12.21

Total bonds and other fixed-income securities 31.12.20

Derivatives:

- Interest derivatives

- Currency derivatives

Total derivatives 31.12.21

- of which derivatives with a positive market value

- of which derivatives with a negative market value

Total derivatives 31.12.20

Properties:

Investment properties

Properties for own use

Total properties 31.12.21

Total properties 31.12.20

Level 1

Level 2

Level 3

Quoted
prices

Observable
assumptions

Non-
observable
assumptions

31.12.21

31.12.20

375

14,678

15,054

10,266

7,443

489

7,932

8,387

12,663

12,670

9,514

33,376

1,659

35,035

33,726

40,707

237,619

278,326

7,443

489

7,932

31,148

55,354

5,550

76,464

168,516

2,292

-519

1,772

3,820

-2,048

33,376

1,659

35,035

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

9,977

-964

9,012

32,117

1,609

33,726

40,071

31,446

261

222,940

223,201

189,117

14,426

55,346

5,550

63,802

139,124

151,367

2,292

-519

1,772

3,820

-2,048

9,012

16,722

16,114

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixMOVEMENTS BETWEEN QUOTED PRICES AND OBSERVABLE ASSUMPTIONS

NOK million

Equities and fund units

From quoted prices to

From observable

observable assumptions

assumptions to quoted prices

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 01.01.21

Net gains/losses on financial

instruments

Supply

Sales

Exchange rate adjustments

Other

Equities

Fund units

customers

bonds

Bond funds

properties

for own use

Loans to

Corporrate

Investment

Properties

907

9,360

8,387

318

9,196

32,117

1,609

-18

-517

6,350

1,523

-2,212

-136

-207

1,338

-1,334

-495

-311

-38

113

5,740

-1,846

-541

558

1,793

-721

-775

406

124

-143

1,659

Book value 31.12.21

376

14,678

7,932

12,663

33,376

As of 31.12.21, Storebrand Livsforisikring had NOK 7.141 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
Forest investment accounts for most of the value of Level 3 equities. Forestry investments are characterised by, among other things,
very long cash flow periods. There can be some uncertainty associated with future cash flows due to future income and costs growth,
even though these assumptions are based on recognised sources. Nonetheless, valuations of forestry investments will be particularly
sensitive to the discount rate used in the estimate. The company bases its valuation on external valuations. These utilise an estimated
market-related required rate of return.

NOK million

Change in fair value per 31.12.21

Change in fair value per 31.12.20

Change in value at change in discount rate

Increase + 25 bp

Decrease - 25 bp

-11

-12

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.

NOK million

Change in fair value per 31.12.21

Change in fair value per 31.12.20

Change MSCI World

Increase + 10 %

Decrease - 10 %

861

430

-861

-430

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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNOK million

Change in fair value per 31.12.21

Change in fair value per 31.12.20

Change MSCI World

Increase + 10 %

Decrease - 10 %

-1

Loans to customers
Loans are appraised at fair value. The value of these loans is determinated 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 31.12.21

Change in fair value per 31.12.20

Change in marketspread

+ 10 bp

-26

-30

- 10 bp

Corporate bonds
Bonds registered as Tier 3 bonds are typically non-performing loans or convertible bonds. They are not priced based on a discount
rate as bonds normally are, and these investments are therefore included in the same sensitivity test as private equity.

NOK million

Change in fair value per 31.12.21

Change in fair value per 31.12.20

Properties
The sensitivity assessment for properties includes investments properties.

Change MSCI World

Increase + 10 %

Decrease - 10 %

-15

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 5.5 per cent. In the order of 25 percent of the property’s cash flow is linked to lease
agreeements 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 0.70 to 0.75 per cent.

NOK million

Change in fair value per 31.12.21

Change in fair value per 31.12.20

Change in required rate of return

0.25 %

-2,128

-1,827

-0.25 %

2,401

2,041

145

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 14: 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 moti-
vating 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

Counting subordinated loans

Deferred tax assets

Risk equalisation reserve

Deductions for CRD IV subsidiaries

Expected dividend

Total basic solvency capital

Subordinated capital for subsidiaries regulated in
accordance with CRD IV

Total solvency capital

Total solvency capital available to cover the
minimum capital requirement

31.12.21

Group 1
limited

Group 2

Group 3

2,002

8,857

356

616

2,002

9,473

356

Group 1
unlimited

2,360

10,842

28,711

-3,728

-1,645

36,538

Total

2,360

10,842

28,711

10,860

356

616

-3,728

-1,645

48,369

3,728

52,098

40,688

36,538

2,002

2,148

31.12.20

Total

2,339

10,521

31,851

4,815

8,734

247

438

-3,006

-1,519

49,605

3,006

52,611

43,533

146

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSOLVENCY 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

31.12.21

31.12.20

25,258

720

10,829

931

590

1,550

-7,804

-5,218

26,856

2,944

29,800

175 %

10,738

379 %

25,675

951

10,859

935

523

1,578

-7,948

-5,533

27,040

2,565

29,605

178 %

11,074

393 %

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

31.12.21

31.12.20

3,125

26,856

29,982

3,728

48,369

52,098

22,116

2,739

27,040

29,779

3,006

49,605

52,611

22,833

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 2021, the difference amounted to NOK 181 million.

147

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix2021

25,265

11,409

36,674

15,461

3,071

694

1,159

284

5,208

9,233

415

225

1,927

11,800

6,544

53,681

22,064

2020

18,216

15,085

33,302

13,116

2,238

835

1,407

4,479

2,744

134

236

3,270

6,384

2,232

44,188

15,437

Note 15: Premium income

NOK million

Savings:

Unit Linked Storebrand Life Insurance

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

Pension related disability insurance SPP

Total insurance

Of which premium reserve transferred to company

Guaranteed pension:

Defined Benefit (fee based) Storebrand Life Insurance

Paid-up policies Storebrand Life Insurance

Traditional individual life and pension Storebrand Life Insurance

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

148

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 16: Net income analysed by class of financial instrument

NOK million

income etc.

assets

investments

Net gains and

Net

Dividend/

losses on

revaluation

interest

financial

Of which

Total

2021

Company

Customer

Total

2020

Profit on equities and fund units

714

11,073

42,026

53,813

53,776

14,654

Profit on bonds and other fixed-

income 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

- of which available-for-sale

Net income bonds to amortised cost

Net income loans

Total gains and losses on financial
assets at amortised cost

LOSSES FROM LOANS

NOK million

3,155

1,230

5,124

3,970

995

4,965

-83

869

-2,072

-4,838

1,000

-2,740

11,859

35,119

52,102

-22

351

4,321

995

5,316

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

220

354

220

720

940

780

-2,834

4,335

5,374

51,748

24,423

3,547

2,676

4,413

1,595

4,101

275

4,376

6,009

2021

2020

-1

-12

-1

-2

-5

-20

-27

-1

-2

-13

-37

149

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 17: Net income from properties

NOK million

Rent income from properties 1)

Operating expenses (including maintenance and repairs) relating to properties 2)

Result minority defined as liabilities

Total

Realised gains/losses

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

Note 18: 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

Profit sale of subsidaries

Other income

Total other income

2021

1,589

-381

-183

1,025

206

933

2,164

104

-42

2,164

2021

3,128

1,321

324

235

591

5,698

2020

1,648

-393

-68

1,187

494

1,680

-42

1,680

2020

114

2,342

1,217

264

180

-8

4,109

150

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 19: Insurance claims

NOK million

Savings:

Unit Linked Storebrand Life Insurance

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 Life Insurance

Paid-up policies Storebrand Life Insurance

Traditional individual life and pension Storebrand Life Insurance

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

2021

-23,582

-10,166

-33,748

-29,032

-2,077

-716

-236

-3,029

-60

-1,835

-6,709

-1,200

-6,009

-15,752

-685

-52,529

-29,777

The table below shows the anticipated compensation payments

DEVELOPMENT IN EXPECTED INSURANCE CLAIM PAYMENTS - LIFE INSURANCE

NOK billion

0-1 year

1-3 years

> 3 years

Total

Storebrand Life Insurance

300

343

151

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

-29,531

-8,152

SPP

207

231

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixDEVELOPMENT IN INSURANCE CLAIM PAYMENT - P&C INSURANCE, EXLUSIVE RUN-OFF

NOK million

2016

2017

2018

2019

2020

2021

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 31.12.21

Total disbursed to present

Claims reserve

Claims reserve for previous years (before

2016)

Total claims reserve

793

774

750

741

736

727

713

797

764

756

745

738

707

760

749

744

734

825

814

805

998

1,026

1,457

699

734

916

110

936

521

4,705

780

806

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 20: 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

Note 21: 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 29)

(see note 28)

(see note 34)

152

2021

861

-1,566

-4,122

-4,827

2021

-2,725

-329

-2,731

-5,784

2021

-7

-136

-185

-1

-329

2020

-1,670

-2,434

-223

-4,327

2020

-2,320

-267

-2,328

-4,914

2020

-7

-135

-123

-2

-267

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNUMBER 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.

2021

1,901

1,862

1,886

1,845

2020

1,824

1,789

1,802

1,767

Note 22: Pension 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 106,399 at
31 December 2021)
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 2021.

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 pensiona-
ble salary up to 30 times the ”basic income amount” (inkomstbasbelopp). The insurance includes retirement pension with or without
mortality inheritance, disability pension and children’s pension. The premium is calculated independently of age and is calculated
primarily based on the monthly salary. The premium is paid monthly in two parts, a fixed part that is 2.5 per cent of the pensionable
salary up to and including 7.5 times the “basic income amount”. The optional part of the premium is 2 per cent of salary up to and
including 7.5 times the “basic income amount” and 30 per cent of salary between 7.5 and 30 times the “basic income amount”.

The 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 68,200 in 2021 and will be SEK 71.000 in 2022), 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
salary in excess of 30 times the ”basic income amount”. Full pension entitlement is reached after 30 years of membership in the pen-
sion 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”.

153

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix
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

Asset ceiling 1)

Present value of unsecured liabilities

Net pension liabilities recognised in statement of financial position

1) Pension assets that cannot be recognized in the statement of financial position

BOOKED IN STATEMENT OF FINANCIAL POSITION

NOK million

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

Pension liabilities additions/disposals and currency adjustments

Net pension liabilities 31.12

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

Pension liabilities additions/disposals and currency adjustments

Net pension assets 31.12

Expected premium payments (pension assets) in 2022

Expected premium payments (contributions) in 2022

Expected AFP early retirement scheme payments in 2022

Expected payments from operations (uninsured scheme)

in 2022

154

2020

1,237

-1,082

155

196

351

2020

351

2020

1,259

-1

-51

111

1,433

2020

995

-31

-30

107

1,082

2021

1,009

-1,035

-26

175

181

2021

181

2021

1,433

-155

-49

-74

1,185

2021

1,082

-27

-67

1,035

192

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixPENSION ASSETS ARE BASED ON THE FINANCIAL ASSETS HELD BY STOREBRAND LIFE INSURANCE/SPP COMPOSED AT 31.12:

NOK millionon

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

2021

13 %

39 %

15 %

13 %

19 %

1 %

2020

15 %

34 %

20 %

12 %

17 %

3 %

2021

13 %

21 %

13 %

53 %

2020

12 %

18 %

13 %

57 %

100 %

The table shows the percentage asset allocation of pension assets at year-end managed by Storebrand Life Insurance.

Realised return on assets

4.5 %

4.4 %

1.9 %

4.8 %

NET PENSION EXPENSES BOOKED TO PROFIT AND LOSS ACCOUNT, SPECIFIED AS FOLLOWS

NOK million

Current service cost

Net interest cost/expected return

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

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

Asset ceiling - asset adjustment

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 Life Insurance

2021

2.0 %

2.25 %

0.0 %

2020

1.5 %

1.75 %

0.0 %

2021

243

285

2021

-117

-33

-16

-131

SPP

2021

1.8 %

3.5 %

2020

220

258

2020

103

-11

110

2020

1.2 %

3.5 %

2.0 %

K2013BE

DUS14

155

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix
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 uncer-
tainty.
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 assumpti-
ons.

Actuarial assumptions:
In Norway standardised assumptions on rates of mortality and disability as well as other demographic factors are prepared by Finance
Norway. With effect from 2014 a new mortality basis, K2013, has been introduced for group pension insurance in life insurance
companies and pension funds. Storebrand has used the mortality table K2013BE (best estimate) in the actuarial calculations at 31
December 2021.

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 2021 and are calculated for each individual when all
other assumptions are kept constant.

SWEDEN

Percentage change in pension:

- Pension liabilities

- The period's net pension costs

Discount rate

earnings growth

in pensions payment

expected life expectancy

Expected

Expected annual increase

Mortality - change in

1.0 %

-1.0 %

1.0 %

-1.0 %

1.0 %

+ 1 år

- 1 år

-8 %

-10 %

10 %

13 %

-2 %

5 %

-4 %

0 %

2 %

1 %

-2 %

-1 %

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 23: 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 5)

Total 2021

Total 2020

Total

Post

remunera-

Pension

terminati-

Ordinary

Other

tion for the

accrued for

on salary

No. of

salary 1)

benefits 2)

year

the year

(months)

Loan 3)

owned 4)

7,638

5,900

5,025

5,053

6,528

6,531

3,210

3,527

3,215

3,527

185

201

202

177

153

168

158

7,823

6,101

5,227

5,230

6,555

6,684

3,251

3,568

3,382

3,686

50,154

47,812

1,354

1,498

51,507

49,311

1,493

1,130

945

950

1,682

1,256

566

629

562

629

9,842

9,598

5,384

221,242

10,000

140,384

6,035

3,009

100,770

110,379

99,083

1,200

120,176

18,598

8,989

11,282

6,786

71,284

69,128

29,551

24,848

29,538

24,695

900,666

754,613

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, 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.

5) Resigned from his position on 31 December 2021. Since Løken will commence in a different position outside of the Storebrand Group, he will not receive severance pay.

NOK thousand

Board of Directors

Didrik Munch

Laila Synnøve Dahlen 3)

Martin Skancke

Karin Bing Orgland

Christel Elise Borge 3)

Karl Sandlund

Marianne Bergmann Røren

Fredrik Åtting

Bodil Catherine Valvik

Hans-Petter Salvesen

Magnus Gard 3)

Hanne Seim Grave 3)

Total 2021

Total 2020

Remuneration

Loan 1)

No. of shares

owned 2)

874

141

677

566

303

477

428

630

472

428

155

317

5,468

5,077

255,000

15,500

30,000

27,000

7,000

5,000

18,500,000

1,390

325

18,841,540

18,615,503

5,047

4,854

6,829

1,932

18,662

17,122

1) Employees can borrow up to NOK 7.0 million at a subsidised interest rate, excess loan amounts will be subject to market terms.

2) 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.

3) Board member only part of the year

Loans to Group employees totalled NOK 3.263 million.

157

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 24: Remuneration paid to auditors

NOK million

Statutory audit

Other reporting duties

Other non-audit services

Total remuneration to auditors

The amounts above are incluing VAT

Note 25: Other expenses

NOK million

Losses on claims, insurance

Management fees

Interest expenses Insurance

Other expenses

Total other expenses

Note 26: 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 27: Tax

TAX EXPENSES ON ORDINARY PRE-TAX PROFIT

NOK million

Tax payable

Change in deferred tax

Total tax expenses on ordinary profit

158

2021

-11

-2

-15

2021

-7

-463

-91

-276

-836

2021

-413

-193

-41

-12

-27

-686

2021

-90

-755

-846

2020

-11

-2

-1

-15

2020

-128

-448

-138

-112

-826

2020

-364

-295

-85

-20

-30

-793

2020

-84

220

136

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixRECONCILIATION 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

profit subject to return tax

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)

change in tax rate

Changes from previous years

Total tax charge

Effective tax rate 2)

2021

3,976

-986

161

-26

-582

582

-25

-14

-846

21%

2020

2,219

-555

228

-61

-566

566

437

136

-6%

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 expense

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) 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 was changed to 20.6 per cent for 2021, from 21.4 per cent in 2020.

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

2021

2020

159

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixCALCULATION 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

Gains/losses account

Total tax-reducing temporary differences

Carryforward losses

Basis for net deferred tax and tax assets

Write-down of basis for deferred tax assets

Net basis for deferred tax and tax assets

Net deferred tax assets/liabilities in balance sheet 1) 2) 3)

Recognised in balance sheet

Deferred tax assets

Deferred tax

Uncertain tax positions

2021

2,748

1,234

4,078

-59

-16

-21

-150

-1

-248

-3,332

499

504

-273

1,104

832

2020

178

2,696

1,212

4,173

-27

-24

-36

-171

-259

-6,530

-2,616

-931

1,780

849

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 probable 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 increase

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

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. In March 2021 Storebrand received a decision from the Norwegian Tax Administration based on similar

grounds as the ones outlined in the draft decision. Storebrand continues to disagree with the view of the Norwegian Tax Administration in this case and has in May 2021 challenged the decisi-

on to the Norwegian Tax Appeals Committee. Storebrand considers it to be probable that Storebrand’s understanding of the tax legislation will be accepted by the Tax Appeals Committee or

a court of law, and thus, no additional uncertain tax position has been recognised in the financial statements based on the received 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.

160

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix

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. However, in October 2019 Storebrand received a notice of adjustment of tax assessment

in line with the interpretive statement from the Norwegian Directorate of Taxes and the clarification from the Ministry of Finance. Storebrand Livsforsikring AS disagrees with the Norwegian

Tax Administration’s interpretation but considers it uncertain as to whether the company’s interpretation will be accepted if the case is decided by a court of law. The uncertain tax position

has therefore been recognised in the financial statements. Based on our revised best estimate, the difference between Storebrand’s interpretation and the Norwegian Tax Administration’s

interpretation is approximately NOK 6.4 billion in an uncertain tax position. If Storebrand’s interpretation is accepted, a deferred tax expense of approximately NOK 1.6 billion will be derecog-

nised 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 an additional tax income of approximately NOK 0.8 billion if Storebrand’s position

under (B) is accepted. If the Norwegian Tax Administration prevails with its argument under point (A), Storebrand will recognise a tax expense of approximately NOK 0.6 billion.

Storebrand has reviewed the uncertain tax positions as part of the annual reporting process. The review has not reduced the company’s assessment of the probability that Storebrand’s in-

terpretation will be accepted in a court of law. The timeline for the continued process with the Norwegian Tax Appeals Committee is unclear, but if necessary, Storebrand will seek clarification

from the court of law for the aforementioned uncertain tax positions.

Note 28: Intangible assets and fair value adjustments on
purchased insurance contracts

NOK million

Acquisition cost 01.01,

Additions in the period

- Developed internally

- Purchased separately

- Purchased via acquistion/merger

Disposals in the period

Exchange rate adjustments

Acquisition cost 31.12

Accumulated depreciation and write-downs

01.01

Write-downs in the period

Amortisation in the period 2)

Disposals in the period

Exchange rate adjustments

Acc. depreciation and write-downs 31.12

Book value 31.12

Intangible assets

IT systems

1,454

VIF 1)

10,602

Other

intangible

assets

1,811

459

-51

2,227

Goodwill

2,552

581

-64

3,069

2021

16,419

191

1,067

-8

-817

16,912

2020

14,901

105

200

-10

1,209

16,419

-679

9,923

-7,954

-1,149

-305

-10,116

-8,681

-365

-162

527

-7,792

2,131

-1,264

963

-305

2,764

-23

-689

577

-10,245

6,667

-22

-592

-828

-10,116

6,303

183

-8

-23

1,693

-708

-23

-162

-884

809

1) Value of business-in-force, the difference between market value and book value of the insurance liabilities in SPP and Silver

161

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate 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

Useful

Depr.

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

Customer relations Capital Investment

Total

economic life

5 years

20 years

10 years

7 years

10 years

5 years

10 years

3 years

7 years

GOODWILL DISTRIBUTED BY BUSINESS ACQUISITION

rate

20 %

5 %

10 %

14 %

10 %

20 %

10 %

33 %

14 %

2021

-366

-161

-527

2020

-372

-120

-492

Book value

2021

809

1,963

168

238

138

205

232

3,903

2020

746

2,451

197

278

170

102

4,056

Depr.

method

Straight line

Business

Acquisition

write-downs

Book value

currency

Book value

Accumulated

Supply/

disposals/

NOK million

area

cost 01.01

Delphi Fondsforvaltning

Storebrand Bank ASA

SPP

SPP Fonder

Skagen

Cubera

Capital Investment

Total

Savings

Other

Guarant.
pension/
Savings

Savings

422

831

1,007

206

01.01

-4

-300

01.01

122

831

1,007

206

2,550

-304

2,246

effect

31.12.21

31.12.20

122

778

1,007

206

572

2,764

122

831

1,007

206

2,247

-53

-1

572

518

Goodwill is not amortised, but is tested annually for impairment.

Intangible assets linked to the acquisition of SPP
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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate 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 .The management has made assessments for the period from 2025 to 2031, and the annual growth for each element in the
income statement has been estimated. When calculating the terminal value, a growth rate equivalent to observed inflation of 1.7 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 expec-
ted regulatory tying-up of capital is also used in the valuation. The utility value is calculated using a required rate of return of 6.7 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 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 assess-
ments for the period from 2025 to 2031, and the annual growth has been determined in the income statement. A growth rate of 1.8
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 5.2 per cent. The requ-
ired 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
products, technology and goodwill. Budgets and forecasts approved by the Board for the next three years are used as the basis
for the valuation. For the period from 2025 to 2026, 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 1.8 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 6.7 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 are used as the basis for the valuation. For the period from 2025 to 2026, a projected forecast has been used that is based on
the expected development in the private equity market. A growth rate of 1.8 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 after tax of 6.7 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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix
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. Silver has been integrated
into Storebrand Livsforsikring’s business and is predominantly part of the savings segment. The recoverable amount is determined by
calculating the entity specific value of the business. The assessment of the intangible assets is done by estimating the value of the con-
tracts that were purchased, despite these not being a separate cash-generating unit. In order to determine whether there has been
impairment that is less than the book values, the parameters used in the valuation and acquisition analysis are assessed. A compari-
son is also made with the development of expected values used in the valuation upon acquisition.
The value will be influenced by the assumptions regarding expected returns in the financial markets, costs, transfers, income develop-
ment and the discount rate. Simulations with reasonable and also conservative assumptions indicate a value that justifies the book
value, cf. IAS 36.

knyIntangible assets related to the purchase of customer portfolio from Insr
In 2020, Storebrand Forsikring AS entered into an agreement to acquire a customer portfolio from Insr Insurance Group ASA. The
policies were renewed in Storebrand’s systems during 2020 and 2021, and the intangible asset was accrued based on actual renewals,
cf. IAS 38. The customer portfolio from Insr is integrated into Storebrand’s business and primarily Storebrand Forsikring AS and the In-
surance segment. The recoverable amount is determined by calculating the utility value of the business. It is considered most accurate
to estimate the value of the contracts that were acquired, despite these not being a separate cashflow generating unit. In order to
determine whether there has been impairment that is less than the book values, the parameters used in the valuation and acquisition
analysis are assessed. A comparison is also made with the development of expected values used in the valuation upon the entering
into of the agreement to acquire the customer portfolio.
The utility value will be influenced by the assumption of profitability and claims ratio, customer loss, and the required rate of return
that is used. Simulations with reasonable and also conservative assumptions indicate a value that justifies the book value, cf. IAS 36.

Intangible assets related to the acquisition of Capital Investment
Storebrand Asset Management AS acquired Capital Investment in 2021. See Note 3 for the acquisition analysis. This acquisition analy-
sis is still considered to be the best estimate of the value of Capital Investment and further calculations have not been carried out as at
31 December 2021.

Note 29: Tangible fixed assets and lease agreements

NOK million

Book value 01.01

Additions

Disposals

Depreciation

Book value 31.12

Vehicles/ equipment

Real estate

2021

2020

-2

-7

-2

-7

-2

-7

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

164

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate 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 AGREEMENTS

2021

1,191

1,266

1266

1,266

2020

1,337

1,397

1397

1,397

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

Exchange rate adjustments

Book value 31. 12

Accumulated write-downs/depreciations

01.01

Depreciation

Exchange rate adjustments

Accumulated write-downs/depreciations

31.12

Booked value 31.12

Buildings

IT-equipment Other equipment

1,519

-6

-43

1,510

-222

-117

-338

1,172

-4

-44

-18

-60

-1

2021

1,604

-7

-47

1,591

-267

-135

-400

1,191

2020

1,167

406

-1

1,604

-139

-135

-267

1,337

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.

Depreciations lease agreements
Lease agreements for right-of-use assets are depreciated on a straight-line basis over the lease term.

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.

2021

144

126

114

113

651

1,260

2020

145

141

112

108

107

793

1,406

165

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixCHANGES 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 adjustments

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

2021

1,355

-145

-44

1,210

2021

-17

2020

1,037

404

-146

1,355

2020

-14

Note 30: 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.

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

Storebrand Helseforsikring AS

2021

2020

Equity-method

Insurance

Joint venture

Equity-method

Insurance

Joint venture

748

120

451

937

694

121

446

862

166

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix
PROFIT AND OWNERSHIP INTERESTS IN ASSOCIATED COMPANIES AND JOINT VENTURES

NOK million

Associated companies

Inntre Holding AS

Storebrand Eiendomsfond Norge KS

Other associated companies

Joint ventures

Försäkringsgirot AB

Ruseløkkveien 26 AS

Storebrand Helseforsikring AS

Total

Booked in the statement of financial position

Investments in associated companies - company

Investments in associated companies - custo-
mers

Total

Business

location

Ownership

Profit

31.12

Book value

31.12.21

31.12.20

Steinkjær

Bærum

Stockholm

Oslo

Lysaker

0.0 %

31.0 %

16.7 %

50.0 %

398

4,089

3,259

164

7,528

387

7,141

7,528

402

820

790

820

127

3,694

2,472

147

6,449

283

6,167

6,449

Note 31: Classification of financial assets and liabilities

NOK million

Financial assets

Bank deposits

Shares and fund units

Bonds and other fixed-income

securities

Loans to financial institutions

Loans to customers

Accounts receivable and other

short-term receivables

Derivatives

Total financial assets

Total financial assets 2020

Financial liabilities

Subordinated loan capital

Loans and deposits from credit

institutions

Deposits from banking customers

Securities issued

Derivatives

Other current liabilities

Total financial liabilities

Total financial liabilities 2020

Investments,

Liabilities

Loans and

held to

Fair value,

at amortised

receivables

maturity

held for sale

FVO

cost

Total

2021

Total

2020

9,986

117,929

61,555

11,661

201,199

178,902

8,441

13,026

3,760

9,903

278,326

168,516

7,931

454,833

416,284

9,986

278,326

13,065

230,830

294,887

293,506

69,486

11,661

3,820

668,233

103

63,214

7,422

9,977

618,116

11,441

9,110

502

17,239

24,924

14,643

68,749

63,116

502

17,239

24,924

2,048

14,643

70,797

1,653

15,506

20,649

964

16,209

64,091

1,997

898

167

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 32: Bonds at amortised cost

LOANS AND RECEIVABLES

NOK million

Government bonds

Corporate bonds

Structured notes

Collateralised securities

Total bonds at amortised cost

Storebrand Bank

Modified duration

Average effective yield

Storebrand Livsforsikring

Modified duration

Average effective yield

Distribution beween company and customers

Loans and receivables company

Loans and receivables customers with guarantee

Total

BONDS HELD TO MATURITY

NOK million

Corporate bonds

Total bonds at amortised cost

Modifed duration

Average effective yield

Distribution beween company and customers:

Bonds held to maturity - customers with guarantees

Total

2021

2020

Book value

Fair value

Book value

Fair value

28,171

70,854

17,993

911

29,574

71,189

17,581

913

26,249

66,944

8,699

1,592

29,261

73,488

9,177

1,602

117,929

119,257

103,484

113,529

0.1

0.6 %

6.6

1.7%

0.1

0.9 %

8.0

2.5%

1.6%

10,639

92,846

103,484

3.0%

12,955

104,975

117,929

2021

2020

Book value

Fair value

Book value

Fair value

8,441

4.3%

8,441

9,103

3.5

2.0%

13,026

4.4%

13,026

14,244

3.1

1.1%

For the individual securities, the effective interest rate is calculated based on the fair value of the security and when capitalised at
amortized value. For fair value, the weighted average effective interest rate for the total portfolio is calculated using the individual se-
curity’s share of total fair value as weightings. For fixed-interest securities assessed at book (amortized) value, the weighting takes place
with the individual security’s share of total amortized value, including accrued interest.

168

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 33: Loans to customers

NOK million

Corporate market

Retail market

Gross loans

Write-downs of loans losses

Net loans 1)

1) 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.

2021

12,532

57,042

69,574

-88

69,486

38,992

30,494

38,992

30,493

69,486

2021

-18

2020

13,738

49,553

63,291

-77

63,214

31,780

31,434

31,780

31,434

63,214

2020

121

-17

104

169

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 34: Properties

NOK million

31.12.21

31.12.20

of return % 1)

lease (years) 3)

31.12.21

Average

Required rate

duration of

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

8,715

4,988

724

5,611

2,807

8,435

4,811

790

5,497

2,693

933

858

3,905

2,550

2,434

709

33,376

1,659

35,035

30,202

4,833

35,035

270

2,589

2,692

2,750

683

32,117

1,609

33,726

29,261

4,415

33,726

3,25 - 3,75

4,00 - 5,35

4.40

5,00 - 6,30

5.20

4.20

3.16

4.25

4.33

7.63

5.9

4.1

3.7

3.4

5.0

1.0

0.2

11.4

10.0

94,165

85,225

16,987

180,173

112,329

27,393

90,191

35,872

49,579

38,820

730,734

1) The properties are valued on the basis of the following effective required rate of return (included 2.5 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 31.12.21, Storebrand Life Insurance had NOK 7 141 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 8 per cent (7.4 per cent) at the end of 2021
The vacancy rate for areas that are not available for rent due to ongoing development projects is 91.8 per cent (78.6 per cent).
At the end of 2021, a total of 10.7 per cent (13.8 per cent) of the floor space in the investment properties was vacant
Sweden
At the end of 2021, the vacancy for investment properties was 0,5 per cent

Transactions:
Purchases: Further SEK 539 millions in property acquistions in SPP have been agreed on in 4th quarter 2021 in addtition to the figures
that have been finalised and included in the finacial statements as of 31 December 2021.
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 finacial statements as of 31 December 2021.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixPROPERTIES 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

Exchange rate adjustments

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

2021

1,609

124

-13

-106

1,659

559

586

-692

-705

1,659

Note 35: 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

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

2021

1,078

498

272

886

5,350

2,335

284

699

215

11,661

11,024

638

11,661

171

2020

1,375

-14

108

1,609

551

559

-677

-692

1,609

Straight line

50 years

2020

863

261

231

458

2,093

182

2,022

324

717

271

7,422

7,018

404

7,422

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixAGE 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

Gross accounts receivable

Provisions for losses

Net accounts receivable

Note 36: Equities and fund units

NOK million

Equities

Private Equity fund investments

Fund units

Infrastructure funds

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 37: Bonds and other fixed-income securities

NOK million

Government bonds

Corporate bonds

Structured notes

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

2021

1,061

1,081

-3

1,078

2021

Fair value

38,946

76,237

162,308

834

278,326

543

28,714

249,069

278,326

2021

Fair value

31,148

55,354

2,023

3,528

76,464

168,516

27,706

90,011

50,800

168,516

2020

858

865

-2

863

2020

Fair value

30,402

1,268

199,160

230,830

384

21,839

208,607

230,830

2020

Fair value

34,634

62,043

7,051

73,267

176,995

28,833

97,223

50,939

176,995

172

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixModified duration

Average effective yield

Fair value

Storebrand Life

SPP Pension &

Storebrand

Insurance

7.3

3.3%

6.7

1.4%

Bank

1.6

0.9%

Insurance

0.6

1.3%

ASA

0.6

1.3%

For individual fixed-interest securities, the effective rate is calculated based on the fair value (market value) of the security. The
average effective interest rate for total holdings is calculated using the individual security’s share of fair value as a weighting. Interest
derivatives are included in the calculation of modified duration and average effective interest rate.

Note 38: 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.

NOK million

Interest derivatives

Currency derivatives

Total derivater 31.12.

Total derivater 31.12.20

Distribution between company and

customers:

Derivatives - company

Derivatives - customers with guarantee

Derivatives - customers without guarantee

Total

1) Values 31.12.

Gross nominal

Gross booked

volume 1)

value fin. assets

167,367

168,575

2,992

828

3,820

9,977

Gross booked

value fin.

liabilities

675

1,373

2,048

964

Net amount

2021

2,317

-545

1,772

695

1,514

-437

1,772

2020

5,659

3,353

9,012

1,275

5,753

1,984

9,012

Note 39: 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

Total

Storebrand

pension

Savings

Insurance 1)

Group 2021

Group 2020

13,602

13,781

6,173

33,557

173

13,602

13,781

6,309

33,693

11,380

10,769

7,170

29,319

136

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSPECIFICATION OF BALANCE SHEET ITEMS CONSERNING LIFE INSURANCE

NOK million

Premium reserve/pension capital

- of which IBNS

Pension surplus fund

Premium fund/deposit fund

Other technical reserves

- of which IBNS

Guaranteed

pension

255,380

2,253

2,881

Savings

Insurance 1)

Group 2021

Group 2020

Total

Storebrand

308,351

5,645

1,906

619

661

573

569,376

4,180

3,500

661

573

531,715

5,526

2,266

702

587

Total insurance liabilities - life insurance

258,263

308,351

6,925

573,539

534,683

1) 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

NOK million

Total insurance liabilities - life insurance 01.01

Premium income

Capital return

Change in market value adjustment reserve

Insurance claims

Change in conditional bonuses

Fair value adjustment of properties for own use in
Other comprehensive income

Fee and administration income

Surplus allocated to additional statutory reserves

Allocated risk equalisation fund

Profit sharing to owner

Other changes

Total change in insurance liabilities in income
statement

Transfer between products

Yield tax

Fair value adjustment of properties for own use in
Other comprehensive income

Change in reinsurance share

Change in premium fund

Other

Acquisition of insurance portfolio

Exchange rate adjustments

Total insurance liabiliteis - life insurance 31.12.

1) Including personal risk and employee insurance of the Insurance segment.

See note 40 for insurance liabilities - P&C.

Guaranteed

pension

259,489

12,084

10,921

819

-15,994

-4,504

-127

-1,785

-1,653

-109

-166

332

-182

955

-77

127

893

381

2,550

-5,875

258,263

174

2021

5,195

1,115

6,309

2020

3,102

4,069

7,170

Insurance 1)

Total 2021

Total 2020

Savings

268,345

36,674

47,682

-33,683

6,849

2,754

228

-1,268

-544

-229

-44

-482

49,603

-109

-58

-9,431

308,351

-215

-118

1,194

-986

-11

-97

-24

6,925

534,683

51,512

58,831

861

-50,945

-4,504

-127

-2,557

-1,653

-109

-425

-268

476,040

42,804

30,557

-1,670

-28,509

-2,294

-2,535

-135

-355

50,615

37,928

-31

-186

127

-11

796

299

2,551

-15,306

573,538

-184

-72

-11

484

-542

21,004

534,683

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 40: 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 39 for insurance liabilities - life insurance.

Note 41: 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 to broker

Liabilities tax/tax appropriations

Minority SPP Fastighet KB

Kick back

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

Exchange rate adjustments

Book value 31.12

175

2021

985

933

893

1,918

2021

286

990

231

357

2,756

1,449

5,096

321

2,411

205

454

2020

695

650

620

1,345

2020

173

776

122

189

407

8,141

956

2,769

211

1,746

633

14,643

16,209

2021

-22

-3

2020

-34

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 42 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 amortised
cost. Derivatives are recognised at fair value through profit or loss. Changes in the value of the hedged item that are attributable to the
hedged risk adjust the carrying amount of the hedged item and are recognised through profit or loss.

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 recogni-
sed 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 99 per cent per 31.12.21.

HEDGING INSTRUMENT/HEDGED ITEM

2021

Book value 1)

2020

Book value 1)

Recog-

nised of

compre-

Conract/

hensive

nominal

Recog-

nised of

compre-

hensive

Assets

Liabilities

Booked

income

699

2,685

475

-391

335

-4

-1

value

2,557

-2,238

284

Assets Liabilities

Booked

income

1,101

3,420

284

141

-173

-2

-7

Contract/

nominal

value

2,374

-1,865

NOK millionon

Interest rate swaps

Subordinated loans

Debt raised through

issuance of securities

480

1) Book values as at 31.12.

Fair value hedging of interest rate risk
Storebrand uses fair value hedging for the interest rate risk. The items hedged are financial assets and financial liabilities measured at
amortised cost. Derivatives are recognised at fair value through profit or loss. Changes in the value of the hedged item that are attributa-
ble 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. Hedge effectiveness was 90 per cent as at 31 December 2021.

HEDGING INSTRUMENT/HEDGED ITEM

NOK million

Renteswapper

Ansvarlig lånekapital

Gjeld stiftet ved utstedelse av verdipapirer

1) Book values as at 31.12.

2021

Book value 1)

Contract/

nominal value

3 045

-3 039

Assets

Liabilities

Booked

158

2 876

Hedging of net investment in Storebrand Holding AB
In 2021, 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 effective 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. A revenue of NOK 577 million
were recognised in total comprehensive income in connection with the hedging of Storebrand Holding AB, compared with an expence of
NOK 868 million in 2020.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix
HEDGING INSTRUMENT/HEDGED ITEM

2021

Book value 1)

2020

Book value 1)

Contract/

nominal value

Assets

Liabilities

nominal value

Assets

Liabilities

-4,693

-3,800

9,538

-18

3,704

-4,700

-3,650

3,815

10,045

NOK millionon

Currency derivatives

Loan used as hedging instrument

Underlying items

1) Book values at 31.12.

The phasing out of LIBOR as a reference rate for various currencies garnered considerable attention throughout 2021. The transition to
new “overnight rates” has been demanding for many market players, however the transition has gone better than many feared. From 1
January 2022, LIBOR for USD, GBP, EUR, CHF and JPY will be replaced by new “overnight rates”, SOFR, SONIA, EURSTR, SARON and TONA.
The value of some of the LIBOR rates will still be quoted in 2022, however this will only be synthetic for GBP and JPY. The transition to and
use of the new official “overnight rates” will continue in 2022.

For Storebrand, the process of LIBOR rates being discontinued has not been particularly difficult because exposure to LIBOR rates has
been limited. The necessary adaptation of agreements related to EONIA when concerning certain counterparties was completed in Q4
2021. EONIA has been replaced by EURSTR and the stipulated “fallbacks” which has entailed a continuation of the values based on EONIA.
NIBOR and STIBOR, which have the greatest significance to the management of Storebrand’s customer portfolios, will be continued until
further notice. The same applies to EURIBOR.

Storebrand hedges an exposure in the reference interest rate EURIBOR 3M that is divided among two cross currency swaps in EUR/NOK
which has a total nominal amount of EUR 550 million.

Note 43: Collateral

NOK million

Collateral for Derivatives trading

Collateral received in connection with Derivatives trading

Total received and pledged collateral

2021

2,324

-3,077

-753

2020

3,380

-8,828

-5,448

The CSA agreements entered into with 15 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. Most 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 calcula-
ted based on the NOWA and EONIA rates respectively.

Security provided for futures and options is adjusted daily on the basis of a daily margin settlement for each contract.

Security is received and provided in the form of both cash and securities. Security in the form of cash is recognised in the balance sheet
and classified as other receivables and other current liabilities in Notes 35 and 41 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

2021

651

151

802

2020

1,703

151

1,854

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 one F-loan in
Norges Bank as per 31.12.2021.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix
Of the total lending of NOK 38.6 billion in the Bank Group, NOK 26.4 billion is loans in Storebrand Boligkreditt AS. The loans in Storebrand
Boligkreditt AS have been provided as security in connection with the issuing of covered bonds in Storebrand Boligkreditt AS.

Storebrand Boligkreditt AS has over-collateralisation (OC) of 11 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 7.77 per cent at the end of 2021. 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 710 million more than what the present
rating requires. Storebrand Bank ASA therefore considers the security to be adequate.

Note 44: Contingent liabilities

NOK million

Unused credit limit lending

Loan commitment retail market

Uncalled residual liabilities re limited partnership

Undrawn capital in alternative investment funds

Total contingent liabilities

2021

3,322

3,516

4,870

10,093

21,801

2020

3,063

2,962

8,251

14,276

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 45: Securities lending and buy-back agreements

UTLÅN AV VERDIPAPIRER OG GJENKJØPSAVTALER

NOK million

Lending of shares

Collateral received for lent securities

2021

207

-227

2020

Storebrand Livsforsikring has entered into agreements for securities loans with a number of counterparties. JPMorgan Luxembourg is the
agent for the securities loans and will execute the lending itself on behalf of Storebrand Livsforsikring. Only shares are loaned. Storebrand
Livsforsikring receives 80% of the income from securities loans. JPMorgan charges a fee of 20%.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 46: 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 23 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 30 and 41.

Note 47: Sold/liquidated operations

Storebrand has conducted a strategic review of its ownership in AS Værdalsbruket, which was a wholly owned subsidiary of Storebrand,
and was owned 74.9% by Storebrand Livsforsikring AS and 25.1% by Storebrand ASA. AS Værdalsbruket is Norway’s second largest private
forest owning company located in Trøndelag county. The company owns significant limestone resources, provides nature tourism experi-
ences and is part owner of Inntre Holding AS, a large exporter of building timber.

In 2021, Storebrand has sold AS Værdalsbruket. The sale has contributed to the accounts with a net gain of NOK 546 million. The gain is
classified as Other income in the accounts.

During the year, Storebrand Livsforsikring discontinued the wholly-owned subsidiary BenCo Insurance Holding B.V. A loss of
NOK 24 million was incurred in the financial result as a consequence of this.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate 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

Rentekostnader

Andre finanskostnader

Operating expenses

Personnel expenses

Other operating expenses

Total operating expenses

Total expenses

Pre-tax profit

Tax

Profit for year

Note

2021

4,5,6

4,542

-2

204

4,783

-18

-79

-44

-136

-180

-277

4,505

-258

4,248

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

2021

4,248

-1

2020

3,028

-3

3,095

-30

-40

-56

-96

-120

2,975

-171

2,804

2020

2,804

-15

-11

Total comprehensive income

4,252

2,793

180

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate 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

Bank deposits

Total current assets

Total assets

Equity and liabilities

Share capital

Own shares

Share premium reserve

Total paid in equity

Other equity

Total 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

31.12.21

31.12.20

23,006

23,079

4,542

10,11

11,13

4,811

9,450

32,530

2,360

-9

10,842

13,192

15,128

28,321

142

1,001

1,143

1,193

1,645

228

3,066

32,530

20,893

20,964

3,139

4,894

8,166

29,130

2,339

-2

10,521

12,858

12,609

25,467

157

1,001

1,158

910

1,519

2,505

29,130

Lysaker, 8 February 2022
Board of Directors of Storebrand ASA

Didrik Munch (sign.)
Board chair

Karin Bing Orgland (sign.)

Martin Skancke (sign.)

Marianne Bergmann Røren (sign.)

Christel Elise Borge (sign.)

Karl Sandlund (sign.)

Fredrik Åtting (sign.)

Hanne Seim Grave (sign.)

Hans-Petter Salvesen (sign.)

Bodil Cahterine Valvik (sign.)

Odd Arild Grefstad (sign.)
Chief Executive Officer

181

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSTOREBRAND ASA

Statement of changes in equity

NOK million

Share capital 1)

Own shares

Share premium

Other equity

Total equity

Equity at 31. December 2019

2,339

-5

10,521

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

Profit for the period

Total other result elements

Total comprehensive income

Issues of shares 2)

Provision for dividend

Own share sold 3)

Employee share 3)

Equity at 31. December 2021

2,360

1) 471 974 890 shares with a nominal value of NOK 5.

-2

-7

-9

9,794

2,804

-11

2,793

1,517

-1,519

-10

12,609

4,248

4,252

-1,640

-97

10,521

320

10,842

15,128

22,650

2,804

-11

2,793

1,517

-1,519

-10

25,467

4,248

4,252

341

-1,640

-104

28,321

2) A capital increase was carried out in september2021 by issuing 4,160,908 shares with a subscription price of NOK 82.02. The shares have been used as consideration for the purchase of

shares in Capital Investement.

3) In 2021, Storebrand ASA has bought 2 000 000 own shares. In 2021, 576 479 shares were sold to our own employees. Holding of own shares 31. December 2021 was 1 839 776.

182

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSTOREBRAND 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

Receipts - sale of subsidiaries

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

Net movement in cash and cash equivalents

Cash and cash equivalents at start of the period

Cash and cash equivalents at the end of the period

2021

130

-184

3,126

3,071

202

-1,675

-1

-1,473

-18

-144

-1,513

-1,631

-33

2020

-1,577

-112

3,163

1,473

-1,144

-800

500

-30

-304

183

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixSTOREBRAND ASA

Notes

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 risks

Note 12:

Tangible fixed assets

Note 13:

Securities issued

Note 14:

Shareholders

Note 15:

Information about close associates

Note 16:

Number of employees/person-years

184

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 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 acco-
rdingly 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 estima-
tes 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 wri-
te-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 reco-
rded 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 state-
ments.

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.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixCurrency
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
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 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 owners-
hip 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 chan-
ges 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

Total

Group contribution from Storebrand ASA, see note 8

2021

3,210

238

948

146

4,542

2020

2,222

620

105

3,028

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 3: Net income for various classes of financial instruments

NOK million

income

on realisation

gain/loss

2021

2020

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

-2

-22

-24

-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

2021

-24

-6

-7

-44

-3

2020

-21

-5

-8

-6

-40

Note 5 : Pensions costs and pension liabilities

Storebrand Group has country-specific pension schemes.

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 106,399 as at 31 December
2021)
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

-
-

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate 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.

Net pension assets 31.12

2021

-7

-6

147

142

2021

165

-6

-12

149

2021

2020

-7

-5

163

157

2020

161

-15

165

2020

Expected premium payments are estimated to be NOK 2 million and the payments from operations are estimated to be NOK 11
million in 2022.

PENSION ASSETS ARE BASED ON THE FINANCIAL ASSETS HELD BY STOREBRAND LIFE INSURANCE,
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 Life Insurance were:

2021

13 %

39 %

15 %

13 %

19 %

1 %

100 %

4.5%

2020

15 %

34 %

20 %

12 %

17 %

3 %

100 %

4.4%

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNET 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

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

2021

2020

2021

-6

2021

2.0 %

2.25 %

0.0 %

2020

1.5 %

1.75 %

0.0 %

K2013BE

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 uncer-
tainty.

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 assumpti-
ons.

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 2021.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix

Note 6: Remuneration of the CEO and elected officers of the company

NOK thousand

Chief Executive Officer 1)

Salery 2)

Other taxable benefits

Total remuneration

Pension costs 3)

Board chair

Board of Directors including the Chair

Remuneration paid to auditors 4)

Statutory audit

Other reporting duties

Tax advice

Other non-audit services

2021

7,638

185

7,823

1,493

874

5,468

1,125

871

664

2020

7,373

209

7,582

1,451

871

5,077

1,083

818

226

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.

4) The amounts are including VAT.

For further information on senior employees, see note 23 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

Gain/loss equities

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

190

2021

4,505

-135

-203

-3,214

1,042

2021

-260

-258

2020

2,975

-30

-2,253

-30

675

2020

-169

-2

-171

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixCALCULATION OF DEFERRED TAX ASSETS AND DEFERRED TAX ON TEMPORARY DIFFERENCES AND
LOSSES CARRIED FORWARD

NOK million

Tax increasing temporary differences

Total tax increasing temporary differences

Tax reducing temporary differences

Securities

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 (27%)

Tax effect of:

Dividends received

Gains on equities

Permanent differences

Changes from previous year

Tax cost

Effective tax rate

2021

2020

-40

-142

-1

-183

2021

4,505

-1,126

784

-258

6 %

-18

-157

-2

-177

2020

2,975

-744

567

-2

-171

6 %

191

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 8: Parent company’s shares in subsidiaries and associated companies

NOK million

Subsidiaries

Storebrand Livsforsikring AS 1)

Storebrand Bank ASA 2)

Storebrand Asset Management AS 3)

Storebrand Forsikring AS 4)

Storebrand Facilities AS

Jointly controlled/associated companies

Storebrand Helseforsikring AS

AS Værdalsbruket 5)

Total

Business

office

Interest/

votes in %

Carrying amount

2021

2020

Oslo

Værdal

100%

50%

25%

15,603

2,823

3,425

1,053

14,813

2,493

2,637

843

23,006

20,893

1) Group contribution in 2021 of NOK 790 million as capital contribution.

2) Group contribution in 2021 of NOK 80 million as capital contribution.

3) In 2021, a share capital increase of NOK 791 million was carried out through a non-cash contribution of the shares in Capital Investment.

4) Group contribution in 2021 of NOK 60 million as capital contribution.

5) Storebrand has conducted a strategic review of its ownership in AS Værdalsbruket, which was a wholly owned subsidiary of Storebrand, and was owned 74.9% by Storebrand Livsforsikring

AS and 25.1% by Storebrand ASA. AS Værdalsbruket is Norway’s second largest private forest owning company located in Trøndelag country. The company owns significant limestone resour-

ces, provides nature tourism experiences and is part owner of Inntre Holding AS, a large exporter of building timber.

During the second quarter Storebrand has sold AS Værdalsbruket. The sale has contributed to the accounts with a net gain of NOK 202 million for Storebrand ASA, including in line Other

financial income in Income statement.

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

Fair value

2021

Fair value

2021

4 811

0,6

1,25 %

2020

4 894

0,3

0,67 %

For individual fixed-interest securities, the effective rate is calculated based on the fair value (market value) of the security. The avera-
ge effective interest rate for total holdings is calculated using the individual security’s share of fair value as a weighting.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix

Note 11: Financial risks

CREDIT RISK BY COUNTERPARTY

Bonds and other fixed-income securities at fair value

Category of issuer or guarantor

NOK million

Fair value

AAA

BBB

Not rated

Fair value

State and state guaranteed

Company bonds

Covered bonds

1,013

Supranational organisations

439

1,506

1,494

Other

Total 2021

Total 2020

COUNTERPARTIES

NOK million

Bank deposits

134

439

573

721

2,193

2,199

1,984

526

530

693

AAA

Fair value

Total

Fair value

2021

194

4,171

439

4,811

2020

261

4,353

278

4,894

Total

Fair value

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.

Liquidity risk

UNDISCOUNTED CASH FLOWS FOR FINANCIAL LIABILITIES

NOK million

Securities issued/bank loans

Total financial liabilities 2021

Total financial liabilities 2020

0-6

months

7-12

months

508

2-3

years

516

4-5

years

505

510

Total

value

1,031

1,042

Carrying

amount

1,001

Storebrand ASA had as per 31 December 2021 liquid assets of NOK 4,8 billion.

Currency risk
Storebrand ASA has investments of SEK 51 million.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 12: Tangible fixed assets

EQUIPMENT, FIXTURES & FITTINGS

NOK million

Acquisition cost 01.01

Accumulated depreciation

Carrying amount 01.01

Additions

Disposals

Carrying amount 31.12

Property, plant and equipment mainly includes art that is not depreciated.

Note 13: Securities issued

2021

2020

-7

-1

NOK million

Bond loan 2020/2025

Bond loan 2017/2022

Total bond and bank loans 1)

Interest rate

Currency

Variable

NOK

Net nominal

value

500

2021

500

501

1,001

2020

500

501

1,001

1) 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 2025.

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. Appendix

Note 14: Shareholders

THE 20 LARGEST SHAREHOLDERS

Folketrygdfondet

Allianz Global Investors

T Rowe Price Global Investments

EQT Fund Management

Alfred Berg

KLP

Vanguard Group

Handelsbanken Asset Management

DNB Asset Management

Storebrand Asset Management

Danske Bank Asset Management

HSBC Trinkaus & Burkhardt

OM Holding AS

BlackRock

Nordea Asset Management

M&G Investments

Solbakken AS

Lannebo Fonder

BMO Global Asset Management (UK)

SSGA

Foreign ownership of total shares

Ownership

interest in %

10.9

7.0

5.9

3.9

3.5

3.1

2.7

2.1

2.0

1.9

1.8

1.6

1.5

1.4

1.1

1.0

51%

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate governance9. Sustainability Assurance10. AppendixNote 15: 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 2)

Board of Directors

Didrik Munch

Martin Skancke

Karin Bing Orgland

Christel Elise Borge

Karl Sandlund

Marianne Bergmann Røren

Frode Åtting

Bodil Catherine Valvik

Hans-Petter Salvesen

Hanne Seim Grave

Number of

shares 1)

221,242

140,384

100,770

110,379

99,083

120,176

29,551

24,848

29,538

24,695

255,000

30,000

27,000

7,000

5,000

18 500 000

325

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.

2) Resigned from his position on 31 December 2021. Since Løken will commence in a different position outside of the Storebrand Group, he will not receive severance pay.

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 16: Number of employees/person-years

Number of employees

Number of full time equivalent positions

Average number of employees

196

2021

4,542

-108

4,542

1,193

2021

2020

3,028

-47

3,139

910

2020

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate 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 2021 financial year and as at 31 December 2021 (2021
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 Norwegian
Accounting Act that must be applied as at 31 December 2021. 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 2021.

In the best judgment of the Board and the CEO, the annual financial statements for 2021 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 2021. 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, 8 February 2022
Board of Directors of Storebrand ASA

Didrik Munch (sign.)

Board chair

Karin Bing Orgland (sign.)

Martin Skancke (sign.)

Marianne Bergmann Røren (sign.)

Christel Elise Borge (sign.)

Karl Sandlund (sign.)

Fredrik Åtting (sign.)

Hanne Seim Grave (sign.)

Hans-Petter Salvesen (sign.) Bodil Catherine Valvik (sign.)

Odd Arild Grefstad (sign.)
Chief Executive Officer

197

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 92Statement of total comprehensive income 93Statement of Financial Position 94Statement of changes in equity 96Statement of cash flow 97Notes 99Storebrand ASAIncome statement 180Statement of total comprehensive income 180Statement of Financial Position 181Statement of changes in equity 182Statement of cash flow 183Notes 184Declaration by member of the Board and the CEO 197Independent auditor’s report 1988. Corporate 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 2021, the income statement,
statement of total 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, and

• The consolidated financial statements of Storebrand ASA and its subsidiaries (the Group),
which comprise the statement of financial position as at 31 December 2021, the income
statement, statement of total 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 comply with applicable statutory requirements,

the financial statements give a true and fair view of the financial position of the Company as at
31 December 2021, 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, and

the financial statements give a true and fair view of the financial position of the Group as at 31
December 2021, 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.

Our opinion is consistent with our additional report to the Audit Committee.

Basis for Opinion

We conducted our audit in accordance with 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 the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International

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Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.

To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.

We have been the auditor of the Company for 4 years from the election by the general meeting of the
shareholders on 11 April 2018 for the accounting year 2018.

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 2021 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 39 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

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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, 13 and 34 in the
financial statements for management’s
further description of investment
properties, the methods used and the
assumptions the valuations are based on.

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.

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 challenged
the management and external valuers on the possible
effects from climate risk in setting fair value. We
assessed the explanations reasonable.

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.

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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
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.

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 13 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 27
uncertain tax positions have occurred as

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

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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.

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.

Other Information

The Board of Directors and the Managing Director (management) are responsible for the information
in the Board of Directors’ report. The other information comprises information in the annual report,
but does not include the financial statements and our auditor’s report thereon. Our opinion on the
financial statements does not cover the information in the Board of Directors’ report.

In connection with our audit of the financial statements, our responsibility is to read the Board of
Directors’ report. The purpose is to consider if there is material inconsistency between the Board of
Directors’ report and the financial statements or our knowledge obtained in the audit, or whether the
Board of Directors’ report otherwise appears to be materially misstated. We are required to report if
there is a material misstatement in the Board of Directors’ report. We have nothing to report in this
regard.

Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report

•

is consistent with the financial statements and

contains the information required by applicable legal requirements.

Our opinion on the Board of Director’s report applies correspondingly to the statements on Corporate
Governance and Corporate Social Responsibility.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation of financial statements that give a true and fair view 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 and using 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.

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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 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 ISAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:

•

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.

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We also provide the Audit Committee 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.

Report on Other Legal and Regulatory Requirements

Report on compliance with Regulation on European Single Electronic Format
(ESEF)

Opinion
We have performed an assurance engagement to obtain reasonable assurance that the financial
statements with file name storebrandasa-2021-12-31-nb.zip have been prepared in accordance with
Section 5-5 of the Norwegian Securities Trading Act (Verdipapirhandelloven) and the accompanying
Regulation on European Single Electronic Format (ESEF).

In our opinion, the financial statements have been prepared, in all material respects, in accordance
with the requirements of ESEF.

Management’s Responsibilities
Management is responsible for preparing, tagging and publishing the financial statements in the single
electronic reporting format required in ESEF. This responsibility comprises an adequate process and
the internal control procedures which management determines is necessary for the preparation,
tagging and publication of the financial statements.

Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the
ESEF reporting, see: https://revisorforeningen.no/revisjonsberetninger

Oslo, 8 February 2022
PricewaterhouseCoopers AS

Thomas Steffensen
State Authorised Public Accountant

Note: This translation from Norwegian has been prepared for information purposes only.

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Corporate
governance

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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 can be found on page 19.

Storebrand complies with the Code of Practice without significant
deviations - with the exception of a minor deviation in section 3
below on Board authorisations to make capital increases and to
purchase own shares. The discrepancy relates to the fact that it was
not facilitated for the general meeting to vote separately on each
individual purpose to which the board authorisations apply.

Statement in line with the Norwegian Code of Practice for
Corporate Governance (NUES) of 17 October 2018

The statement below describes how Storebrand complies with the
15 sections of the NUES Code of Practice.

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 on page 46.

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 shareholders.

is to deliver profitable growth within
Storebrand’s strategy
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 Director’s 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.

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• We base our business activities on the UN Sustainable

Development Goals (SDGs).

• We help our customers to live more sustainably through the

products and services we offer.
• 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 work with our customers, suppliers, authorities and
partners to achieve the UN Sustainable Development Goals.
• We are transparent about our work on sustainability and the

results we achieve.

The Board of Directors adopts Storebrand’ s overall goals for
the work on sustainability, which is in line with these principles.
Executive management is responsible for realising the strategic
goals. An overall strategic goal in 2021 has been to strengthen
sustainability as a competitive advantage. This goal has underlying
targets related to our own operations, our products and our
external communications. The targets are reviewed by Executive
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. On page
26, 33, 44 and 71, 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 2021. Read more about Storebrands dividend policy on page 54.

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 2021 Annual General Meeting, the Board was granted
authorization to increase the share capital through issuing new
shares for a total maximum value of NOK 233,906,990. This
authorisation 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 authorisation may be used
for one or more new issues. This authorisation 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 233,906,990. 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.

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 authorisations
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
authorisations.

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close associatess (no deviation from the code of practice)
Storebrand ASA has only one class of shares. There are no special
ownership and voting restrictions beyond the restrictions imposed
by the Act on Financial Undertakings and Financial Groups Through
their work, the board and management of Storebrand place great
emphasis on equal treatment of the shareholders.

The general competence rules for board members and executive
personnel may be found in the rules of procedure for the Board of
Storebrand ASA, rules of procedure for the boards of subsidiaries,
instructions for the CEO, guidelines for conflicts of interest and
Storebrand’s code of ethics. Board members must inform the
company if they have direct or indirect material interests in an
agreement concluded by one of the companies in the Storebrand
Group. The Board shall ensure that an independent third party
assesses the value of transactions that are not insubstantial in
nature. Furthermore, the rules of procedure for the Board stipulate
that no board member may participate in discussions or a decision
concerning matters that are of such material importance to them
or a close associate that the member must be regarded as having
a conspicuous personal or special financial interest in the matter.
Each board member has a responsibility to continuously assess
whether or not such a situation exists.

Transactions with close associates involving Storebrand’s employees
and other officers of the Group are regulated by Storebrand’s code
of ethics. Employees shall on their own initiative immediately report
conflicts of interest that may arise to their immediate superior
as soon as they become aware of such a situation. In general, an
employee is defined as disqualified if circumstances exist that could
result in others questioning the person’s impartiality in relation to
matters other than Storebrand’s interests.

In the event of capital increases in accordance with the authorisation
set out in Item 3 above, the Board may decide that the shareholders’
preferential rights shall be waived.

For a complete account of shareholder matters, see page 87 above.

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 18th April 2021. 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.

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 Board Chair, 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 Chair. The Board
of Directors endorses an independent chairman of the meeting,
elected by the General Meeting.

The General Meeting shall:

•

•
•

•

•
•

consider the annual accounts, consisting of the income
statement, the balance sheet and the annual report,
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 Chair of the Nomination Committee, elect
members to the Board of Directors, and this should include the
Board Chair,
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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Decisions are generally made on the basis of an ordinary majority.
Pursuant to Norwegian
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)
The Nomination Committee of Storebrand ASA is statutory and
consists of a minimum of 3 and a maximum of 5 members. For
the election period 2021-2022, the nomination committee has
consisted of five members.

The Chair of the Nomination Committee and the other members
are elected annually by the General Meeting.

The majority of the nomination committee is independent of the
board and the administration. The committee is put together with
a view to safeguarding the interests of the shareholder community.
The general meeting’s instructions to the nomination committee
include provisions on rotation for members of the nomination
committee.

The articles of association stipulate that the nomination committee
shall follow instructions laid down by the general meeting in its
work. The nomination committee’s instructions were most recently
revised at the annual general meeting in the spring of 2019. In
accordance with the instructions, the nomination committee
shall pay attention to, among other things, the following factors
in the preparation of its settings of candidates for the company’s
Board of Directors: competence, experience, capacity, gender
distribution, independence and consideration for the interests of
the shareholder community. More information about the members
is posted on Storebrand’s website. The Nomination Committee
annually attributes the company’s 30 largest shareholders with a
call to come forward with proposals for candidates for the Board
of Directors and the Nomination Committee. A similar call to
shareholders has been made on the company’s website.

The nomination committee’s mandate in accordance with the
company’s articles of association is to propose candidates and
remuneration to the board and the nomination committee, through
settings to the general meeting.

The remuneration of the members of the nomination committee
has been sought adapted to the nature of the work and the time
spent in the committee work. The Nomination Committee held 14
meetings in 2021.

8. Composition and independence of the Board (No deviations
from the Code of Practice)
The Articles of association stipulate that between five and seven
Board members are elected by the General Meeting at the
recommendation of the Nomination Committee. The Board Chair is
elected separately by the General Meeting.

Two members, or three members if the General Meeting elects six
or seven Board members, are elected by and among the employees.
Members of the Board 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 2021, the Board consisted of 10 members (five men
and five women).

None of the Board 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 on page 230 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 during 2021). 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 of 31 December 2021 is included in the notes to the financial
statements for Storebrand ASA (Information on related parties) on
page 193. None of the board members have held office for more
than ten years.

9. The work of the Board of Directors (no deviations from the
Code of Practice)
Duties of the Board of Directors
In 2021, 19 board meetings were held. Storebrand’s future strategic
direction 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 familiarize 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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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 Board Chair. 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 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 2021,
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 held four meetings during 2021.

The Board annually carries out an evaluation of its work and its
working method that provides the 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 Committees
The Board has established four subcommittees in the form of the
Compensation Committee, Audit Committee, Risk Committee and
Strategy Committees. 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 2021.

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 seven meetings in 2021, including one 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.

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 where it has operations that
require a licence, including the Financial Supervisory Authority of
Norway, as well as its own supervisory bodies and external auditor.

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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.

Storebrand’s independent control functions for risk management,
compliance, actuary professional and information security are
gathered
in a competence community, Governance Risk &
Compliance, led by the Group Chief Risk Officer (CRO) The CRO
reports directly to the CEO and the Board of Directors. The CRO
function is responsible for supporting the Board and Executive
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.

Financial information and Storebrand’s accounting process
Storebrand publishes four interim financial statements, 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.

11. Remuneration to the Board of Directors (no deviation
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

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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 inside information, see also section 10 -
Overall 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 Code of Practice)
The external auditor is elected by the General Meeting of Storebrand
ASA and conducts a financial audit. The external auditor issues an
auditor’s report in connection with the annual financial statement,
conducts limited audits of the interim accounts. The external
auditor attends board meetings where the quarterly accounts are
processed, and all meetings of the Audit Committee, unless the
items on the agenda do not require the presence of the auditor.
The external auditor shall rotate the responsible partner on the
audit assignment every seven years, and Storebrand shall carry out
tenders for the election of an auditing company 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.

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 Note 15 (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 Executive 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 Note 15 (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.

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As one of the largest owners in the Norwegian stock market,
Storebrand has a major potential influence on the development
of listed companies. Storebrand is committed to exercising its
ownership interest in listed companies on the basis of a set of
simple and uniform ownership principles, which place considerable
emphasis on sustainability. Storebrand uses the Norwegian code
of practice for corporate governance in its corporate governance
practice. Storebrand has had an administrative Corporate
Governance Committee since 2006. The committee helps ensure
good corporate governance across Storebrand.

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.

Storebrand Asset Management AS has held a Corporate Governance
Committee for several years. The Committee has a mandate to set
a level of ambition and establish limits for active ownership. The
Committee shall coordinate Storebrand’s exercise 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.

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.

The provisions in the Articles of Association that regulate
the appointment and replacement of board members are
discussed in Item 8 above.

Further information on Storebrand’s corporate governance can
be found on the 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.

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.

9. Guidelines for gender equality and diversity, including goals,

implementation and effect.

Statement in accordance with Section 3-3b, second paragraph
of the Norwegian Accounting Act
A summary of the matters that Storebrand is to report on in
accordance with Section 3-3b, second paragraph of the Norwegian
Accounting Act follows below. The items follow the numbering used
in the provision.

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).

The Norwegian Code of Practice for Corporate Governance is
available at www.nues.no.

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Storebrand Group

STOREBRAND ASA

Storebrand Livsforsikring AS

Storebrand Holding AB

SPP Konsult AB

SPP Spar AB

SPP Pension & Försäkring AB

SPP Fastigheter AB

SPP Hyresförvaltning

Storebrand & SPP Business Services AB

Storebrand Eiendomsfond Invest AS

Storebrand Eiendom Trygg AS

Storebrand Eiendom Vekst AS

Storebrand Eiendom Utvikling AS

Storebrand Pensjonstjenester AS

Storebrand Infrastruktur AS

Norsk Pensjon AS

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

Capital Investment A/S CVR

CI AM Aps CVR

Storebrand Forsikring AS

Storebrand Facilities AS

Storebrand Helseforsikring AS

Organisation number

Ownership interest

916 300 484

958 995 369

556734-9815

556045-7581

556892-4830

556401-8599

556745-7428

556883-1340

556594-9517

995 871 424

876 734 702

916 268 416

990 653 402

931 936 492

991 853 545

890 050 212

953 299 216

990 645 515

930 208 868

556397-8922

556801-1802

867 462 732

989 580 353

556812-8184

32343775

37939374

930 553 506

924 353 554

980 126 196

100.0 %

25.0 %

100.0 %

100.0%

100.0 %

50.0 %

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Sustainability
Assurance

216 TCFD-index

220 GRI-index

226 Auditor’s Statement

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72 and 74

TCFD-index

TCFD-recommended disclosures

Governance

Disclose Storebrand’s governance around climate-related risks and opportunities.

Describe the Board’s oversight
of climate-related risks and
opportunities.

Describe the management’s role in
assessing and managing climate-
related risks and opportunities.

- Storebrand assesses climate risk in the same framework as
other business risks. The overall risk, including climate risk, is
summarised in the Risk Review in Executive management and
the Board twice a year. Climate risk is also assessed in the annual
ORSA (Own Risk and Solvency) report which is adopted by the
Board of Directors and submitted to the Financial Supervisory
Authority.

- Sustainability, hereunder climate risk, is part of the Board’s risk

discussions and strategy agenda.
“Setting the agenda for sustainable finance” is one of the CEOs
Must Win Battles, and status and progress on selected ESG
(hereunder climate) KPIs are reported to the Board regularly. The
EVP sustainability reports on ESG related risks and opportunities
to the Board twice a year.

- All subsidiaries are expected to perform a climate risk
assessment that is included in the group’s climate risk analysis.
- Management includes transition risks in strategic planning,
especially in our role as asset owners and asset managers.
- Physical risks, with a specific focus on extreme weather
insurance

important for our property and

is particularly
subsidiaries.

- Storebrands CEO has appointed an EVP of sustainability that is

part of the executive management team.

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Strategy

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.

Describe the climate-related risks
and opportunities Storebrand
has identified over the short,
medium and long term.

- Storebrand’s climate risk assessment is based on the following

74-84

risk formulations:

- Reduced return on investment (as a result of climate change or

the transition to low emissions).

- Declining demand for our products (due to market changes
as a result of climate change or the transition to a low carbon
economy).
Increased costs, higher compensations/losses or increased
requirements for reserves (as a result of climate change or the
transition to low emissions).

- Missed opportunities from the lack of, or too late climate

adaptation.

- Non-compliance with new regulations climate adaptation or

reporting.

- Not reaching our own climate adaptation targets, or our
to zero-emission

(in relation

ambitions are
commitments or customer expectations).

insufficient

- Some of these risk formulations can also materialise as

opportunities:

Increased return on investment (as a result of climate change or
the transition to low emissions) due to our investment strategies.
Increasing demand for our products (as a result of market
changes caused by climate change or the transition to a low
carbon economy) due to successful strategies.

- Reduced costs, lower compensations/losses than our peers (as
a result of climate change or the transition to low emissions).
- Best in class compliance with new regulations climate adaptation

or reporting.

- Reaching our own climate adaptation targets and having a
sufficient level on our ambitions (in relation to zero-emission
commitments or customer expectations).

Describe the impact of climate-
related risks and opportunities on
Storebrand’s businesses, strategy,
and financial planning.

- Business strategy is influenced to a large degree by transition
risks, as can be seen through our climate strategy for investments,
our exclusions and our tilt towards solution companies.

- Business strategy is influenced by reputational risks related to

14-15, 62-70,
74-83, 85

customer as well as regulators expectations.

- All the executive vice presidents at Storebrand have appointed
a strategic and operational sustainability general to ensure
that sustainability is well integrated into the strategy processes
and followed up during the year in executive management
meetings. Moreover, the CEO is followed up by the board on the
sustainability KPIs he is responsible for.

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Describe the resilience of
Storebrand’s strategy, taking into
consideration different climate-
related scenarios, including a 2°C
or lower scenario.

- By aligning our analysis to the NGFS climate scenarios, we are
able to evaluate the robustness of our business strategies and
investment strategies across different climate-related scenarios,
including a 2 °C or lower scenario. We have a strategic ambition
to contribute to the achievement of the 1,5 degree target.

- We have set a target to have a carbon neutral investment
portfolio by 2050 at the latest, and intermediate targets for 2025.
In our intermediate reporting we are in line with this trajectory.

14-15, 62-70,
74-83

Risk Management

Disclose how Storebrand identifies, assesses and manages climate-related risks.

Describe Storebrand’s processes
for identifying and assessing
climate-related risks.

Describe Storebrand’s processes
for managing climate-related risks.

- Climate risk is an integrated part of the Group’s enterprise risk

72 and 74-83

assessment.

- Storebrand assesses climate risk in the same framework as
other business risks. The overall risk, including climate risk, is
summarized in the Risk Review in Executive management and
the Board twice a year. Climate risk is also assessed in the annual
ORSA (Own Risk and Solvency) report which is adopted by the
Board of Directors and submitted to the Financial Supervisory
Authority of Norway.

- A climate risk assessment is conducted on a group level, and for

each of the subsidiaries/business areas within the group.

- We track and assess exposure to sectors with significant climate

and sustainability risks.

- We conduct physical climate risk assessments for our property

portfolio on a property level.

For investments, we analyse all companies in our investment
universe using our in-house sustainability rating, including
climate risks.

- We track our exposure to fossil fuels, high emitting sectors and
assess our 20 top emitting companies. We engage in one to one
dialog with the top emitters.
For property investments, we utilize sustainability due diligence
to support pre investment decisions, and an active ownership
post-investment process to align portfolios to the 1.5 degree
target, through surveys and action plans at asset level.

- We integrate climate factors in risk assessment and pricing in the
insurance underwriting process. We improve risk assessment
by analysing for extreme precipitation and flooding in different
areas. At the same time, we provide a higher price for insurance
of buildings with basements in risk areas.

74-83

Describe how processes for
identifying, assessing, and
managing climate-related risks are
integrated into the organisation’s
overall risk management.

- Our processes are described in the chapters Risk and Climate

57, 72, 74-83

risk and opportunities of this report.

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Disclose the metrics and targets used to assess and manage relevant climate-related risks

and opportunities where such information is material.

Disclose the metrics used by
Storebrand to assess climate-
related risks and opportunities
in line with its strategy and risk
management process.

40, 44, 62-70,
74-83

- Carbon footprint

investments: 12 tonnes CO2
equivalents per NOK/SEK 1 million in sales income (compared
to 18 index).

in equity

- Carbon footprint in bond investments: 9 tonnes CO2 equivalents
per NOK/SEK 1 million in sales income (compared to 17 index).
- Carbon intensity in real estate investments (scope 1-3 (kg/m2)):

5.91.

- Exposure to high emitting sectors: NOK 42,5 billion / 9 per cent

of total equity investments

- Number of active company engagements related to climate and

environmental-related risks and opportunities: 318.

- Number of companies that have been excluded due to severe

climate and environmental damage: 176.

Disclose Scope 1, Scope 2 and
Scope 3 GHG emissions, and the
related risks.

- All our greenhouse gas emissions are reported in the chapters
Keeping our house in order, A driving force for sustainable investment,
and in the appendices Sustainability indicators and definitions and
Carbon Accounting Report.

44, 71, 85

Disclose the targets used by
Storebrand to manage climate-
related risks and opportunities and
performance against targets.

- Targets for each asset class are described in the chapters
Keeping our house in order and the Director’s report.

40, 44, 71,
74-83, 85

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An index of the GRI indicators we are reporting on and where the report contains information about the indicators
follows below.

GRI-ref.

Title

Account

Chapter

Section

Reporting

Full

Partial

Full

Organisation profile

102-1

The name of the organisation

Storebrand ASA

GRI-index

Activities, brands,
products and services

This is Storebrand

Our driving force

The location of the head
office

Professor Kohts vei 9, Lysaker,
Oslo, Norway

GRI-index

102-2

102-3

102-4

The places where your
organisation operates

102-5

Ownership and legal form

This is Storebrand

Our driving force

This is Storebrand;
Director’s report

Organisation;
Companies in the
Storebrand Group

102-6

The markets covered

This is Storebrand

Our driving force

102-7

The size of the organisation

This is Storebrand

Our driving force

102-8

Information about employees
and other workers

102-9

Supply chain

102-10

Significant changes in the
organisation and supply
chain

102-11

Precautionary principle or
approach

People

Key performance
indicators

Director's report

The Group’s results 2021

People

Engaged, competent and
courageous employees

Key performance
indicators

Keeping our house in
order

Sustainable practices
through our value chain

Foreword by our CEO

This is Storebrand;
Director’s report

Sustainability as a core
business;
Climate risks and
opportunities;
A driving force for
sustainable investments

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Title

Account

Chapter

Section

This is Storebrand;
Keeping our house in
order;
Director’s report

Sustainability as a core
business;
Corporate governance;
A driving force for
sustainable investments

Reporting

Full

102-12

External initiatives

102-13

Membership in organisations

CDP
Finance for Biodiversity Pledge
UN’s Sustainable Development
Goals United Nations
Convention Against Corruption
Universal Declaration of Human
Rights
UN Environmental Conventions
UN Women’s Empowerment
Principles
UN Principles for Responsible
Business Conduct
UN Treaty on Plastic Pollution
Global Real Estate Sustainability
Benchmark (GRESB)
Global Reporting Initiative
Global 100
ILO Conventions
Montreal Pledge
Paris-Agreement 2015
Platform for Living Wages
Financials
Investor Alliance on Human
rights
Portfolio Decarbonisation
Coalition
Task Force on Climate-related
Financial Disclosures (TCFD)
Taskforce on Nature-related
Financial Disclosures (TNFD)
Tobacco-Free Portfolios

Accounting for Sustainability
Investor group under UNEP FI
working with TCFD
Climate Action 100+
Net-Zero Asset Owner Alliance
Net-Zero Asset Manager Alliance
Nordic CEOs for a Sustainable
Future NORSIF
PRI Investor Commitment to
Support a Skift – Næringslivets
klimaledere
Just Transition on Climate
Change
UN Global Compact
UNEP Finance Initiative
UN Principles for Responsible
Investment
UN Principles for Sustainable
Insurance

This is Storebrand;
Director’s report

Full

Sustainability as a core
business;
Climate risks and
opportunities;
A driving force for
sustainable investments

Strategy

102-14

Opinion from the chief
decision-maker

Ethics and integrity

102-16

Values, standards, principles
and norms

Foreword by our CEO

Full

This is Storebrand;
Keeping our house in
order;
Director’s report

Sustainability as a core
business;
Corporate governance;

Full

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Title

Management

102-18

Governance structure

Account

Chapter

Section

Reporting

This is Storebrand;
Director’s report

Organisation; Group
Executive Management;
Board of Directors and
Committees;
Risk;
Corporate governance

Stakeholder engagement

102-40

List of stakeholder groups

This is Storebrand

Material issues

102-41

102-42

Collective bargaining
agreements

100 % in Norway and 100 % in
Sweden

GRI-index

Identification and selection of
stakeholders

This is Storebrand

Material issues

102-43

Approach to stakeholders

This is Storebrand

Material issues

102-44

Important topics and
questions that have been
addressed

Reporting practices

102-45

Entities covered by the
organisation’s consolidated
financial statements

102-46

Defining report content and
topic boundaries

This is Storebrand;
all chapters

Material issues; “Why”
paragraphs in the
beginning of each section

Director's report

The Group’s results 2021

Full

This is Storebrand

Material issues

102-47

List of material topics

This is Storebrand

Material issues

102-48

Restatements of information

102-49

Changes in reporting

No significant changes

102-50

Reporting period

102-51

Date of previous report

January 1, 2021 – December 31,
2021

January 1, 2020 – December 31,
2020

102-52

Reporting frequency

Annually

102-53

Contact

https://www.storebrand.no/en/
investor-relations

Keeping our house in
order;
Director’s report

Key performance
indicators

GRI-index

102-54

Reporting in accordance with
GRI standards

This is Storebrand

Material issues

102-55

GRI-index

This table is the GRI-index.

GRI-index

102-56

External verification

Appears in the auditor’s
statement

Competitive long-term return to shareholders and customers

103-1

Explanation of the material
topic and its boundary

This is Storebrand;
Director’s report;
Customer relations

103-2

The management approach
and its components

Director’s report

Risk;
Climate risks and
opportunities;
A driving force for
sustainable investments;
Strategy 2021-2023:
“Leading the way in
Sustainable Value
Creation”

Corporate governance;
A driving force for
sustainable investments;
Strategy 2021-2023:
“Leading the way in
Sustainable Value
Creation”

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Title

Account

Chapter

Section

103-3

Evaluation of management’s
approach

201-1

201-2

Direct financial value
generated and distributed

Financial implications and
other risks and opportunities
resulting from climate
change

Corporate governance and compliance

103-1

Explanation of the material
topic and its boundary

Director’s report

Keeping our house in
order

103-2

The management approach
and its components

Keeping our house in
order

103-3

Evaluation of management’s
approach

Keeping our house in
order

Corporate governance;
Strategy 2021-2023:
“Leading the way in
Sustainable Value
Creation”

Strategic highlights 2021;
The Group’s results 2021

Climate risks and
opportunities;
A driving force for
sustainable investments;

Privacy and digital trust;
Countering corruption;
Information security;
Anti-money laundering
and terror financing

Countering corruption;
Key performance
indicators

Privacy and digital trust;
Countering corruption;
Key performance
indicators

Responsible resource
use;
Sustainable practices
through our value chain;
A driving force for
sustainable investments;
Climate risks and
opportunities

Responsible resource
use;
A driving force for
sustainable investments;
Climate risks and
opportunities

Key performance
indicators

Reporting

Full

Partial

Full

Keeping our house in
order

Keeping our house in
order;
Director’s report

Key performance
indicators

223

205-2

418-1

Communication and training
on policies and procedures
for combating corruption

Documented complaints
about privacy violations and
loss of customer data

Responsible resource use

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

305-4

The intensity of greenhouse
gas emissions

305-5

Reduction in greenhouse gas
emissions

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Title

Account

Chapter

Section

Reporting

Diversity and equal opportunities

103-1

103-2

103-3

405-1

405-2

Explanation of the material
topic and its boundary

The management approach
and its components

Evaluation of management’s
approach

Diversity in governing bodies
and among employees

Ratio of basic salary and
remuneration of women to
men

Assessing human rights

103-1

103-2

103-3

412-3

Explanation of the material
topic and its boundary

The management approach
and its components

Evaluation of management’s
approach

Significant investment
agreements and contracts
that include human
rights provisions or have
undergone human rights
screening

Corporate social responsibility

103-1

Explanation of the material
topic and its boundary

People

Diversity and equal
opportunities

Key performance
indicators

Director's report

A driving force for
sustainable investments

Keeping our house in
order

Countering corruption;
Anti-money laundering
and terror financing;
Coporate social
responsibility

Full

103-2

The management approach
and its components

Keeping our house in
order

103-3

Evaluation of management’s
approach

Keeping our house in
order

415-1

Political contributions

We do not make contributions
to political parties.

GRI-index

Simple and seamless customer experiences

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

Customer relations;
Keeping our house in
order

Greater security and
financial wellness;
Privacy and digital trust;
Digital innovator in
financial services

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Title

Account

Chapter

Section

417-2

Cases of non-compliance
with information and labelling
of products and services

Customer relations;
Keeping our house in
order

417-3

Cases of non-compliance
with market communication
requirements

Engaging, relevant and responsible advisory services

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

418-1

Documented complaints
about privacy violations and
loss of customer data

Active ownership

103-1

103-2

103-3

FS10

FS11

Explanation of the material
topic and its boundary

The management approach
and its components

Evaluation of management’s
approach

Percentage and number
of companies held in
the institution’s portfolio
with which the reporting
organisation has interacted
on environmental or social
issues.

Percentage of assets
exposed to
positive and negative
environmental
or social screening

Customer relations;
Keeping our house in
order

Director's report

Director’s report

Greater security and
financial wellness;
Privacy and digital trust;
Digital innovator in
financial services;
Key performance
indicators

Privacy and digital trust;
Digital innovator in
financial services;
Key performance
indicators

Greater security and
financial wellness;
Privacy and digital trust;
Digital innovator in
financial services

Greater security and
financial wellness;
Privacy and digital trust;
Digital innovator in
financial services;
Key performance
indicators

A driving force for
sustainable investments

A driving force for
sustainable investments;
Key performance
indicators

Reporting

Partial

Full

Director’s report

A driving force for
sustainable investments;
Key performance
indicators

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To the Board of Directors in Storebrand ASA

To the Board of Directors in Storebrand ASA
Independent statement regarding Storebrand's sustainability reporting

Independent statement regarding Storebrand's sustainability reporting
We have examined whether Storebrand ASA has prepared a GRI Index for 2021 and measurements
and reporting of key performance indicators for sustainability (sustainability reporting) for the year
We have examined whether Storebrand ASA has prepared a GRI Index for 2021 and measurements
ending 31 December 2021.
and reporting of key performance indicators for sustainability (sustainability reporting) for the year
ending 31 December 2021.
Storebrand's GRI index for 2021 is an overview of which sustainability topics Storebrand
considers material to its business and which key performance indicators Storebrand uses to
measure and report its sustainability performance, together with a reference to where material
Storebrand's GRI index for 2021 is an overview of which sustainability topics Storebrand
sustainability information is reported. Storebrand’s GRI Index for 2021 is available and included
considers material to its business and which key performance indicators Storebrand uses to
measure and report its sustainability performance, together with a reference to where material
in Storebrand’s annual report for the period ending 31 December 2021. We have examined
whether Storebrand has developed a GRI Index for 2021 and whether mandatory disclosures are
sustainability information is reported. Storebrand’s GRI Index for 2021 is available and included
presented according to the Standards published by the Global Reporting Initiative
in Storebrand’s annual report for the period ending 31 December 2021. We have examined
whether Storebrand has developed a GRI Index for 2021 and whether mandatory disclosures are
(www.globalreporting.org/standards) (criteria).
presented according to the Standards published by the Global Reporting Initiative
(www.globalreporting.org/standards) (criteria).
Key performance indicators for sustainability are tables that show indicators of sustainability that
Storebrand measure and control. The tables are available and included in Storebrand’s annual
Key performance indicators for sustainability are tables that show indicators of sustainability that
report for the period ending 31 December 2021, specifically at the end of each of the chapters "A
Storebrand measure and control. The tables are available and included in Storebrand’s annual
driving force for sustainable investments", "Customer relations", "People" and "Order in one's
own house". The various tables are also available in the summary overview «Sustainability
report for the period ending 31 December 2021, specifically at the end of each of the chapters "A
indicators and definitions» which is an appendix to the annual report. Storebrand has defined the
driving force for sustainable investments", "Customer relations", "People" and "Order in one's
own house". The various tables are also available in the summary overview «Sustainability
key figures and explained how they are measured in notes to the tables that are available and
indicators and definitions» which is an appendix to the annual report. Storebrand has defined the
included in the appendix to the annual report (criteria). We have examined the basis for the
key figures and explained how they are measured in notes to the tables that are available and
measurements and checked the calculations of the measurements.
included in the appendix to the annual report (criteria). We have examined the basis for the
measurements and checked the calculations of the measurements.

Management's responsibility

Management's responsibility
Management is responsible for Storebrand’s sustainability reporting and for ensuring that it is
prepared in accordance with criteria as described above. The responsibility includes designing,
Management is responsible for Storebrand’s sustainability reporting and for ensuring that it is
implementing and maintaining an internal control that ensures the development and reporting of the
prepared in accordance with criteria as described above. The responsibility includes designing,
GRI Index and key performance indicators for sustainability.
implementing and maintaining an internal control that ensures the development and reporting of the
GRI Index and key performance indicators for sustainability.
Our independence and quality control

Our independence and quality control
We are independent of the company in accordance with the law and regulations and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
We are independent of the company in accordance with the law and regulations and the International
(including International Independence Standards) (IESBA Code), and we have fulfilled our ethical
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
obligations in accordance with these requirements. We use ISQC 1 - Quality control for audit firms that
(including International Independence Standards) (IESBA Code), and we have fulfilled our ethical
perform audits and simplified audit of accounts as well as other certification assignments and related
obligations in accordance with these requirements. We use ISQC 1 - Quality control for audit firms that
services and maintain a comprehensive system of quality control including documented guidelines and
perform audits and simplified audit of accounts as well as other certification assignments and related
procedures regarding compliance with ethical requirements, professional standards and applicable
services and maintain a comprehensive system of quality control including documented guidelines and
legal and regulatory claim.
procedures regarding compliance with ethical requirements, professional standards and applicable
legal and regulatory claim.
Auditor's tasks and duties

Auditor's tasks and duties
Our task is to express a limited assurance conclusion on Storebrand’s sustainability reporting based on
our control. We have performed our checks and issue our opinion in accordance with the Standard on
Our task is to express a limited assurance conclusion on Storebrand’s sustainability reporting based on
our control. We have performed our checks and issue our opinion in accordance with the Standard on

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T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
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Assurance Engagements ISAE 3000: “Assurance engagements other than audits or review of historical
financial information". A limited assurance engagement is substantially less in scope than a reasonable
assurance engagement in relation to both the risk assessment procedures, including an understanding
of internal control, and the procedures performed in response to the assessed risks.

Our work involves performing actions to obtain evidence that Storebrand's GRI Index for 2021 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 explained in
relation to each individual table of key performance indicators. The procedures selected depend on our
judgment, including assessments of the risks that the sustainability reporting contains material
misstatement, whether due to fraud or error. In making those risk assessments, we take into account
the internal control that is relevant for the preparation of the sustainability reporting. The purpose is
to design control procedures that are appropriate in the circumstances, but not to express an opinion
on the effectiveness of internal control.

Our procedures include an assessment of whether the criteria used are appropriate, as well as an
assessment of the overall presentation of the sustainability reporting. Our procedures include
meetings with representatives from Storebrand who are responsible for the material sustainability
topics covered by the sustainability reporting; review of internal control and routines for reporting key
performance indicators for sustainability; obtaining and reviewing relevant information that supports
the preparation of key performance indicators for sustainability; assessment of completeness and
accuracy of the sustainability reporting; and controlling the calculations of key performance indicators
for sustainability based on an assessment of the risk of error.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.

Conclusion

Based on the procedures we have performed and the evidence we have obtained, nothing has come to
our attention that causes us to believe that

Storebrand’s GRI Index for 2021 is not, in all material respects, developed and presented in
accordance with the requirements of the Standards published by The Global Reporting Initiative;

Storebrand’s key performance indicators are not, in all material aspects, developed, measured and
reported in accordance with the definitions and explanations provided in relation to each table
containing the key performance indicators.

Oslo, 8 February 2022
PricewaterhouseCoopers AS

Thomas Steffensen
State Authorized Public Accountant

(This translation from Norwegian has been made for information purposes only)

(2)

227

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Appendix

229 Executive management CVs

234 Board of Directors CVs

240 Sustainability indicators and definitions

247 Carbon Accounting

248 Taxonomy reporting

Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixExecutive management CVs 229Board of Directors CVs 234Sustainability indicators and definitions 240Carbon Accounting 247Taxonomy reporting 248Executive management CVs

Odd Arild Grefstad (1965)

Group Chief Executive Officer

Storebrand ASA

Education

State-Authorised Public Accountant

Authorised Financial Analyst (AFA)

Previous positions

Lars Aa. Løddesøl (1964)

Group Chief Financial Officer,

Storebrand ASA

Education

MSc in Economics and Business Administration, BI Norwegian Business School

MBA Thunderbird School of Global Management (AGSIM), USA

AMP, Columbia University, USA

Managing Director, Storebrand Livsforsikring (2011–2012)

Previous positions

Executive Vice President Finance and Legal, Storebrand ASA (2008–2011)

Executive Vice President, Life and Pensions Norway and Managing Director,

Executive Vice President Finance, Storebrand ASA (2002–2008)

Storebrand Livsforsikring AS (2008–2011)

Manager of the Group Controller Unit, Storebrand ASA (1998–2002)

Executive Vice President, Corporate Market Life Insurance, Storebrand

Group Controller, Life Insurance, Storebrand ASA (1997–1998)

Livsforsikring AS (2004–2008)

Vice President, Internal Auditing, i Storebrand ASA (1994–1997)

CFO, Storebrand ASA (2001–2004)

External Auditing, Arthur Andersen & Co (1989–1994)

Vice President/Relationship Manager, Citibank International plc (1994–2001)

Asst. Treasurer, Scandinavian Airlines Systems (1990–1994)

Ownership in Storebrand

Number of shares as of 31.12.2021: 219 242

Ownership in Storebrand

Number of shares as of 31.12.2021: 140 384

229

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Executive Vice President,

Retail Market

Education

Staffan Hansén (1965)

Executive Vice President,

SPP

Education

MSc in Economics and Business Administration, University of Washington,

Licentiate Degree (Economics), Åbo Academy, Finland

Seattle, USA

Previous positions

PhD studies at the Finnish Doctoral Programme in Economics (FDPE)

Stockholm School of Economics

Lindorff Group AB, Executive Vice President, Scandinavia Region, Managing

Previous positions

Director of Lindorff AS in Norway (2008–2012)

Executive Vice President, SPP Livförsäkring AB (2013 to present)

Managing Director, IKANO Finans ASA (2001–2008)

CIO, Storebrand Livsforsikring AS (2011–2013)

Managerial positions at DNB ASA (1987–2000)

CIO, SPP Livförsäkring AB (2008–2011)

Financial Services Officer, Bank of America, San Francisco, USA (1986–1987)

Responsible for strategi allocation, SPP Livförsäkring AB (2006–2008)

Ownership in Storebrand

Handelsbanken (2003–2006)

Number of shares as of 31.12.2021: 110 379

Head of Fixed Income, Alfred Berg Finland (1996–2003)

Head of Government and Covered Bond trading, Svenska

Trainee, Pohjola Bank (OKOBANK) (1994–1996)

Eierforhold i Storebrand

Number of shares as of 31.12.2021: 99 083

230

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Executive Vice President,

Storebrand Asset Management

Geir Holmgren (1972)

Executive Vice President,

Corporate Market

Education

MSc in Engineering, Norwegian University of

Cand.scient. degree with actuarial qualifications, University of Oslo, Norway

Science and Technology (NTNU)

MBA INSEAD, France

MBA, Griffith University Brisbane, Australia

Previous positions

Executive Vice President, Guaranteed Pension, Storebrand ASA (2013–2015)

Investment Director, Storebrand Asset Management (2006–2015)

Manager Customer Service and Product, Storebrand Livsforsikring AS (2011–2012)

Senior Portfolio Manager, Storebrand Asset Management (1999–2006)

Product Manager, Storebrand Livsforsikring AS (2003–2011)

Sector Head Equities, Energy/Shipping, Handelsbanken Markets (1997–1999)

Product Manager Unit-linked Insurance, Storebrand Livsforsikring AS (2002–2003)

Partner, Marsoft Capital (1995–1997)

Product Manager, Defined Contribution Pensions, Storebrand Livsforsikring AS

Head of Research, Christiania Markets (now: Nordea Markets) (1992–1995)

(2000–2002)

Junior Consultant, McKinsey & Company (1990–1991)

Sales International Life Insurance, Storebrand Livsforsikring AS (1998–2000)

Ownership in Storebrand

Number of shares as of 31.12.2021: 120 176

Actuary Trainee, Storebrand Livsforsikring AS (1997–1998)

Teacher, University of Oslo (1995–1997)

Ownership in Storebrand

Number of shares as of 31.12.2021: 100 770

231

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Executive Vice President,

Corporate Market

Education

Cand.scient. degree with actuarial qualifications, University of Oslo, Norway

MBA, Griffith University Brisbane, Australia

Previous positions

Executive Vice President, Guaranteed Pension, Storebrand ASA (2013–2015)

Manager Customer Service and Product, Storebrand Livsforsikring AS (2011–2012)

Product Manager, Storebrand Livsforsikring AS (2003–2011)

Product Manager Unit-linked Insurance, Storebrand Livsforsikring AS (2002–2003)

Product Manager, Defined Contribution Pensions, Storebrand Livsforsikring AS

(2000–2002)

Sales International Life Insurance, Storebrand Livsforsikring AS (1998–2000)

Actuary Trainee, Storebrand Livsforsikring AS (1997–1998)

Teacher, University of Oslo (1995–1997)

Ownership in Storebrand

Number of shares as of 31.12.2021: 100 770

Karin Greve-Isdahl (1979)

Executive Vice President, Sustainability,

Communications and Industry Policy

Education

Master of International Relations, Bond University, Australia

Bachelor of Communications, Bond University, Australia

Previous positions

Vice President Communications, Opera Software (2014–2018)

Communications Director, SN Power (2009–2014)

Business Reporter, TV 2 (2008–2009)

TV Reporter, CNBC/FBC Media (2005–2008)

Researcher, CNBC Europe (2004–2005)

Ownership in Storebrand

Number of shares as of 31.12.2021: 29 551

Trygve Håkedal (1979)

Executive Vice President,

Technology

Education

Master of Science, Advanced Computing, Imperial College London, UK

Bachelor of Science, Computing Science, Newcastle University, UK

Previous positions

SVP IT Strategy & Architecture, Storebrand Group (2017–2020)

Chief Architect & Head of IT Strategy, Storebrand Group (2013–2015)

Enterprise Architect, Storebrand Group (2009–2013)

Analyst, Goldman Sachs (2008–2009)

Consultant, Accenture (2006–2008)

Project Test Manager, Opera Software (2003–2004)

Ownership in Storebrand

Number of shares as of 31.12.2021: 24 848

232

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Executive Vice President,

People

Education

Terje Løken (1975)

Executive Vice President,

Digital & Innovation

Education

Master in Law, University of Oslo, Norway

Master of Science, Computer Science, NTNU, Norway

Previous positions

HR Director, Storebrand Livsforsikring (2015–2020)

Chief Digital Officer (CDO), Storebrand Livsforsikring (2018-2020)

Group Director HR, Opera Software (2007–2015)

Head of Digital and Mobile IT, Storebrand Livsforsikring (2013-2017)

HR Director, Eltel Networks (2004–2007)

Chief Architect (CTO), Storebrand Livsforsikring (2009-2013)

HR Manager East Norway Region, Avinor (1997–2004)

Enterprise Architect, Storebrand Livsforsikring (2008-2009)

Legal Advisor, Aetat (1995–1997)

Technology Manager (previously Technical Lead, Sr. Software

Ownership in Storebrand

Number of shares as of 31.12.2021: 29 538

Engineer, Software Engineer), Fast Search & Transfer (2001-2008)

Computer Engineer, SINTEF Tele & Data (1999-2001)

Ownership in Storebrand

Number of shares as of 31.12.2021: 24 695

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Christel Elise Borge (1967)

Board Director,

Storebrand ASA since 2021

Position

CEO, Entur AS

Education

Master of Science, Computer Science, NTNU, Norway

MBA Programme INSEAD, Fontainebleau, France

Previous positions

Telenor ASA (2005-2020)

CEO, Dipper AS

Senior Vice President, Head of Group Strategy and CEO Office

Senior Vice President, Head of Group Strategy and Portfolio Development

Strategy Director, Telenor Nordics, Oslo

Strategy Advisor, Innovation AS (2002-2004)

Project Manager, Schibsted (2001)

Director, Cell Network AS (2000-2001)

Strategy Advisor, McKinsey & Company (1991-1999)

Ownership in Storebrand

Number of shares as of 31.12. 2021: 0

Didrik Munch (1956)

Board Chair,

Storebrand ASA since 2017

Position

Self-employed

Education

Norwegian Police University College

Master in Law

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 Chair, NWT Media AS

Board Director, Grieg Maritime Group AS

Board Director, Lerøy Seafood Group

Board Chair, SH Holding (Solstrand Fjord Hotell)

Ownership in Storebrand

Number of shares as of 31.12.2021: 40 000

Number of shares owned by the close associate: NWT Media AS: 215 000

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Board Director,

Storebrand ASA since 2015

Position

Self-employed

Education

Marianne Bergmann Røren (1968)

Board Director,

Storebrand ASA since 2020

Position

CEO, Mesta AS

Education

MSc Economics and Business Administration,

Norwegian School of Economics (NHH)

Master in Law, University of Oslo, Norway

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, Ministry of Trade and Shipping Handels og

skipsfartsdepartementet (1983–1985)

Danske Bank Corporate & Institutions (2007-2019):

Global Head of COO Office

Global Head of Risk

Global Head of AML Programme

COO and Deputy Country Manager

Chief Legal Adviser

Board Director and Chair of the Audit Committee at Norske Skog ASA

Managing Associate (lawyer) Thommessen (2005-2007)

Board Director, Norwegian Finans Holding ASA

Managing Associate and Associate (lawyer) Wiersholm (2001-2005)

Board Director, Scatec Solar ASA

Board Director, HAV Eiendom AS

Board Director, Boligselskapet INI AS, Grønland

Advisor and international coordinator Finanstilsynet (1999-2001)

Lawyer, Advokatfirmaet Arthur Andersen (1998-1999)

Board Chair, Røisheim Hotell AS and Board Director, Røisheim Eiendom AS

Positions of trust

Board Chair, Visit Jotunheimen AS

Member of the Nomination Committee, Telenor ASA

Board Director and Chair of the Audit Committee, Grieg Seafood ASA

Board member, EBA

Board member, SmartCraft ASA

Ownership in Storebrand

Number of shares as of 31.12. 2021: 5 000

Positions of trust

Board Chair, Entur AS

Board Chair, GIEK

Board Director and Chair of the Audit Committee, KID ASA

Board Director, Eksportfinansiering Norge (eksfin)

Ownership in Storebrand

Number of shares as of 31.12. 2021: 27 000

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Board Director,

Storebrand ASA since 2019

Position

Executive Vice President & CCO, SAS

Education

Martin Skancke (1966)

Board Director,

Storebrand ASA since 2014

Position

Self-employed

Education

MSc Industrial Engineering and Management, University of Linköping,

Authorised Financial Analyst, Norwegian School of Economics (NHH), Norway

Sweden

Previous positions

EVP Commercial, SAS (2017-2020)

MSc Econ, London School of Economics and Political Science, UK

Intermediate level Russian, University of Oslo, Norway

International Finance Programme, Stockholm School of Economics, Sweden

MSc Economics and Business Administration, Norwegian School of Economics,

EVP & Chief Strategy Officer, SAS (2014-2017)

Norway

Vice President, Network, SAS (2009-2014)

Vice President, Commercial, SAS (2007-2009)

Previous positions

Vice President, Corporate Development, SAS (2006-2007)

Special Adviser, Storebrand (2011–2013)

Director, Business Strategies, SAS (2004-2006)

Deputy Director General and Director General,

Consultant, McKinsey & Company (2001-2004)

Ministry of Finance, Norway (1994–2001, 2006–2011)

Ownership in Storebrand

Number of shares as of 31.12. 2021: 7 000

Director General, Office of the Prime Minister, Norway (2002–2006)

Management Consultant, McKinsey & Company (2001–2002)

Positions of trust

Board Director, Norfund

Board Chair, Principles for Responsible Investment (PRI)

Board Director, Storebrand Livsforsikring AS

Member of the Task Force on Climate-related Financial Disclosure (TCFD)

Ownership in Storebrand

Number of shares as of 31.12. 2021: 30 000

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Board Director,

Storebrand ASA since 2020

Hanne Seim Grave (1974)

Employee Representative,

Board at Storebrand ASA since 2021

Position

Partner and CO-Head of EQT Public Value

Senior Authorised Insurance Advisor, Storebrand Forsikring AS

Education

MSc (Stockholm School of Economics)

Previous positions

Education

Market Economics, IHM

Forsikringsakademiet

KAN Finans and FinAut

Various positions in EQT, Sweden, Hong Kong, Germany and England (1996-)

Associate Enskilda Securities, Sweden (1993-1996)

Previous positions

Positions of trust

Member of the Nomination Comittee AFRY AB

Member of the Nomination Comittee, BioGaia AB

Member of the Nomination Comittee, Securitas AB

Member of the Nomination Comittee, Storytel AB

Ownership in Storebrand

Number of shares as of 31.12.2021: 0

Authorised Insurance Agent, Akademikernes Insurance

Customer advisor, settlement, Storebrand Livsforsikring,

Employee advisor, Storebrand Livsforsikring

Customer service, Life, Storebrand Livsforsikring

Professional training manager, IF Skadeforsikring

Professional support, Storebrand Skadeforsikring

Sales, Storebrand Skadeforsikring

Manpower, Storebrand Eiendom

Number of shares owned by the close associate, EQT Public

Ownership in Storebrand

ValueInvestments S.à r.l.: 18 500 000

Number of shares as of 31.12.2021: 325

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Employee Representative,

Storebrand ASA since 2020

Position

Head of Union Representantives,

Bodil Catherine Valvik (1973)

Employee Representative,

Storebrand ASA since 2020

Position

Head of Fund Administration,

the Finance Sector Union of Norway, Storebrand ASA

Storebrand Asset Management ASA

Education

Marketing Communications, BI Norges Markedshøyskole/NMH

BA(Hons) Travel & Tourism Management,

People Management, Høyskolen i Akershus, Norway

University of Northumbria at Newcastle

Previous positions

Sales Manager, Storebrand Bank ASA (2016-2020)

Manager, Customer Services, Public pensions,

Sales Manager, Storebrand Finansiell Rådgivning AS (2014-2016)

Storebrand Pensjonstjenester AS (2019-2020)

Head of Dialogue Marketing/CRM, Storebrand ASA (2012-2014)

Manager, Customer Services, Pensions & Savings, Storebrand PM (2013-2018)

Operational Manager, Storebrand Baltic UAB (2010-2012)

Manager, Customer Services, Link and Mutual Funds, Storebrand

Key Account Manager, Storebrand Bank ASA (2005-2010)

Kapitalforvaltning (2007-2012)

Web Manager/Project Management, Storebrand Bank ASA (2003 – 2005)

Manager, Customer Services, Link, Storebrand Livsforsikring (2002-2006)

Web Manager/Project Management, Finansbanken ASA (2000-2003)

Manager for Helpline Link, Storebrand Livsforsikring (2001-2002)

Employee, Gjensidige Forsikring (1988-2000)

Financial Advisor, Storebrand Livsforsikring (1999-2001)

Ownership in Storebrand

Number of shares as of 31.12. 2021: 0

Ownership in Storebrand

Number of shares as of 31.12.2021: 1 390

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Page 5, Photographer: Lise Eide Risanger / Storebrand
Page 7, Photographer: Brooke Alderson / Offset.com
Page 11, Photographer: Johnér Bildbyrå AB / Hans Berggren
Page 20, Photographer: Shutterstock
Page 22, Photographer: Shutterstock
Page 25, Photographer: Shutterstock
Page 27, Photographer: Johnér Bildbyrå AB
Page 34, Photographer: Shutterstock
Page 38, Photographer: Maskot / Offset.com
Page 42, Photographer: Johnér Bildbyrå AB / Henrik Trygg
Page 43, Photographer: Johnér Bildbyrå AB / Susanne Kronholm
Page 45, Photographer: Johnér Bildbyrå AB
Page 50, Photographer: Johnér Bildbyrå AB / Lina Arvidsson
Page 52, Photographer: Maskot / Offset.com
Page 55, Photographer: Johnér Bildbyrå AB
Page 56, Photographer: Johnér Bildbyrå AB
Page 60, Photographer: Shutterstock
Page 62, Photographer: Shutterstock
Page 67, Photographer: David Pereiras / Offset.com
Page 69, Photographer: Galyna Andrushko
Page 73, Photographer: Johnér Bildbyrå AB
Page 84, Photographer: Cultura / Offset.com
Page 87, Photographer: Johnér Bildbyrå AB
Page 202, Photographer: Johnér Bildbyrå AB / Michael Jönsson
Page 211, Photographer: Johnér Bildbyrå AB
Page 224, Photographer: Johnér Bildbyrå AB / Fredrik Schlyter
Page 243, Photographer: Johnér Bildbyrå AB / Håkan Hjort

Important notice
This document may contain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events
and circumstances that may be beyond the Storebrand Group’s control. As a result, the Storebrand Group’s actual future financial condition, performance and results
may differ materially from the plans, goals and expectations set forth in these forward-looking statements. Important factors that may cause such a difference for the
Storebrand Group include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and
other government actions and (iv) market related risks such as changes in equity markets, interest rates and exchange rates, and the performance of financial markets
generally. The Storebrand Group assumes no responsibility to update any of the forward-looking statements contained in this document or any other forwardlooking
statements it may make. This document contains alternative performance measures (APM) as defined by The European Securities and Market Authority (ESMA). An
overview of APM can be found at www.storebrand.com/ir.

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and definitions

Definitions under each table apply to the key figures in chapters 2-5 of this report, and all the indicators in the complete list below.

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 70

Carbon footprint from equities investments: tonnes of CO2e per
NOK 1 million in sales income (against index) 71

Carbon footprint from bond investments: tonnes of CO2e per
NOK 1 million in sales income (against index) 72

Total carbon emissions from equity investments: tonnes of CO2
Scope 1-2 73

Exposure to high emitting sectors: NOK billion /
share of equity investments

Investments in solutions (solutions companies, green bonds, gre-
en infrastructure and property with environmental certification):
NOK billion / share of total assets 74

Investments in green bonds: NOK billion/ share of total bond
investments

Investments in green infrastructure: NOK billion / share of
total infrastructure investments

Investments in solution company equities: NOK billion/ share
of total equity investments

Investments in certified green property: NOK billion/ share of
total real estate investments 75

Companies excluded from the investment universe of the
Storebrand Group: number

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 universe 76

Votes at general meetings to promote Storebrand’s ESG criteria:
number/ share of investment universe 77

Energy intensity direct real estate investments: kWh/m2

Water intensity direct real estate investments: m3/m2

Waste quantity direct real estate investments: kg/m2 78

Share of waste sorted for recycling direct real estate investments

Total carbon emissions from direct real estate investments
(Scope 1-3): Tonnes CO2e / kgCO2 per m2 investments

Scope 1 emissions: tonnes CO2 (kg/m2)

Scope 2 emissions: tonnes CO2 (kg/m2)

Scope 3 emissions: tonnes CO2 (kg/m2)

GRESB score direct real estate investments
(value-weighted average) 79

Results

2018

13.7 %

173 %

68 %

100 %

2019

8.0 %

176 %

0 %

100 %

277

2020

8.6 %

178 %

65 %

100 %

379.2

2021

10.7 %

175 %

52 %

100 %

483

22 (32)

18(24)

12(18)

New

7(15)

9(16)

9(17)

New

3,661,218

3,261,366

3,318,508

37.7 / 19 %

34.6 / 13 %

32.2 / 8 %

42.5 / 9 %

Goals

2022

>10 %

Goals

2025

>10 %

>150 %

>50 %

100 %

N/A

>50 %

100 %

N/A

38.8 / 5.5 %

53.7 / 6.5 %

92.6 / 9.6 % 123.1 / 11.2 %

13 %

15 %

8.4 / 2.9 %

12.4 / 3.1 %

22.2 / 5 %

25.7 / 6 %

New

1.5 / 100 %

New

24.3 / 9.3 %

50.3 / 13 %

62.6 / 13 %

N/A

13 / 30 %

17 / 41 %

20.1 / 43 %

33.3 / 68 %

75 %

90 %

171

182

215

257

New

178 / 7.6 %

198 / 8.1 %

212 / 7.9 %

314 / 10.8 %

408 / 9.7 %

572 / 12 %

601 / 12 %

530 / 41.6 %

151 / 4.3 %

503 / 13 %

947 / 22.5 %

201

0.38

8.2

71%

194

0.46

9.4

74 %

181

0.44

9.2

69 %

170

0.38

8.3

72 %

10,818 / 9.96

10,228 / 9.12

8,456 / 7.9

6,703 / 5.9

New

0.15

7.67

1.26

0.08

6.80

1.04

0.02

4.87

1.02

N/A

190

0.45

N/A

73 %

8.6

N/A

181

0.43

N/A

80 %

6.5

N/A

76 %

82 %

85 %

88.6 %

Increase

70) Fossil-free products are one of several ways to achieve our overall goal of net zero emissions, and we have therefore not set a specific goal for how much to invest in fossil-free products.

71) The method for calculating carbon footprints has been further developed for the annual report 2021. Data are obtained through Trucost (S&P Global)’s systems and weighted by market value per position. For index figures,

a coverage ratio of 93.8% for index.

72) The method for calculating carbon footprints has been further developed for the annual report 2021. Data is obtained through Trucost (S&P Global)’s systems and calculated data from management, weighted by market value

from bond investments, and a coverage ratio of 92.1% for index.

73) In total, carbon emissions in equity investments have decreased since 2019, but have increased somewhat from 2020 to 2021. At the same time, the coverage ratio has increased from 89.5% in 2020 to 96.7% in 2021. Since the

coverage ratio has increased by 8%, while the increase in emissions is only 1.7%, emissions have relatively decreased also since 2020.

74) We have decided to set an overall goal for resp. 2022 and 2025, instead of one target for each asset class.

75) Capital Investment, which we acquired in 2021, has not yet reported to GRESB, and the properties the company manages are not included in the figures for certification.

76) The number of companies we have engaged in has increased at the same time as the investment universe has increased. Commitments as a share of the investment universe will thus be the same as in 2020.

77) The increase from 2020 to 2021 is due to a partial automation of the voting process.

78) Figures for waste volume in real estate investments only apply to Norway.

79) The goal is for all our portfolios to achieve 5 stars in GRESB. This means that one must be among the 20% best globally, and can therefore not be directly translated into a score (value-weighted average). Capital Investment,

which we acquired in 2021, has not yet reported to GRESB, and is not included in the figures.

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A driving force for sustainable investments
Return on equity: Return on equity after tax, adjusted for
amortisation of intangible assets.

Green bonds are for companies that both meet the Storebrand
standard and are in line with international standards such as the
Green Bond Principles, the forthcoming EU Green Bond standard,
and with the framework of the International Capital Market
Association (ICMA).

Solvency margin: Degree of solvency according to European
regulations for insurance regulation. Under Solvency II, the size
of the capital requirement will be defined by how much risk the
company is exposed to.

Dividend ratio: Share dividend as a share of the profit for the year
after tax (see dividend policy on page 54).

Investments in green infrastructure: share of investments in
sustainable infrastructure. The fund (Storebrand Infrastructure
Fund) invests in projects that contribute to a green transition, for
example through land-based wind power, offshore wind and electric
train sets.

Share of total assets screened for sustainability: All companies
in our investment universe are screened for sustainability according
to our standards: https://www.storebrand.no/en/sustainability/
investments

Investments in certified green property: Share of direct real
estate investments under operational control in Norway and
Sweden with environmental certification. The certification system is
mainly BREEAM, but can also include LEED, the Nordic Ecolabel or
Miljöbyggnad.

Investments in fossil-free products: The sum of funds / products
with a mandate that requires them to be fossil-free. The companies
in the portfolio cannot have more than 5 per cent of their income
related to the production or distribution of fossil energy, and the
fossil reserves shall not exceed 100 million tonnes of CO2.

Energy intensity 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.

Carbon footprint in equity investments: The figures for the
calculations for carbon footprints are based on data from our data
supplier in Q3 2021. Based on TCFD’s definition. The total carbon
footprint of the investments is the sum of the companies’ carbon
emissions over the companies’ income, weighted for our ownership
in the respective companies. The unit of measurement shows
carbon emissions per million NOK in sales revenue. The method is
the same for equities and bonds.

Carbon footprint in bond investments: The figures for the
calculations for carbon footprints are based on data from our data
supplier in Q3 2021. Based on TCFD’s definition. The fund’s total
carbon footprint is the sum of the companies ‘carbon emissions
over the companies’ income, weighted for our ownership in the
respective companies. The unit of measurement shows carbon
emissions per million NOK in sales revenue. The method is the same
for equities and bonds.

Investments in solutions (solutions companies, green bonds,
infrastructure and property with environmental
green
certification): Total share of assets under management invested
in sustainable solutions. Sustainable solutions consist of green
bonds, environmentally certified real estate, investments in green
infrastructure and shares in companies that we believe are well
positioned to solve challenges related to the UN’s Sustainable
Development Goals.

Investments in solution company equities: Share of investments
in equities in solution companies in Storebrand and SPP. These
are investments in shares in companies that we believe are well
positioned to solve challenges related to the UN’s Sustainable
Development Goals.
in solution companies are
segmented into four thematic areas; renewable energy and climate
solutions, the cities of the future, the circular economy and equal
opportunities.

Investments

Investments in green bonds: Share of investments in green bonds.

intensity direct real estate

investments: Water
Water
consumption in cubic meters 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.

Waste quantity 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.

Carbon footprint in 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 in accordance with the GHG protocol (The Greenhouse
Gas Protocol). Nordic mix emission factor is the basis for calculating
location-based emissions from electric power.

Exposure to high-emitting sectors: Exposure to high-emission
sectors shows our exposure to high-emission sectors as a share
of total equity investments. The definition of high-emission sectors
follows the recommendations of the Net Zero Asset Owner Alliance,
and includes the following GICS codes.
Aluminium: 15104010
Aviation: 20302010, 20301010
Cement: 15102010
Chemicals: 15101050, 15101040, 15101030, 15101020, 15101010
Energy: 10102050, 10102040, 10102030, 10102020, 10102010,
10101020, 10101010
Heavy Duty Automobiles: 20304020
Light Duty Automobiles: 25102010
Shipping: 20303010
Steel: 15104050
Utilities: 55105010, 55103010, 55102010, 55101010

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Key performance indicators

Customer satisfaction 80

Market share: Savings, retail market Norway

Market position: Pension, corporate market Norway

Proportion of women, pension savings

Recognised for sustainable value creation
(Retail market Norway)

Recognised for sustainable value creation
(Corporate market Norway)

Customer satisfaction (Net Promoter System,
Corporate Market Sweden)

Results

2018

No. 4

21 %

No. 1

43 %

New

No. 7

2019

No. 4

20 %

No. 1

44 %

No. 3

No. 1

No. 5

2020

No. 6

21.7 %

No. 1

44.2 %

No. 5

No. 4

No. 7

2021

No. 5

19.6 %

No. 2

44.9 %

No. 3

No. 7

Goals

2022

Top 3

Goals

2025

Top 3

increase

No. 1

increase

Top 3

No. 1

Top 3

indicators related to

Definitions for key performance
Customer relations
Customer satisfaction: Scores based on Net Promoter System
(NPS) figures as of November 2021. NPS is a measurement tool for
customer satisfaction where the customer gives a score from 0 to 10
with 10 as the best result.

Market share: Savings, retail market Norway: Total assets for
respectively free funds retail market (incl. nominee) & Unit Linked
products retail market including Pension Capital Certificate and
Paid-up Policy with investment choice. Based on Q3 figures from
Finans Norge and VFF (Verdipapirfondenes forening).

Market position: Pension, corporate market Norway: Private group
pension insurance, gross overdue premium, defined contribution,
market share. Based on Q3 figures from Finance Norway (Finans
Norge).

Proportion of women, pension savings: Proportion of women with
money invested in respectively Extra pension and IPS at Storebrand
(in number of customers, not volume).

Recognised for sustainable value creation: Proportion that
connects Storebrand with the statements “Invest in a way that
combines profitability and sustainability”, “Manages people’s savings
in a way that combines profitability and environmental responsibility”
and “Manages people’s savings in a way that combines profitability
and social responsibility” (these are average responses to the
statements and 3-month rolling average).

80) Net Promoter System, retail market Norge

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Key performance indicators

Sick leave Norway

Sick leave Sweden

Turnover rate, women, Group

Turnover rate, men, Group

Number of employees 81

New hires to the Group

Number of women recruited this year

Number of men recruited this 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

Results

2018

2.7 %

3.3 %

New

1,667

220

116

115

102

526

408

235

284

Results

2019

3.1 %

2.5 %

9.7 %

9.2 %

1,742

204

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

2021

2.5 %

1.6 %

5.2 %

7.8 %

1,914

337

152

175

154

132

631

484

260

280

Female Board of Directors at Storebrand ASA

5 out of 9

4 out of 9

4 out of 10

5 out of 10

Women in the Group Executive Management

3 out of 9

3 out of 10

3 out of 9

Women at management level 3: share of women
/ number of women

Women at management level 1-4: share of wo-
men / number of women

Gender balance all managers: share of
women / number of women

46 %

New

39 %

41 %

38 % / 24

37 % / 22

New

38 %

39 %

39 % / 103

37 % / 102

Average salary female employees, Norway (NOK)

699,228

Average salary male employees, Norway (NOK)

871,146

Average salary female employees, Sweden (SEK)

608,551

Average salary male employees, Sweden (SEK)

762,151

743,684

914,107

644,484

811,717

760,948

923,686

671,159

842,226

796,854

968,096

705,162

873,155

Goals

2022

< 3.5 %

Goals

2025

< 3.5 %

N/A

50 %

40 %

50 %

N/A

50 %

N/A

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/ avera-
ge worker pay

Average hours per FTE of training and
development

Average amount spent per FTE on training and
development (NOK)

110 %

100 %

104 %

97 %

100 %

99 %

97 %

100 %

New

8.2 : 1

8.9 : 1

New

3.9

New

3.63

8,353

N/A

81) The total number of employees includes employees from Capital Investment in 2021.

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Sick leave: Number of sick leave days divided by number of working
days at end-December 2021. Sick leave in Norway includes sick
children days. Sick leave in Sweden does not include sick children
days.

Number of hires to the Group: Number of hires including permanent
employees, substitutes and internships in Norway and Sweden. The
figures also include recruited employees who left the Group later
in 2021.

Number of employees: Total number of employees at Storebrand
and SPP as of 31.12.2021.

Management level 1-4:
•
•
•

Level 1: Group Chief Executive Officer.
Level 2: Group Executive Management.
Level 3: Reports to Group Executive Management, irrespective
of personnel responsibilities. Administrative roles are not
included. Capital Investment is not included.
Level 4: Reports to management level 3. Everyone at this level
has personnel responsibilities. Administrative roles are not
included.

•

Number of employees in different age groups / genders: 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.

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.

Gender balance all managers, share of women: Includes all
female managers with personnel responsibilities. For management
level 3, all female managers are counted, except personal assistants.

Average salary: Basic salary as of 31.12.2021, all companies in the
group in a common salary system. This does not include Capital
Investment.

Turnover: Permanent employees who quit in the last 12 months
with the exception of voluntary severance agreements between
employer and employee, reduction in workforce or retirement,
divided by the average number of permanent employees in 2021.

CEO - Average Worker Pay Ratio: Basic salary for CEO relative to
average salary for all employees in Norway.

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Keeping our house in order

Key performance indicators

Environmentally certified purchases (share of
the total expenditure that went to suppliers
with certified environmental management
system) 82

Greenhouse gas emissions from own opera-
tion (total) Scope 1-3: tonnes of CO2 / tonnes
CO2 per FTE

Scope 1 emissions: tonnes CO2 / tonnes
CO2 per FTE

Scope 2 emissions: tonnes CO2 / tonnes
CO2 per FTE

Scope 3 emissions: tonnes CO2 / tonnes
CO2 per FTE

CO2e-emissions per FTE due to air travel:
Scope 3, tonnes per FTE 83

Energy consumption, head offices (kWh per
m2)

Water consumption, head offices (m3 per m2)

Results

2018

Results

2019

Results

2020

Results

2021

Goals

2022

Goals

2025

46 %

57 %

62%

60%

55 %

60 %

1,444 / 0.9

1,519 / 0.92

477 / 0.28

320 / 0.18

1.4 / 0

1.1 / 0

1.2/0

0.5 / 0.00

201 / 0.13

179 / 0.11

164 / 0.09

130.6 / 0.07

1,241 / 0.69

1,339 / 0.74

313 / 0.18

188.9 / 0.11

0.69

151

0.29

0.67

150

0.32

0.1

142

0.18

0.07

139

0.16

0.8

N/A

148

0.31

0.6

N/A

145

0.30

Total waste, head offices (tonnes / kg per FTE)

209 / 130

203 / 123

120 / 73

99.7 / 51

198 / 119

190 / 110

Share of waste sorted for recycling, head
offices (share of total waste)

CDP-rating

DJSI score / global percentile

E-learning conducted, ethics: total / share of
man-years

E-learning carried out, anti-corruption work:
total / share of man-years

E-learning completed, combating money
laundering and financial crime: total / share of
man-years

E-learning completed, privacy: total/ share of
man-years

Number of information security incidents

Number of complaints processed by the Finan-
cial Appeals Board 84

Number of breaches of the Code of Conduct 85

Number of privacy incidents 86

71 %

A -

63/74

72 %

A -

75/81

71 %

A-

82%

A-

79 %

82 %

81 / 93

82 / 92

Top 10%

New

1,518 / 88.9 %

1,660 / 91 %

1,694 / 91%

100 %

New

1,479 / 86.6 %

1,642 / 90 %

1,659 / 89%

100 %

New

1,523 / 89.2 %

1,678 / 92 %

1,673 / 90%

100 %

New

135

N/A

New

1,368 / 75 %

1,662 / 89%

100 %

192

218

198

125

N/A

82) Since we exceeded the target for 2021, new targets have been set for 2022 and 2025.

83) CO2 emissions from flights have been recalculated for 2018–2020 as a result of updates to the emission factors in our travel agencies’ systems, so that it is comparable with the 2021 figures.

84) The figures apply to our Norwegian companies, as these are complaints processed by the Financial Appeals Board. SPP is not included here.

85) Internal misconduct by agents is not included in the key figure for breaches of Code of Conduct, but is included in the detailed reporting of breaches of Code of Conduct on page 36.

86) The Privacy Ombudsman’s assessment is that the increase in incidents is primarily related to increased awareness of reporting incidents, and not a real increase in the number of non-conformities compared with previous years.

In addition, a new reporting tool has made it possible to include SPP (Sweden) in the figures.

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Definitions for key performance indicators related to
Keeping our house in order
Environmental requirements for suppliers: Share of contracts
with suppliers where Storebrand has over NOK 1 million 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.

CO2 emissions:
CO2 emissions per man-year in Norwegian and Swedish operations.
Includes direct and indirect discharge; transport, other transport,
energy consumption and waste (Scope 1-3). 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 business 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 in accordance with
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 meters 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.

CDP rating: Rating performed by CDP. CDP is an independent
organisation that works with increasing company reporting on
greenhouse gas emissions. CDP evaluates and scores companies
accordingly. CDP is used by investors and managers to gain access
to analysis and information on climate reporting from companies.
DJSI score: The Dow Jones Sustainability Indexes (DJSI) assesses
companies’ performance in sustainability, and rank companies
based on a range of economic, social and environmental (ESG)
criteria.

E-learning course completed: Employee who is registered as
completed in our e-learning system.

Number of complaints processed by the Financial Appeals
Board: Customers complain Storebrand to the Financial Appeals
Board who processes a case. These are processed by the Financial
Appeals Board on an ongoing basis.

Information security incidents: An information security incident
is a suspected, attempted, successful or imminent threat of
unauthorised access, use, disclosure, breach, alteration or
destruction of information; or a material breach of Storebrand’s
guidelines for information security.

Violation of ethical guidelines/Code of Conduct: Below are
definitions of corruption, internal misconduct, other breaches of
ethical rules, and discrimination, which we describe as breaches of
ethical guidelines.

•

Corruption: abusing one’s position to gain personal or
business-related benefits for oneself or others.
Internal misconduct: to perform actions for the purpose
of enriching oneself or one’s loved ones at the expense of
Storebrand and / or Storebrand’s customers.

•

• Other breaches of ethical rules: breaches of internal or
external regulations that are covered by and have consequences
in line with the sanction matrix in Storebrand’s ethical rules.
Discrimination: discrimination based on gender, pregnancy,
maternity or adoption leave, care responsibilities, ethnicity,
religion, outlook on life, disability, sexual orientation, gender
identity, gender expression, age, and other significant factors
of a person.

Privacy incidents: A privacy incident is an incident where there
have been deviations related to compliance with the privacy policy.

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Carbon Accounting

Total greenhouse gas emissions from Storebrand’s operations

Key performance indicators

Scope 1 emissions: tonnes CO2

Scope 2 emissions: tonnes CO2

Scope 3 emissions: tonnes CO2 (operations, equity investments, real estate investments)

Scope 3 emissions: tonnes CO2
Own operations

Results

2019

1.1

179

2020

1.2

164

1,339

313

Scope 3 emissions: tonnes CO2 equity investments (Scope 1-2) 87

3,661,218

3,261,366

Scope 3 emissions: tonnes CO2 real estate investments (Scope 1-3) 88

10,228

8,456

Total emissions, Scope 1-3: Tonnes CO2

3,672,965

3,270,300

Results

2021

0.5

130.6

188.9

3,318,508

6,703

3,325,531

In total, carbon emissions in equity investments have decreased since 2019, but have increased somewhat from 2020 to 2021. At the same
time, the coverage ratio has increased from 89.5 per cent in 2020 to 96.7 per cent in 2021. Since the coverage ratio has increased by 8 per
cent, while the increase in emissions is only 1.7 per cent, emissions have relatively decreased also from 2020 to 2021.

87) Equity investments are included in our Scope 3, but we are looking at Scopes 1 and 2 for these companies because Scope 3 data is still of limited quality.

88) Real estate investments are included in our Scope 3 and we look at Scopes 1 to 3 for these investments.

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The EU Taxonomy for sustainable finance is a classification system
that aims to establish common criteria for sustainable economic
activities. The Taxonomy regulation entered into force on 12 July
2020 in the EU, but the new requirements will only apply from 2022
for the first two environmental goals (climate change mitigation
and climate change adaptation), and from 2023 for the other four
environmental goals (sustainable use and protection of water
and marine resources, transition to a circular economy, pollution
prevention and control, and protection and restoration of biological
diversity and ecosystems).

In accordance with Article 8 of the EU Taxonomy Regulation and the
underlying Disclosures Delegated Act, the Taxonomy reporting must
be done on two levels. Firstly, companies must report on how much
of their turnover, investments and operational costs are covered
by the Taxonomy, defined as Taxonomy eligible activities. Secondly,
companies must report the share of their activities that are aligned
to the Taxonomy, which means that the activities are considered
to be environmentally sustainable activities due to meeting the
specified technical criteria as defined by the Taxonomy. For example,
an entire car company will be covered by the Taxonomy (Taxonomy-
eligible), but only the cars with zero emissions or emissions below
the defined threshold value (Technical Screening Criteria), and in
compliance with Do no significant harm criteria and the minimal
safeguards will be in accordance with the Taxonomy (Taxonomy-
aligned).

In accordance with the regulations, Storebrand must disclose the
degree of insurance premiums, loans and investments that are
Taxonomy-eligible. For the investments, this is based on data from
underlying investments. Storebrand works actively to meet the
reporting requirements in accordance with the EU Taxonomy, and
follows the regulatory aspects closely. We interact with third-party
suppliers, and internally in the organisation, so we are well prepared
to fully implement the regulations. Storebrand has worked to obtain
data related to our underlying investments’ share of economic
activities that are covered by the Taxonomy. In the selection of data
suppliers, the providers have been thoroughly assessed based on,
among other things, data quality, coverage rate and the suppliers’
ability to adapt and change the delivery in accordance with the
regulations.

Our reporting of key figures related to the EU Taxonomy will become
increasingly important as a measure of climate change as data
quality and coverage increase.

We have divided the reporting into two parts: mandatory reporting
and voluntary reporting. The regulations for how the reporting is
to be done are still unclear and the reporting is thus done to the
best of our ability and available data. Note that interpretations of the
regulations may change, and that the definitions behind the figures
for next year may thus have to be adapted to new understandings.

Mandatory reporting for Storebrand as an insurance-
dominated cross-sectoral financial group:
The mandatory Taxonomy reporting for financial companies can
only include actual reported data from companies that are required
to report under the Non-Financial Reporting Directive (NFRD). This
means that, for example, companies with less than 500 employees
or companies located outside Europe cannot be included in the
mandatory Taxonomy reporting.

Key indicators related to non-life insurance activities

Share of non-life insurance premiums that is
Taxonomy-eligible

63.4 %

Storebrand offers non-life and health insurance to Norwegian
customers. In order to analyse the share of non-life insurance
premiums covered by the Taxonomy, Storebrand has segmented
the insurance activities according to the Lines of Business defined
in the Solvency II regulations.89 In addition to segmenting products
under Solvency II, the product categories must refer to a policy on
climate-related risks in order to be fully covered by the Taxonomy.90
We have analysed each insurance product to determine whether
the products refer to climate-related risks.

Some players have chosen to include product categories as long as
they do not explicitly exclude compensation as a result of climate-
related risks. We have chosen a stricter interpretation by only
including products that refer to climate-related risks specifically in
the policy terms, or in additional coverage, when we have calculated
the share of insurance premiums covered by the Taxonomy.
Workers’ compensation insurance, income protection insurance
and health insurance, including expenses for medical treatment,
do not mention climate-related risks and are in our assessment not
Taxonomy eligible. Most of our non-life insurance products have
additional coverage defined by the natural perils regulations and will
then be covered by the Taxonomy eligibility requirements.91

The insurance products in Storebrand, which are both defined under
Solvency II and which refer to climate-related risks, correspond
to 63.4 per cent of the total insurance premium. The rest of our
insurance business is not covered by the taxonomy.

89) Lines of Business categorised in the Solvency II regulations (Annex 1 of Regulation 2015/35) and are as follows: (a) medical expense insurance; (b) income protection insurance; (c) workers’ compensation

insurance; (d) motor vehicle liability insurance; (e) other motor insurance; (f) marine, aviation and transport insurance; (g) fire and other damage to property insurance; (h) assistance

90) The criteria for non-life insurance are under Annex 2 of the delegated act that accompanies the Taxonomy Ordinance, Chapter 10.1. For classification of climate-related risks, see page 289:

https://ec.europa.eu/finance/docs/level-2-measures/taxonomy-regulation-delegated-act-2021-2800-annex-2_en.pdf

91) Natural perils regulations: Act of 16 June 1989 no. 70 on natural perils insurance

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Share of the bank’s lending that is Taxonomy-eligible

99 %

respective companies. Exposures to governments, central banks
and supranational issuers are excluded from the calculation of the
numerator.

Storebrand is a retail market bank. The loans are mainly mortgages
with a small proportion of unsecured credits. Mortgages are
covered by the Taxonomy. In the calculation of what is Taxonomy
eligible within the bank’s activities, we have chosen not to include
unsecured credits. Thus, 99 per cent of the bank’s activities are
covered by the Taxonomy.

Key indicators related to investment activities

Share of investments that is Taxonomy-eligible in the
mandatory reporting

0 %

Since the implementation of the Taxonomy Regulation started on
1 January 2022, the underlying NFRD companies we invest in have
not yet had time to publish information on how much of their
business is covered by the Taxonomy. We use third-party data
providers to collect this information for listed shares and bonds, as
we have an investment universe of approximately 5,000 companies,
which makes it almost impossible to obtain the information directly
from the companies. We have compared most data providers
and evaluated them carefully before we chose to collaborate with
Sustainalytics. Sustainalytics has estimated data for a large number
of companies, on which we base our voluntary reporting below. But
as mentioned above, actual reported data is still missing.

In addition to investments in listed companies, we also invest in other
types of assets where we have been in contact with the companies
to obtain relevant data. None of these qualify for reporting under
the NFRD, which means that they are also not reported in the
mandatory reporting, but below in the voluntary reporting.

Since none of the companies that are required to be assessed in the
mandatory reporting, i.e. those that follow the NFRD, have reported
their data yet, the figure on the share of investments covered by
Taxonomy will be 0 per cent. Below you will find the voluntary
taxonomy description, with a more detailed description for equities,
corporate bonds, real estate, infrastructure and private equity.

includes all

The denominator
investments globally, with the
exception of exposures to central governments, central banks and
supranational issuers. Thus, only 3.4 per cent of Storebrand’s equity
investments and 3.4 per cent of Storebrand’s bond investments are
covered by the Taxonomy.

investments

For equity
in Europe, we have estimates from
Sustainalytics covering 77.6 per cent of the companies we have
invested in based on assets under management. If we had only used
the investments in the companies where we have available data as a
basis for our calculations, 11.9 per cent of our equity investments in
Europe would have been covered by the Taxonomy.

For equity investments globally, we have estimates from Sustainalytics
covering 82.3 per cent of the companies we have invested in based
on assets under management. If we had only based our calculations
on investments in the companies where we have available data, and
including companies outside Europe, 12.7 per cent of our global
equity investments would have been covered by the Taxonomy.

These are estimates based on information from our data providers
and will probably change somewhat when the data quality improves.

Key indicators related to activities within investments in
infrastructure

Share of infrastructure investments that is Taxonomy-eligible

100 %

All our infrastructure investments are in activities that are covered
by the Taxonomy. Infrastructure investments are not covered by
the NFRD, and are thus not reported as mandatory reporting, but
as voluntary. Since infrastructure is direct investment made from
Europe, we have defined that investment in infrastructure projects
located outside Europe is also covered by the Taxonomy.

Key indicators related to activities within investments
in private equity

Voluntary reporting for Storebrand as an
insurance-dominated cross-sectoral financial group

Share of investments in private equity that is
Taxonomy-eligible

3 %

Key indicators related to activities within equity and bond
investments

Only 3 per cent of private equity investments are covered by the
taxonomy. 53 per cent of investments in private equity are outside
Europe, and the remaining companies are not covered by the NFRD.

Share of equity investments that is Taxonomy-eligible

Share of bond investments that is Taxonomy-eligible

3.4 %

The data provider Sustainalytics provides estimates of how much of
the investee companies’ activites that are covered by the Taxonomy.

The numerator multiplies our
(assets under
management) in companies with headquarters in Europe by
the proportion of activities covered by the Taxonomy of the

investments

Key indicators related to activities in real estate investments

Share of real estate investments that is Taxonomy-eligible

100 %

All the direct real estate investments are in activities that are covered
by the taxonomy. Real estate investments are not covered by the
NFRD, and are thus not reported as mandatory reporting, but as
voluntary.

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Storebrand ASA

Professor Kohts vei 9, P.O. Box 474, N-1327 Lysaker, Phone: +47 915 08 880, storebrand.no

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Table of contentsFacts and figures 2021 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2021 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix