Storebrand ASA Annual Report 2022

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FY2022 Annual Report · Storebrand ASA

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Storebrand ASA

Annual report

2022

Table of contents

How to navigate in the

Annual report

Full screen

Introduction
3

Facts and figures 2022

Foreword by our CEO

Foreword by the Chair

9 Highlights in 2022

1. This is Storebrand
10 About Storebrand

12 Organisation

13 Sustainability as an important guideline

15 Group Executive Management

16 Board of Directors

2. Customer relations

20 Greater security and financial wellness

22 Engaging, relevant and responsible advice

23 Digital innovator in financial services

6. Shareholder matters

7. Annual Accounts and Notes

Storebrand Group

104

Income statement

105 Statement of total comprehensive income

106 Statement of Financial Position

108 Statement of changes in equity

109 Statement of cash flow

112 Notes

Storebrand ASA

198

Income statement

198 Statement of total comprehensive income

199 Statement of Financial Position

200 Statement of changes in equity

24 Simple and seamless customer experiences

201 Statement of cash flow

25 Key performance indicators

203 Notes

Table of contents

On the left hand side, you will always

have access to the table of contents.

Here you can easily navigate

between the chapters. If you are

looking for something you can

3. People
27 A culture for learning

29 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

always go back to this page for a

42 Sustainable practices through our value chain

complete overview.

44 Corporate social responsibility

45 Key performance indicators

5. Director’s report
47 Strategy 2021-23

48 Strategic highlights 2022

53 The Group’s results 2022

58 Official Financial Statements of Storebrand ASA

59 Outlook

64 A driving force for sustainable investments

81 Risk

83 Climate risk and opportunities

96 Working environment and HSE

97 Progress on our most material sustainability KPIs

215 Declaration by members of the Board and the CEO

216

Indepentent auditor’s report

8. Corporate governance
225 Corporate governance
231 Companies in the Storebrand Group

9. Sustainability assurance
233 Sustainability indicators and definitions

247 Financed emissions

252 Carbon accounting summary

253 TCFD-index

257 GRI-index

263 Auditor’s statement

10. Appendix
266 Taxonomy reporting

270 Group Executive Management CVs

275 Board of Directors CVs

Facts and figures
2022

Number of employees

2,161

Return on equity2)

8.3 %

Group profit1), NOK million

2,716

Solvency ratio

184 %

Assets under management NOK billion

Assets under management screened for
sustainability criteria

1,020

100 %

Investments in fossil free funds, NOK billion /
share of assets under management

Investments in solutions3) NOK billion /
share of assets under management

449

126.8

Real estate investments with
green certificates4)

61%

Dow Jones World Sustainability Index,
score/percentile

88/99

1) Profit before amortisation and tax.

2) After tax, adjusted for amortisation of intangible assets.

3) Equity and bond investments in solution companies, investments in green bonds, green infrastructure, and investments in certified green real estate.

4) In 2022, we included properties in Denmark for the first time. The share of environmentally certified real estate investments has therefore been somewhat

reduced. Certifications per country are the following: Norway (89 %), Sweden (93 %), Denmark (9 %).

- Annualised return last 3 years*)

4.9 %

4.1 %

2.4 %

2.9 %

1.2 %

Storebrand

Competitor 1

Competitor 2

Competitor 3

Competitor 4

Assets under management,

Unit Linked (NOK billion)

Assets under management,

Asset Management (NOK billion)

Written premiums,

Insurance (NOK billion)

+2%

-7%

+21%

308

315

1,097

1,020

7.82

6.45

2021

2022

2021

2022

2021

2022

Fee and administration income

Group Profit** (NOK billion)

(NOK million)

Earnings per share, adjusted

for amortisation (NOK)

-8%

-40%

-19%

6,607

6,062

4,503

7.81

6.34

2,716

2021

2022

2021

2022

2021

2022

*) Returns based on comparable investment portfolios with moderate risk (ca. 50 % equity exposure) for active Defined Contribution plans.

**) Result before amortisation and tax.

Geopolitical turmoil, energy crisis, interest rate hikes and inflation affected businesses

and households throughout almost all of 2022. Once again, Storebrand proved

to be a responsible corporate citizen and an important advisor to customers who

experienced uncertainty.

Odd Arild Grefstad
Group Chief Executive Officer

At the beginning of 2022, we had high expectations for a new normal
after several years of pandemic. However, only a few weeks into the
new year the world was turned upside down as we witnessed Russia’s
brutal attack on Ukraine. The war has dramatic consequences for
the citizens of Ukraine. The situation also affects the world economy
and threatens the supply of energy and food. At the same time,
cohesion in the EU and the rest of Europe has been strengthened.
Storebrand and SPP employees have shown solidarity and engaged
in fundraising campaigns for the Ukrainian people.

Storebrand has built solvency over a long period of time. Risk has
been thoroughly assessed, and good contingency plans are in place.
In combination with our skilled employees, this has made it possible
to deliver market-leading returns to customers over several years,
despite demanding market conditions. During the same period, we
have created long-term value for both our customers and owners.

Storebrand’s ability to handle market turbulence and sudden
changes yielded good results in 2022, as in previous years. An
increasing number of customers chose Storebrand’s products and
services within pensions, savings, insurance, banking and asset
management. Group profit before amortisation and tax was NOK 2.7
billion. Active and good risk management limited the consequences
of demanding financial markets. A relatively stable operating result
and a strengthened solvency ratio demonstrated that the Group’s
diversified operations are resilient. 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.

Our business in the Norwegian retail market grew significantly in
2022. It was gratifying to see that we succeeded with our relevant
products and services, efficient sales and service solutions, and good
customer service in a highly competitive market. The acquisitions
of Danica and Kron strengthen our position in the corporate and
savings markets, respectively.

We manage occupational pensions for more than two million people
in Norway and Sweden. Through our asset management business,
customers in and outside the Nordic region get the opportunity to
invest in our broad offering of funds and alternative asset classes.
We are also grateful for the confidence the global investor market
has given us in 2022.

Customers, investors, and society at large place ever higher demands
on us, particularly related to our work on sustainability, both in our
own operations and through the exercise of active ownership in
other companies. I am pleased to see that more and more companies
are working thoroughly and systematically with sustainability. In
2022, Dow Jones again named Storebrand as one of the world’s
most sustainable listed companies. Together with the rest of the
organisation, I am proud of both this and other recognitions we
receive for our work. Storebrand aims to demonstrate sustainable
leadership also in the future. Human rights, inclusion and protection
of nature and biodiversity will receive particular attention in 2023.

It has always been difficult to predict the future. The unexpected
events of recent years have made it even more demanding. We
can, however, conclude that Storebrand is growing rapidly, with
ambitious plans for 2023 and the coming years. We are an attractive
employer and have recruited many new employees in 2022. With
solid experience, new expertise, and highly skilled employees, we
will continue to develop Storebrand as a safe, inclusive and engaging
place to work. Together, we will work to deliver good customer
experiences and market-leading returns to customers and owners.

Odd Arild Grefstad

In 2022, Storebrand demonstrated both resilience and adaptability in the face of

market turbulence caused by the brutal war in Ukraine. The Group delivered good

results thanks to a strong risk management culture, combined with good contingency,

a solid and diversified business model, and diligent work from proficient employees.

The board is pleased with the company’s ability to manage the business through

challenging times and deliver good returns to customers.

Didrik Munch

Chair, Storebrand ASA

Over the past decade, Storebrand has adapted to a situation with
interest rates lower than the average guaranteed interest rates
for our pension customers. During the pandemic, the policy rate
dropped to zero per cent. Throughout this period, customers
nevertheless received the return they were promised, while
Storebrand’s solvency strengthened continuously.

Storebrand now consists of capital-efficient operations that are
growing rapidly. The guaranteed pensions that are mainly affected
by interest rates are run-off. Half of the pension assets on our
balance sheet and 75 per cent of total assets under management
consist of non-guaranteed savings.

Higher interest rates in 2022 will make it easier for Storebrand
to deliver guaranteed returns to our customers in the years to
come, with lower financial risk for shareholders. The benefit was
not reflected in the Group’s results for the year. On the contrary,
higher interest rates contributed to a weak financial result in 2022
due to fair value revision of investments. As interest rates stabilise
at the level we experienced at the end of 2022, pension customers
with guaranteed contracts will gradually achieve higher pension
payments. At the same time, the Group’s profit will increase, and
solvency will strengthen at a higher rate than we have seen in recent
years.

Never has Storebrand been better capitalised than in 2022. The
solvency ratio remained above 180 per cent for a large part of the
year. In the third quarter, we carried out a share buy-back programme
of NOK 500 million, corresponding to NOK 1.07 per share. This was
in addition to an ordinary dividend of NOK 3.50 per share, paid in
2022 for the 2021 financial year. By 2030, we have an ambition
to return NOK 10 billion in excess capital to our shareholders, in
addition to nominally growing dividends. At the same time, we
expect to have additional surplus capital available to finance further
growth in the Group’s focus areas. S&P Global Ratings recognised
our strong capitalisation and upgraded Storebrand Livsforsikring’s
credit rating from ‘A-’ to ‘A’.

Storebrand grew in 2022, both in absolute and relative terms, within
occupational pensions, asset management, insurance, and banking.
Storebrand is the market leader in Defined Contribution pension
schemes in Norway with a market share of 31 per cent, and the
largest challenger in Sweden with a market share of 15 per cent.
Throughout the year, Storebrand climbed from being the fifth largest
asset manager in the Nordic region to becoming the fourth largest.

In the Norwegian private market for banking and insurance,
Storebrand grew about 20 per cent in 2022. While we continue to
be a relatively small player in this market, we demonstrated that we
are a fast-growing challenger. The diversified growth in the Group
resulted in a strong operating result for 2022, despite weaker results
from asset management due to market decline and somewhat lower
total assets.

The total return on the Storebrand share of 8 per cent in 2022 may
be modest. However, the return exceeds that of the Oslo Stock
Exchange (-1 per cent) and comparable companies in Europe at
an average 3 per cent. The Board is very pleased with Storebrand’s
ability to navigate through a challenging year. The Group has a
solid basis for creating future growth and value for the benefit of
customers, society, and shareholders in the years to come.

January - March

April - June

• Storebrand becomes the largest shareholder in the
fast-growing fintech company Quantfolio. Together, the
two companies will develop new services, build common
knowledge around quantitative allocation methods and
sustainable
for
international expansion.

investments, and support ambitions

• Corporate Knights ranks Storebrand as one of the
insurance companies.
world’s most sustainable
Corporate Knights is a Canadian financial magazine that also
produces analytics and financial information. Since 2005,
it has presented a Global 100-list based on evaluations
of around 7,000 companies. The 100 companies with the
highest score on 23 different parameters are selected.
• Storebrand excludes Russian companies. Due to
Russia’s attack on Ukraine, Storebrand excluded all Russian
companies from our portfolios.

• SPP awarded Best Customer Service in the insurance
category by Swedish survey company Brilliant Future.
The Brilliant Awards recognise organisations that succeed
in creating exceptional customer experiences. The annual
award is based on quantitative data from approximately 2.2
million customer reviews.

• SPP named Sweden’s most gender-equal pension
company. For the second year in a row, SPP was named
Sweden’s most gender equal pension company as part of
EYs Nordic SHE Index ranking.

• SPP Fonder becomes Storebrand Fonder. Storebrand
Asset Management and SPP Fonder united under
Storebrand as one strong, common brand. With a broader
palette of funds that can be offered in several markets
under one common brand, Storebrand will be better
equipped to retain customers and grow more efficiently in
our markets.

• Storebrand Conference 2022: Invest in the future!
Around 3,000 customers and partners attended the
conference, which was aimed at highlighting the financial
industry’s role in the green transition. Former Vice President
Al Gore and Pfizer’s chief scientist Mikael Dolsten were
among the keynote speakers.

• S&P upgrades Storebrand to ‘A’. An ‘A’ rating means
that the rating agency S&P considers Storebrand to have
a strong capacity to meet financial obligations. Only a few
companies have such a high rating in Norway. S&P is one of
the most recognised global rating agencies with extensive
experience in assessing the ability to pay and security of
countries, companies, and institutions worldwide. The
upgrade is a recognition of the work done to transform
Storebrand into a robust group with a solid balance sheet
and a belief that we will continue to create profitable growth.
• SPP launches digital concept for small businesses.
The new offering includes occupational pension, health
insurance, premium exemption in case of illness, capital
insurance, counselling and family care insurance. In
December, the concept won the Swedish newspaper Privata
Affärer’s small business award for its holistic approach to
making it easier for small businesses to create financial
security for owners and employees.

July - September

October - December

• Storebrand asks the EFTA Surveillance Authority to
clarify tendering practices for occupational pensions
in municipalities and state health enterprises. The
municipalities buy occupational pension for almost NOK
60 billion a year, but very few contracts are put out to
tender. Storebrand believes that the municipalities’ largest
purchases should be exposed to competition, in line with
other public procurements.

• Storebrand launches nature strategy for investments.
Storebrand’s new nature strategy takes a clear stand against
activities that may harm vulnerable nature. Companies
that invest in seabed minerals, mines with sea deposits, or
operations in vulnerable parts of the Arctic risk are being
excluded from Storebrand’s investment portfolio.

• Storebrand listed on Dow Jones Sustainability World
Index. As the only company in Norway, Storebrand was
listed on the renowned Dow Jones Sustainability World
Index in 2022. This means that the company is considered
one of the world’s most sustainable listed companies.

• Storebrand’s acquisition of Danica Pensjon Norge is
completed. The acquisition strengthens Storebrand’s
presence within occupational pensions in the market for
small and medium-sized businesses, and the insurance
offering within personal risk.

• Storebrand strengthens personal savings offerings
through the acquisition of the Norwegian fintech
company Kron. The acquisition will give one million
Storebrand customers access to first-class digital savings
and investment services.

• Arendalsuka 2022: Storebrand hosted 18 events and
participated in 14 events during the week-long Arendalsuka
event in Norway. We focused on personal economy,
inclusive work environment, monetary policy, sustainability
competencies in the boardrooms, climate reporting and
future pensions solutions in the public and private sectors.
• SPP enters partnership with the digital mortgage
provider Stabelo. The cooperation with Stabelo gives SPP’s
customers an attractive interest rate through a transparent
pricing model. SPP’s customers receive a discount of 0.10
per cent on all fixed interest rate periods at Stabelo.

• Storebrand conducts first share buy-back programme
under Solvency II. After reporting a solvency ratio of
more than 180 per cent in the first two quarters of 2022,
Storebrand bought back its own shares for NOK 500
million. The ambition is to buy back shares for about NOK
10 billion in excess capital by 2030, in addition ordinary
dividend payments.

This is Storebrand

10 About Storebrand
12 Organisation
13 Sustainability as an important guideline
15 Group Executive Management
16 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. Storebrand has
been 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 1,020 billion invested in more than 5,000 companies around
the world. More than two million people in Norway and Sweden have

placed their savings with us. We shall manage our customers’ money
efficiently and responsibly, so that we contribute to giving customers
greater financial freedom and security. We invest for the future and
want the funds we manage to be invested in a way that ensures both
a good financial return for our customers and a positive impact on
society. We make it easy for our customers to make good decisions.
Our purpose is clear: We create a brighter future.

Our driving force

Our driving force helps create a future to look forward to. We will be closest to the customer,
in a simple and sustainable way, to deliver increased financial security and freedom.

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 don’t simply choose the path of least resistance, rather we act in
ways that are best for our customers 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 customers’ 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.

1767
Almindelige Brand- Forsikrings-
Anstalt is established as a
compulsory ﬁ re insurance for
buildings in Norwegian cities.

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.

1999

Storebrand, Skandia and Pohjola gather
their non-life insurance activities in the new
Nordic Swedish-registered company “If
Skadeförsäkring ab”. Storebrand sells out ﬁ ve
years later.

2017

Storebrand acquires

SKAGEN and celebrates its

250th anniversary.

2021

Storebrand’s Capital

management exceeds

NOK 1000 billion.

1847
Private interests establish
Christiania almindelige
Brandforsikrings-Selskab for
Varer og Eﬀ ecter. The company
is referred to as Storebrand.

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.

1996
The company changes
its name to Storebrand
ASA and establishes
Storebrand bank ASA.

2009

Storebrand conﬁ rms that talks

have been held about a possible

merger with Gjensidige. The

talks ended without result.

2006

Storebrand re-enters

P&C insurance

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.

1963
Storebrand takes over
Norske Fortuna. Brage and
Fram merge and become
the country’s largest life
company.

1995
Storebrand establishes
sustainable investment
in Storebrand Asset
Management.

1861
Storebrand’s owners
establish Norway’s ﬁ rst
privately owned life insurance
company, Idun.

1925
Christiania Almindelige Forsikrings-
Aksjeselskap, referred to as
Storebrand, changes its name to
Christiania almindelige Forsikrings-
Aksjeselskap Storebrand.

1984
Norges Brannkasse and
Norske Folk become UNI
Forsikring.

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.

2022

Storebrand acquires Danica

Pensjon Norway and the

investment app Kron, and

introduces a policy on nature

for investments.

2005

The Storting decides that all

companies must introduce

occupational pensions (OTPs) by

2012

Storebrand launches its

new vision: “Our customers

recommend us”. Odd Arild

2007.

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.

1990
Storebrand and UNI Forsikring

decide to merge and receive a

formal licence in January 1991.

1999
Storebrand, Skandia and Pohjola gather
their non-life insurance activities in the new
Nordic Swedish-registered company “If
Skadeförsäkring ab”. Storebrand sells out ﬁ ve
years later.

2017
Storebrand acquires
SKAGEN and celebrates its
250th anniversary.

2021
Storebrand’s Capital
management exceeds
NOK 1000 billion.

1767

Almindelige Brand- Forsikrings-

Anstalt is established as a

compulsory ﬁ re insurance for

buildings in Norwegian cities.

1867

The non-life insurance company
Norden is established as a
competitor to Storebrand.

1936
Storebrand buys Europeiske,
Norway’s leading travel insurer.

1847

Private interests establish

Christiania almindelige

Brandforsikrings-Selskab for

Varer og Eﬀ ecter. The company

is referred to as Storebrand.

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.

1996
The company changes
its name to Storebrand
ASA and establishes
Storebrand bank ASA.

2009
Storebrand conﬁ rms that talks
have been held about a possible
merger with Gjensidige. The
talks ended without result.

2006
Storebrand re-enters
P&C insurance

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.

1861

1917
The life insurance company
Norske Folk is founded.

1963
Storebrand takes over
Norske Fortuna. Brage and
Fram merge and become
the country’s largest life
company.

1995
Storebrand establishes
sustainable investment
in Storebrand Asset
Management.

Storebrand’s owners

establish Norway’s ﬁ rst
privately owned life insurance

company, Idun.

1925
Christiania Almindelige Forsikrings-
Aksjeselskap, referred to as
Storebrand, changes its name to
Christiania almindelige Forsikrings-
Aksjeselskap Storebrand.

1984
Norges Brannkasse and
Norske Folk become UNI
Forsikring.

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.

2022
Storebrand acquires Danica
Pensjon Norway and the
investment app Kron, and
introduces a policy on nature
for investments.

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 Fonder AB

Storebrand Fastigheter AB

SKAGEN AS

Capital Investment A/S

Institutional Holding P/S (20%)

Cubera Private Equity AS

Cubera Private Equity AB

Storebrand Holding AB

Storebrand Boligkreditt AS

SPP Spar AB

SPP Konsult AB

SPP Pensjon & Forsäkring AB

Storebrand & SPP Business Services AB

SPP Fastigheter AB

SPP Hyresförvaltning 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 (25%)

Storebrand Danica Pensjonsforsikring AS

Operational business areas

The Group’s business is divided into four operational areas with a clear division of commercial responsibility: Corporate market Norway,
Corporate market Sweden (SPP), Asset management, and Retail market Norway. See page 47 of the Director’s report for more information
about the business strategy of each operational area.

Storebrand ASA

Corporate market Norway

Corporate market Sweden (SPP)

Asset management

Retail market Norway

Reporting segments

In the Group’s financial reporting, the business is divided into four reporting segments: Savings, Insurance, Guaranteed pension, and Other.
Within each reporting segment, products have comparable performance elements and comparable risks.

Savings
Products that encompass pension and savings without interest rate
guarantees. This includes Defined Contribution pension schemes in
Norway and Sweden, asset management and savings, and banking
products for private individuals.

Guaranteed pensions
Consists of products that include long-term pension savings with
guaranteed returns. These include occupational pension schemes in
Norway and Sweeden, independent personal pensions and pension
insurance.

Insurance
Consists of the Group’s risk products in Norway and Sweden. This
includes health insurance in the corporate and retail markets,
personal insurance and pension-related insurance in the corporate
market, as well as non-life insurance and personal risk insurance in
the Norwegian retail market.

Other
Consists of other companies within the Storebrand Group, including
smaller subsidiaries of Storebrand Livsforsikring and SPP, as well as
results from the company portfolios.

The financial sector plays a key role in helping to achieve the UN
Sustainable Development Goals (SDG). Through responsible asset
management, pension savings, other savings and investments can
contribute to realising these goals. The transition to a low-emission
society that considers nature, social conditions and international
obligations and regulations, represents both financial risks and
opportunities for Storebrand as an investor and asset manager. In
recent years, there have been rapid regulatory developments in the
field of climate and finance, greatly accelerated by the EU. A similar
development is expected for nature. We expect companies that take
this into account will manage risk better and be better positioned
in the long term. At Storebrand, we believe that failure to taking
climate, nature and social conditions into account poses a major
risk of lost value.

In December 2022, the world received a new nature agreement
at COP15, the Convention on Biological Diversity. The agreement
consists of 23 goals to be implemented over the next few years
and compares with the Paris Agreement on climate. Storebrand led
the work towards the nature agreement for the investor coalition
Finance for Biodiversity. There are two points in the agreement that
relate to the way in which global businesses take nature risk into
account: The overall objective that the flow of private capital will be
compatible with the new framework, and an assurance that efforts
will be made to promote transparent, and up-to-date reporting by
large companies on their impact and dependence on nature.

The backdrop is the IPBES report on biodiversity and ecosystem
services from 20195. The UN report concludes that the loss of
biodiversity and ecosystems occurs on a scale that must be limited
as soon as possible, to prevent irreversible consequences. In 2021,
the Intergovernmental Panel on Climate Change (IPCC) notified Code
Red for Humanity in its latest report on climate change. The report
stated that climate change is intensifying continuously and that
some changes are already irreversible.6

Sustainability in Storebrand
Storebrand aims for sustainability to be an integrated part of our
business, including investments, products, product development,
procurement,
recruitment, organisational development and
corporate governance. Customer insights show that customers
want to make sustainable choices and expect us, as a responsible
corporate citizen, to take our share of the responsibility.

Members of the Group Executive Management are responsible
for achieving main strategic goals on sustainability within their
respective business areas. Each area has appointed a strategic and
operational sustainability manager to follow up these goals.

Business unit goals and targets are reviewed three times a year
by the Group Executive Management 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 products,
Storebrand focuses on sustainability, both
services and in our cooperation with suppliers and partners. This
is fundamental to the Group’s strategy and brand. The following
principles form the basis for Storebrand’s work within sustainability:

• We base our business activities on the UN Sustainable

•

Development Goals (SDGs).
Through our products and service-offering, we will help
customers make more sustainable choices.

• We are a responsible employer.
• We consider sustainability in all processes and decisions – from
the Board and executive management level, who have the
overall responsibility, to each individual business manager and
employee.

• We cooperate with customers, suppliers, authorities, and

partners in our work with sustainability.

• We are transparent about our work on sustainability and what

we achieve.

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

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is StorebrandAbout Storebrand 10Organisation 12Sustainability as an important guideline 13Group Executive Management 15Board of Directors 162. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixWe have identified three SDGs (see page 13) 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.

Products and services
Storebrand is a leading financial player in the Nordic market and
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.7 We constantly work to
adapt our products and services to create a positive impact on
society. At the same time, through publication and reporting on our
operations, we aim to ensure that we comply with new regulations
and standards related to sustainability.

Storebrand performs well on external sustainability rankings. In 2022,
Prospera ranked us number one in the sustainable investments
category in Norway, Sweden and Denmark.8 In 2022, Storebrand
received a top score in Söderberg & Partners’ sustainability ranking
among life insurance and non-life insurance policies. For the third
year in a row, Storebrand was included in the Dow Jones Sustainability
World Index, which means that Storebrand was rated as one of the
world’s most sustainable listed companies. Storebrand was ranked
number five in the insurance industry category worldwide. In 2022,
Storebrand received a rating of A, the highest possible score on
CDP, which means that we are constantly improving on highlighting
climate-related data and our impact on the climate. This is up from
A- over several years. These are important recognitions of our work
on sustainability.

investments in green bonds, green infrastructure investments or in
environmentally certified real estate. In addition, almost 44 per cent
(NOK 449 billion) of our assets under management were invested
in fossil-free products. All assets under management in Storebrand
Fonder in Sweden are invested in funds consisting of companies
with no connection to the fossil fuel sector.

We have identified 10 SDGs (below left) where Storebrand can have
the greatest impact through our investment activities. The goals are
used actively, for example when applying Storbrand’s sustainability
rating. In addition, we look at the protection of peace, justice and
strong institutions (SDG 16), with a particular focus on accountability
and anti-corruption efforts, when making investment decisions.
Specific measures and objectives related to these sustainability
goals in our asset management are described in the chapter Driving
force for sustainable investments.

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 CDP (former Carbon Disclosure
Project), in line with the expectations of key stakeholders. In addition,
we engage in international initiatives such as Net Zero Asset
Owner Alliance, Net Zero Asset Manager Alliance, UN Principles for
Sustainable Insurance (PSI) and Climate Action 100+ to join forces
with like-minded partners to find solutions to global sustainability
challenges and set requirements for reaching zero-emission targets.

At the end of 2022, 12.4 per cent of our capital was invested in what
we define as solutions. This includes equity investments in companies
that contribute to solving the UN Sustainable Development Goals,

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 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 encourage companies to adopt sustainable practices

and to integrate sustainability information into their

reporting cycle (target 12.6).

7) 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

8) The ranking refers to five separate rankings conducted by Prospera in 2022: Norway (Institutional Customers and Distributors), Sweden (Institutional Customers and

Distributors) and Denmark (Distributors). Storebrand was No. 1 on sustainable investments in all five rankings.

Back left to right: Jan Erik Saugestad (Executive Vice President Asset Mgmt.), Tove Selnes (Executive Vice President People), Trygve Håkedal
(Executive Vice President Digital), Heidi Skaaret (Executive Vice President Retail Market), and Lars Løddesøl (Group CFO and Executive Vice
President Strategy, Finance and Legal). Front left to right: Karin Greve-Isdahl (Executive Vice President, Communications, Sustainability and
Public Affairs), Vivi Måhede Gevelt (Executive Vice President Corporate Market), Odd Arild Grefstad (Group CEO) and og Jenny Rundbladh
(Managing Director, SPP). 9

See appendix on page 270 for Group Executive Management CVs

9) Geir Holmgren and Staffan Hansén were members of the Group Executive Management from 01.01.2022 to 03.06.2022, and from 01.01.2022 to 31.08.2022 respectively.

Back left to right: Karin Bing Orgland (Board Director), Martin Skancke (Board Director), Hanne Seim Grave (Employee Representative),
Marianne Bergmann Røren (Board Director), Hans-Peter Salvesen (Employee Representative), Fredrik Åtting (Board Director) and Karl
Sandlund (Board Director). Front left to right: Christel Elise Borge (Board Director), Didrik Munch (Board Chair), Bodil Catherine Valvik
(Employee Representative).

See appendix on page 275 for full resumes for Board Directors and Committee members.

Board of Directors
The Board is ultimately accountable for management of the
Storebrand Group. This means, among 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 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.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is StorebrandAbout Storebrand 10Organisation 12Sustainability as an important guideline 13Group Executive Management 15Board of Directors 162. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixCommittees
The Board has appointed four committees to support its role: the Audit Committee,
the Compensation Committee, the Strategy Committee, and the Risk Committee.
More information on the role of each committee can be found on page 227.

Strategy Committee

Audit Committee

Leader
Didrik Munch

Members
Fredrik Åtting
Christel Elise Borge
Hans-Petter Salvesen

Leader
Karin Bing
Orgland

Members
Martin Skancke
Hanne Seim Grave

Compensation Committee

Risk Committee

Leader
Didrik Munch

Members
Marianne Bergmann Røren
Hans-Petter Salvesen

Leader
Martin Skancke

Members
Fredrik Åtting
Bodil Catherine Valvik

Nomination Committee

Leader
Per Otto Dyb

Members (shareholder-elected)
Lars Jansen Viste
Nils Halvard Bastiansen
Anders Gaarud
Liv Monica Stubholt

Material topics
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.

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. In 2022, we started the process to update

our material topics by including the principle of double materiality and
analysed gaps related to compliance with new sustainability standards
within the EU’s Corporate Sustainability Reporting Directive. Double
materiality means that companies must report on both the impact
the company has on society and how ESG risks and opportunities
affect the company’s ability to secure long-term profitability. The
analysis will be completed in the second half of 2023 and will update
our material topics, which will shape the structure of the next annual
reports. Dialogue with stakeholders takes place through interviews,
surveys and direct dialogue. We also emphasise information from other
interactions with stakeholders, for example through general meetings,
customer surveys and interactions, participation in committees and
other initiatives that aim to solve a wide range of societal issues.

Our materiality analysis from 2020 is still the basis for the annual
report and is publicly available.10

10) See Storebrand’s Sustainability Library: https://www.storebrand.no/en/sustainability/sustainability-library/_/attachment/download/a66150fc-0f46-4c2d-8aa1-cbb3d5ebc00d:d12bc8eb4126c99c0ae-

94c0e72b9d8b0e6ad0c1a/Materiality%20analysis%20report%202019.pdf

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Significance of business impact

Financial capital and investment universe

Competitive long-term returns to
shareholders and customers

A driving 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

Based on the materiality analysis, we identified four focus areas and
associated topics. These are:

Financial capital and investment universe

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

The focus areas and associated themes are presented in the materiality
matrix above.

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 impact our business.

How to read this report
The materiality analysis, including input from our stakeholders, forms
the structure of this the annual report. The focus area Financial capital
and investment universe, as well as the three underlying material topics,
are generally ranked by our stakeholders as very significant. They are
also very relevant to the Group’s strategy and risk management and
are therefore included in the Directors Report. Unlike other focus
areas and material topics, these do not have their own chapters nor
sub-chapters. Topic A: Competitive long-term returns to shareholders
and customers are covered through other chapters in the report
such as Customer relations, Director’s report, and Annual 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. All chapters are divided into four parts; why it is
important for Storebrand and for our stakeholders, goals and ambitions,
our approach, and results. We do this to ensure that the topics cover
how we as a company affect the outside world and how we manage
risk from the outside world on our value creation. Key figures are
presented in a table at the end of each chapter. A complete overview
of key figures and results are presented in the chapter Sustainability
Assurance at the end of the report. Key figures for each focus area
are reported to Group Executive Management on an ongoing basis,
and to the Board of Directors annually.

This report has been prepared in accordance with the GRI standards. Our
GRI index is available on page 257. The guidelines of the International
Integrated Reporting Council (IIRC) are also used as a basis for the
report.

This annual report covers Storebrand’s entire business. 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 94 per cent
of the Group’s employees. The figures do not include smaller, local
offices or businesses, such as Cubera and Capital Investment. See page
231 for more information about companies in the Storebrand Group.

Customer relations

20 Greater security and financial wellness

22 Engaging, relevant and responsible advice

23 Digital innovator in financial services

24 Simple and seamless customer experiences

25 Key performance indicators

The chapter on customer relations describes the following material topics: Greater security and financial wellness,
Engaging, relevant and responsible advice, Digital innovator in financial services, and Simple and seamless
customer experiences. For a more detailed description of these topics, see page 17.

We offer long-term savings and insurance solutions that
help individuals and businesses achieve financial security
and freedom.

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 risk management,
we aim to ensure that our customers get good returns on
their investments. Customer dialogue takes place in both
digital and serviced channels. Our goal is to be closest to
the customer, in a simple and sustainable way.

Why
Recent reforms in the Norwegian and Swedish pension systems
result in greater individual responsibility for personal, long-term
finances. Life expectancy is increasing, and people can no longer
expect the same level of financial support from the government.
By taking active responsibility for your personal finances, you may
strengthen your ability to live the life that you want, both throughout
your working life and as a pensioner.

All Norwegian residents received an Individual Pension Account
(“Egen pensjonskonto”) in February 2021. The purpose was to give
employees a better overview and control of their own pension, and
the opportunity to achieve higher pension payments over time. In
Sweden, a new law regulating transfer rights for unit-linked insurance
and depository insurance taken before 1 July 2007, came to force in
July 2022. The purpose was to make it easier and more affordable
for employees to move pension funds saved from 1 July 2007 to the
present. In addition, the Swedish Parliament has asked the Swedish
government to investigate both how to facilitate the transfer of
occupational pensions, and whether it is possible to remove the
current requirement for signature from former employers when
transferring occupational pensions.

Goals and ambitions
Storebrand aims to deliver security and financial freedom to
customers through a wide range of services that meet their overall
financial needs at all stages of life. In Norway we offer products and
services within savings, banking and insurance. In Sweden, we offer
savings and insurance.

When customers take steps to secure their financial future together
with Storebrand, they should feel confident that we will guide them to
good decisions. Customers should experience that we offer relevant
and attractive products, and that we manage their savings so that
they 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 holisitic and individualised follow-up. Through
digital solutions, customer seminars, and advisory services, we make
it easier for companies to understand and explain their pension
schemes, and for their employees to gain oversight and control of
their own pension. We have qualified advisors and emphasise the
use of simple and understandable communications. In total, this
contributes to Storebrand being a preferred provider of pension
services. 11

With the communication concept
”Invest in the future”, we want to
motivate customers to make conscious
choices for their financial future.

We work diligently to make it as easy as possible to decide on
complicated financial matters. We facilitate with simple tools, but
also through advanced technology and competent advice. We take
a long-term perspective in our efforts to create a future to look
forward to.

Storebrand shall be known for our ability to create value for our
customers through sustainable investments and attractive financial
products. Our ambition is to help our customers make sustainable
choices.

In 2022, we developed several new products and services that
support this strategy. One example is our offering ”Miljøtiltakslånet”
(Environmental Action Loan), which gives customers the opportunity
to borrow money for the purchase of, among other things,
photovoltaic systems, heat pumps, new windows or to install home-
charging solutions for electric vehicles.

In Sweden, we launched a new communication concept, “A
sustainable link to the future”, to position ourselves more clearly
as a broad Nordic financial group. This was the first time that SPP
and Storebrand co-signed customer and market communications.
With the rebranding of SPP Fonder to Storebrand Fonder, the
ambition is to increase knowledge in Sweden of Storebrand and
SPP’s connection to the Storebrand Group. The concept is based
on our common logo symbol and expresses how we create value for
our customers by connecting the present and future, working life
and retirement, and investments today with tomorrow.

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

11) After a survey of our customers, the result showed that 35 per cent of decision-makers in companies say they will contact Storebrand when considering pension and insurance schemes for the

company, and as much as 65 per cent of our own customers.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relationsGreater security and financial wellness 20Engaging, relevant and responsible advice 22Digital innovator in financial services 23Simple and seamless customer experiences 24Key performance indicators 253. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix
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.

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.

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, customers tend to have a higher
demand for advisory services.

SPP continued to further develop digital customer services in 2022,
including a new service that gives both employers and employees
a simple overview of salary development for each employee.
Corporate services completed processing more than 40 000 cases,
double the amount of the year before.

More than 500,000 people checked their pension through
Storebrand’s digital pension services in Norway in 2022.12

In Sweden, more than 370,000 customers logged into SPP’s website
to find information about their pension, while over 5,400 corporate
customers logged in to review and manage the company’s pension
solutions. A significant number of corporate customers chose
to enter into an agreement on digital payment of occupational
pensions. 85 per cent of all private customers in SPP who retired in
2022 signed up for fully digital pension payments. 13

12) Customers checked their pension through the digital pension services My Pension and Smart Pension.

13) 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 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.14 In Sweden, all
our advisors are certified in line with legal requirements.

Approach
«Put the customer first» is a principle that guides all our customer
relations. This is reflected in our service standards:

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

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

Enthusiastic – I am positive and exceed expectations.

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

Our advisors in Norway are authorised through the financial
advisor’s 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.

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.

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

“Your climate footprint” is a tool that shows the carbon footprint
associated with the investments of employees’ pensions and savings,
compared to the footprint if the money had been invested in funds
without a sustainability profile. Companies use the information in
communication with employees, in their own sustainability reporting,
and to strengthen their own brand and reputation. Customers in
Sweden report that the tool is useful in communicating with their
own employees. Many companies also want to communicate
information available in the tool in recruitment campaigns and in
their own sustainability reporting. In Norway, the tool was further
developed and launched through the platform for corporate
customers in 2022. In the portal, corporate customers can enter
and look at sustainability information related to their own pension
saving schemes.

Results
For the second year in a row, Storebrand was ranked number one
in the Norwegian Customer Barometer’s annual survey of customer
satisfaction among pension customers in the corporate market. The
score of 73 points (out of 100 possible points) showed that customers
were satisfied with their relationship with Storebrand. The survey
also ranked Storebrand highest on loyalty. High satisfaction in the
corporate pension market was confirmed by results from Aalund’s
corporate pension barometer.

For the fourth consecutive year, Storebrand was ranked No.
1 in Mercer’s “DC Vendor Evaluation” , which also gave us the
highest-possible score on ESG criteria. Sustainability has become
an important parameter in an increasing number of customer
processes. Storebrand’s commitment to profitable sustainability is
an important message in both the corporate and retail markets.15

Mutual funds, total market 17

Unit-Link 18

16.2 %

22.3 %

83.8 %

77.7 %

Non-life insurance 19

6.4 %

Banking 20

2.0 %

93.6 %

98.0 %

Storebrand market shares

Other providers

15) Aalund conducts an annual customer satisfaction survey in the corporate pension market called the ”company pension barometer”.

16) Mercer conducts an annual evaluation of the quality of providers’ investment offerings and set-up for defined contribution pension schemes. The evaluation is a quantitative and

qualitative analysis of asset management.

17) Mutual funds consist of share savings accounts and investor accounts and include AUM for Storebrand Asset Management and Skagen. Source: Norwegian Mutual Fund Associati-

on – Norwegian Retail Customers (September 2022). Total assets.

18) Figures for retail customers, including Danica, from 2022. Source: https://www.finansnorge.no/siteassets/statistikk/livstatistikk/statistikker---livstatistikker/ma/2022/ma-q3-2022.xlsx.

19) Source: Finans Norge, Premium statistics non-life insurance 4. quarter 2022. Table 2.1 – private land-based insurance in total

20) Bank market share is measured in loans. Source: Statistics Norway and banks’ quarterly reports for Q3 2022

Smart use of data creates business value through the improvement
of existing processes and new areas of application. Storebrand’s
award-winning machine-learning model for identifying non-life
insurance fraud identified twice as many cases of fraud or attempted
fraud in 2022 as the year before. The use of data and artificial
intelligence contributed to a doubling of the number of disability
cases granted through automated case processing.

In 2022, Storebrand’s environment for data and analysis also worked
to improve internal processes. Money laundering and compliance
risk have proven to be areas where the use of advanced analysis
is highly effective. For example, in 2022, computer-based analysis
models for anti-money laundering were developed for selected
customer groups of Storebrand Bank.

The asset management business has deep expertise in the use
of data and analytics. In 2022, a dedicated analysis platform was
acquired to further develop and support the investment process in
Storebrand Asset Management (AS). Storebrand’s own sustainability
score for fixed income and equities was made available to all
managers in the asset management business in 2022.

Why
Storebrand’s technology platform is a key element in our production
of financial products and services. As such, it can be described as
our business factory. It is a modern platform that enables us to
constantly meet new expectations from our customers.

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

Approach
At the beginning of 2022, Storebrand Digital was established as
a business area. This area brings together employees working
with digital service development, technology and data. The work
methodology is agile and characterised by an interdisciplinary and
seamless collaboration with the various business areas.

Consolidation and renewal of the technology platform is vital to
ensure innovation. Transforming Storebrand’s IT solutions into
cloud-based infrastructure is an important part of this strategy. In
addition, we see that advanced use of data and artificial intelligence
can contribute positively to the further development of Storebrand
and our industry.

Results
In 2022, Storebrand launched the concept “My home”, a service that
creates value for both Storebrand and our mortgage customers.
The service estimates the value of the property, provides insight of
energy consumption and is linked to personal banking advice. As
many as 80 per cent of the users gave positive feedback.

In SPP, the modernisation of the core IT platform was completed in
2022. The Future Core programme has strengthened the basis for
cost-effective digitalisation and has already yielded positive results.
The number of self-service actions in our digital customer service
portal doubled in 2022. In the corporate market, 80 per cent of
all new signings took place digitally (in this or adjacent services).
For pension withdrawals, 85 per cent were carried out digitally.
Following a successful transfer of Storebrand Asset Management’s
solution portfolio to the cloud solution Microsoft Azure in 2021,
further work was carried out in 2022 to migrate the rest of the
Group’s infrastructure to a similar solution.

Why
Digitalisation is a driving factor among product and service providers
in all
industries. Storebrand’s customers expect a seamless
interaction between personal advice offered by our employees, and
service in digital and serviced channels.

As the public sector occupational pensions segment is important
to Storebrand, we developed new and improved functionality for
calculating pensions for customers in this market. This includes both
flexible and early retirement. Satisfaction among customers who
used the service increased by more than 70 per cent.

In 2022, Storebrand acquired the fintech company Kron, which
has succeeded in creating awareness and customer interest in
the market for personal savings and investment activities. Kron’s
platform for fund investments and pension savings will become
Storebrand’s digital service for savings in the private market in 2023.
Increasingly, small, and medium-sized companies are using
Storebrand’s digital purchasing solution. 45 per cent of sales in
the direct channel took place in the digital solution, and customer
satisfaction increased by 20 per cent in the past year.

In asset management, Salesforce was adopted to serve institutional
customers. The customer portal for the same customer segment
was upgraded, and we now offer modern solutions for reporting
including status and progress on sustainability in companies that
Storebrand has invested in. We also partnered with fintech company
Quantfolio to develop a new consulting solution.

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

Approach
Storebrand invests in technology, services and concepts to ensure
relevance for our customers in the channels they prefer, with an
increasing emphasis on self-service. At the same time, we know that
customers have different preferences, and that customers’ need for
personal advice may vary throughout a purchase or service journey.
Therefore, it is important that the technology platform ensures a
seamless transition between self-service and serviced channels.

In 2020, we introduced Salesforce as an IT platform for customer
dialogue and follow-up across channels. The platform is now
the engine of customer service for both retail and institutional
customers. In 2023, work will continue to ensure that the platform
may also strengthen service to Storebrand’s corporate customers.

Good functionality in all basic solutions that our customers use,
has been the focus in 2022 and will continue to be important in the
future.

Results
In 2022, Storebrand launched a new mobile bank solution that
provides our banking customers with easier access to other services
offered by the Group. The solution will help increase sales of several
types of products to our customers. A new solution for processing
loan applications and issuing financing certificates was launched
during the year. The average processing time per loan application
was reduced by 30 minutes through the integration with Salesforce,
and advisors can in many cases grant loans while on the phone with
the customer.

In 2022, more than 40 per cent of health assessment cases were
processed through an automated process. Many customers
experienced significantly reduced waiting times, and customer
satisfaction increased almost 20 per cent.

A smart account product was incorporated into the Smart pension
solution in 2022, making it easier for customers to serve themselves
digitally. This resulted in a balance increase of NOK 1.4 billion on
accounts created during the year.

For more key performance indicators (KPIs) and detailed KPI definitions, see page 233

Categories and indicators

Brand

Brand awareness: Norwegians who
answer that Storebrand is one of the first
three companies they think of in a broad
financial category (position / share)

Recognised for sustainable value creation
(Retail market, Norway)

Recognised for sustainable value creation
(Corporate market, Norway)

Customer satisfaction

Customer Satisfaction (Net Promoter
System, retail market)

Market share

Market share: Mutual funds, Asset
Management, Sweden

Market share: Mutual funds, Asset
Management, Norway 21

Markets share: Saving, retail market
Norway 22

Market share: Banking, retail market,
Norway

Market share: Insurance, retail market,
Norway

Market share: Insurance, corporate
market, Norway

Market share: Pensions, corporate market,
Sweden

Market share: Pensions, corporate market,
Norway 23

Market position

Market positions: Saving, retail market,
Norway

Market position: Pensions, corporate
market, Norway

Results

2019

Results

2020

Results

2021

Results

2022

Targets

2023

Targets

2025

New

No. 3

No. 1

New

No. 5

No. 4

New

No. 5 / 21.1 %

Top 3

No. 3

No. 5

No. 3

Top 3

No. 1

No. 4

No. 6

No. 5

Top 3

4.7 %

4.9 %

5.3 %

Increase

16.1 %

15.4 %

16.2 %

Increase

20.0 %

21.7 %

19.6 %

21.0 %

Increase

1.7 %

3.6 %

2.0 %

1.6 %

4.1 %

2.1 %

1.8 %

5.9 %

2.5 %

2.0 %

Increase

6.4 %

Increase

2.8 %

Increase

14.1 %

15.1 %

14.3 %

14.6 %

Increase

29.1 %

29.4 %

27.0 %

30.8 %

Increase

No. 2

No. 1

No. 2

No. 1

No. 2

No. 1

No. 2

No. 1

N/A

No. 1

21) Market share includes total market (including institutional customers) for Storebrand and Skagen

22) Market share for savings retail market includes in 2022 Danica which we acquired in 2022.

23) Pension, corporate market share in 2022 includes Danica that we acquired in 2022.

People

27 A culture for learning
29 Engaged, competent and courageous employees

31 Diversity and equal opportunities

33 Key performance indicators

The chapter on people describes the following material topics: A culture for learning, Engaged, competent
and courageous employees, and Diversity and equal opportunities.. For a more detailed description of
these topics, see page 17.

”People first, digital always” is Storebrand’s strategy for
organisational and employee development. Our aim is to
enable our organisation to adapt to continuous changes
in an increasingly digitalised society while, at the same
time, delivering on ambitious business targets.

In 2022, we further developed a flexible hybrid working
model through a project called Future Storebrand. Each
organisational unit and team adjusted its routines as
needed throughout the year. Flexibility in terms of place
of work contributed to efficiency as well as a sense of
freedom among our employees. In 2022, following
the pandemic, it was important to resume physical
collaboration to further strengthen company culture and
a sense of belonging.

Surveys showed that the degree of engagement among
our employees continued to increase in 2022.

Why
While we offer both internal and external courses and training
programmes, most of the learning and development take place
through our daily work. Therefore, it is important to maintain a
learning culture that promotes continuous learning, sharing and
collaboration. A learning culture is key to improving performance
and fostering diversity and innovation in a hybrid work model.

Goals and ambitions
Our ambition is to build a learning culture with a high degree of
psychological safety. Employees should dare to experiment, fail and
be open about what they master. Employees should feel encouraged
to give input, share different perspectives, and offer feedback.
Employees should take responsibility for their own development as
well as that of their colleagues.

the Storebrand Academy, a management program with
participants from across the organisation. Following the
pandemic, participants at various leadership meetings and
programs enjoyed meeting physically in 2022.

•

For select employees with less than three years of experience,
we offer a development program for young talents, Storebrand
Future Impact. The goal is to engage future leaders and change
agents, with emphasis on the development of three skills: self-
management, relationships and collaboration, and complex
problem solving.

• Mentor programs also were continued. After an in introductory
meeting between mentors and mentees, it is up to the
participants to agree on the form and frequency of dialogue
and cooperation.

We offer knowledge networks, courses and programmes via
platforms that both ensure a good learning experience and provide
us with data to continuously improve.

•

Our aim is for all employees to continue learning throughout their
employment with Storebrand, so that they may thrive, grow and be
of increasing value to colleagues and the organisation as a whole.

Approach
Among the most important arenas for culture building and learning
in 2022 were:

•

The workshop “Psychological safety – what, why and how?”,
which was introduced in 2021, was further developed and
offered to teams and departments throughout the company.

• Our annual Employee Day focused on the theme “Growth –
Conversations about development”, which was chosen based
on insights from more than 100 employees and 20 managers
representing more than 20 teams across the organisation. The
insights showed that people wanted to talk more about their
development as a Storebrand employee.

•

Storebrand’s digital onboarding program, “Smart Start”, was
offered to all new employees. The program includes four
digital meetings during the first month as a new employee. The
participants get to know other new employees and colleagues
in different parts of Storebrand, in addition to learning more
about development opportunities and offers.

In collaboration with Front Leadership, a Norway-based
leadership development firm, we offered programs designed
for middle managers at different levels. A separate track was
offered to new leaders. A new cohort of managers attended

Storebrand Sandbox, a summer program for students, is
a leading fintech program in Norway and Sweden, where
students with different study backgrounds solve a real challenge
facing Storebrand or our customers. Young talents get to
know Storebrand, and we strengthen relations with potential
employees. The programme is also an important contribution
to Storebrand’s learning and innovation culture.

Storebrand also has several other learning arenas. In 2022, we
worked to make these more visible, combining physical gatherings
with digital participation. The initiatives were promoted through
internal channels and at our annual Employee Day. 24

Results
Storebrand conducts regular employee surveys
to ensure
frequent feedback and employee satisfaction. When asked about
development, the survey in 2022 showed a stable high score, 8.1
out of 10. The score on questions related to supervision increased
from 8.1 to 8.2 out of 10, while the score measuring employees’
satisfaction with career development increased from 7.7 to 7.8 out
of 10. The score for learning remained stable at 8.3 out of 10.

Workshops about psychological safety were implemented in both
2021 and 2022 among 60 management teams, teams and corporate
units.

At our annual Employee Day, 1,815 participants used a newly
developed dialogue tool focused on personal development.
Increased emphasis on
in 2022
contributed to several new initiatives in different parts of the
organisation,
regular appraisals,
development opportunities for special roles, as well as internships
in other units than one’s permanent place of employment.

learning and development

including structured and

24) Other popular learning arenas are practical leadership lunch, iWaffle (innovation talk), StorebrandTalks (internal ”TED-talk”) and Gemba Guild (network on agile working methods).

In 2022, 391 new employees participated in the Smart Start
introduction program.

Our innovation talk, iWaffle, had weekly episodes with 50-90 listeners
each week in 2022.

addition, we continued various networks and arenas for experience
sharing and professional development, especially for managers.
Throughout the year, 17 digital meetings and gathering arenas were
held for leaders at all levels in Norway and Sweden.

Throughout 2022, we further developed and professionalised
learning offerings and digital inspiration through an internal TV
studio based in our offices in Norway and Sweden. Physical meeting
places, including the Gemba Guild and other networks, provided
opportunities for employees who joined Storebrand during the
pandemic to develop and get to know each other.

In 2022, 26 participants from across the organisation completed
the Storebrand Future Impact program. Last year’s participants join
an alumni network consisting of former participants. The network
serves as an arena for personal learning and growth. The program
will be continued in 2023 with 21 new young employees.

In 2022, we organised three different mentoring programs: Reverse
Mentoring, Mentor Program for Women, and Mentor Program for
Future Impact. A total of 53 employees participated.

The Storebrand Sandbox summer program comprised 20
participants, including 15 in Norway and five in Sweden, with
backgrounds in economics, technology, psychology, development,
entrepreneurship, and design. The program is an important part of
our innovation strategy.

The Storebrand Front Leadership management program was
attended by 20 managers with and without personnel responsibility.
The offer was expanded in 2022 to suit different roles and needs. In

To ensure access to the necessary expertise going forward, it is
important position Storebrand as an attractive employer among
students and young employees. In 2022, Storebrand climbed from
41st to 27th place in the annual Young Professionals Attraction Index
ranking. 25

We also offered courses and learning arenas to ensure smart use
of our digital tools. For roles with additional competence needs,
certifications and exams were conducted. Storebrand’s digital
enthusiasts also contributed in 2022 with knowledge sharing and
support on digital tools used in everyday work.

For inspiration and professional skills and competence development,
we use our learning portal, Campus Storebrand, where employees
can find links to e-learning, internal courses, and various external
course providers.

In total, more than 1,900 people participated in one or more courses
in 2022. Our employees completed 7,854 hours of learning, an
average of six hours per person. However, this figure does not give a
complete picture of all digital learning last year. We do not have data
on the number of employees taking courses or completing digital
learning on external online platforms, nor on non-digital training
taking place internally or in collaboration with external providers.

25) The Young Professionals Attraction Index is a list of the most attractive employers for young graduates where companies are ranked annually.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. PeopleA culture for learning 27 Engaged, competent and courageous employees 29 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. AppendixEngaged, competent and courageous
employees

Why
Storebrand’s employees are our most
important source of
innovation, development, and growth. We need employees who
are brave pioneers, who challenge and think creatively to create a
brighter future for our customers.

Goals and ambitions
Our ambition is to strengthen employee satisfaction and commitment
through meaningful work, good management, a motivating working
environment, development opportunities and trust. Our managers
should set clear guidelines and encourage employees to work
together to achieve common and individual goals.

Openness is a prerequisite for motivation, trust, and security. All
employees must feel that they can raise issues with management
and others in the Group. Storebrand has its own ethical guidelines.

Approach
Storebrand relies on the trust of customers, partners, authorities,
shareholders, and society at large. High ethical standards are a
prerequisite. All employees must act with due care, integrity, and
objectivity. In 2022, we revised our e-learning courses on ethics,
anti-corruption, money laundering and terrorist financing, privacy,
and digital trust. The courses are mandatory and are conducted
annually. The courses consist of digital broadcasts produced in
our studio at Lysaker, where employees across the Group provide
insight into the various topics.

Storebrand has well-established routines for handling complaints,
harassment, and other unacceptable behaviour. The organisation
also has an external whistleblowing channel, which is administered
through an audit firm. In 2022, we received26 two reports or
complaints of harassment or other unacceptable behaviour through
the external whistleblowing channel.

Our driving force at Storebrand is to be closest to the customer
and help them achieve greater safety and financial wellness, so that
they may have a brighter future to look forward to. To create great
customer experiences, we must give our employees the space and
mandate needed to act as brave pioneers. Every year we award a
Brave Pioneer Award. Particular emphasis was placed in 2022 on
customer-focused initiatives and employees who, over time, have
taken bold steps to be as close as possible to the customer.

Employee surveys are conducted regularly (every two weeks or
monthly) to measure workplace engagement. Work satisfaction,
leadership, cooperation, self-determination, freedom of opinion,
sustainability and development and learning area are among
the topics measured. In 2022, we used two additional modules
in the survey to include questions related to health, safety, and
environment (HSE), and diversity and inclusion. Going forward,
questions included in these modules will be conducted once a
year, in September and October respectively. Targets related to
the surveys are strategically anchored and regularly followed up by
Group Executive Management. The surveys produce real-time data
that makes it possible to implement continuous improvements, in
line with our goal of being a smart and agile organisation.

After the pandemic, we have focused on our new hybrid working
day. Flexibility and autonomy in terms of the place and hours of work
have been particularly important, both at team and employee levels.
In 2022, we formalised routines related to working from home, in
line with current legal regulation in Norway. At the same time, we
emphasised physical meeting places, and social and professional
events. We encourage employees to strive for a good work-life
balance. This will guide our efforts to further improve the hybrid
working day. In 2022, we began work to map opportunities related
to our future headquarters. Among other things, all employees
were invited to share their expectations of a future office, working
environment, and employee experience.

Results
In 2022, an average of 73 per cent of employees completed
e-learning courses in ethics, anti-corruption, money laundering and
terrorist financing, and privacy and digital trust. In 2023, we will use
the feedback from the organisation to further improve e-learning.
From 2023, all employees will also take an annual e-learning course
on sustainability.

All internal members of the Board of Directors and Group Executive
Management attend annual courses on ethics, anti-corruption,
money laundering and terrorist financing, and privacy and digital
trust as part of the Group’s risk management. More information
about this can be found in the chapter Corporate governance and
compliance.

26) Our external whistleblowing channel is through BDO: https://u.bdo.no/storebrand

Female managers
in group

39%

a consequence, we initiated experimentation and learning related to
a hybrid working day. In addition, office spaces were upgraded with
the goal of strengthening agile work and collaboration opportunities
across the organisation. Scores related to the work environment
increased from 8.0 out of 10 in 2021 to 8.1 out of 10 in 2022.

An average of 78 per cent of employees responded to the employee
survey at least once in the last three months throughout 2022. The
surveys showed a stable high engagement score of 8.4 out of 10, on
average, in 2022. This was 0.5 above the average for companies in
the financial industry.

In 2022, employees gave particularly high scores on questions
about organisational topics (including core values, sustainability and
equality), meaningful work, support from managers, relationships
with colleagues, self-determination, freedom of opinion and
development. During the pandemic, the results showed room for
improvement when it came to the physical working environment. As

Survey results from the HSE module showed a score of 8.2 out of
10, which was 0.3 above the industry average. In 2022, the questions
were distributed in October in connection with HSE Week, which we
offered for the first time. During the week, we carried out several
activities in the office and digitally, on issues related to health, safety,
and work environment for all employees.

The results from the module on diversity and inclusion gave valuable
input for various initiatives in the future. You can read more about
this in the next sub-chapter Diversity and equal opportunities.

Why
It
important that Storebrand’s organisation and business
is
activities reflect our customers and the market in which we
operate. Storebrand aims to be a good workplace for all employees,
regardless of background. We strongly believe in building an
agile organisation and a culture of trust, inclusion and belonging.
Independent sustainability analyses show that companies that
focus on diversity are more innovative and profitable than other
businesses. We must be able to attract the best talents to create a
brighter future for our customers, employees, and society.

Goals and ambitions
We always strive to be an organisation characterised by inclusion
and belonging. All Storebrand employees shall be treated equally,
regardless of age, gender, disability, cultural background, religious
beliefs, or sexual orientation, both in recruitment processes
and throughout their employment. We have zero tolerance for
harassment, discrimination, and gender-based violence.

We will contribute to UN Sustainable Development Goal 5 ‘Gender
equality’, by promoting gender equality in the workplace. Our goal is
greater diversity and better gender balance in senior positions in all
parts of the Group. Measures include nomination of an increased
proportion of women to leadership development programs, and in
recruitment processes for management positions.

Approach
Storebrand works systematically to ensure diversity, inclusion, and
equality through defined processes for recruitment, organisational
changes, salary adjustments and management training. The CEO
is followed up by the Board on several sustainability indicators. In
2022, one of these was to strengthen gender equality. We have a
diversity committee with participation from the entire Group. In
2022, the committee focused on diversity, inclusion and belonging.
In 2022, we continued to offer courses on inclusive leadership.

We work actively to achieve gender balance and diversity through
targeted recruitment measures and strive to nominate an equal
number of women and men to leadership positions and leadership
development programmes. Candidates and employees should
experience a transparent and inclusive recruitment process, both
in internal and external processes.

In 2022, we continued our efforts to make the recruitment and
interview process as inclusive as possible. Diversity must be
demonstrated in the interview and recruitment process, as well as
in job advertisements. Our goal is to be able to assess one female
and one male final candidate when recruiting for management
positions. For permanent employees, we offer paid parental leave
beyond the statutory requirements in Norway and Sweden and pay

100 per cent salary during parental leave. Employees on parental
leave are guaranteed an increase of one pay grade step during the
leave.

We continued our partnership with the Women in Finance Charter,
which we signed in 2021. Companies that sign commit to set
internal goals for gender balance at management level and among
specialist positions, to have a dedicated manager with responsibility
for following up such goals, to publish status and follow-up
regularly, and to ensure coherence between goal achievement and
compensation.

Storebrand has participated in the tripartite Inclusive Working Life
(IA) program since 2002. The program is based on the premise that
work promotes good health and well-being, and that early, active
intervention can prevent absenteeism. The Group’s managers
have established routines for inclusive follow-up of employees
in the event of illness. At Storebrand, we have zero tolerance for
harassment, discrimination, and other unwanted behaviour.

In 2022, we introduced an additional module in our employee
survey, asking questions about diversity and inclusion.

Diversity and inclusion in working life have been further emphasised
through our collaboration with the Catalysts Association. The focus
in 2021 was on inclusive leadership, and we therefore wanted to
continue this work in 2022 by offering a programme for the entire
organisation. We received support from the Norwegian Directorate
of Integration and Diversity (IMDI) to develop a course designed to
increase awareness of diversity, inclusion and belonging. We also
conducted focus groups with representatives from various parts of
the organisation, discussing their experiences related to diversity
and inclusion in Storebrand. The e-learning course will be offered to
all employees in 2023.

Several managers participated in a reverse mentoring program,
where the mentors were young students with minority backgrounds
or international experience. We also continued a separate
mentoring program for female employees.

Work to study the link between psychological safety, diversity and
inclusion continued in 2022. During the year, we used external
and internal communication channels to put mental health and
exclusion on the agenda, including the external marketing campaign
“Hobby Psychologist”.

Results
A total of 120 leaders have completed Storebrand’s Inclusive
Leadership course. In 2022, 30 managers completed Inclusive
Leadership, which will be further developed in 2023 in connection

Ten leaders participated in our reverse mentoring program in 2022.
Through our employee surveys, we achieved an even average score
of 8.7 out of 10 on questions about gender equality and inclusion.
The survey results showed that employees believe that Storebrand
promotes a diverse and inclusive workforce, and that employees
feel accepted regardless of background. There was a high degree
of trust in Storebrand as an employer. The survey results are used
to develop learning programs for competence development and
culture building. On questions about diversity and inclusion, the
score was 8.2 out of 10. This was 0.1 percentage point below the
industry average. Our ambition is to lift the result in 2023 through
targeted measures.

In 2022, ten women from different parts of Storebrand co-founded
a talent and leadership development program for women, FiftyFifty,
together with women from a group of other Norway-based
companies. The programme is currently led by AFF, a Norwegian
leadership development foundation. The programme consists of
participants who collaborate to develop measures that promote
gender equality for the participants, the companies they work in,
and society in general.

For the mentor program for women, we established ten mentor
pairs across the group, with participants from Norway and Sweden.
In September, we offered a webinar for all employees on World
Mental Health Day, to highlight employee benefits within mental
health care and counseling. On internal social media channels,
measures to counteract exclusion and include employees were
regularly discussed. These included social arenas, sports and
extracurricular activities used by many employees and which
contribute to a sense of belonging.

The goal is to ensure at least 40 per cent female participation in
our leadership and talent development programs. In 2022, an equal

number of women and men attended the Storebrand Academy.
The Front Management Programme for middle managers included
40 per cent women and 60 per cent men. The Sandbox program
included an equal number of women and men, 20 in total. Among
the participants on the Storebrand Future Impact program, 43 per
cent were women and 57 per cent were men.

In recruitment processes, we have worked to achieve greater
variation among Storebrand’s representatives, with contributions
from employees and managers with different professional
experience, cultural background, age, and gender. Several members
of the diversity committee will be recruited from different parts of
the organisation.

We have regularly provided an overview of the proportion of
women at various management levels within Storebrand. At the
end of 2022, there was an average of 38 per cent women with
management responsibility, up from 37 per cent from the previous
year. At management levels 1 to 4, there were 37 per cent women
at the end of 2022, compared to 39 per cent in 2021. At the end of
2022, the Group Executive Management consisted of 56 per cent
women. Internal growth and development opportunities have a high
priority. Both new appointments to Group Executive Management in
2022 were chosen among internal applicants.

Five out of nine members (56 per cent) of Group Executive
Management were women. Among the managers who reported
directly to Group Executive Management, 42 per cent were women,
and 50 per cent of the Board of Directors of Storebrand ASA were
women.

Salary levels were reviewed in 2022, as part of the annual salary
adjustment process. The review showed somewhat lower average
salaries among female employees than male employees. Several
measures have been
implemented to make salaries more
comparable and equal for women and men, including an annual
salary review in cooperation with employee representatives. 27

Number of employees per country 28

Gender distribution

413

1,710

Norway

Sweden

Denmark

Finland

England

Germany

Total

Norway

Women 765

Men 945

Sweden

Women 212

Men 201

2,161

500

1000

1500

2000

2500

27) More information available in Storebrand’s Gender Equality Report 2022, https://www.storebrand.no/en/sustainability/sustainability-library/_/attachment/inline/46d-

58fd1-d430-472e-993c-a5674efa0a2a:f4f2b49814c8b013574da630e084a62d1952a492/2022-Storebrand-gender-equality-report.pdf

28) Due to the limited number of employees in Denmark, Finland, England and Germany, we have chosen to only show total and not figures divided by gender.

Sick leave:

Average age: 43 years

Turnover: 8.1 %

Average seniority:

•

Norway: 10 years

Sweden: 9 years

Gender distribution, employees:

54 % male, 46 % female

Gender distribution, Group Executive Management:

44 % male, 56 % female

Sick leave has been low and stable for several years.

Norway: 3.2 per cent

Sweden: 1.9 per cent

Accidents that resulted in physical injury: 1

Incidents with material damage: 0

Key performance indicators

For more indicators and definitions see page 233.

Categories and indicators

Number of employees

Results

2018

Results

2019

Results

2021

Results

2022

Targets

2023

Targets

2025

Number of employees (group)

1,742

1,824

1,914

2,161

Proportion of women in total (as a share of total
employees)

Employees: Gender balance in senior positions

46 %

N/A

Number/proportion of women on the Board of Directors

4 / 44 %

4 / 40 %

5 / 50 %

50 %

Number/proportion of women in Group Executive
Management

Number/proportion of women at management level 3

Number/proportion of women at management level 1-4

Number/proportion of female managers, regardless of
level (as a percentage of all managers) 29

Proportion of women in management positions in
revenue-generating functions (e.g. sales)

Salary ratio: salary remuneration of senior executives

Extended senior management, women's share of men's
pay per job category (Hay Grade 21-26) 30

Employees, women's share of men's salary per job
category (Hay Grade 12-20) 31

Employee engagement

Engagement score all participants: Storebrand score
(industry average in Peakon), scale 1-10

Recruitment

3 / 30 %

3 / 33 %

5 / 56 %

41 %

new

24 / 38 %

22 / 37 %

27 / 42 %

38 %

83 / 39 %

86 / 37 %

50 %

39 %

103 / 39 %

102 / 37 %

116 / 38 %

50 %

new

39 %

35 %

43 %

N/A

50 %

100 %

104 %

99 %

97 %

95 %

100 %

96 %

100 %

8.0 (7.8)

8.3 (7.8)

8.4 (7.8)

8.4 (7.9)

>8.0

Number of employees recruited, group, total

204

285

337

416

N/A

29) Includes all female managers with personnel responsibility. For Level 3, all female managers are included, except personal assistants

30) As of 2022, Hay Grade was expanded to 21-26 (from previously 21-25). The positions were re-evaluated as the complexity of the roles has changed since the last assessment.

31) As of 2022, Hay Grade has been expanded to 12-20 (from previously 13-20).

Keeping our house
in order

35 Corporate governance and compliance

40 Responsible use of resources

42 Sustainable practices through our value chain

44 Corporate social responsibility

45 Key performance indicators

This chapter describes the following material topics: Corporate governance and compliance, Responsible
use of resources, Sustainable practices through our value chain, Corporate social responsibility. For a
more detailed description of these topics, see page 17.

To build and maintain the trust among customers,
shareholders, authorities and society at large, we must
ensure that all employees follow our ethical guidelines
and practices.

Ethical guidelines and practices must also guide the way
we run our business. We must ensure that Storebrand
complies with relevant laws, regulations, frameworks, and
other requirements. Altogether, these important elements
contribute to enhancing and securing our position as a
company that works diligently and systematically with
sustainability.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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 42Corporate social responsibility 44Key performance indicators 455. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixCorporate governance and compliance:
Privacy and digital trust

Why
New technology and intelligent use of information and personal data
enable us to better understand our customers and their needs. As
long as customers entrust us with their personal data and we keep
in line with relevant regulations, we are able to develop increasingly
personalised products and services.

Increased digitalisation of our day-to-day lives, raises the risk for
personal data to go astray, being stolen, jepordised or shared with
unauthorized persons. Thus, our customers must be able to trust
us to manage their personal data responsibly. This requires good
security measures, a well-established framework for data protection
and compliance within our Group. In addition, our employees must
know how to handle personal data in a responsible manner both in
their daily work and generally throughout our business.

Goals and ambitions
Our ambition is to engage our customers and build long-term
relationships through superior customer experiences across all
channels. This requires safeguarding our customers’ rights in
accordance with the Personal Data Act32. Safeguarding personal
data in a good and correct manner is a prerequisite for working
purposefully with sustainability in our business.

Approach
Our privacy guidelines contain purpose limitation, description of
roles and responsibilities, and requirements for data processing.
We also work systematically with information security. Through our
internal control system, we set requirements for, verify, and improve
the security of personal data in our own work processes, customer
solutions and in cooperation with our partners. This is a continuous
process.

If a personal data breach occurs, and the risk to our customers is
considered medium or high, we will contact those affected directly
by phone or e-mail. In such cases, we inform customers about what
has happened, what measures we have taken and, if necessary,
what measures they should take to protect their own personal data.

The CEO of each of the legal entities in the Group is responsible for
all processing of personal data. This includes ensuring that internal
control procedures are implemented and regularly reviewed. All
managers are responsible for ensuring that employees with access
to personal data have the necessary expertise and are qualified
to safeguard our customers’ privacy. Managers must also ensure

that employees follow our routines and guidelines for information
security.

All employees must complete basic digital training on privacy matters,
which is carried out in smaller groups. In addition, differentiated
training is carried out when needed. We have a network of data
protection advisors throughout our organisation who provide advice
and customised training in addition to assisting with operational
compliance work within each business area.

The protection of personal data is well integrated into our internal
control systems and risk management processes. We continuously
assess the privacy risks to which our customers are exposed.

We update our privacy statement annually or whenever changes are
made in our use of personal data. Our online customer portal gives
the individual customer an overview of their personal privacy settings
and gives them an opportunity to make changes to these. On our
website, Storebrand.no33, we provide advice and recommendations
to customers on how to safeguard themselves against online fraud.
Fraudulent activities online often aim to steal personal information
from the victims that may be misused by the fraudsters.

Our approach to safeguarding personal data and other types of
information against illegal and unwanted activity is further described
in the section on Information Security.

Results
All employees should complete an e-learning course in privacy every
year. In addition, departmental training is carried out when needed.
78 per cent of employees in the Group completed the basic training
in privacy in 2022. In 2022, 141 incidents related to the processing
of personal data were reported. 29 of these were reported to The
Norwegian Data Protection Authority, in accordance with the EU’s
General Data Protection Regulation (GDPR). The marginal increase
in incidents is mainly due to a non-conformity report from 2021 in
one of the Group’s new companies. Hence, there is a major shift in
which companies within the Group that received the majority of the
incident reports.

All incidents from 2022 have been processed. The Norwegian Data
Protection Authority/Integrity Protection Authority did not issue any
fines, warnings or other actions for Storebrand in order to meet
GDPR discrepancies in 2022. 34

32) The Personal Data Act consists of national rules for Norway as well as EU’s General Data Protection Regulation (GDPR).

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

34) Storebrand also did not receive any fines, warnings or orders for improvements from the Norwegian Data Protection Authority in 2021 or 2020.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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 42Corporate social responsibility 44Key performance indicators 455. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixCorporate governance and compliance:
Countering corruption

Corruption is a criminal offence in all countries where Storebrand
operates. It is also one of the major causes of poverty in many parts
of the world. Potential corruption cases can reduce trust in us as
a company but can also contribute to reduce trust in the financial
and insurance industry in general. At the same time, corruption is
destructive to healthy competition in all industries. Therefore, we
must work systematically to prevent this form of crime.

Goals and ambitions
At Storebrand, we have zero tolerance for corruption and other
economic misconduct. We work methodically to identify areas with
high or higher risk of corruption than elsewhere in our business.
We have taken a number of measures to prevent exploitation.
Furthermore, we work systematically with our suppliers and partners
to ensure that our relationships are free from corruption, and that
they are aware and conscious about how to combat corruption in
their own business. All permanent employees and selected groups
of hired personnel conduct a course on how to combat corruption.

Approach
Our ethical guidelines establish our expectations to how employees,
temporary staff and consultants should contribute to uncover, reject
and report attempts of corruption or corrupt behaviour. These rules
are reviewed by the Board of Storebrand ASA and the Boards of
all subsidiaries annually. All employees must also confirm each
year that they have read our Code of Ethics. In addition to these
guidelines, we have other internal regulations, such as guidelines
and job descriptions with more concrete and practical information,
all aimed at countering corruption. These include elements such as
questions to ask and other guidance on how the individual employee
can identify possible corruption risks at an early stage and which
measures, they can take to counter corruption.

The Group’s compliance functions are responsible for information
and training on anti-corruption work. In addition to updating and
maintaining internal rules and routines, this also includes an annual
updating of our basic training in anti-corruption and our intranet
pages on the topic.

Each employee is responsible for understanding and acting in
accordance with our Code of Conduct and other guidelines for
countering corruption. It is a management responsibility to follow-up
practices and ensure compliance. New employees complete basic
training in anti-corruption and ethics as part of their introductory
programme. 35

We expect both employees and hired personnel to act in a way
that helps build and maintain trust in the Group as a whole. As a
general rule, no one is allowed to receive favours, services, gifts or
other benefits from Storebrand’s suppliers or business partners.
In the rare situations where such practices nevertheless may be
acceptable, our guidelines specify acceptable threshold values in
the relevant currency for each country. Any gift given on behalf of
Storebrand are subject to the same threshold values.

Our targeted work against corruption includes assessments of
our subcontractors, partners, and customers to ensure that they
meet the Group’s requirements for criteria and guidelines for anti-
corruption. In this way, we ensure that the Group’s relationship with
each of them does not imply an unacceptable risk of corruption for
the Storebrand Group. 36

Storebrand has established both an internal and an external
channel for whistleblowing. Employees who suspect corruption or
other financial irregularities must report it, either through one of
these channels or directly to their manager or other key personnel
within our Group. When using the external whistleblowing channel,
the whistle-blower can choose to remain anonymous.

Results
80 per cent of the Group’s employees completed our basic anti-
corruption training and 82 per cent completed our basic ethics
course in 2022. 37

No cases related to corruption were uncovered or reported in 2022.
Two cases of internal misconduct involving external agents was
uncovered. In addition to this there were two cases of breaches to
Storebrand’s Code of Conduct, but no misconduct. The breached of
the Code of Conduct were handled by People and the managers in
the areas where the breaches occurred. 38

Breaches to Storebrand’s Code of Conduct 39

Category

Critical

High

Medium

Low

Number in 2022

Examples

Critical vulnerabilities that were discovered internally. Handled before they had consequences for Store-

brand or others.

Vulnerabilities, attempts at targeted fraud, or major deviations. Discovered internally and handled before

they had consequences for Storebrand or others.

Several users exposed to fraud or malware in emails. Individual users downloaded malware or disclosed

their passwords. Handled automatically by security tools or manually before they had consequences.

Errors or accidents caused by human error. Discovered and handled.

Minor phishing cases that required follow-up but handled before there were consequences.

Minor errors or mishaps caused by human error. Discovered and handled.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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 42Corporate social responsibility 44Key performance indicators 455. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixCorporate governance and compliance:
Anti-money laundering and terrorist financing

Why
Storebrand is a key player in the Nordic financial market. Therefore,
we have a responsibility to avoid being misused in connection with
financing of terrorism, money laundering or other forms of financial
crime. Our customers, owners, stakeholders and society at large
expect us to handle this in accordance with our responsibilities.

Succeeding in our work against money laundering, financial crime
and terrorist financing is a crucial contribution to Storebrand’s
sustainability work. Combating this type of crime is also an important
part of fulfilling our corporate social responsibility. Our efforts to
combat money laundering and terrorist financing are also essential
to maintain our reputation.

Goals and ambitions
Storebrand shall act consistently and in compliance with all relevant
legislation related to money laundering, terrorist financing and
financial crime in general. We must ensure that our companies
are not misused for such purposes. This requires systematic and
continuous work. We seek to achieve this through training and
ongoing follow-up of our customers and partners.

Approach
We have established guidelines and policies that describe and set
requirements for our work against money laundering and terrorist
financing. These guidelines and policies are reviewed by the Board
of Directors of Storebrand ASA and the Boards of all subsidiaries
subject to reporting obligations, annually and in the event of major
changes. In addition to this, we have incorporated measures
throughout the Group to avoid money laundering, financial crime,
and terrorist financing.

The companies within the Group’s with reporting obligations carry
out an annual assessment of the risk of money laundering, financial
crime and terrorist financing. Frameworks and routines have
been established for managing risk, such as set requirements for
establishing new customers and for ongoing follow-up of customers
who are perceived to imply risk. In addition, we conduct internal
audits and regular controls to detect, identify and report suspicious
transactions or behaviour.

Activities suspected to be in violation of the Money Laundering Act,
such as activities related to money laundering, financial crime and
terrorist financing, are reported to the police.

All employees are required to know our guidelines for preventing
financial crime. Thus, all employees should also complete our
basic training program on money laundering, financial crime and
terrorist financing every year. This training is part of our onboarding
programme for all new employees. In addition to our basic training,
differentiated training is carried out for employees with specific
tasks related to our work against money laundering and terrorist
financing.

The basic training provides an understanding of possible risks, which
rules apply and which requirements we set for our employees and
managers. All senior executives and board members of the Group
and its subsidiaries are expected to complete the basic training in
money laundering, financial crime and terrorist financing and be
familiar with how we work with this in the Group.

Storebrand is a member of Finance Norway’s economic crime
committee. The committee cooperates closely with Norwegian
authorities and provides guidance to all member companies.

Results
In 2022, 57 cases related to suspected financial crime were reported
to the police (MT reports), up from 15 in 2021. The cases varied in
severity, from suspected money laundering, terrorist financing and
tax evasion to falsifying documents and attempted insurance fraud
or social engineering.

In 2022, 79 per cent of our employees completed basic training in
combating money laundering, financial crime and terrorist financing,
compered to 80 per cent in 2021. The decline in completion of
basic training is primarily due to technical challenges in our training
platform. We are currently working to put in place a new training
platform to solve these challenges.In addition to the basic training,
several specific training measures were also implemented, such as
internal and external courses completed by our employees.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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 42Corporate social responsibility 44Key performance indicators 455. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixResponsible use of resources

Why
At Storebrand, we want to take sustainability into account in all
parts 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.

compensate for emissions as a result of its own operations.44 We
also have a climate strategy that applies to the entire group, where
we set climate requirements for ourselves and our suppliers, in
addition to setting specific targets to minimise our carbon footprint.45

Goals and ambitions
In our own operations, we have a target of reducing greenhouse gas
emissions by 7.6 per cent per year from the level in 201942, in line
with the 1.5 degree target and the findings in the UN’s Emissions
Gap report 2019.43 To reduce emissions, we are working to become
more energy efficient, reduce waste production, increase the share
of recycled waste, and reduce our carbon footprint in connection
with business trips and commuting.

Already in 2019, we committed to setting science-based climate
targets for our emissions, which were to be verified by the Science-
Based Targets initiative (SBTi). Since then, Storebrand has helped
develop the method for the financial industry to set science-based
climate targets. Storebrand’s climate goals have been approved
by SBTi and the commitments for own operations are to reduce
absolute scope 1 and 2 greenhouse gas emissions by 52 per cent
by 2030, with 2018 as the base year. In addition, we commit to
continuing the annual purchase of 100 per cent renewable electricity
until 2030.

To reach the 1.5 degree target, the Intergovernmental Panel on
Climate Change (IPCC) and the Intergovernmental Science-Policy
Platform on Biodiversity and Ecosystem Services (IPBES) point out
that society must take immediate measures to stop and reverse the
loss of nature. As the owner of large commercial properties, we have
an ambition to promote cooperation, knowledge and coordinated
measures related to the interaction with property management
and biological diversity. In the property investments, Storebrand
has also had a science-based target validated. Storebrand must
reduce Scope 1 and 2 greenhouse gas emissions from its property
portfolio by 64 per cent per square meter for residential buildings
and by 71 per cent per square meter for commercial buildings (the
management of direct property investments) by the target year
2030, with 2019 as a base year.

Approach
As early as 2008, Storebrand became Norway’s first “carbon-
neutral” financial group, through the purchase of climate quotas to

We use the precautionary principle when it comes to environmental
management. Storebrand has been Eco-Lighthouse certified since
2009, and we disclose developments in our environmental and
climate work every year.

We have our own department and a working committee with
representatives from operations, real estate and sustainability
that follow up targets on energy and water consumption, waste
production and sorting rate in the office premises to ensure that
we achieve the goal of reducing our footprint. The committee
meets quarterly and agrees on improvement measures. In 2022,
we adjusted energy consumption in the summer months as there
are otherwise few employees in the office. Storebrand also buys
electricity from renewable energy sources with a guarantee of origin.

To reduce the amount of waste, an internal campaign was launched
to reduce the number of cardboard cups used by employees in the
office. Storebrand buys in 400,000 cardboard cups a year and the
aim of the campaign is to raise awareness and reduce the purchase
volume. In addition, it was decided in 2022 that new cardboard cups
will be procured without plastic elements and with a design that
refers to reuse.

Storebrand Grab & Go was another initiative launched in 2022 to
reduce food waste at the headquarters in Lysaker. Through this
measure, employees can put surplus food from internal events
or meetings in the fridge for the enjoyment of other colleagues
or departments, rather than throwing it away. In addition, we
established color codes on the menus in the canteen to map
whether employees choose greener options.

We are also working to facilitate seamless digital meeting activities
to reduce the scope of business travel. In 2022, we completed the
renovation of the head office in Stockholm and video equipment
was installed in the meeting rooms. Employees are encouraged to
assess the need for travel and use public transport for necessary
travel. In Storebrand, we have an internal carbon price on flights

42) In our own operations, we follow up scope 1-3 emissions from head offices, including emissions from business travel.

43) For more on the findings of the UN Emissions Gap 2019: https://wedocs.unep.org/bitstream/handle/20.500.11822/30797/EGR2019.pdf?sequence=1&isAllowed=y

44) Storebrand has a climate strategy that aims to limit global warming to about 1.5 degrees. A key instrument is for our investments to be carbon neutral by 2050 at the latest, with specific targets

along the way. At the same time, Storebrand as a group must be carbon neutral. Through this, Storebrand contributes to limiting physical climate change.

45) Storebrand’s Climate and Environmental strategy: https://www.storebrand.no/en/sustainability/sustainability-library/_/attachment/inline/6e9b414d-0c27-4e67-94af-89c8ac2739d9:f7e0d4a-

894ba01e720b28ea813d356544f29df8e/19206-climate-environmental-strategy-2022.pdf

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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 42Corporate social responsibility 44Key performance indicators 455. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendixof NOK 1,000 per tonne of CO2.46 The cost is charged to the
employee’s department and is followed up by the managers in a
system for increased insight into our travel habits. The funds from
the carbon tax are used to buy climate quotas and for other climate-
related projects.

Employees are encouraged to cycle to work, and for the past
three years employees have had the opportunity to buy their own
electric bicycles at a discounted price with an interest-free loan from
Storebrand.

Residual emissions from own operations are compensated for
by purchasing emission quotas and investing in carbon-positive
projects.

In 2022, Storebrand established a pilot project in collaboration with
The Skift network, a Norwegian, business-driven climate initiative,
and partners to increase knowledge about property management
and biodiversity. As a consequence, pollinator-friendly plants
replaced grassy areas outside the main office building.

Results
In 2022, our climate targets were validated by Science-Based
Targets initiative to ensure that our roadmap towards net-zero is in
accordance with recognized methodology and in line with the Paris
Agreement. 47

In 2022, 22 employees took advantage of the offer to buy discounted
electric bicycles. A total of 106 employees (approx. 5 per cent of all
employees) have bought electric bicycles since the campaign started
in 2020.

Together with the Skift network, Storebrand has contributed to a
new practical guide for greener property management.

In 2022, upon the end of the pandemic, our activity related to
business travel increased. Since 2019 (before covid-19), however,
we have more than halved our emissions. This indicates that
changed travel habits, as well as our internal carbon price and new
guidelines for business travel help to reduce internal emissions. The
funds from the carbon price are used for, among other things, the
purchase of climate quotas, the planting of trees and supporting
climate measures.

In 2022, Storebrand ordered the planting of 30,000 mangrove trees
and a further 30,000 for 2023. Since 2020, we have contributed to
the planting of 103,750 trees through the Worldview Foundation.
We have bought climate quotas from a forest conservation project
in Kenya through Wildlife Works. We have also purchased CO2
removal certificates from the Norwegian start-up company Inherit
Carbon Solutions. Inherit is developing a new method for removing
CO2 from the atmosphere by capturing and storing CO2 that occurs
in connection with biogas production. Storebrand is Inherit’s first
customer, and thereby supports the development of a Norwegian
start-up company that is working on an important solution to reach
the Paris Agreement’s goal of 1.5 degrees of warming. The CO2
Inherit captures in this project will be stored in the Northern Lights
CO2 storage project in 2024.

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.

12.5 We aim to significantly reduce the amount of waste

through prevention, reduction, recycling and reuse.

12.6 We encourage companies to implement sustainability

in their practices.

46) The carbon price of 1000 NOK is based on the price in Sweden in 2020. Sweden is among the countries with the most expensive carbon price.

47) Validated objectives will be published on the Science-based Targets Initiative website in early 2023: https://sciencebasedtargets.org/companies-taking-action

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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 42Corporate social responsibility 44Key performance indicators 455. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix
Sustainable 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.

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
operations and procurement activities, we aim to contribute to
sustainable development, and to ensure that human rights and
workers’ rights are not infringed.

for 2022 was to maintain the share of
Our ambition
environmentally certified purchasing volume of at least 60 per
cent.48 Although we exceeded the target, the dynamics of our
supply chain and market conditions still make the 60 per cent
target challenging.

13.2 We incorporate action on climate change into our

policies, strategies and plans.

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.

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.

We have defined three specific climate targets for suppliers and
partners:

•

•
•

By 2025, our suppliers must have set short- and medium-term
verifiable emission reduction targets.
By 2025, our suppliers shall be climate neutral. 49
By 2030, 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.50 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.51 Our purchasing policy is based
on the Group’s governing documents and related procedures, which
are revised annually. 52

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.

We exclude - Storebrand shall not choose vendors, products or
services that are in violation of international agreements, national
regulations, or internal policies. This is described in our sourcing
principles.

48) Environmental certifications include Eco-Lighthouse, EMAS, ISO14001 and the Nordic Swan Ecolabel

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

50) For our Supplier requirements, see Storebrand’s Supplier Declaration for sustainability commitments and climate neutrality: https://www.storebrand.no/om-storebrand/barekraft/bare-

kraft-i-egen-drift/baerekraftige-innkjop/_/attachment/inline/1cb014e9-7dde-4ac4-aecf-a0e084841635:64901b189f0df26e98697e89f7a1c564105df3d8/2023-02-Leverand%C3%B8rerkl%C3%A-

6ring-b%C3%A6rekraftforpliktelser-og-kliman%C3%B8ytralitet-NO.pdf

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

52) 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 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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 42Corporate social responsibility 44Key performance indicators 455. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixWe map all suppliers with annual sales volume to Storebrand of
more than 1 million NOK. In 2022 we developed further routines for
following up with our suppliers, both when establishing a new third-
party agreement through the follow-up system and for updating the
questions we ask them on an annual basis.

The purpose of the questions we ask is to make sure that the
suppliers meet our expectations, and to exercise our role as a
promoter of sustainability. The questions include the following
categories:

•

To what extent is sustainability integrated into the supplier’s
strategy?

• What results and goals does the supplier have for its climate

work?

• What results and goals does the supplier have for diversity?
•

To what extent does the supplier use environmental, quality
and management systems?
To what extent does the supplier have a process in place
for mapping the risk of human rights violations in its own
operations and in its supply chain?

•

• Which is the supplier’s most significant risks for violations of

human rights?

Based on the answers, we make assessments of any measures
that should be initiated. This takes place through dialogue with the
suppliers. In some cases, suppliers are excluded. An extended set
of questions is used to evaluate suppliers in purchasing processes.

Our most important and largest purchases include contracting IT
and business processes, healthcare services, 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.

Storebrand is concerned with safeguarding human rights and
decent working conditions in our own business, supply chain and
in our investments.53 In connection with the introduction of the
Transparency Act in Norway in 2022, we prepared new routines and
policies to be able to map and follow up risks related to violations
of human rights and decent working conditions in our supply chain
and in our own operations.

We have primarily worked in the following areas to map risks and
prepare the organisation to meet the reporting requirements by the
deadline of 30 June 2023:

•

Updated group-wide policy for human rights and responsible
business conduct.
Prepared group-wide framework for due diligence assessments
of the supply chain and business relationships. In the first
step, the risk of violations of human rights and decent working
conditions is assessed objectively through the supplier’s sector,
geographical affiliation and the specific product or service
delivered. 54
In the second step, suppliers and business relationships are
prioritised based on the result in step 1. Those with the highest
risk undergo a broader due diligence assessment. Risks are
assessed based on likelihood, severity, scope and remendability.
Prepared update of the procurement process55 to reduce the
risk of violations of human rights and decent working conditions
in line with the methodology in point two.
Carried out risk and due diligence assessments of the existing
portfolio of suppliers and business relationships in line with
point two. 56
Updated self-evaluation methodology for annual follow-up of
our largest suppliers.

In 2023, we will continue this work by implementing a framework for
due diligence assessments and carrying out risk and due diligence
assessments of our own operations.57 We will publicly disclose the
reports with details of the due diligence assessments by 30 June
2023. In the first reporting year, the report will be included as part of
our policy for human rights and responsible business conduct.58 It
will then be reported as part of the annual report from 2023.

Results
In 2022, contracts worth more than NOK 1 million totalled around
NOK 4.68 billion. This accounts for more than 89 per cent of our
total purchasing volume and includes the management and
development of direct real estate investments. Of this volume, 64.2
per cent comprises suppliers that are environmentally certified in
accordance with our purchasing policy. This volume is divided into
495 suppliers, of which 166 (35.5 per cent) are certified according to
a recognised environmental management standard. 59

At the end of 2022, we sent out an updated survey to our suppliers.
The answers will be reviewed in 2023.

53) More about our work on human rights and decent working conditions can be read about in our Group's Responsible business conduct and human rights policy and in the chapter A driving for-

ce for sustainable investments. Storebrandstandarden (The Storebrand Standard) sets the standard for what we invest in: https://www.storebrand.no/en/asset-management/sustainable-investments/

exclusions/the-storebrand-standard

54) This is supplemented by the contract owner's knowledge of the supplier in question, for example based on previous experience or media reports that may indicate a risk of human rights

violations or decent working conditions. For geography, the following indices are used: ITUC and Human Development Index. For sectors, the EU FRA list is used and for products/services and for

product/service risks the Norwegian Anskaffelser.no high-risk list is used.

55) Integrated into the group system in the first quarter of 2023.

56) Respective contract owners have carried out due diligence based on the established template and will follow up regularly.

57) Through investments, insurance activities, banking, own employees (”Keeping our house in order”), acquisitions, mergers and joint ventures.

58) Storebrand’s Policy for Human Rights and Responsible Business: https://www.storebrand.no/en/sustainability/sustainability-library/_/attachment/inline/9fbb435e-1a4a-4b8a-a45d-f473c56d3cb-

b:92e6fa7160b8ea47016b5d2a5c798c8b94783676/Human%20Rights%20Policy%20and%20Responsible%20Business%20Conduct%20at%20Storebrand%202022.pdf

59) The proportion of environmentally certified suppliers has increased significantly this year because of the inclusion of the Insurance business area. The increase in the proportion of environ-

mentally certified suppliers has compensated for the decline in turnover of some large and certified suppliers during the year.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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 42Corporate social responsibility 44Key performance indicators 455. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixCorporate social responsibility

employees collected money to support Ukraine and employees
contributed with voluntary efforts at refugee receptions.

Results
Dozens of youth companies competed in the sustainability category
through the Ungt Entreprenørskap (Young Entrepreneurship), in
2022. Substantia UB won the award for the development of a solution
to use local food waste as nutrition for larva-based salmon feed,
which replaces the current use of soy-based fish feed. The solution
helps to solve a global problem which have major environmental
consequences.

As a result of the two-day programme 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 2022, NOK 500,000 was awarded to 26 “We cheer on” projects
around Norway, and 400,000 SEK were awarded to nine projects in
Sweden. All the projects contributed to a future to look forward to.

Storebrand contributed a total of NOK 107,000 to Doctors Without
Borders’ TV Campaign, of which NOK 50,000 was direct support from
company and the rest came from internal and external fundraising.

In 2022, Storebrand and SPP employees collected several boxes
of equipment and clothing for the benefit of Ukrainian refugees.
Storebrand had continuous dialogue with certain refugee reception
centres to be able to collect clothes and equipment tailored to their
needs. In addition, we collected Christmas presents and financial
support for “Fattighuset”, an organisation helping people in poverty.

Why
As a leading Nordic financial institution, we have an important social
responsibility. We actively engage in the society in which we operate,
both through our primary business as a provider of services, 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
We prioritise activities in three areas when relevant for social
responsibility: Cooperation, financial support, and voluntary
efforts among employees. These activities will promote and raise
awareness about sustainability and demonstrate the connection
between sustainability and profitability.

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 2022, we conducted
a two-day programme 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 in Norway and in Sweden. This is a social responsibility
initiative where we provide financial support to various social
projects that contributes in 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. In 2022, Storebrand employees were given the
opportunity to take time off for the hours they spent fundraising for
Doctors Without Borders’ “TV campaign”.

Many were particularly eager to support the citizens of Ukraine
in 2022. Storebrand held an art auction where half of the auction
money went to organisations supporting Ukraine. In addition,
collection stations were placed at the offices in both Norway
and Sweden, so that employees could easily collect equipment
and clothing for institutions housing Ukrainian refugees. In SPP,

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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 42Corporate social responsibility 44Key performance indicators 455. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixKey performance indicators

The environmental data in the following table include the head offices in Norway and Sweden and Skagen’s head office, which
represents the office premises of 94 per cent of the employees. For more indicators and definitions see page 233.

Categories and indicators

Results 2019

Results 2020

Results 2021

Results 2022

Targets 2023

Targets 2025

Sustainability rating

CDP-rating

DJSI score/global percentile

Climate metrics: suppliers

Environmentally certified purchases
(share of the total expenditure that
went to suppliers with certified
environmental management system)

Greenhouse gas emissions from
own operations

Greenhouse gas emissions from own
operation (total) scope 1-3: tonnes of
CO2e / tonnes CO2e per FTE

Scope 1-emission: tonnes CO2e /
tonnes CO2e per FTE

Scope 2-emission: tonnes CO2e /
tonnes CO2e per FTE

Scope 3-emission: tonnes CO2e /
tonnes CO2e per FTE

CO2e-emissions per FTE due
to air travel: Scope 3, tonnes
per FTE 60

Governance incidents

Number of complaints processed by
the Financial Appeals Board 61

Number of breaches of code of
conduct 62

Number of information security
incidents

Number of privacy incidents

A -

75 / 81

A-

81 / 93

A-

82 / 92

88 / 99

Top 10 %

57 %

62 %

60.3 %

64.2 %

55 %

60 %

1,519 / 0.92

477 / 0.28

320 / 0.18

787 / 0.39

1.1 / 0

1.2 / 0

0.5 / 0

0.8 / 0

179 / 0.11

164 / 0,09

130.6 / 0.07

131.6 / 0.07

1,339 / 0.74

313 / 0.18

188.9 / 0.11

654.6 / 0.3

0.67

0.1

0.07

0.29

192

218

198

125

244

141

0.8

N/A

0.6

N/A

60) In 2022, our business travel activity increased, but since 2019 (before COVID-19) we have still more than halved our internal emissions. This indicates that changing travel habits, as well as

our internal carbon price and new business travel policies, are helping to reduce internal emissions.

61) The figures apply to our Norwegian enterprises, as these are complaints handled by the Financial Complaints Board. SPP is not included here.

62) Internal misconduct by agents is not included in the key figure on breaches of ethical guidelines, but is included in the detailed reporting of breaches of ethical guidelines on page 241.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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 42Corporate social responsibility 44Key performance indicators 455. Director’s report6. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix5

Director’s report

47 Strategy 2021-23

48 Strategic highlights 2022

53 The Group’s results 2022

58 Official Financial Statements of Storebrand ASA

59 Outlook

64 A driving force for sustainable investments

81 Risk

83 Climate risk and opportunities

96 Working environment and HSE

97 Progress on our most material sustainability KPIs

The Director’s report describes the Group’s financial capital and investment universe through the following material topics: Competitive long-term
returns to shareholders and customers, A driving force for sustainable investments, Active ownership and reducing ESG (environmental, social and
governance) risk. For a more in-depth description of our material topics, see page 17.

Storebrand delivers security and financial freedom to
private individuals and companies. We want to motivate
our customers to make good financial choices for the
future by offering sustainable solutions. Together, we can
create a future to look forward to. This is our philosophy as
we create value for customers, shareholders, and society.

Storebrand’s strategy aims to provide an attractive
combination of capital efficient growth within what we
call Future Storebrand, and capital release from the
Guaranteed pensions business that is closed for new
business and is in run-off.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixStrategy 2021-23:
«Leading the way in sustainable value creation»

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

Strategic
differentiators

Capital
Management

C
C

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 from
earnings

NOK ~10bn in share
buybacks by 2030

III

Additional capital
generation

Storebrand delivers security and financial freedom to private
individuals and companies. We want to motivate our customers to
make good financial choices for the future by offering sustainable
solutions. Together, we can create a future to look forward to. This is
our philosophy as we create value for customers, shareholders, and
society.

Storebrand’s strategy aims to provide an attractive combination of
capital efficient growth within what we call Future Storebrand, and
capital release from the Guaranteed pensions business that is closed
for new business and is in run-off.

Storebrand aims to:

(A) be the leading provider of occupational pensions in both
Norway and Sweden

(B) continue a strategy of building a Nordic powerhouse in asset
management

The interaction between our business areas provides synergies in
the form of capital, economies of scale, and value creation based on
customer insight. In 2020, we announced an ambition to grow our
Group profit (before amortisation and tax) to more than NOK 4 billion

in 2023. Despite challenging macroeconomic conditions and volatile
financial markets, we are well on our way to reaching our goal.

We believe the only way to secure a better future is to take part in
creating it. We actively use our position to lead the way in sustainable
value creation and to differentiate ourselves from our competitors.
Read more about our social responsibility work in the chapters
Customer relations, People, and Keeping our house in order.

Storebrand offers financial products and services to retail and
increasingly advanced
commercial customers. Based on an
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 grow the ordinary dividend from our earnings and to
ensure capital-efficient management of products with interest rate
guarantees. We shall maintain a strong solvency as and balance sheet
adapted to our risk capacity and our business. As pension products
with interest rate guarantees are gradually being paid out, capital on
our balance sheet is freed up. In 2022, we initiated a share buyback
program to repay large parts of this capital to our shareholders. The
ambition is to return around NOK 10 billion through share buybacks
by the end of 2030. At the same time, we expect to release additional
capital that will be available for further growth or distribution to
shareholders.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixStrategic highlights 2022

2022 was characterised by geopolitical unrest and market turmoil.
Storebrand demonstrated both
resilience and adaptability
throughout the year. The war between Russia and Ukraine did
not have direct consequences for Storebrand’s value chain or
operations in 2022. However, inflation, higher interest rates and
turbulent financial markets, had a major impact on Storebrand. In
addition, write-downs of Russian investments in a limited number of
mutual funds led to weaker returns to customers.

Through a combination of dynamic risk management, a high degree
of preparedness and a diversified business model, the Group
nevertheless achieved good results and a strengthened solvency
position. Underlying growth was strong, and higher interest rates
will be positive for the Group going forward. Overall, Storebrand
delivered on both its operational and capital strategy in 2022.

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. Total assets under management
are the Group’s most important driver of revenue. Despite weak
financial markets, where both fixed income investments and equity
investments resulted in negative returns, assets under management
remained above NOK 1,000 billion in 2022. On average, our
customers invested more money throughout the year. In addition,
we maintained high growth in the Norwegian retail market for
banking and insurance services, which is becoming an increasingly
important business area for Storebrand.

Assets under management, Unit Linked, NOK billion

CAGR +17 %

128

140

168

179

251

220

+2 %

308

315

105

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Leading provider of occupational pensions in Norway
and Sweden
In 2022, we maintained our leading position as provider of Defined
Contribution pension schemes with a market share of 31 per cent
in Norway and 15 per cent in Sweden. Following the acquisition
of Danica, which was completed on 1 July, the Group collectively
provides Occupational pensions to employees in 36,000 companies
in Norway. The structural growth in Defined Contribution pension
schemes contributed to a net inflow of NOK 12.4 billion in new
Defined Contribution pension capital during the year (the sum of
premiums received, pensions paid and transfers in both Norway
and Sweden). The Swedish business, SPP, also achieved record
new sales of NOK 2.6 billion (measured as the annual premium
equivalent, APE) during the year. In total, we managed NOK 315
billion within Unit Linked at the end of the year. Due to weak market
returns, this corresponded to a growth of only 2.2 per cent in 2022.
However, over a ten-year period, assets under management have
grown by 17 per cent annually.

The value of equities, bonds and real estate all declined throughout
2022, which was a challenging year for the financial markets.
Nevertheless, Storebrand once again delivered market-leading
returns to Norwegian Defined Contribution pension customers
in our default investment portfolios, compared to comparable
investment portoflios. This applies to both of our largest and most
common investment portfolios with high and moderate equity
content. In 2022, we ended up on a solid second place in the
Norwegian market with a decline in value of 8.5 per cent and 6.8
per cent, respectively. Over the past three and five years, we have
delivered market-leading returns of 6.7 per cent and 6.8 per cent
respectively for in our portfolio with high equity content, and 4.9 per
cent and 5.2 per cent respectively for our protfolio with moderate
equity content. Our dynamic and risk-adapted management ensures
that we are able to book the guaranteed returns despite declines in
the financial markets.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixCompetitive return (annualised) on Defined Contribution pension funds in Norway 63

High equity content

2022

Last 3 years

Last 5 years

-8.5 %

-9.6 %

-7.6 %

6.7 %

5.7 %

4.7 %

3.9 %

4.0 %

5.6 %

5.5 %

5.7 %

4.7 %

4.0 %

6.8 %

-12.0 %

2.1 %

-14.2 %

-14.1 %

Storebrand

Competitor

Storebrand

Competitor

Storebrand

Competitor

Moderate equity content

2022

-8.2 %

-6.8 %

-11.4 %

-11.0 % -10.8 %

Last 3 years

Last 5 years

-6.4 %

4.9 %

5.2 %

4.1 %

4.0 %

3.6 %

3.9 %

4.3 %

2.9 %

2.4 %

2.8 %

1.2 %

Storebrand

Competitor

Storebrand

Competitor

Storebrand

Competitor

Storebrand had a good start in the market for public service pensions
in Norway, where we have won all tender processes since the new
product regulations came into place in 2019. The only contract
tendered in 2022 was also awarded to Storebrand. Storebrand
has argued for an increasing number of tender processes in this
market. The EFTA Surveillance Authority (ESA) is expected to clarify
in 2023 whether the procurement of pension services is subject to
tender in the public sector (read more under the section “Regulatory
changes”). In 2022, we also continued to take over the management
of closed pension funds, including S:t Erik Liv in Sweden, which
contributes to profit growth in the Guaranteed pension area.

Storebrand provided insurance coverage to corporate customers
amounting to NOK 2.7 billion in premiums in 2022. Written
premiums within commerical P&C insurance for small and medium-
sized enterprises in Norway, our new growth area, grew 25 per cent
to NOK 271 million at the end of 2022.

Nordic Powerhouse in asset management
Storebrand Asset Management aims to be a Nordic investment
powerhouse by being a local Nordic partner for customers, the
gateway to the Nordic region for foreign investors and a pioneer in
sustainable investments. Despite challenging markets, we continued
to attract investment funds throughout 2022. At the end of the year,
we managed a total of NOK 1,020 billion, of which 54 per cent was on
behalf of pension customers and 46 per cent represented external
customers. Assets fell 7 per cent from 2021, mainly due to a fall in
the value of investments. Net new drawings for the year amounted
to NOK 17 billion. Since 2012, assets under management have
grown by 9 per cent annually through a combination of customer
growth, market returns, and acquired business.

63) 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.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixAsset under management, NOK billion

Change in assets under management, NOK billion

CAGR +9 %

-7 %

442

487

535

571

577

721

707

921

831

1,097

1,020

1,097

1,020

-110

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2021

Net Flow

Return

Currency

2022

In 2022 we strengthened our position as a local Nordic partner
for our customers. With a wide range of long-term investment
strategies, we succeeded in attracting new customers despite
demanding and unpredictable markets. In Sweden, we were one
of a few companies to achieve positive net flow. In Denmark, total
assets under management have more than quintupled since we
started our active management there in 2020. In 2022, we opened
our first office in Finland.

Storebrand’s offers within alternative investments classes and ESG
funds in 2022, continues to be in demand among international
investors. Through the private equity firm Cubera, which was
acquired by Storebrand in 2019, EUR 500 million was committed
to new investments in 2022. To strengthen the distribution of funds
in the international market, we launched several new funds on the
Asset Management Exchange (AMX) in Ireland. This opened for
several British pension funds to consider Storebrand as an asset
manager.

We also took further steps to consolidate our position as a pioneer
in sustainable investments. With assets under management of
NOK 1,020 billion, Storebrand has a lot of influence. Our goal f is
a cut in total emissions in investments of 32 per cent by 2025. To
influence companies to adapt, we engage at senior management
level with the 20 companies responsible for the largest emissions
in our investment portfolios. In 2022, we launched a new strategy
for nature that takes a clear stand against activities that can harm
vulnerable nature.

At the end of the year, we managed NOK 449 billion in fossil-free
investments, and NOK 126.8 billion in what we call solutions.
Solutions are either investments in companies that we believe
contribute to sustainable development and in achieving the UN
Sustainable Development Goals, or investments in green bonds,
environmentally certified real estate and green infrastructure.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixInsurance portfolio premiums, NOK billion

Bank lending balance, NOK billion

CAGR +9 %

+21 %

7.8

6.4

3.3

3.6

3.7

4.3

4.5

4.7

5.3

CAGR +11 %

+18 %

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

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 between savings,
insurance and banking.

With 250 years of history, our brand name stands strong in Norway,
where 1.3 million people are Storebrand customers through their
pension savings. These customers are our main target group for
additional financial services that may enable them to achieve greater
security and financial wellness.

Increased distribution power and strong demand in the retail market
contributed to accelerating growth in 2022. Written premiums stock
in insurance grew by 21 per cent and mortgage lending in the bank
by 18 per cent. In order to strengthen our presence in the private
savings market for funds, we entered into an agreement to acquire
the fintech company Kron (the transaction was completed in January
2023). In just a few years, Kron has built up a customer base of over
70,000 customers, and NOK 7 billion in assets under management.

Agreement throughout our value chain. We incorporate climate
risk assessments into our ongoing risk monitoring, follow-up and
reporting to supervisory authorities. Storebrand has ambitions
to lead and develop the sustainability agenda within the financial
industry also in the years to come.

Storebrand was recognised for its sustainability work in 2022, both
by customers, advisors, and financial analysts. Storebrand was once
again included in the Dow Jones Sustainability Index as one of the
world’s leading listed companies in sustainability work.64 Prospera
ranked Storebrand first in the sustainable investments category in
Norway, Sweden, and Denmark. In 2022, Storebrand also received
the top score in Söderberg & Partners’ ranking of life insurance
and non-life insurance policies that pay the most attention to
sustainability.65 Our employee surveys showed that Storebrand
employees are proud to be part of the Group, and that our work
with sustainability gives their job further meaning. Our position on
sustainability contributed to our ability to attract top talents.

More information about our sustainability work is discussed in the
chapters Driving Force for Sustainable Investments, Climate risks and
opportunities, and in the chapter Keeping our house in order.

Leadership in sustainability
For almost 30 years, Storebrand has pioneered sustainable
investments. We strive to create value for our customers and
positive ripple effects for society. We are committed to the Paris

64) https://www.storebrand.no/om-storebrand/presse#/pressreleases/storebrand-vurdert-som-ledende-paa-baerekraft-i-verden-3223009

65) The ranking refers to five separate rankings conducted by Prospera in 2022: Norway (Institutional Customers and Distributors), Sweden (Institutional Customers and

Distributors) and Denmark (Distributors). Storebrand was No. 1 on sustainable investments in all five rankings.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixDigital 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.
The degree of automation is constantly increasing, which leads to
more efficient processes, lower costs, increased sales and customer
satisfaction. Below are some highlights.

•

In 2022, the processing time for advisor-assisted mortgage
applications at the bank was reduced by 30 minutes to take
place in real time.
Electronic processing of applications for health assessments
reduced the processing time for many customers from several
weeks to one day.
Using artificial intelligence, we detected 20 per cent more
insurance fraud related to some products, compared to the
amount detected through traditional methodology.

• Offers

for digital and automated purchase of Defined
contribution pension and occupational injury insurance for
small and medium-sized enterprises removed a full day’s
manual processing time.

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.

Distortions in Storebrand’s operations and balance

sheet over the past 10 years

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 efficient 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 efficient growth business, and less than 47 per cent of
the pension assets on the balance sheet were guaranteed reserves.
Premiums paid and the Group’s profit were mainly related to non-
guaranteed savings and insurance.

Storebrand’s fast-growing capital efficient business generates a high
return on equity, while the capital-intensive business with interest
rate guarantees that is in run-off, generates a significantly lower
return on equity. Guaranteed pensions tie up about 85 per cent of
the Group’s equity and resulted in adjusted return on equity of 2
per cent in 2022. The growth business yielded an adjusted return
on equity of 43 per cent.66 The Group’s overall return on equity
(adjusted) was 8.3 per cent in 2022.

The solvency ratio was 184 per cent at the end of 2022, an increase
of 9 percentage points compared to the solvency ratio at the end
of the previous year. This is after the dividend and share buybacks
which detracted 8 percentage points in 2022. Our dynamic risk
management throughout the year, especially in the aftermath of
Russia’s invasion of Ukraine, yielded good returns to our clients. For
the solvency ratio, this compensated for weak financial markets in
2022.

Storebrand wants to contribute to a growing market for green bonds
and stimulate the market for sustainable investments and financing.
As the first Nordic insurance company, Storebrand Livsforsikring
AS issued a green subordinated loan in 2021. In 2022, Storebrand
Livsforsikring issued NOK 2.7 billion in green subordinated bonds,
and in Storebrand Boligkreditt, our coverd bonds issuer, we issued
a further NOK 5.5 billion in green loans.

Premium payments, NOK million

Profit, NOK million

Assets under management, NOK billion

34,659

18 %

68 %

15 %

2022

24,584

15 %

36 %

49 %

2012

3,136

18 %

53 %

29 %

2022

1,898

22 %

15 %

63 %

2012

1,020

46 %

27 %

26 %

2022

442

27 %
14 %

59 %

2012

Guaranteed pension

Insurance

Guaranteed pension

Insurance

Guaranteed pension

Savings (internally managed)

Savings

External asset management customers

66) Based on a pro forma distribution of equity under Solvency II (uT1 adjusted for Vif) per business area. Capital is distributed based on capital consumption under Solvency II and CRD IV. Fund

insurance (Unit Linked) and Insurance are calibrated to a solvency ratio of 160 per cent while Guaranteed pension (including others) consumes approx. 200 per cent of its capital requirement.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix
The Group’s results 2022

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.

The insurance result was NOK 1,607 million (NOK 1,201 million) and
resulted in a combined ratio of 91 per cent (94 per cent). This was
in line with our targeted combined ratio of 90-92 per cent. Strong
growth in P&C insurance and increased profitability from re-pricing
of products with disability coverage, contributed to the positive
development.

Our financial result is reported by the following business segment:
Savings, Insurance, Guaranteed Pension, and Other, as well as on
a consolidated Group level. Results are reported using alternative
performance measures (APM) as defined by the European Securities
and Market Authority (ESMA). A summary of APMs used in financial
reporting is available on www.storebrand.no/en/investor-relations/
reporting-changes-and-special-effects. The income statement is
based on reported IFRS results for the individual companies.

Group results

NOK million

Fee and administration income

Insurance result

Operational cost

Operating profit

Financial items and risk result life

Profit before amortisation

Amortisation

Profit before tax

Tax

Profit after tax

2022

6,062

1,670

-5,008

2,724

-8

2,716

-596

2,120

270

2,390

2021

6,607

1,201

-4,678

3,130

1,372

4,503

-527

3,976

-846

3,130

Storebrand achieved a Group profit (before amortisation) of NOK
2,716 million (NOK NOK 4,503 million). The figures in parentheses
show the corresponding figures for last year.

Fee and administrative income for the year amounted to NOK 6,062
million (NOK 6,607 million). The decline from the previous year
was partly related to lower total assets under management due to
weak market returns in 2022, lower performance fees from active
funds that contributed NOK 147 million in 2022 compared with
NOK 550 million the previous year, and lower income from Defined
Contribution pensions in Norway after the introduction of Individual
Pension Accounts.

Operational cost amounted to NOK -5,008 million (NOK -4,678
million). Adjusted for costs related to acquisitions and performance-
related costs in asset management, operational cost was NOK 4,760
million, which was lower than the guidance for the year of NOK 4.9
billion.

The total operating profit was NOK 2,724 million (NOK 3,130 million).

‘Financial items and risk result life’ amounted to NOK -8 million (NOK
1,372 million). This year’s loss is attributed to lower a fair value of
fixed income investments due to rising interest rates and increased
credit spreads. This is expected to increase return on investments
and the Group’s financial results correspondingly going forward.
At the same time, the Group achieved a significantly stronger risk
result in 2022, after a period of weak results during the Covid-19
pandemic. Last year’s strong financial result can largely be explained
by the sale of AS Værdalsbruket, which contributed with a gain of
NOK 546 million.

Amortisation of intangible assets amounted to NOK -596 million
(NOK -527 million). The increase is mainly due to the acquisition of
new business.

The profit before tax was NOK 2,120 million (NOK 3,976 million).

The Group ended the year with a net tax income of NOK 270 million
(NOK -846 million). In isolation, the tax income amounted to NOK
770 million. This is a result of new information and a partly reversed
decision by the Norwegian Tax Administration on an uncertain tax
position for the income year 2018. It concerns the transitional rule
when new tax rules were implemented for insurance and pension
companies

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 27.
Storebrand also has a policy for responsible taxation and publishes
a separate report on tax on our website.

Group profit after tax was NOK 2,390 million (NOK 3,130 million).

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixFinancial targets

Return on equity*

Target

Status 2022

> 10 %

8,3 %

43 %

2 %

72 %

Future Storebrand (Savings and Insurance)

Run-off business (Guaranteed and Other) **

Dividend pay-out ratio

> 50 %

Solvency ratio (Storebrand Group)

> 150 %

184 %

* After taxes, adjusted for amortization of intangible assets.

** Based on a pro forma distribution of IFRS equity per business area. The capital is distributed

based on capital consumption under Solvency II and CRD IV. The savings and insurance seg-

ments are calibrated to a solvency ratio of 150%, while the rest of the capital is allocated to the

Guaranteed pension segment including others

Savings

NOK million

2022

2021

Fee and administration income

Operational cost

Operating profit

Financial items and risk result life

4,733

-3,031

1,701

-49

5,215

-2,927

2,288

Profit before amortisation

1,653

2,355

Financial results
Fee and administrative income amounted to NOK 4,733 million
(NOK 5,215 million). The decrease from previous year is primarily
explained by lower total assets under management due to weak
market returns in 2022 and lower performance fees from active
funds, which in 2022 contributed NOK 123 million compared with
NOK 550 million the previous year. Income growth within Defined
Contribution pension schemes (Unit Linked) in Norway was 3
per cent, despite lower income margins after the introduction of
Individual Pension Account in 2021. Underlying growth and the
acquisition of Danica contributed positively to the development.
Strong lending growth in Storebrand bank also contributed with an
increase in income of NOK 106 million.

Operating cost amounted to NOK -3,031 million (NOK - 2,927
million). The cost increase was a combination of costs from acquired
business, inflation, as well as investments in growth and digitalisation
initiatives. Cost related to excess returns in funds with performance
fees amounted to NOK -53 million (NOK -255 million). Adjusted for
the latter as well as currency effects and acquired business, cost
increased by 9 per cent in 2022.

Financial and risk result life amounted to NOK -49 million (NOK 67
million). The loss was mainly due to a lower fair value of fixed income
investments and the effect of higher interest rates on fixed-rate
mortgages in the bank.

Profit before amortisation totalled NOK 1,701 million (NOK 2,288
million).

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixBalance sheet and market development
Underlying inflow of assets under management continued in 2022,
both within Unit Linked and in our asset management, but weak
financial markets led to an overall fall in total assets.

Unit Linked reserves grew by NOK 6.6 billion to NOK 315 billion in
2022, which corresponded to 2 per cent. Net inflow and transfer
contributed NOK 39 billion, including NOK 26 billion through the
acquisition of Danica. Market returns and foreign exchange reduced
total assets by NOK 32 billion.

Assets under management for Storebrand asset management were
reduced by NOK 77 billion (-7 per cent) to NOK 1,020 billion. A total
of NOK 17 billion (net) was received in new capital, but weak market
returns during the year reduced the value of assets by NOK 94
billion. The bank’s retail lending balance grew by NOK 10 billion (18
per cent) to NOK 67 billion.

Key figures Savings

NOK million

Unit Linked Reserves

Unit Linked Premiums

2022

2021

314,992

308,351

23,482 21,212

AuM Asset Management

1,019,988

1,096,556

Retail Lending

67,061

57,033

The total combined ratio was 91 per cent (94 per cent) and the total
operating profit was NOK 558 million (NOK 326 million) for the year.
This was in line with our targeted combined ratio of 90 - 92 per
cent. Pension related disability and the growth products P&C and
Individual Life achieved a strong combined ratio of 86 per cent (96
per cent) and 90 per cent (88 per cent), respectively, while Group
Life reported an improved but still weak combined ratio of 100 per
cent (110 per cent).

The financial result was NOK 22 million (NOK 97 million). The
insurance investment portfolio amounted to NOK 10.6 billion at
the end of 2022 (NOK 9.6 billion) and achieved a return of 2.1 per
cent. Investments are primarily in fixed income securities booked at
amortised cost or at fair value with short maturities.

The profit before amortisation was NOK 580 million (NOK 423
million).

Balance sheet and market development
Total growth in in written portfolio premiums amounted to 21 per
cent in 2022, ending at NOK 7,822 million. The acquisition of Danica
contributed NOK 447 million, corresponding to approximately 32
per cent of the growth. Adjusted for this, written premiums grew
14 per cent, of which about 60 per cent is explained by increased
volume and 40 per cent by price adjustments. P&C and Individual
Life, grew 22 per cent to NOK 4,013 million, Group life and Health
grew 17 per cent to NOK 2,071 million, and Pension related disability
grew 27 per cent to NOK 1,738 million.

Insurance

NOK million

Insurance pemiums f.o.a.

Claims f.o.a.

Operational cost

Operating profit

Financial result

Profit before amortisation

2022

6,088

-4,419

-1,112

558

580

2021

5,175

-3,974

-875

326

423

Key figures Insurance

Claims ratio

Cost ratio

Combined ratio

Financial results
Insurance premiums for own account (f.o.a) grew 18 per cent to NOK
6,088 million in 2022 (NOK 5,175 million), driven by strong volume
growth in the retail market, but also price adjustments.

Insurance claims increased to NOK -4,419 million (NOK -3,974
million) because of growth, but the claims ratio developed positively
and ended at 73 per cent for the year, which is an improvement of 4
percentage points compared to the year before. Price adjustments
for products with disability coverage, which in previous years has
had weak profitability, contributed to the improvement.

Total operating cost for the year amounted to NOK -1,112 million
(NOK -875 million) and resulted in a marginal increase in the cost
ratio from 17 per cent to 18 per cent in 2022. The cost increase
was partly related to growth and sales commissions in external
distribution channels.

2022

73 %

18 %

91 %

2022

4,013

2,071

1,738

2021

77 %

17 %

94 %

2021

3,301

1,775

1,369

Written premium, NOK million

P&C & Individual life

Health & Group life*

Pension related disability insurance

Nordic

Total written premium

7,822

6,445

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

with Ergo International)

Guaranteed pension

NOK million

Fee and administration income

Operational cost

Operating profit

Risk result life & pensions

Net profit sharing

Profit before amortisation

2022

1,597

-850

747

262

-106

903

2021

1,631

-890

741

187

504

1,432

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixFinancial results
The fee and administration income amounted to NOK 1,597 million
(NOK 1,631 million), while operating cost amounted to NOK -850
million (NOK -890 million). The marginal decrease in income and
cost was primarily due to a depreciation of the Swedish krona (SEK).

The risk result life & pensions was NOK 262 million (NOK 187
million). The improvement was partly due to increased reactivation
of customers who received disability benefits, but also because of a
stronger longevity result due to increased mortality after the COVID-
19 pandemic.

Net profit sharing amounted to NOK -106 million (NOK 504 million).
The profit sharing in Norway totalled NOK 6 million, and NOK -112
million in Sweden. Risk management has limited the negative effects
of higher interest rates and weak financial markets. The booked
return averaged 1.4 per cent in Norway, compared with an average
customer guarantee of 3.0 per cent at the end of the year. Contracts
with insufficient returns have been compensated using buffer capital
and have therefore had no material effect on results. In Sweden,
assets and liabilities are duration matched. Although the average
value-adjusted return was -10.4 per cent, the value of our liabilities
also fell by 11.3 per cent. Deferred capital contributions to individual
contracts have had a negative impact on profits.

Profit before amortisation amounted to NOK 903 million (NOK 1,432
million).

Balance sheet and market development
At the end of the year, guaranteed reserves amounted to NOK 273
billion. This is NOK 17 billion less than in 2021. The reduction is mainly
due to net inflows and outflows of NOK -11 billion, and a reduction in
the market value of Swedish reserves due to a higher discount rate.
At the same time, growth in public sector occupational pensions in
Norway contributed with an inflow of reserves of NOK 4.5 billion,
and the transfer of St Erik Liv’s portfolio to SPP by NOK 2.3 billion.
As a share of the total balance, guaranteed reserves correspond to
46.5 per cent (48.5 per cent) at the end of the year, a reduction of 2
percentage points from last year.

Buffer capital, which secures customer returns and shields
shareholders’ equity under turbulent market conditions, fell to 6.3
per cent (11.2 per cent) of reserves in Norway, but increased to 19.6
per cent (17.8 per cent) in Sweden. Overall, the buffer capital fell by
NOK 9.7 billion from 2021.

Key figures Guaranteed Pension

NOK million

Guaranteed reserves

2022

2021

273,465

290,862

Guranteed reserves in % of total reserves

46.5 %

48.5 %

Net inflows and outflows, excluding trans-

-10,547

-10,268

fers

Average booked return in Norway

Average guarantee in Norway*

1.4 %

3.0 %

Average value-adjusted return in Sweden

-10.4 %

Average guarantee in Sweden

Buffer capital in % of customer reserves in
Norway

2.8 %

6.3 %

4.5 %

3.1 %

3.7 %

2.8 %

11.2 %

Buffer capital in % of customer reserves in
Sweden

19.6 %

17.8 %

* Danica excluded

Other

NOK million

Fee and administration income

Operational cost

Operating profit

Financial items and risk result life

Profit before amortisation

2022

-299

-282

-138

-420

2021

-246

-225

518

293

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

Fee and administration income

Operational cost

Financial results

Profit before amortisation

2022

-284

284

2021

-260

260

Financial results
The operating profit in the Other segment was NOK -282 million,
a decline from the previous year’s NOK 225 million. Transaction
and integration costs related to acquired business contribute to
increased cost and a lower operating profit. The financial result was
NOK -138 million, a decline from last year’s NOK 518 million. The
negative financial result is mainly explained by a lower fair value on
credit bonds in the company portfolios, where credit spreads have
increased in 2022. The comparative figure for 2021 includes a gain
of NOK 546 million from the sale of AS Værdalsbruket. Profit before
amortisation was NOK -418 million (NOK 293 million).

Dividend for 2022
The Board has an established capital management framework that
links dividends to the solvency ratio. The dividend policy should
reflect the strong growth in earnings from operations, more volatile

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendixfinancial market-related earnings and future capital release from
operations with guarantees. The Board’s ambition is to pay a steady,
but nominally, increasing ordinary dividend.

In addition, the expected release of capital will result in increased
distribution over time, primarily in the form of share buybacks.
After a thorough review of the Group’s balance sheet, solvency, and
expected future developments, as well as the Group’s robustness
in stress scenarios, the Board decided to lower the threshold for
overcapitalisation in 2022 from the previous 180 per cent to 175
per cent.

Based on the Group’s solvency, liquidity and expected profit
generation, and taking into account the prevailing uncertainty
in financial markets and macroeconomics, the Board proposes
an ordinary dividend of NOK 1,718 million, corresponding to an
ordinary dividend of NOK 3.70 per share and a dividend pay-out
ratio of 72 per cent for 2022 to the Annual General Meeting. This is
in addition to the share buyback of NOK 500 million, corresponding
to NOK 1.07 per share, which was completed in the third quarter of
2022.

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

Capital situation
Storebrand adapts the level of equity and debt in the Group
continuously and systematically. The level is adjusted to the
company’s financial risk and capital requirements. Growth and
composition of business areas are important drivers for capital
needs. Capital management is designed to ensure an efficient
capital structure and contribute to achieving business goals within
regulatory requirements. The balance sheet shall form a healthy
foundation and support the Group’s growth strategy while returning
released capital to shareholders.

The Group’s target is to maintain a solvency ratio according to the
standard model in Solvency II of at least 150 per cent. At the end of
2022, the solvency ratio for the Group was reported at 184 per cent,
an increase of 9 percentage points from 175 per cent the year before.
Profit generation in the Group contributed 11 percentage points,
before dividends and share buybacks, which reduced the solvency
ratio by 6 and 2 percentage points respectively. The acquisition of
Danica reduced the solvency ratio by a further 6 percentage points.
Prudent risk and capital management more than compensated for
weak financial markets in 2022.

Storebrand 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 reduced by NOK 24.5
billion in 2022 to NOK 49.6 billion. Issuances and redemptions of
bonds resulted in a net reduction of NOK 1.1 billion in subordinated
debt in 2022. The Market value adjustment reserve has been
reduced by NOK 5.7 billion and amounted to NOK 0.6 billion at year-
end. Conditional bonuses have been reduced by NOK 1.2 billion and
amounts to NOK 12.5 billion. For parts of the guaranteed portfolio,
booked return has been lower than the guaranteed return for the
contract, which has contributed to a reduction in additional statutory
reserves and the buffer fund. Transferred contracts to Storebrand
increased the additional statutory reserves and the buffer fund
by NOK 0.8 billion during 2022. Additional statutory reserves
amounted to NOK 9.6 billion at the end of the year, a reduction of
NOK 4.0 billion for the year. In connection with the implementation
of the buffer fund in public occupational pensions, NOK 1 billion was
transferred from additional statutory reseres and the market value
adjustment reserve. Due to rising interest rates, the excess value of
bonds and loans at amortised cost has been reduced by NOK 13.6
billion in 2022 and amounted to minus NOK 10.2 billion at the end
of the year. The excess value of bonds and loans at amortised cost
is not included in the accounts.

Storebrand Bank Group had a Core Equity Tier 1 (CET1) ratio of
15.7 per cent and a capital adequacy ratio of 21.4 per cent at the end
of 2022. The Group has satisfactory capital adequacy and liquidity
based on its operations. The lending portfolio consists primarily of
low-risk home mortgages with an average LTV (loan-to-value) of 58
per cent.

Storebrand ASA (holding) held liquid assets of NOK 5.1 billion
at the end of 2022. Liquid assets consist primarily of short-term
fixed income securities with a high credit rating. Storebrand ASA’s
total interest-bearing liabilities were NOK 0.5 billion at the end
of the year, which matures in September 2025. In addition to its
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
of NOK 3,187 million in 2022. Dividends allocated to shareholders
amounted to NOK 1,718 million.

Rating
Four companies in the Storebrand Group issue debt securities.
These are rated by the credit rating agency S&P Global. Storebrand
Livsforsikring AS, the main operating entity, aims to have at least an
A-rating. Due to profitable growth and increased financial strength,
S&P Global Ratings upgraded Storebrand Livsforsikring AS and
Storebrand Bank ASA from ‘A-’ to ‘A’ with stable future outlook in 2022.
Storebrand Boligkreditt AS’s covered bond program is rated ‘AAA’, and
Storebrand ASA is rated ‘BBB+’.

Storebrand’s 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 175 per cent, the Board of Directors intends to propose special dividends

or share buy backs.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixOfficial Financial Statements of
Storebrand ASA

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 3,082 million in 2022, compared to NOK 4,505 million in 2021.
Group contributions from investments in subsidiaries amounted to
NOK 3,187 million, compared to NOK 4,542 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

2022

3,187

115

-220

3,082

-143

2,939

2021

4,542

144

-180

4,505

-258

4,248

2022

2,939

2021

4,248

-3

-1

Total comprehensive income

2,949

4,252

Allocation of the profit
Storebrand ASA reported a profit of NOK 2,939 million compared to
NOK 4,248 million in 2021. The Board proposes a dividend of NOK
1,718 million to the Annual General Meeting, corresponding to an
ordinary dividend of NOK 3.70 per share for the financial year 2022.

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

2022

2,939

2021

4,248

1,221

1,718

2,939

2,602

1,645

4,248

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix

Outlook

Market development
Financial market developments affect both the Group’s solvency
ratio and the financial results. Higher interest rates increase
the solvency ratio and make it easier to achieve returns above
the guaranteed rate. Defined Contribution pensions and asset
management are largely exposed to the stock market. Market
movements will therefore affect income earned on assets under
management. Currency movements between the Norwegian and
Swedish krone affect the reported balance sheet and results in
SPP at a consolidated level. 2022 was a turbulent year for financial
markets, and there is an increased risk of global recession in the
coming years. With a robust risk management framework, described
in more detail in a separate section below, and with a diversified
business, Storebrand has proven resilient under varying market
conditions. The Board believes that the Group is well equipped
to deliver its strategy, both under positive and more demanding
financial markets.

Financial Results
At the capital markets day in December 2020, Storebrand announced
an ambition to achieve a profit before amortisation and tax of about
NOK 4 billion in 2023. The profit ambition was reached in 2021, helped
by gains from the sale of AS Værdalsbruket and strong performance
in funds with performance fees. Despite turbulent financial markets
in 2022 reducing assets under management and the resulting fee
income, the profit ambition for 2023 is maintained, supported by
strong and profitable growth across the Group, and higher expected
financial results in a higher interest rate environment.

In Norway, the market for Defined Contribution pensions is growing
structurally due to the young nature of the product. High single-digit
growth in Defined Contribution premiums and double-digit growth
in assets under management are expected during the next years.
Storebrand aims to defend its strong position in the market, while
also focusing on cost leadership and improved customer experience
through end-to-end digitalisation. In July 2022, Storebrand acquired
Danica in Norway, which will strengthen Storebrand’s presence in the
segment for small and medium sized businesses, and it will increase
Storebrand’s distribution capacity of both Defined Contribution
pensions and personal risk products.

In the coming years, Storebrand is also looking to leverage customer,
product and capital synergies by expanding our insurance offering
to corporate clients within P&C. This will generate an additional
income stream for the Group.

In Sweden, SPP is a leading market challenger within the segment for
non-unionised pensions, with an edge in digital and ESG-enhanced
solutions. SPP has become a significant profit contributor to the
Storebrand Group, supported by an ongoing capital release from
its guaranteed products in run-off. Growth is expected to continue,
driven by new sales and transfers.

As a leading occupational pension provider in the private sector,
Storebrand also has a competitive pension offering to the Norwegian
public sector. It is a growing market which is larger than the private
sector market. It is currently dominated by one monopolist. To
succeed in the market, municipalities will need to tender their
pension procurements to a larger extent than today.

This represents a potential additional source of revenue for
Storebrand. The ambition is to gain 1 per cent market share annually,
or approximately NOK 5 billion in annual net inflow.

Overall reserves of guaranteed pensions are expected to decrease
in the coming years. Guaranteed reserves represent a declining
share of the Group’s total pension reserves and amounted to
46.5 per cent of the pension reserves at the end of the quarter, 2
percentage points lower than a year ago. With interest rates having
risen in 2022 to approximately the average level of interest rate
guarantees, the prospects for future profit sharing with customers
has increased. Higher interest rates also allow Storebrand to build
customer buffers at a faster pace, which strengthens the group’s
solvency position.

In addition to managing internal pension funds, Storebrand Asset
Management is growing its external mandates from institutional and
retail investors. Storebrand is a local partner for Nordic investors,
and a gateway to the Nordics for international investors. We offer
a full product range of index, factor and actively managed funds.
Storebrand is also one of the strongest providers of alternative
assets (private equity, real estate, private debt and infrastructure)
in the Nordic region. Over the past three decades, Storebrand has
focused on ESG investments with a strong track record. The overall
ambition is to grow assets under management by NOK 250 billion in
the period 2021-2023, while maintaining a stable fee margin.

The brand name ‘Storebrand’ is well recognised in Norway. It
facilitates our rapid growth in the Norwegian retail market to
leverage capital, customer, and operational synergies. The ambition
is to grow more than 10 per cent annually within retail savings,
mortgage lending and insurance through digital sales channels and
distribution partnerships. P&C insurance is a key area for profitable
growth. Storebrand Bank plays an important strategic role in offering
a complete range of financial products and services to the retail
market. In January 2023, Storebrand also strengthened its retail
savings offering by acquiring the fast growing Norwegian fintech
company Kron. The acquisition will combine Kron’s user experience
with Storebrand’s product platform and distribution.

Storebrand maintains a disciplined cost culture. The Group reported
flat nominal costs from 2012-2020, adjusted for acquisitions,
currency and performance related cost. Simultaneously, assets
under management more than doubled. To accelerate growth

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix
and the Group’s profit ambitions, investments in profitable growth
has gradually increased costs. This includes growth in public
occupational pensions and P&C insurance, in addition to acquired
business. Should the growth not materialise, management has
contingency plans in place to cut costs. There are also cost savings
initiatives in place to manage the effects of excess inflation. The cost
guidance for 2023 is NOK 5.3 billion. This includes the cost base of
the acquired companies Danica and Kron, but is before integration
cost of acquired business, any potential new acquisitions, currency
and performance related cost.

Capital management
Storebrand aims to maintain a solvency ratio of at least 150 per
cent. At the end of 2022 it was 184 per cent. On an annual basis,
a net capital generation of about 8 percentage points of solvency
is expected over the next few years. Of this, approximately 13
percentage points are generated in the business, 2 percentage
points come from the fact that the guaranteed business in liquidation
frees up more capital than the growth in the group requires, and
around 7 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 175 per cent, the Board’s
intention is to implement a share buyback program. The purpose of
the buybacks will be to return excess capital from the guaranteed
business that is in long-term liquidation. Our ambition is to return
around NOK 10 billion in capital through share buyback programs
by 2030. At the same time, we expect that there will be additional
excess capital left to either grow the business further or that will be
able to return to our shareholders.

The combination of growing results and the release of capital 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 going forward.

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
investments
and increasing the capacity to invest in European business. The
Commission emphasises the insurance sector’s important role when
it comes to financing the green transition and helping society to

long-term

adapt to climate change. The review intends to correct deficiencies
in current regulation and make the insurance sector more robust.

Storebrand currently applies the standard model. In the review,
changes to the interest rate risk module could increase the solvency
capital requirement for Norwegian and Swedish insurers. The
Commission’s proposals appear more representative for Norwegian
interest rates 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 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, and changes are
not expected to enter into force until 2025. The Commission will
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. The act introducing the taxonomy and requirements for the
publication of sustainability information in Norwegian law entered
into force on 1 January 2023.

Companies must map the consequences for their products and
services. Large, listed companies will be required to report on the
proportion of their turnover, investments and operating costs
covered by the taxonomy. In 2023, companies must report on
the share of turnover, investments and operating costs that are
environmentally sustainable activities in accordance with the defined
technical criteria drawn up by the EU for each economic activity.

The new rules for sustainable finance will establish standards
for sustainable asset management and clarify requirements for
reporting and customer information. We take a positive view
of this. It will provide higher quality financial and non-financial
reporting, better information to key stakeholders, and make it
easier to compare data across the financial sector. The challenge
in implementing the new rules for sustainable finance is to get the
right and necessary data. See appendix on page 266 for an overview
of how much of our business is covered by the taxonomy. The
taxonomy’s reporting requirements are increasing incrementally
and, in the years to come, we will report on the proportion that is
classified as sustainable based on these requirements.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix
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.

Storebrand believes it is positive that customers’ preferences related
to sustainability should be mapped. This can contribute to increased
awareness of ESG factors and make it easier to understand different
types of funds or profiles with a lower carbon footprint. Storebrand
is committed to good solutions that take sustainability into account
and in 2022 used the consulting tool Quantfolio to start mapping
sustainability preferences among customers. Regulation related to
sustainability preferences and suitability assessment through MIFID
and IDD will be introduced into Norwegian law in 2023.

Corporate Sustainability Reporting Directive (CSRD)
The EU has adopted a new Corporate Sustainability Reporting
Directive (CSRD), which will replace the previous Non-Financial
Reporting Directive (NFRD). The introduction of CSRD in Norwegian
law will entail an extension of the current section 3-3c of the
Entrepreneurship Act. Information related to sustainability will be
provided in the annual report according to CSRD.

CSRD aims to elevate sustainability information to the same level
as financial information. The proposal aims to improve the flow
of information on sustainability in corporate governance. CSRD
includes new European standards on sustainability reporting, and a
framework for double materiality analysis. Double materiality means
that companies must report both on the company’s impact on society
and how ESG affects the company’s ability to create long-term value.
The standards will make corporate sustainability reporting more
consistent, allowing financial players, investors and general public
to base decisions and form opinions based on comparable and
reliable information about sustainability. Storebrand’s annual report
will be in line with this regulation when it enters into force.

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 extent to which
our products consider sustainability.

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.

New Insurance Recovery and Resolution Directive (IRRD)
The European Commission has proposed a new directive on the
recovery and liquidation of insurance companies, the Insurance
Recovery and Resolution Directive, IRRD. The purpose is to ensure
better protection of policyholders, maintain financial stability and
continue critical functions. The insurance industry is critical of the
proposal and believes any new rules must take into account national
differences and the insurance industry’s distinctive characteristics
compared to banking. The proposal entails, among other things,
that recovery plans will be drawn up for companies that together
make up more than 80 per cent of the market. There will also be
a need to adapt the national crisis management rules, which were
used when Silver Pension Insurance was placed under public
administration in 2017.

for

insurance contracts and

Changes in IFRS
A new accounting standard for insurance contracts, IFRS 17, will
be implemented in 2023. The purpose is to introduce common
accounting rules
improve the
comparability of financial statements. IFRS 17 entails, among other
things, fair value measurement of liabilities, grouping of insurance
contracts based on risk characteristics, internal management and
issue date, income recognition over the contract period rather
than upfront, and an amendment of the profit and loss statement.
Storebrand will implement IFRS 9 for financial instruments at the
same time.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixFor Storebrand’s consolidated financial statements, the new
standards will lead to changes in the recognition, measurement and
presentation of insurance contracts, classification of fixed income
investments and how profits are recognised. A new balance sheet
item called Contractual Service Margin (CSM), representing the
unearned profits of insurance contracts, will be introduced as part
of the transition to IFRS 17. Amortisations of CSM will be recognised
as income as the service is provided. Storebrand expects that the
transition to IFRS 17 will result in approximately 20% the Group’s
equity to become CSM. Storebrand’s first quarter results 2023 will
be the first reporting under IFRS 17. See further discussion of IFRS
17 in Note 1.

Whether IFRS 17 is implemented in the statutory reporting
requirements is decided by national regulations in each country.
Storebrand will only implement IFRS 17 in the statutory reporting
for Storebrand Forsikring AS (the P&C Insurance business). For the
remaining companies within Storebrand Group, including the life
insurance companies, the statutory reporting will remain unchanged
from today. The Ministry of Finance has also passed a regulation
allowing for the continued use of amortised cost valuation of assets
in both customer accounts and life insurance companies’ financial
statements when IFRS 9 is implemented.

The implementation of IFRS 9 and IFRS 17 is not expected to
significantly affect the solvency calculations nor the Group’s
dividend capacity. To accommodate the new accounting standard,
some adjustments will be made to financial targets that are based
on IFRS accounts.

IFRS has also established an International Sustainability Standards
Board (ISSB) with the goal of developing a global standard for
sustainability reporting. There are two standards that have been
proposed. The first builds on general sustainability standards
from the Sustainability Accounting Standards Board (SASB) and
the International Integrated Reporting Council (IIRC). The second
standard is aimed at climate and builds on the TCFD framework. In
2023, it is expected that there will be more information about the
reporting standards, and different jurisdictions will be able to choose
different solutions to deal with these. Through the EEA Agreement,
the solution chosen by the EU will in practice also become a guiding
principle for Norwegian businesses. Storebrand takes a positive view
of this and believes it is an important standard work for harmonising
and publishing sustainability information internationally.

Norwegian regulations
Evaluation of the pension reform
A public committee that has evaluated the pension reform presented
its proposals in June 2022. Changes are proposed to the National
Insurance Scheme’s old-age pension that will also have an impact on
occupational pension schemes.

The Commission concludes that the pension reform has worked
as intended and contributed to limiting growth in old-age pension
expenditure from the National Insurance Scheme and establishing
a financially sustainable pension system. A new work incentives
have improved and contributed to more people continuing their
employment longer than before.

The Committee believes that three changes are needed:

•

Age limits in the pension system should be increased in line
with increased life expectancy

• Minimum benefits should follow general prosperity (regulated

•

by wage growth)
Disabled people should be shielded to a greater extent from
the life expectancy adjustment

In total, the proposals do not reduce government expenditure, but
the Committee believes that the last two proposals are necessary
to strengthen social sustainability and thus support for the pension
system.

The Commission notes that if the age limits in the National Insurance
Scheme increase, the age limits in occupational pension schemes,
AFP and individual pension schemes should also be increased
accordingly.

The Committee conducts a thorough review of the various
occupational pension schemes, and points to a need for more
knowledge about how these and AFP affect the distribution in the
pension system, and how the quality of the schemes varies between
different groups.

Just before the pension committee presented its report, the
Norwegian Confederation of Trade Unions (LO) decided to demand
a better occupational pension by doubling the minimum rate for
compulsory occupational pensions from two to four per cent, as well
as compulsory disability pensions.

income

Savings in Norwegian Defined Contribution pensions
During 2022, new legislation which makes pension contributions
mandatory on all
in Defined Contribution pensions.
Companies were given a deadline of 30 June to adjust their pension
schemes. The changes mean that all loans up to 12 G will be
earned. In addition, the requirement of 20 years of age and 20 per
cent position lapsed. Thus, all employees must be members of the
pension scheme, as long as they receive a salary above the threshold
for reportable income (NOK 1000). The number of members in
Defined Contribution schemes in the Norwegian market increased
by about 350 000 in 2022, to more than 1.9 million.

Guaranteed Retirement Products
New regulations allowing for providers to build additional stautory
acocunts seperately for individual contracts came into force in
2022. The change allows for profit sharing and increased benefits
to policyholders on contracts with sufficient additional statutory
introduced that allow
reserves. Regulations have also been
customers to choose faster pay-outs of small paid-up policies.

A flexible buffer fund was introduced for public occupational pensions
on 1 January 2022. The change means that market value adjustment
reserves and additional stautory accounts have been merged into
a flexible buffer fund, which is distributed among the contracts and
can cover negative returns. There is no maximum limit to how large
the buffer fund can be, but companies must have guidelines for the
size of the buffer fund, and buffer funds beyond what the company

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendixdeems necessary can be allocated to the customer as profit. Thus,
buffer fund requirements become a competitive parameter in the
public sector market. Storebrand is positive to the new regulations,
which increase the risk capacity of the available buffer and facilitate
competition for municipal occupational pension schemes.

Storebrand has worked actively to ensure that flexible buffer funds
are also introduced for paid-up policies, as proposed by a working
group appointed by the Ministry of Finance and Finanstilsynet
(Financial Supervisory Authority of Norway). The case is still pending
in the Ministry.

Public Occupational Pensions schemes
Storebrand has filed two complaints to the EFTA Surveillance
Authority (ESA) in an effort to improve the competitive landscape
for Public Occupational Pensions, which is dominated by a single
player. Storebrand has claimed that municipalities, regional health
authorities (RHFs) and hospitals have entered into occupational
pension contracts in breach of the rules on public procurement.
Storebrand has also claimed that municipalities, RHFs and hospitals
have granted KLP State aid in violation of Article 61 of the EEA
Agreement. According to Storebrand, the mutual company KLP is
given access to capital from municipalities and hospitals on more
favourable terms than other market participants would receive
by withholding retained earnings when customers move to other
providers.

The Transparency Act
The Transparency Act came into force on July 1, 2022. The Consumer
Authority has been assigned the task of guiding and supervising
the Transparency Act. The Act 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.

• Obligation to conduct due diligence: All covered undertakings
are obliged to carry out due diligence in accordance with the
OECD Guidelines for Multinational Enterprises. The requirement
for the scope of the due diligence shall be proportionate to the
size of the enterprise and shall be carried out regularly.

• Obligation to notify due diligence: An account of the due
diligence assessments shall be published each year. The report
must meet the minimum requirements of the Transparency
Act but may 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.
Disclosure obligation: Under the Transparency Act, anyone
can request information from businesses about how they
handle actual and potential negative consequences assessed
in due diligence. The right to information includes both
general information about how the business handles negative
consequences, and specific information related to goods and
services.

•

Adaptations to the new regulatory requirements has been
implemented both in departments 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
reporting and transparency. A more detailed staus descriptions is
available in the chapter Sustainable practices through our value chain
on page 42. The due diligence report will be published by June 30,
2023, through our Human Rights and Responsible Business Policy at
the Sustainability Library.67

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 cannot exceed 0.0127 basic amounts
(equivalent to approximately SEK 600 in 2021).

On the question of the right of transfer for agreements entered
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.

67) Human Rights Policy and Responsible Business Conduct at Storebrand: https://www.storebrand.no/en/sustainability/sustainability-library

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixA driving force for sustainable investments

Through our core investment business, we seek to generate the best
possible risk-adjusted returns for our clients without compromising
the ability of future generations to meet their own needs.

jeopardising the way of life for native peoples and ensuring living
wages for workers within competitive supply chains involving a wide
variety of locations, cost levels and regulatory domains.

Storebrand has focused on sustainable investments since the
mid-1990s when we became the first Norwegian asset manager to
establish a dedicated ESG team. In 2005, we introduced minimum
standards for all our investments through the Storebrand Standard,
our group-wide exclusion policy, and in 2010 we integrated
sustainability into all our funds through a proprietary ESG rating
methodology.

Guided by the SDGs in an evolving 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. One of our main
goals is to positively support the achievement of the UN Sustainable
Development Goals (SDGs), without negatively impacting society or
the environment.

The sustainability concerns of many stakeholders until recently
focused primarily on cutting greenhouse gas emissions to reduce
global warming. Now, the global sustainability agenda has evolved
to include a wide range of environmental, social and governance
issues. Biodiversity and ecosystems are emerging as crucial
building blocks to solve the global warming and climate challenge.
Increasingly, issues such as healthy working conditions and social
and economic justice are seen as key components in a sustainable
society. In addition, corporate governance and transparency have
become critical enablers for both companies and investors.

Reaching sustainability objectives often involve balancing acts and
tackling dilemmas. Some examples of this include the balance
between developing sources of renewable energy without

Our approach to sustainable investments is three-fold:

•

Investing in solutions: Contributing to positive influence
by allocating more capital to equity investments in solution
companies (see below for definition), green bonds, bond
investments in solutions, and investments in certified green
real estate and green infrastructure.
Engagement, including voting: Exercising active ownership to
influence companies we invest in to reduce negative impact on
climate or society.
Exclusion: Screening out and/or exiting investments that are
not likely to be aligned with our sustainability principles.

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

Integrated approach to sustainability
We take an integrated approach to sustainable investments,
combining our sustainability strategy with our investment strategy.
We believe that companies with an advanced level of skill in managing
sustainability risks and opportunities have a competitive advantage
that may enable them to deliver better returns, while contributing
positively to sustainable development.

All entities in the Group operate within a framework that consists of
a comprehensive set of exclusion criteria (norm-based and product-
based), as well as principles that respective entities must adhere to
throughout their investment processes.

Storebrand also integrates sustainability risk ratings into investment
decisions to avoid or invest less in companies with high-risk
sustainability rates and prioritise investment in companies with low
sustainability risk.

Storebrand measures material ESG risk or the risk of causing adverse
sustainability impact through an ESG Risk Rating. A company’s ESG
risk is measured by:

1. Corporate governance: Applies to all companies irrespective
of the sub-industry they represent. Reflects the conviction that
poor corporate governance poses material risks for companies.
2. Material ESG issues: Assessment of material ESG issues
occurs at the sub-industry level. Issues are examined based
on the typical business model and business environment a
company is operating in.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix3.

Idiosyncratic ESG issues: Unexpected and unrelated to the
specific sub-industry and the business models that can be
found in that sub-industry.

Based on identified risks, Storebrand’s Risk and Ownership team
considers how to reduce our vulnerability to these risks (further
information available under Principle 11).

Risk is inherent in many industries. Therefore, we not only assess
risks but also each company’s ability to manage them. Storebrand
assigns an ESG risk score to all companies we invest in. The score
is available for our portfolio managers to integrate in investment
decisions.

Our Risk and Ownership team also uses the rating when identifying
and prioritising thematic adverse impacts for specific industries,
when engaging with individual companies to identify needs for
sustainability improvements, and when deciding how to vote on
shareholder resolutions.

Directing investments towards sustainable solutions
Storebrand aims to be a driving force for lasting change in the
way companies are managed, while ensuring the best possible
returns for customers and owners. We fundamentally believe that
investing in companies well-positioned to deliver on the United
Nations Sustainable Development goals (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. At the same time, we
reduce exposure to activities that negatively impact society and the
environment.

increase our positive contribution to
Storebrand works 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 assets under management in solution companies,
bond investments in solutions, green bonds, green infrastructure,
and certified real estate by 2025. At the end of 2022, 12.4 per cent of
our equity investments was invested in solution companies.

The following principles guide our investment and stewardship
approach:

• Make investment decisions in line with scientific consensus
•

Reorient capital flows towards low-carbon, climate-resilient and
transition companies
Avoid investments that contribute significantly to climate
change
Use ownership positions to stimulate ambitious ESG practices
at portfolio companies

•

• Make it simple for clients to understand how they may

contribute to a low-carbon future

Equity investments in solutions
Through proprietary analyses, we identify what we call “solution
companies”. These are companies that help achieve the SDGs through
products, services and operations, without causing significant
harm to society or the environment. Companies that are defined
as solution companies are included in a database that is updated
regularly. The database is a valuable tool for fund managers 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.

Integrating sustainability in other asset classes
Debt
Within fixed income, we invest both in investment grade and high
yield instruments, including investments in green and sustainability-
linked bonds, which allow fixed-income funds to increase their
exposure to projects that are focused on sustainability. 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, as well as the
International Capital Market Association (ICMA) framework. By the
end of 2022, we had invested NOK 32 billion in green bonds. This
accounts for 8.3 per cent of our total bond investments, up from 6
per cent in 2021.

Storebrand also seeks to make bond investments within our
“Solutions” category of bonds, besides Green Bonds. We have an
ambition to increase our holdings in this category, which we believe
will benefit long term risk-adjusted returns.

Real Estate
We integrate sustainability throughout our real estate business
and aim to be the Nordic region’s leading player in real estate
management that takes sustainability into account. Through a
combination of different strategies, our approach focuses both on
reducing adverse impacts and on contributing to positive impacts
of our investments. Assessments of environmental, social and
governance risks are conducted pre and post investments.

Our main goal is to contribute to the UN SDG 11 on sustainable
buildings, cities, and societies. Four main target areas have been
defined as the most relevant to new investments, developments,
and operational management of real assets:

•
•
•
•

Climate and energy
Circularity and material resources
Biodiversity
Health and well-being

Potential negative impacts are assessed and addressed through
several strategies:

•
•
•

Screening and excluding investments or partnerships
Integrating adverse impacts in investment selection decisions
Integration in investment decisions on property management
and development

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixSPP Fastigheter AB and Storebrand Eiendomsfond Norge KS were
named Global Sector Leader 2022 in their categories (Diversified
and Diversified Office/Industrial, respectively) by the Global Real
Assets Sustainability Benchmark (GRESB). All four participating
Storebrand entities earned a 5-star recognition, which is awarded to
the 20 per cent best among (more than) 1800 reporting real estate
funds and companies across 74 countries. GRESB’s data is used by
more than 170 institutional and financial investors.

In 2022 the share of our buildings that hold an environmental
certificate (BREEAM or equivalent) was 64.6 per cent, while
emissions from our real estate investments were 5.6 kg CO2 per
m2. In 2021 these figures were 68 per cent and 6.0 kg CO2 per m2
respectively.68 However, the figures are not directly comparable, as
the composition of our portfolios have changed with the inclusion of
our Danish real estate portfolio.

Infrastructure
Since the launch of the Storebrand Infrastructure Fund in 2021,
Storebrand has invested directly and cooperatively in infrastructure
projects that enhance the transition to a greener economy
through increased renewable energy production and utilisation.
The transition from fossil fuels to renewables requires significant
investments in renewable energy infrastructure, from both the
public and private sectors. The EU Commission’s Investment Plan
for Europe aims to mobilise EUR 650 billion of public and private
investments by 2027 to ensure the transition to a climate-friendly
economy. The European energy crisis in 2022 highlighted the
importance of the Fund’s mandate.

The Fund has made multiple investments in infrastructure projects
in Europe and North America, including direct investments in the
City of Oslo’s district heating network, an onshore wind farm in the
United States, as well as an offshore windfarm and two separate
electric train fleets in the United Kingdom.

The fund will contribute positively to SDGs 7, 9 and 11, and is
committed to accelerating the transition to renewable energy and
a greener economy.

Private equity & private credit
Storebrand’s private equity investments are carried out through
a wholly- owned subsidiary, Cubera Private Equity (“Cubera”), an
investment adviser and fund-of-funds manager. As a limited partner
in a private equity fund, Cubera has limited formal influence on ESG
issues during its ownership phase, and no direct influence on the
underlying portfolio companies. However, Cubera generally invests
with fund managers who share its view that ESG factors affect the
long-term market value of assets. Cubera also actively encourages
fund managers to undertake relevant ESG actions.

Based on Cubera’s ESG policy, Cubera will continue to develop
activities across all funds. For products, this means that Cubera will
continue to develop its integration-activity across all funds and have
dedicated impact products (Cubera Impact). Cubera will publish its

HOW STOREBRAND CONTRIBUTES TO THE UN SDGS
THROUGH INVESTMENTS IN SOLUTIONS

We invest in companies that deliver climate

solutions and contribute to achieving the Paris

Agreement.

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 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 support companies’ growth, generating

new jobs, and promoting sustainable industrial

development requires financial services, including

affordable and accessible credit and women’s

integration in value chains and markets.

invest

in companies dedicated towards

increasing access to equal opportunities, social

services and economic empowerment.

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 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 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.

68) The reduction in certified green property is due to the inclusion of Capital Investment in Denmark in the overall share. Split by country the share of certified green property is the

following: Norway (89%), Sweden (93%), Denmark (9%).

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendixfirst ESG report in 2023, including ESG metrics on invested funds.
Lastly, Cubera is committed to driving the ESG agenda in the private
equity community, actively involving investors in building ESG further
into mandates, supporting industry initiatives, and collaborating
with peers to standardise data.

Active Ownership
Exercising our influence through active ownership is a critical
part of our approach to sustainability. We set expectations for
the companies we invest in and use our position as an owner 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.

indirectly for production processes such as through erosion control
and flood protection. In 2022, Storebrand introduced a new Group
policy aimed at battling the systemic risks that a loss of nature and
biodiversity could pose to long-term asset returns. In 2022, we
became a founding member of the Nature Action 100+, a coalition
of investors aiming (to assemble a unified front) to engage and move
global companies considered systemically critical to halting and
reversing loss of nature and biodiversity.

Resilient supply chains: The respect for labour rights in supply
chains has been an important issue for Storebrand for many years
and will dominate our social issue engagement work in the 2021
-2023 period. Our engagement aims to ensure healthy operations
through robust supply chains, at the same time helping to reduce
poverty, child labour, forced labour and low living standards.

Our Risk and Ownership team assesses which companies require
active engagement through dialogue, or whether we should express
our opinions through the exercise of voting rights.

In 2022, we continued our partnership with the Platform for Living
Wages Financials (PLWF), as a foundation for efforts to conduct
assessments and influence portfolio companies to pay a living wage
for workers within the food, textile, and other retail sectors.

Engagement
Five principles of engagement guide Storebrand’s active ownership:

1. Creating shareholder value: Our engagement activities
should contribute to long-term value creation in a responsible
manner

2. Aiming for a positive impact: Our activities should aim to

create actual difference, not symbolic value

3. Nordic approach: We prioritise opportunities where we are
particularly well-positioned to impact positive change, but do
not limit ourselves to the Nordic region

4. Multi-stakeholder engagement: We work with multiple
stakeholders, including governments, organisations, business
communities and investors, to solve complex challenges and
influence large companies

5. Targeted engagement: We focus our resources on companies

where we have a significant ownership stake

Engagement themes
The following themes are being prioritised for the period 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 2018
as a base year. Towards achieving this goal, we have identified
the 20 largest sources of owned emissions in our portfolios and
have begun a process to stimulate these companies to implement
emissions reductions.

Storebrand co-led the PLWF agrifood and food retail workstreams
in 2022, actively participating in the writing of the PLWF 2022
report and presenting results for both sectors at the PLWF annual
conference in October.

Together with other investors through the Investor Alliance on
Human Rights, we also were involved in efforts to reduce the amount
of forced labour in the Xinxiang region in China.

As a member of the Advisory Group, Storebrand last year
contributed together with 220 other investors to a new PRI initiative
on Human Rights stewardship. The initiative, Advance, is established
to help select sectors and companies to engage with. Storebrand’s
contribution has focused on war and conflicts zones and on the
rights of indigenous peoples.

Corporate
advocates
sustainability disclosure: Storebrand
standardised and company-specific sustainability metrics to ensure
transparency and benchmarking. The reporting of ESG-specific
issues is a good indication of how a company measures and
manages its exposure to sustainability risks.

Engagement data summary
By year-end 2022, we currently have 636 ongoing engagements in
total, with 508 unique companies. In total, we have registered 551
interactions with companies during the year, through meetings,
e-mails and letters. 299 of these activities were linked to an ongoing
engagement with a company. The contact includes enquiries
to obtain information, as well as direct dialogue about portfolio
companies’ sustainability efforts.

Biodiversity and ecosystems: The protection and sustainable
management of oceans, forests, wetlands and other sensitive
ecosystems are essential to ensure long-term social and economic
stability. Nature underpins all economic activities. Businesses
depend on nature for direct inputs such as water and materials, and

In addition to dialogue with companies, we also had 79 dialogues
with 33 external fund managers and 65 meetings with government
representatives in 2022.

Among notable trends, 77 per cent of our engagements in 2022
were collaborative, compared with 73 per cent in 2021. This reflects

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixEngagement by sector

2.02 % - Real Estate

3.57 % - Other

8.06 % - Financial

8.84 % - Consumer Discretionary

5.27 % - Information Technology

8.99 % - Energy

5.43 % - Healthcare

11.94 % - Industrials

5.74 % - Communication Services

12.40 % - Consumer Staples

7.44 % - Utilities

20.31 % - Materials

Top 10 countries engaged in

Country

USA

Japan

Sweden

Norway

France

Germany

United Kingdom

Switzerland

China

Indonesia

South Korea

Number of companies

159

our strategy to join forces with other investors and stakeholders to
maximise impact, where appropriate. Several of the most significant
collaborative engagements were related to nature and biodiversity,
a fast-evolving area that lacks commonly accepted standards for
operation and financial management. Demonstrating practices,
building knowledge, and gaining support for shared standards are
key components of our efforts.

Among the new engagements initiated in 2022, 51 per cent focus
on social issues, including labour rights as well as human rights in
conflict zones.

During the year, we concluded 9 engagements, with positive
outcomes in four of those cases.

Dialogue with companies
One-on-one dialogues between Storebrand and companies
accounted for 146 of our dialogues in 2022. In other cases,
we took the initiative to engage together with other investors
through a collaborative effort: 31 engagements were conducted
with Storebrand in a leading role, and 459 with Storebrand in a
supporting role. A total of 93 per cent of the engagements took
place proactively, up from 87 per cent in 2021, while 7 per cent took
place on a reactive basis.

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 7 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 engagements targeted companies in the materials,
consumer staples and industrials sectors, which together accounted
for approximately 44 per cent of our dialogues in 2022.

Geography
The majority of the companies we had dialogue with in 2022 were
based in United States of America, Japan and Sweden.

What aspects of ESG we engaged on (ESG categories)
In 2022, our engagements with companies dealt with several
topics within ESG and we addressed 16 of the 17 UN Sustainable
Development Goals. 51 per cent of the dialogues dealt with
environmental
including climate change, emissions,
deforestation and the use of chemicals, while 31 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.

issues,

Outcomes of engagements concluded
During 2022, we concluded nine dialogues, four of which had a
positive outcome. Four did not give the desired results, while one
had a neutral outcome. In cases where the engagements concluded
successfully, the results were primarily
increased disclosure,
awareness and understanding. In some cases, the companies
changed their practices or committed to implementing specific
changes.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixReason for Engagements in 2022

Engagement communication methods used

Other

Shareholder Resolution

Digital meeting

E-mail

Letter

Phone call

Site visit

Conference

Meeting

100

150

200

94% - Proactive (internally planned)

6% - Reactive (triggered by external event)

ESG categories of

engagements

SDGs impacted by engagements

1. No poverty

Zero hunger

3. Good Health and Well-being

4. Gender Equality

Clean Water and Sanitation

Aﬀordable and Clean Energy

7. Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Reduced Inequality

10. Sustainable Cities and Communities

11. Responsible Consumption and Production

12. Climate Action

13. Life Below Water

14. Life on Land

15. Peace and Justice Strong Institutions

114

158

115

400

100 150 200 250 300 350 400 450

51% - Environment

31% - Social

18% - Governance

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixJFE Steel dialogue
A structured dialogue between JFE Holdings (“JFE”), one of Japan’s leading steelmakers, and a group of shareholders
including Storebrand and Man Group, resulted in a May 22 JFE announcement about enhanced climate commitments
and significant investments aligned with those commitments. JFE in 2021 was identified as one of the top 20 largest
emitters in our portfolio, in terms of owned emissions.

Global demand for steel is projected to rise by more than 30 per cent by 2050. Steel manufacturing is energy intensive,
representing 7 per cent of global (energy sector) CO2 emissions and 15 per cent of Japan’s CO2 emissions annually,
according to the International Energy Agency’s Iron and Steel Technology Roadmap 2020 and the Nippon Steel’s Carbon
Neutral Vison 2050, respectively. Without measures to manage steel demand and overhaul production systems, the IEA
projects that steel sector CO2 emissions would rise 7 per cent by 2050.

Storebrand has initiated a dialogue with JFE and other top 20 emitters in our portfolios regarding their climate ambitions
and the governance of relevant processes. These dialogues are based on our commitment to reduce emissions and
reach net zero across our portfolios.

In our dialogue with JFE, we highlighted the need to align the company’s planned investments with its emission reduction
targets.

JFE faced a significant investment to replace ageing blast furnaces. The scale and complexity of this aspect of the steel
production process requires a long lead time between the time of an investment decision and an actual refurbishment
of the furnace. Following the dialogue between JFE and the shareholder group, the company announced plans to replace
a Kurashiki No.2 blast furnace with equipment based on an electric arc furnace (EAF). This was the first time that any of
Japan’s top three steel companies decided to move towards electric blast furnaces, marking a significant step towards
the decarbonisation of the steel industry. The use of electric arc furnaces could result in significantly lower emissions per
tonne of steel produced, as compared to conventional methods such as blast or basic oxygen furnaces.69 Preliminary
estimates indicate that JFE’s implementation could reduce CO2 by several million tonnes per year. 70

JFE’s announcement shows how shareholder dialogue and investor alliances can act as a catalyst for positive change.
This case also highlights the importance of engaging at the right time, ahead of key decision moments or turning points.

69) Japan’s JFE to switch one furnace to electric in green push

Steelmaker’s planned furnace could have 25% lower CO2 emissions: https://asia.nikkei.com/Business/Materials/Japan-s-JFE-to-switch-one-furnace-to-electric-in-green-push

70) Nippon Steel Carbon Neutral Vision 2050: https://www.nipponsteel.com/en/ir/library/pdf/20210330_ZC.pdf & International Energy Agency’s Iron and Steel Technology Roadmap

2020: https://www.iea.org/reports/iron-and-steel-technology-roadmap

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixSolar industry dialogues
As a member of the Investor Alliance on Human Rights, Storebrand has participated actively in a working group for labour rights
in the textile, IT and energy industries in China. Following reports of forced labour in the Chinese solar industry, we focused in
2022 on improving labour rights in the solar industry value chain, particularly in Xinjiang in the Uyghur region.

In 2021, we carried out a risk-based sale of assets in two companies with operations in Xinjiang, Dago New Energy and GCL-
Poly. The same year, we conducted an in-depth analysis of work conditions in the solar industry value chain, which resulted in a
subsequent dialogue with Canadian Solar regarding its operations in China.

The dialogue was led by SHARE, with Storebrand as a supporting investor, and the Investor Alliance as a contributor. The investor
group calls on companies to conduct human rights due diligence in their supply chains, encouraging them to identify, assess,
avoid and mitigate risks of human rights violations by implementing policies and practices in areas such as traceability, risk
assessment and procurement.

As Canadian Solar failed to meet shareholders’ requests to conduct a human rights assessment at its operations in Xinjiang,
Storebrand decided in 2022 to co-file a shareholder resolution requesting that shareholders vote on the issue. Canadian Solar
did not present the proposal at its 2022 Annual General Meeting. Following continued dialogue with Storebrand, however, the
company noted the following in its Sustainability Report published in August 2022:

“In May 2022, our Board passed a resolution mandating a third-party assessment, at reasonable cost, on the extent to which
Canadian Solar’s policies and procedures effectively protect against forced labour in its operations, supply chains, and business
relationships. The assessment will draw upon international standards such as the UN Guiding Principles on Business and Human
Rights, ILO Declaration on Fundamental Principles and Rights at Work, and ILO Forced Labour Convention, 1930 (No. 29). We
have initiated our efforts to search for a reputable, international auditing firm to conduct this assessment at reasonable cost and
expect to report back to the Board on the results of the audit in due course.“

Storebrand also has ongoing dialogues with other companies involved in the solar energy supply chain in China. It can be difficult
to determine whether third-party assessments or verifications of human rights violations are reliable, or whether such processes
entail risks for third parties involved. As a result, it is also difficult to document violations, or links to companies. We will continue
to look for ways to exercise influence through continued dialogue and supporting shareholder proposals.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixVoting
Voting data summary
In 2022, we voted at the Annual General Meeting (AGM) of 1,348
companies based in a total of 60 countries. Our most extensive
presence was in the United States of America, where we voted at
690 meetings. The sector with the highest number of meetings held
during the period was Industrials with 249 meetings, while Utilities
was the lowest with 49 meetings.

In 89.45 per cent of our AGM votes in 2022, we supported proposals
by the company management, while we voted against management
proposals in 10.6 per cent of cases. Storebrand’s opposition
entailed, among other things, voting against election and re-election
of board members at companies deemed to have poor corporate
governance, or where the Board of Directors had not followed up
on corporate commitments to ESG-related reporting and targets.

Examples in 2022 include:

We have prioritised voting based on opportunities to maximise
impact, rather than reaching a symbolic number of AGMs, and
to make sure that we vote in line with Storebrand’s Sustainable
Investment Policy.

•

Through the AGMs, we have continued to prioritise meetings at
companies that represent:

Storebrand voted against the discharge of several board
members and the CEO at Ericsson, to express a lack of
confidence
in the Board’s oversight of the company’s
management of alleged bribery related to the company’s
operations in Iraq from 2011 to 2019.

•
•
•

our largest holdings
the Norwegian and Swedish markets
specific ESG-related resolutions at stake

Among 51,980 votable proposals in 2022, we voted in 17,600 cases,
or 31.7 per cent. This is an increase from 2021, when we voted on
10,374 of 51,263 votable proposals, equivalent to 20.2 per cent. This
change reflected our strategy to use our voting rights more actively.

Engagement tools also include filing shareholder resolutions,
particularly in cases of stalled dialogues or ignored proposals, or
matters of high importance for other shareholders, or collaborating
with other shareholders for leverage. In 2022, we co-filed resolutions
to be voted on at the AGMs of Amazon and Meta, among others.
Among international investors, filing or co-filing resolutions during
the past few years has become a more common way to exercise
active ownership.

• We voted against the re-election of two board members of
Lundin Energy, following allegations that the individuals had
violated international law in Sudan. Although the question of
guilt must be decided in the court of law, we believed that it
would neither be in the company’s nor shareholders’ interest
for the accused individuals to maintain their role as active
board members during the prosecution period.

•

In some instances, we voted against the election of male
candidates to company boards that had no female members,
or to boards with a lower female representation than the
mandatory level in the respective country.

• We supported a proposal made by a shareholder at AT&T’s AGM
urging the company to oversee and report on a third-party audit
of the company’s impacts on civil rights and non-discrimination,
and the impacts of those issues on the company’s business. We
supported this proposal despite an assessment by our proxy
voting vendor ISS that the reporting was not necessary.

Voting key figures

General viting data

Number of general meetings voted

Number of items voted

Number of votes on shareholder proposals

Voted

1,348

17,600

792

Votable

4,244

51,980

1,188

Percentage voted

31.70 %

33.90 %

66.70 %

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix

Top 20 countries voted in:

Country

USA

Sweden

China

Norway

India

Japan

Australia

Cayman Islands

South Africa

United Kingdom

Canada

France

Germany

South Korea

Netherlands

Denmark

Bermuda

Switzerland

Hong Kong

Finland

How we voted

Votes with management

Votes against management

Votes with ISS Sustainability Policy74

Votes against ISS Sustainability Policy

Voting by topic areas

Audit Related

Capitalization

Company Articles

Compensation

Corporate Governance

Director Election

Director Related

E&S Blended

Environmental

Miscellaneous

Non-Routine Business

Routine Business

Social

Strategic Transactions

Takeover Related

Votable meetings

Voted meetings

Turnout percentage

690

420

417

168

245

344

176

134

104

148

267

157

154

116

38.7 %

37.4 %

36.9 %

69.0 %

36.7 %

18.9 %

57.3 %

21.6 %

64.3 %

25.4 %

28.8 %

35.1 %

31.1 %

14.9 %

35.1 %

51.4 %

25.7 %

31.0 %

26.5 %

60.9 %

% Vote

89.44 %

10.56 %

99.62 %

0.38 %

% With ISS

Proposals

% with Management

Sustainability policy

1,016

1,352

369

2,448

6,706

2,440

111

238

249

2,376

236

239

99 %

87 %

89 %

81 %

11 %

91 %

92 %

59 %

31 %

89 %

92 %

98 %

28 %

91 %

96 %

100 %

99 %

98 %

99 %

100 %

93 %

96 %

98 %

100 %

95 %

100 %

71) Institutional Shareholder Services (ISS) sustainability policy, is voting guidelines for ESG best practices.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixHOW STOREBRAND CONTRIBUTES TO THE UN SDGs THROUGH ENGAGEMENT

We take measures to avoid corruption and bribery enabled by inadequate corporate governance and systematic failure to

uncover fraud and corruption. We also focus on company reporting. In our dialogue with portfolio companies in 2022, we

highlighted the importance of consistent, reliable, and verifiable reporting on sustainability indicators.

We also engaged with companies operating in war and conflict areas, demanding that they respect human rights and avoid

contributing to conflict via their operations. (Storebrand has had a strong focus on occupied territories since 2009.)

Biodiversity and ecosystems play a crucial role in supporting sustainable value creation and meeting climate commitments.

Storebrand Nature Policy, launched late 2022, outlines clear expectations to companies. Our expectations are built on the

mitigation hierarchy set out in the International Financial Corporation’s (IFC) Performance Standard 6 and guided by Science-

Based Targets Network (SBTN) and Taskforce on Nature-related Financial Disclosures (TNFD).

We expect companies to adopt and implement policies to address nature-related financial risks and opportunities in their

investments and financial operations. The key elements vary by industry, but as a minimum we expect companies to report

on a four-pillar approach: 1. Governance, 2. Strategy, 3. Risk Management, and 4. Metrics and Targets. In addition, we expect

companies to incorporate the principle of “double materiality”, disclosing not only how nature impacts the organisation, but

also how the organisation impacts nature.

We also are committed to eliminating commodity-driven deforestation from our portfolios by 2025. Specific expectations of

companies associated with deforestation risk are described in our deforestation policy.

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

biodiversity. In 2022, we collaborated and published the results of a pilot project to improve the aquaculture sector’s reporting

on influences and dependences on nature. The project was a cooperation with Grieg Seafood, WWF and the Norwegian

Institute for Marine Research (NINA). In line with our nature policy enacted in 2022, we do not invest in companies that engage

in deep-sea mining activities, or in marine or riverine tailings disposal.

The transition to a low-emission society and net zero emissions in 2050 is a top priority. We encourage companies to define

and implement climate strategies aligned with the Paris Agreement and to aim for net-zero emissions by 2050 or sooner. We

pay special attention to the 20 largest emitters among our portfolio companies. We will continue to engage with (a number

of) banks in order to understand their exposure to the fossil fuel industry. Our participation in the Climate Action 100+, The

Institutional Investors Group on Climate Change (IIGCC), as well as the Principles for Responsible Investment (PRI), provides

platforms for collaborative engagement. We expect investee companies to:

•

Implement a strong governance framework that clearly articulates the board’s accountability and oversight of climate

change risk.

Take action to reduce greenhouse gas emissions across the value chain, consistent with the Paris Agreement’s goal of

limiting global average temperature increase to well below two degrees Celsius above pre-industrial levels, aiming for

1.5 degrees Celsius.

Provide enhanced corporate disclosure in line with the final recommendations of the Task Force on Climate related

Financial Disclosures (TCFD).

Support effective measures across all areas of public policy that aim to mitigate climate change risks and limit

temperature rise to 1.5 degrees Celsius. Storebrand will not invest in companies that deliberately and systematically

lobby against the goals and targets enshrined in the Paris Agreement.

•

Support just transition, by:

•

including workforce and community issues in climate-related engagement on corporate practices, scenarios and

disclosures.

Specifically require renewable energy companies and mining companies supplying transition minerals to conduct

human rights due diligence to identify the impact of their operations on workers, communities, indigenous

peoples, and environmental and human rights defenders.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixWe work with companies to reduce water consumption and greenhouse gas emissions in intensive livestock production. In

2022 we expanded our policies on nature protection to exclude operations in ecologically sensitive areas, and deforestation

and conversion of native ecosystems for mining and unsustainable production of cocoa, rubber, and coffee. Working with

Platform Living Wages Financials, we also engage with companies producing and sourcing cocoa and coffee on labour

conditions.

In addition, we have been engaging with companies regarding respect for the rights of communities and indigenous peoples,

and on conducting responsible production without negatively affecting local communities.

We are engaged with companies in our portfolio issues of working conditions, including living wage. We are part of the

Platform for Living Wages Financials (PLWF) initiative, which we co-lead, and work with other investors to address issues of the

living wage and create structures that support workers’ working conditions. The platform contributes to positive development

on living wages in the garment, food and agricultural, and food 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 company dialogues and cooperation with the Investor

Alliance on Human rights. Storebrand works 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 the supply chain of companies we invest in.

We expect companies to have a proactive and structured approach to promoting gender diversity and diversity in general,

as well as equity and inclusion, across their workforce and supply chains. Company policies should commit to conducting

gender- responsive due diligence for their own operations, supply chains, products and services, and for the impact of their

operations on communities and society. They should have a zero-tolerance policy against all forms of discrimination, violence

and harassment and should implement appropriate training programmes and reporting mechanisms, as well as clear policies

against retaliation.

Storebrand has engaged with companies on these issues, as well as voting and supporting shareholder resolutions at AGMs

aiming to:

•

improve disclosure of processes to reduce gender inequalities, including policies and targets.

achieve a balanced diversity at boards and/or within senior management.

achieve better disclosure on gender pay gap and programmes to achieve it.

conduct gender and diversity due diligence.

We generally vote against, or withhold our votes from, the incumbent members of the nominating committee of boards, if they

do not contain at least 40 per cent of people from underrepresented gender identities.

We engage with policymakers. In 2022, Storebrand, together with other investors, encouraged EU policymakers to ensure that

the upcoming Directive on Corporate Sustainability Due Diligence (CSDDD) explicitly captures a gender perspective.

We strive to ensure that the companies we invest in ensure good health and quality of life for their employees. Together with

other investors, we engaged with the pharmaceutical industry for fair distribution of Covid vaccines around the world. We are

also part of the Access to Nutrition Initiative, aiming for the food industry to deliver nutritious, affordable products.

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.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix•

• Mining operations that conduct direct marine or riverine
tailings disposal: With the aim of protecting coastal and
marine environments from mining waste and to reduce marine
pollution, from land-based activities, Storebrand will not invest
in mining operations that conduct marine or riverine tailings
disposal.
Companies that operate in ecologically sensitive areas:
Companies that derive more than 5 per cent of their revenues
from Arctic drilling will be put on our observation list and closely
monitored and engaged with based on our existing ownership.
Some of the most iconic species in the world are endemic to the
Arctic, and their habitats are under pressure by rapid climate
change. The remote location and extreme weather conditions,
combined with the lack of adequate infrastructure for responding
to oil spills or other accidents, create an unacceptable risk of
irreversible impacts of oil and gas operations in the Arctic. We
will maintain a close dialogue with companies that derive more
than 5 per cent of their revenues from Arctic where we inform
them of our expectations of measures and results. We expect
the companies to show improvement within a pre-determined
time. Depending on the outcome, the companies will either be
excluded from our investment universe, or they will be removed
from the observation list. We will expand to other ecologically
sensitive areas as data improves.
Deep-sea mining: The deep sea contains many of the world’s
most pristine, biodiverse, and poorly studied ecosystems,
which provide a broad range of critical ecosystem services.
Following the precautionary principle, Storebrand will not
invest in companies involved in deep-sea mining until we have
more scientific knowledge on the impacts of such activities.
Significant challenges must be overcome before the sector
can be recognised as environmentally and economically
sustainable.
Lobbying: We will not invest in companies that lobby against
international agreements which promote sustainable use of
biodiversity, such as the Convention on Biological Diversity.
Deforestation or conversion of native ecosystems: Through
our Deforestation Policy of 2019, we have made the commitment
to not invest in companies with unsustainable production of
soft commodities like palm oil, soy, cattle products, and timber.
This commitment will be expanded to include deforestation or
conversion for production of cocoa, rubber, coffee, and mining.

•

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.

Engagement with other relevant stakeholders
Efforts to reduce the loss of biodiversity require government action
in addition to company involvement. In July 2020, Storebrand
established and subsequently co-led the Investors Policy Dialogue
on Deforestation (IPDD), a collaborative initiative of financial
institutions engaging with public agencies and industry associations
in selected countries on deforestation.

Storebrand also co-chairs the Public Policy Advocacy working group
of the Finance for Biodiversity Foundation. Within this working
group, financial institutions have advocated ambitious and effective
outcome of the Convention on Biological Diversity (CBD) COP15
in 2022, with an emphasis on aligning financial flows with global
biodiversity goals. The foundation is an official observer member of
the CBD, which means that the working group can make interventions
during the meetings of the convention and its protocols and make
text suggestions for the Global Biodiversity Framework.

Building on the lessons learned from this initiative, we will continue
to engage with policy makers and regulating authorities with the aim
to promote sustainable finance.

Exclusions & Screening
Exclusions
All our investments must satisfy the Storebrand Standard, our
benchmark requirement for sustainable investments, which excludes
companies that violate international norms and conventions or are
involved in unacceptable operations.

The Storebrand Standard includes criteria for human rights and
international law, corruption, corporate crime, serious climate and
environmental damage, controversial weapons (land mines, cluster
munitions and nuclear weapons) and tobacco. Companies in high-
risk industries that have low sustainability scores are excluded.
Furthermore, we do not invest in companies that are excluded
from the Norwegian Pension Fund Global (GPFG) by the Norway’s
Central Bank. For selected funds and savings profiles, we apply
expanded criteria related to businesses involved in the production
and distribution of fossil fuels, alcohol, pornography, weapons, and
gambling, as well as green bond standards.

In 2022 we expanded the Storebrand Standard to include the
protection of nature. This change is driven by a significant rise in
the systemic risk that the loss of biodiversity and nature loss could
pose to long-term asset returns, economic growth, and our planet’s
capacity to support human life.

As a result, we will now exclude companies that are practicing the
following activities:

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixIn cases 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. 72

As of 31 December 2022, 281 companies listed on the MSCI ACWI
Index were listed as excluded from all of our funds. An additional
313 companies on the same index were listed excluded from certain
funds, solely based on our extended criteria.

In case of product-based breaches, our exclusion process is
based mainly on data analysis. 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 2022, our exclusion process resulted in the exclusion of 281
companies from our investment portfolios, which include more than
5,000 companies. A total of 9 companies were re-included, following
observations and sustained returns to our required standards.

Some examples of our exclusions during 2022 included the exclusion
of Adecco Group and Doosan Enerbility, for involvement in nuclear
weapons, the exclusion of the consumer goods company Mattel
for long term issues regarding human rights and critical consumer
safety, and our exclusion of five mining companies based on their
practices of depositing mining tailings in the sea and thereby placing
critical natural ecosystems at risk.

Companies excluded based on the Storebrand Standard, by category,

as of 31 December 2022

Total number of

companies excluded

Conduct-based exclusion - Environment

Conduct-based exclusion - Corruption

Conduct-based exclusion - Human Rights
and International Law

Tobacco

Controversial weapons

Climate - Coal

Climate - Oil sands

Climate - Lobbying

Artic drilling

Deep-sea mining

Marine/riverine tailings disposal

Deforestation

Cannabis

State-controlled companies

Total number of companies

142

281*

72) For a detailed description of our exclusions and methodology, see: https://www.storebrand.com/sam/international/asset-management/sustainability/our-method/exclusions

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixEolus Vind
Storebrand in 2022 placed Eolus Vind, a Sweden-based wind power company, on our observation list and asked that the firm
address risks related to potential human rights violations among Sámi reindeer herders in Norway.

Storebrand’s actions followed a landmark decision by the Norwegian Supreme Court on the human rights of indigenous peoples
in a separate and unrelated project in the same sector. Although every case must be judged on its own merits, the ruling raised
principal issues that we find relevant when evaluating risks and making investment decisions. The ongoing transition to a carbon-
neutral economy will require investments in renewable energy, but such investments must also respect the rights of indigenous
peoples and other vulnerable groups, in addition to minimising negative impacts on nature.

Eolus Vind is the main project partner of Øyfjellet Wind AS, operator of Øyfjellet Wind Park in Norway. The park consists of 72
wind turbines and an extensive network of access roads in a concession area of 40 km2 in a mountain area in Vefsn, Nordland.
Sámi reindeer herders of the Jillen-Njaarke district complained that windmills prevented their reindeer from using their natural
migration route to and from seasonal grazing areas. Their claim was contested by Eolus and Øyfjellet Wind.

We asked Eolus Vind AB to:

•

Take appropriate steps to seek Free, Prior and Informed Consent (FPIC) of members of Jillen-Njaarke reindeer herding district
to the wind park’s continued operation, including mitigating measures that should be taken to allow unhindered access to all
grazing areas. Consultation should involve affected indigenous people, according to international best practice standards.
The needs and input from members of Jillen-Njaarke reindeer herding district must be given weight, and the company mush
show willingness to make the changes needed to allow co-existence of the wind park and continued reindeer husbandry
in the area.
Adopt a policy on respect for indigenous peoples’ rights, to be applied in all the company’s projects going forward.

Storebrand’s dialogue with Eolus Vind began in February 2021 and continued into 2023, with Eolus Vind remaining on the
observation list. Companies under observation must show improvement within a pre-determined time to avoid exclusion from
our investment universe.

Without the implementation of appropriate mitigation measures , the project might constitute a violation of the human right
of indigenous people to enjoy their own culture, as protected by Article 27 of the International Covenant on Civil and Political
Rights (ICCPR). The high vulnerability of the Southern Sámi culture, and the importance of reindeer herding for the survival of this
culture and the Southern Sámi language, are key elements in our consideration.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixEXCLUSION CRITERIA BASED ON THE UN SUSTAINABLE DEVELOPMENT GOALS

Storebrand Standard (Applies to all funds)

Additional criteria (Applies to selected funds)

Companies involved in systematic corruption and economic crime.

Companies where more than 5 per cent of

the revenue comes from the production or

Companies that cause or contribute to serious and systematic

distribution of weapons (handguns and military

violations of international law and human rights in war zones.

weapons).

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 with mining operations that conduct direct marine or

riverine tailings disposal.

Companies involved in deep sea mining.

Companies involved in serious environmental damage.

Companies where more than 5 per cent of

their revenues come from the production

Companies that receive more than 5 per cent of their revenues from

or distribution of fossil fuels, or which have

coal or oil sands-based activities.

more than 100 million tonnes of CO2 in fossil

reserves.

Companies that contribute to severe and/or systematic deforestation or

conversion of native ecosystems through non-satisfactory production

of palm oil, soy, cattle, timber, cocoa, rubber, coffee and mining.

Companies that deliberately and systematically work and lobby

to counteract the objectives enshrined in the Paris Agreement,

or international agreements that promote the sustainable use of

biodiversity, such as the Convention on Biological Diversity.

Companies with serious and/or systematic unsustainable palm oil

production.

Companies that operate in ecologically sensitive areas.

Companies that cause or contribute to severe violations of communities

and Indigenous Peoples through their operations.

Companies that cause or contribute to serious and systematic violations

of workers’ rights, including forced labour, child labour or severe and

systematic union busting.

Companies causing or contributing

to gross and/or systemic

Companies where more than 5 per cent of

gender discrimination including gross and/or systemic workplace

their revenue comes from the production or

discrimination, violence in any form, and or sexual harassment.

distribution of pornography.

Companies where more than 5 per cent of their revenue comes from

Companies where more than 5 per cent of

the production or distribution of tobacco or drugs.

their revenue comes from the production or

distribution of alcohol or gambling.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix

Key performance indicators

For a complete list of sustainability indicators and definitions, see page 233

Categories and indicators

Results 2019

Results 2020

Results 2021

Results 2022

2023

2025

Targets

Financial results

Return on equity

Solvency ratio

Dividend ratio

Sustainability

8.0 %

176 %

0 %

8.6 %

178 %

65 %

10.7 %

175 %

52 %

8.3 %

>10 %

184 %

>150 %

72 %

>50 %

Share of total assets screened against sustainability criteria

100 %

Fossil-free investments

NOK billion invested in fossil-free products / Share of AUM 73

277 / 33 %

379.2 / 39 %

483 / 44 %

449 / 44 %

N/A

Solutions investments

Investments in solutions (solutions companies, green bonds,
green infrastructure and property with environmental
certification): NOK billion / share of total assets

Equity investments in solutions: NOK billion/ share of total
equity investments

Bond investments in solutions: NOK billion/ share of total
bond investments

Investments in green bonds: NOK billion/ share of total
bond investments

Investments in green infrastructure: NOK billion / share of
total infrastructure investments

Investments in certified green property: NOK billion/ share
of total real estate investments

Carbon emissions in equity and bond investments

Carbon intensity from equities investments: tonnes of CO2e
per NOK 1 million in sales income (against index) 74

Carbon intensity from corporate bond investments: tonnes of
CO2e per NOK 1 million in sales income (against index) 75

Total carbon emissions from equity investments: tonnes of
co2e Scope 1-2 76

Total carbon emissions from corporate bond investments:
tonnes of co2e Scope 1-2

Carbon footprint in real estate investments

Carbon footprint direct real estate investments: tonnes CO2e /
kg CO2e per m2

Active ownership and exclusions

Companies that have been contacted to discuss ESG through
active ownership: number (share of invested capital) 77

Votes at general meetings to promote Storebrand’s ESG
criteria: number (share of invested capital) 78

Social impact

Ratio of female board members in companies as a percentage
for equity investments. 79

53.7 / 6.5 %

92.6 / 9.6 % 123.1 / 11.2 % 126.8 / 12.4 %

13 %

15 %

24.3 / 9.3 %

50.3 / 13 %

62.6 / 13 %

39.3 / 9 %

N/A

New

35.0 / 9 %

N/A

12.4 / 3.1 %

22.2 / 5 %

25.7 / 6 %

32 / 8.3 %

N/A

New

1.5 / 100%

3.5 / 100 %

75 %

90%

17 / 41 %

20.1 / 43 %

33.3 / 68 %

49.0 / 64.6%

70 %

78 %

14 (24)

13 (18)

12 (18)

14 (18)

N/A

9 (5)

N/A

3,258,508

3,113,714

2,504,453

2,492,038

N/A

482,504

616,743

262,922

391,993

N/A

10,228 / 9.12

8,456 / 7.9

6,803 / 6.0

5,704 / 5.6

8.6

6.5

408

151

572

503

601

645 (31.2 %)

N/A

947

1,348 (68.6 %)

N/A

New

32.2 %

N/A

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

74) Data was obtained through Trucost (S&P Global) systems and weighted by market capitalization per position. For index figures, corresponding calculations are weighted per index and weighted

together with the portfolios’ indices based on portfolio values. This represents a 95 % coverage ratio in our carbon footprint from equity investments, and a 93 % coverage ratio for the index.

75) Data were obtained through Trucost (S&P Global) systems and estimated management data, weighted by market value per position. For index figures, corresponding calculations are weighted per

index and weighted together with the portfolios’ indices based on portfolio values. This represents a 42% coverage ratio in our carbon footprint from corporate bond investments, and a 48% coverage
ratio for the index. Coverage has decreased because we no longer use estimates, but only data from data providers. Previously, we have included government bonds (government, municipalities, etc.)
together with corporate bonds, but now look exclusively at corporate bonds because it is best practice in both the industry and SFDR to look at the figures separately. We will consider having a separate

CPI for government bonds next year.

76) This year, we have chosen to change from financed emissions based on revenues at the companies we are invested in to reporting the figure based on enterprise value. We have done this both

because it allows us to include corporate bonds in our emission figures, and because this is in line with the SFDR. Based on the old method, the number would have been reduced from 3,661,218 tco2e

to 3,318,508 tco2e (2019-2021).

77) We have moved from reporting active ownership as part of the total investment universe to looking at it relative to our total investments to provide a better insight into the proportion of our invest-

ments we are in dialogue with.

78) We have moved from reporting voting as part of the total investment universe to looking at it relative to our total investments to give a better insight into the proportion of the companies we are

invested in that we vote at general meetings of.

79) Key figures are linked to PAI.1.13 in the SFDR regulations.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix

Risk

Our dynamic risk management framework is designed to take
the appropriate risk in order to deliver returns to customers and
shareholders. At the same time, the framework shall ensure that
we shield our customers, shareholders, employees and other
stakeholders from undesirable incidents and losses. The framework
covers all risks Storebrand may be exposed to. The backdrop for the
risk assessment has changed significantly over the past year. The war
in Ukraine has increased geopolitical risk. Higher and longer-lasting
inflation has forced central banks to make rapid and large interest
rate increases. Both short- and long-term interest rates have risen
sharply and had a negative impact on equity and credit markets.
Storebrand has addressed this through intensified monitoring and
follow-up of risk.

The immediate effect of rising interest rates leads to a loss in the
value of fixed income investments. To reduce the financial impact of
rising interest rates, Storebrand books bonds with shorter durations
at fair value, and has over time built a robust portfolio of bonds with
long durations and high credit quality that are booked at amortised
cost. Changes in the interest rate have no accounting effect on the
latter. Under prevailing market conditions, model-based valuations
of financial instruments (level 3), such as investment property,
contain greater uncertainty than usual. Storebrand has an active
risk management strategy to optimise customer returns and shield
shareholders’ equity under turbulent market conditions through
dynamic risk management, strong customer buffers and by posting
a significant proportion of bonds at amortised cost.

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 equity, 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 customers’ guaranteed return
on investment. Other risk areas include business risk, insurance risk,
counterparty risk, operational risk, climate risk and liquidity risk.

At an overall level, we saw a stable development in the number
of reported incidents in 2022. In 2021, we had an increase in the
number of nonconformity reports to the Data Inspectorate. The
number is the same for 2022, but which units report nonconformities
has changed somewhat from the previous year.

Weak equity and credit markets and higher interest rates have had
a negative impact on investment returns in 2022. Customer buffers
have been reduced, which has resulted in lower risk capacity for
guaranteed pensions. On the positive side, higher interest rates
increase return expectations and reduce the risk of not reaching
the guarantee.

Inflation has risen in much of the world, including in Norway and
Sweden. High and rapidly rising inflation rates may increase costs
and insurance claims in Storebrand. However, pension liabilities
(payments) are not inflation linked, limiting the impact of inflation
on the Group’s liabilities. Pension premiums and some insurance
premiums are directly linked to wage inflation, which automatically
results in premium growth. Other products, including P&C insurance,
are actively repriced to mitigate the negative effects of inflation.

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.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixThe 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.

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

A common feature of the products is that Storebrand guarantees a
minimum return. In Norway, the return must exceed the guarantee
in each year, while in Sweden it is enough to achieve the guaranteed
return on average over time.

The guaranteed insurance liabilities are sensitive to changes
in interest rates, where lower rates will increase the value of the
liabilities and make it harder to achieve the guaranteed 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
regard to recognised tax expenses. In 2022, the Norwegian Tax
Administration ruled in favour of Storebrand, resulting in a positive
tax result of NOK 770 million for 2022.

In the case that Storebrand’s interpretation be accepted in all
the three remaining cases, an estimated positive tax result of up
to NOK 2 billion may be recognised. Should all the Norwegian Tax
Administration’s interpretations be the final verdict, a tax expense
of NOK 1.7 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. Uncertain tax positions are
described in more detail in Note 26.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixClimate risk and opportunities

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).

The magnitude of physical climate risk depends on how much and
how quickly the climate changes. A common reference for overall
physical climate risk is an increase in global average temperature
since pre-industrial times. The UN estimates that the global
temperature increase is already 1.1 degrees80. Developments over
the next decade are expected to be a consequence of emissions
in the past, and the choices made in the next few years will have a
significant impact on risk in the longer term.

The magnitude of transition risk is determined by how rapid and
powerful transition to low emissions will be. This depends on the
orientation and strength of the authorities’ climate policy, technology
development and how companies and consumers choose to adapt.
Transition risk can vary considerably also in the short and medium
term, and important choices and consequences are likely to be
clarified in the coming decades.

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.

We use the recommendations from the Task Force on Climate-
Related Financial Disclosures (TCFD) as a framework for reporting of
climate-related financial risks. Storebrand’s impact on the climate
is described elsewhere in this report, mainly in the chapter A driving
force for sustainable investments on page 64 and in the chapter
Keeping our house in order on page 34.

We have established a TCFD index, which explain where the
information recommended through the TCFD
is
presented in this report.83 The index is in the chapter Verification
sustainability on page 253.

framework

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-report84, 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:

Storebrand’s climate strategy shall contribute to limiting global
warming to about 1.5 degrees81. A key instrument is that investments
should be carbon neutral by 2050 at the latest, with specific targets
along the way. Measures to reduce risk and exploit opportunities are
described in the chapter A driving force for sustainable investments.

•

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

The effects on investments and liabilities may be sudden in the
form of market turbulence, or they may develop gradually through
lower average returns and persistently low interest rates. Political
decisions or regulatory requirements may also entail risk if these
are difficult to meet due to limitations in technology or investment
opportunities. Examples may be an abrupt change in Norway’s
policy to achieve the goals of the Paris Agreement, a fall in interest
rates, or lower oil prices and reduced activity in the Norwegian oil
and gas industry.

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

Storebrand uses scenarios developed by the Network for Greening
the Financial System (NGFS).86 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.

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

73b6f864f81af51ca8045668e4bc5f026a2674/86128%20STB_Clima_policy_investment_rapport.pdf

82) 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

83) Own Risk and Solvency Assessment, ORSA

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

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixNetwork for Greening the Financial System (NGFS) climate risk scenarios

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.

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

phasing out of oil and gas as energy sources. In addition, ambitions
and preferred means are likely to vary significantly among various
stakeholders and decision-makers.

• How serious will the physical consequence of global warming

be?

• 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 consequences associated with a rapid

Storebrand’s “Delayed transition” scenario is based on the NGFS-
scenario carrying the same name. In this scenario, emissions
continue to rise 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.”

Our last scenario is “Current policies”, which is based on the NGFS
scenario “Current Policies”. In this scenario where will not be policy
restrictions beyond those already approved. The transition risk
therefore is considered low. Emissions will continue to grow until
2080. Global warming is expected to be about 3 degrees, with a
significant risk of even further increases. This will lead to irreversible
climate change and extensive physical climate risk.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix
Storebrand’s climate risk scenarios

A: Speedy transition

B: Delayed transition

C: Current policies

The scenario is based on the NGFS ”Divergent
Net Zero”. Climate policy is significantly changed,
and technology development is taking place
rapidly. The scenario is ambitious, and the goal
of zero emissions by 2050 is reached. It is at
least 50 per cent likely that global warming will
be limited to below 1.5 degrees.

Costs related to the transition will be considerable,
especially for consumers, accelerated by a lack
of coordination between countries and sectors.
The use of oil for transportation 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. Lack of new austerity
measures means that economic growth in the
wake of Covid-19 is fuelled by 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. Overall, the decline in emissions
will be sufficient that it is 67 per cent likely that
global warming will remain below 2 degrees.

The scenario is based on the NGSF ”Current
Policies” scenario. Limited awareness of the
climate crisis combined with short-sighted
political priorities, prevent the implementation
of future restrictions. Introduced emission
reduction measures 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.

Consequences of the different scenarios
It is useful to understand what the various scenarios mean for
conditions that affect Storebrand’s risks. Global temperature rise
is a key indicator of physical risk. For transition risk, carbon price
developments are a key indicator. 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.

Physical risk indicators
The scenarios are based on different paths for carbon emissions
and associated consequences for global warming. In the current
policy scenario, global emissions will continue to increase somewhat
over the next few years and then stabilise. In the Rapid Transition,
emissions will fall to near zero in 2050, helped by moderate
opportunities for carbon capture and storage. In Delayed Transition,
emissions follow the current policy until 2030, and then fall faster
than in the Rapid transition up to 2050.

Carbon Emissions and temperature increase in different scenarios 85

85) Source: IIASA NGFS Climate Scenarios Database, REMIND model

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixOver the next 10-20 years, further global warming will be the result
of historical emissions, and thus quite independent of scenarios. The
scenario-dependent differences will be greater from about 2040.
With a rapid transition, it is more than 50 per cent likely that global
warming in the year 2100 has increased less than 1.5 degrees above
pre-industrial times, i.e. less than 0.4 degrees from current levels.
With delayed transition, it is 67 per cent likely that global warming
in the year 2100 will remain below 2 degrees. The uncertainty and
scope for outcomes is greatest with the Current Policy scenario.
Although expected global warming in the year 2100 is about 3
degrees, there is a risk that the increase will be significantly greater.

litre of diesel) and further to around USD 700 per ton in 2050 (NOK
19 per litre of diesel). In Delayed Transition, carbon prices will only
increase from 2030.

By comparison, the price of carbon offsets in the EU was
approximately EUR 90 per ton (NOK 2.5 per litre of diesel) in
December 2022.

Storebrand has defined its own stress tests to quantify the effect of
transition risk and physical risk on its investment portfolios. These
are discussed in Chapter 5.1. Climate risk from investments.

A rise in temperature of three degrees or more will have major,
irreversible effects on the climate. Global warming will have
consequences for living conditions, health, productivity, agriculture,
ecosystems and raise sea levels. It also affects the frequency and
severity of extreme weather events such as heat waves, droughts,
forest fires, tropical cyclones and floods. In addition, the risk must
be seen in connection with the fact that parts of the world will
experience higher than average warming. In general, warming is
greater over land than over oceans.

Transition risk indicators
In the models underlying the NGFS scenarios, carbon pricing is
used as a measure of how powerful the policy is. Carbon price
developments should therefore not be interpreted solely in the
sense of carbon tax or the price of emissions that can be bought
and sold, but as an expression of the costs associated with the
transition. In practice, a number of instruments can be used to
stimulate restructuring.

With the Current policy scenario, there is no further tightening of
measures, consistent with the carbon price remaining low.

In the Speedy Transition scenario, carbon prices will increase to
approximately USD 200 per ton in 2025 (equivalent to NOK 5 per

Areas where climate-related risks may 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.

Carbon price in different scenarios 86

86) The chart represents shadow carbon prices, which is a measure of policy intensity. Carbon prices are weighted global. Regio-

nally and sectoral granular information is available on the IIASA database.

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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).

Absolute climate risk
The transition risk can have both positive and negative consequences
for various players, which can make it challenging to decide whether
to invest in given sectors and companies. It can be difficult to argue
whether the transition will have positive or negative consequences
for the capital market. For long-term pension savings, it is therefore
beneficial to invest broadly in global financial markets in order to
diversify risk and meet any future risks.

The main difference between the above scenarios is how extensive
the negative consequences of climate risk will be in the long term.
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. The authorities
must therefore establish framework conditions that enable people
and companies to adapt to society’s interests at a reasonable pace.
Storebrand’s investments are to be carbon neutral by 2050 at
the latest. 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
through 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

several adjustments to reduce the relative climate risk to which our
investments are exposed, including:

•

•
•

•

Excluding companies that contribute to serious environmental
damage. 87
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 202588.

In 2020, we launched a new climate strategy for our investments,
with the goal of entering investments that greatly contribute to
climate change. We do not 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 does also 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. In 2022, we launched a new nature
policy with increased expectations and requirements related to
companies’ impact on nature. More information about the policy
and requirements is available in the chapter A driving force for
sustainable investments.

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:

•

investments

in Storebrand’s total

Emission targets for equity, corporate bonds, and real
estate investments: We have a goal of reducing the carbon
footprint89
in equities,
corporate bonds and real estate by at least 32 per cent by 2025
(base year in 2018).
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 companies90, green bonds, certified
green real estate and investments in green infrastructure.
Be an active owner and driving force: In 2022, we focused
on the 20 companies with the highest emissions.91 The impact
work took place mainly in collaboration with other investors,
including Climate Action 100+, and included meetings with
executive management of the largest emitters in our portfolio.

87) 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

88) Solutions are defined as equity investments and bond investments in solution companies (companies that we believe are well positioned to solve challenges related to the UN Sustainable

Development Goals), investments in green bonds, green infrastructure, and investments in certified green real estate.

89) Calculated as Weighted Average Carbon Intensity. See the full list of our financed emissions per sector and region on page 247.

90) See definitions for investments in solutions on page 245 in the appendix Sustainability indicators and definitions.

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

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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 an example
of this.

Overview of companies in prioritised high-emitting sectors

Industry & Materials

•

Alcoa Corp

Canfor Pulp Products Inc

CF Industries Holdings inc

Elkem ASA

Holcim AG

Linde PLC

•
• Norsk Hydro ASA

•

Republic Services Inc

Sibanye Stillwater Ltd

SSAB Svenskt Stal

Steel Dynamics Inc

•
• Waste Management Inc
• West China Cement Ltd
• Westlake Corp

•

Yara International ASA

Shipping

• Wallenius Wilhelmsen ASA

•

AP Moller - Maersk AS

Oil & Gas

•

Equinor ASA

Shell PLC

Lyse AS

Lower expected future returns for fossil fuel companies than
for solution companies is because the effects are assumed to be
greater or to come faster than expected for solution companies. 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, also when
the effects of climate risk are considered.

Stress test transition risk - Rapid transition scenario
Transition risk will have both a positive and negative impact on
various companies and other players. However, in restructuring
processes, the negative effects often come first, even though the
positive effects may be at least as great over time.

To quantify the risk from a rapid transition to zero emissions,
Storebrand has defined a stress test that includes fossil fuel
companies, climate-related solutions companies and real estate.
Fossil fuel companies are stressed -50 per cent, while solution
companies are stressed +10 per cent. Real estate is stressed -5 per
cent. 92

Stress test transition risk – Speedy Transition Scenario

Equities/Bonds/Real Estate

NOK Million

portfolio

Stress

total return

Share of total

Contribution to

Fossil fuel companies

1.70 % - 50.00 %

Solutions companies
(climate-related)

Real Estate

SUM

6.00 % + 10.00 %

7.50 %

- 5.00 %

- 0.65 %

+ 0.60 %

- 0.38%

- 0.43 %

Since Storebrand has taken tangible measures to reduce exposure
to the fossil fuel sector and increased exposure to companies that
contribute to solving climate challenges, it is assumed that the
company’s funds would be less affected by the “Rapid transition”
scenario.

Stress test physical climate risk - Current Policy Scenario
Physical climate change can have major consequences for economic
growth and thus expected returns in the financial market. This
will also affect Storebrand’s investments, and the consequences
are greatest in the Current policy scenario. To quantify the risk
associated with physical climate change, Storebrand has defined a
stress test that includes equities, bonds and real estate, based on
a decline of 20 per cent, 10 per cent and 2 per cent, respectively.

92) In the stress tests of transition risk and physical risk, selected stresses are used based on a discretionary assessment, but with a significant risk size to illustrate that the risk at the overall level

remains limited for Storebrand.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix
Physical climate change and associated market consequences
are very long-term. In practice, the consequences will probably
be somewhat lower returns over many years, rather than as an
immediate decline in value. But the financial market is pricing in
all new information. An immediate stress test can therefore make
sense, even if actual consequences occur far in the future.

Stress test physical climate risk - Current Policy Scenario

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.

MNOK

Equities

Bonds

Real estate

Other

SUM

Share of total

Contribution to

portfolio

Stress

total return

43.00 %

46.00 %

7.50 %

3.50 %

-20.0 %

-2.0 %

-10.0 %

0.0. %

-8.60 %

-0.90 %

-0.75 %

0.00 %

-10.25 %

Physical climate change, assuming that the current policy is
continued, is also expected to have major consequences for the
funds Storebrand owns, and the stress test shows an overall decline
in value of approximately 8- 10 per cent.

Exposure for different technologies
The overview of high-emitting sectors in below shows our exposure
to different sectors and the amount of emissions owned by each
sector.

Key indicators

•

Carbon footprint in equity investments: 14 tonnes of CO2
equivalents per NOK 1 million in sales revenue (against 18
index) 93
Carbon footprint in bond investments: 9 tonnes of CO2
equivalents per NOK 1 million in sales revenue (against 5
index)94
Carbon intensity in real estate investments: 5.6 kilo of CO2
equivalents per m2.
Exposure to high-emitting sectors: NOK 49.7 billion / 11.3 per
cent of total assets.
Number of active dialogues related to climate and environmental
risks and opportunities: 465
Number of companies that have been excluded due to serious
climate and environmental damage: 199
Equity investments in fossil energy, NOK billion / share of equity
investments: NOK 16.1 billion / 3.7 per

Sector-specific exposure to high-emitting sectors 95

Sector

Aluminium

Aviation

Cement

Chemicals

Energy

Heavy duty automobiles

Light duty automobiles

Shipping

Steel

Utilities

Grand Total

2019

(BNOK)

2020

(BNOK)

2021

(BNOK)

2022

Change 2019-2022

(BNOK)

1.2

3.6

0.4

12.2

0.9

3.8

0.6

1.1

2.9

34.6

1.5

3.3

0.6

9.8

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

2.5

3.4

0.9

12.8

16.1

1.3

4.9

1.7

2.7

3.4

49.7

1.3

-0.2

0.5

4.8

3.9

0.4

1.1

1.6

0.5

15.1

Other key performance indicators can be seen in the chapter A driving force for sustainable investment on page 64.

93) Data was obtained through Trucost (S&P Global) systems and weighted by market capitalization per position. For index figures, corresponding calculations are weighted per index and weighted

together with the portfolios’ indices based on portfolio values. See chapter Sustainability indicators and definitions for a more detailed description of the calculation.

94) Data were obtained through Trucost (S&P Global) systems and estimated management data, weighted by market value per position. For index figures, corresponding calculations are weighted

per index and weighted together with the portfolios’ indices based on portfolio values. See chapter Sustainability indicators and definitions for a more detailed description of the calculation.

95) This overview shows exposure to high-emission sectors based on climate risk considerations and uses GICS classification code because it is most adequate per sector. See chapter Financed

emissions for details of financed emissions per sector.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixClimate risk in real estate investments
Storebrand manages direct real estate investments equivalent to
NOK 79.4 billion, which represents 7.8 per cent of assets under
management96. Physical risk is largely linked to the effects of extreme
weather on physical assets.

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.

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 because 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.

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
is therefore a secondary strategy.

towards a high global sustainability standard that reduces risk. Both
frameworks include physical climate risk and transition risk as part of
the overall assessment. The share of certified property is increasing
and high in relation to the market, and a high proportion indicates
reduced risk. The GRESB score for all portfolios is in the top 20 per
cent globally, while SPP Fastigheter and Storebrand Eiendomsfond
Norway have also been appointed “Sector Leader” globally in
their categories. The average GRESB score for Storebrand’s four
companies is 91 per cent, while the global average for over 1,800
reporting companies in 2022 is 74 per cent.

Key indicators for climate risk in real estate:

•

Reduction of greenhouse gas emissions: measures to
improve energy efficiency 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: Continuously improve
management and ensure the maintenance of GRESB scores97.

Carbon emissions
kgCO2e/m2 per
year 99

Certified green real
estate, percentage
share AuM 100

2019

2020

2021

202298 Goal 2025

9.12

7.9

6.0

5.6

Reduce

41 %

43 %

68 % 64.6 %

78 %

GRESB-score

81.7 %

84.8 %

88.6% 91.5 %

Increase

Climate Risk in Life Insurance
Life insurance obligations can be affected if the economy and
financial markets are changed by climate risk. The risk may
manifest itself both as increased disability and as an increase in the
guaranteed pension obligation.

The Norwegian economy may be particularly vulnerable to
transition risk. A rapid transition to low emissions may result in
higher unemployment in the fossil fuel sector, but also affect
other industries (negatively) because economic activity is slowing.
Historically, there has been a correlation between lower economic
growth and a higher degree of disability. One consequence of the
transition to low emissions may thus be increased compensation
and the need for increased reservation for disability.

Sustainability certification (the BREEAM system or equivalent) gives
the properties both a quality rating and an important basis for
improvement plans. Benchmarking through GRESB (Global Real
Asset Sustainability Benchmark) provides a similar sustainability
rating at portfolio and management level and supports progress

Storebrand’s cost of the guaranteed old-age pension obligation may
increase if climate risk causes the return on investment over time to
be lower than the return guarantee. However, stress tests show that
the effect of climate risk is limited for investments.

96) Capital Investment included

97) Capital Investment that we acquired in 2021 has not yet reported to GRESB and is therefore not included in the data.

98) Capital Investment is only included in the database for certification in 2022. Therefore, target for 2025 has been adjusted downwards.

99) Carbon emissions targets currently only apply to properties in Norway and Sweden. Denmark is not included.

100) Share of direct real estate investments under operational control in Norway, Sweden and Denmark with environmental certification. The certification system is mainly BREEAM, but can also be

LEED, Svanen or Miljöbyggnad. In 2022, we included Denmark for the first time. Certifications per country are the following: Norway (89%), Sweden (93%), Denmark (9%).

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixClimate risk Non-life 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. Such a development
may pose a threat to Storebrand as a small player in insurance.

Increased sharing of privately owned cars will also result in changed
insurance needs. This, in combination with structural changes (car
manufacturers are taking a greater role in the value chain), will in
the longer term reduce the market for car insurance. Risk-reducing
measures may include facilitating that ordinary insurance will also
apply to private rentals.

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 analysing
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.

Key indicators in insurance:

•

Share of insurance premiums from electric car insurance101:
25.6 per cent in 2022.

• Our suppliers should have set targets for emissions cuts in the

short and long term by 2025.
All suppliers must be climate neutral by 2025.102

•

Climate risk in asset management
Storebrand Asset Management manages more than NOK 1,000
billion, both for Storebrand’s own companies and other institutional
customers and private individuals. Storebrand has climate and other
sustainability requirements for all investments. 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. For funds to be
marketed as green or sustainable, according to the SFDR, they must
either promote social or environmental characteristics (Article 8,
light green) as part of their investment strategy or have sustainable
investments as one of the investment objectives (Article 9, dark
green).

Based on the Group’s goal of being carbon neutral in our investments
by 2050, we established a framework in 2021 with the goal of
reducing the carbon footprint of Storebrand’s total investments
in equities, corporate bonds and real estate, and shifting capital
towards solution companies/solutions. In addition, we set goals to
be an active owner and driving force, including through Climate
Action 100+ and to hold meetings with the management of the
20 companies in which we had ownership interests, and which
represented the largest emissions.

In 2022, our climate targets were validated by the Science Based
Target initiative (SBTi). Our obligations are as follows:

•

Storebrand ASA commits to reducing absolute scope 1 and 2
greenhouse gas emissions by 52 per cent by 2030, with 2018 as
the base year. Storebrand ASA commits to continue purchasing
100 per cent renewable electricity annually until 2030.
Storebrand ASA commits 42 per cent of its listed equity and
corporate bond portfolio to set SBTi-validated targets by 2027.
Storebrand ASA commits to reduce Scope 1 and 2 greenhouse
gas emissions from its real estate portfolio by 64 per cent per
square metre for residential buildings and by 71 per cent per
square metre for commercial buildings (the management of
direct real estate investments) by the target year 2030 from a
2019 base year.

101) Electric car insurance is defined as the share of private cars.

102) This objective allows suppliers to offset emissions they are unable to cut in the short term through the purchase of emission allowances.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix
For equities and corporate bonds, we have set a target for the
proportion of investments that should have set science-based
targets validated by SBTi by 2027, and for real estate we have used
emission reductions using the Sectoral Decarbonization Approach
(SDA) method.

It is a risk to connect sustainability and climate to Storebrand’s
brand and customer message if customers are more concerned
about other factors when making purchases. Increased attention to
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. The high degree of sustainability-adapted
investments entails a risk of somewhat lower returns than the
market and competitors.

Climate risk bank
Storebrand Bank is a retail bank with daily banking services, deposit,
and lending products. For small and medium-sized enterprises, the
bank does not offer lending/credit products. Thus, the Bank has no
direct exposure to companies in the fossil fuel sector, to energy-
intensive companies or companies with directly or indirectly high
greenhouse gas emissions (CO2).

Climate risk for banking operations is considered to be low, both in
terms of transition risk and physical risk, as well as specifically per
risk.

Transition risk
The transition risk is greatest for the business through a rapid
transition to low emissions. A rapid restructuring may lead to higher
unemployment and reduced employment. This has a negative effect
on wage growth and may affect customers’ ability to serve.

With weaker labour market and wage developments, in addition to
potential economic uncertainty, the housing and property markets
may be adversely affected. 103

The transition risk may thus lead to a higher degree of default,
weaker development of collateral values and thus higher losses
given defaults that have a negative impact on the result. Growth may
be lower, which may also result in weaker profitability. The transition
risk is considered low for banking operations.

Energy classification and energy consumption lending portfolio
Energy consumption in homes accounts for a large part of total
energy consumption in Europe. The homes have very varying
degrees of energy efficiency. Energy classification of dwellings and
properties shall provide an assessment of energy efficiency and
energy classification is required for the sale of dwellings.

With rapid transition to low emissions, homes with a weak energy
classification may have weaker price developments than homes
with a good energy classification. It poses a transition risk. The risk
is shared between customers and the bank. Such a development
will result in weaker security developments and higher losses given
defaults for the bank than for the average house in terms of energy
class.

The Norwegian “Bygningsdirektiv” (Building directive) will have
significance for homes in the weakest energy class “G”. The proposal
from the European Commission is that such homes must be
renovated and at least achieve energy class “F” from 2030. A large
portfolio of Class “G” homes can then be challenging. According to
the Building Directive, all new properties from 2030 must be zero-
emission properties. This may also have restructuring effects in the
housing market.

Storebrand has an energy class for a larger share of its mortgage
portfolio than the rest of the market. The reason is probably that
large parts of the Bank’s portfolio are in Oslo and central parts of
Eastern Norway where housing market liquidity is greatest. The
bank’s primary lending product “Mortgage Future” presupposes the
implementation of energy classification, which positively affects the
share of energy-classified housing. The table below shows the bank’s
lending portfolio based on energy labels. In addition, a separate row
has been added for dwellings with the standards TEK 10 and TEK
17. It is assumed that these dwellings have at least an energy label
of “B”.

Lending volume in Storebrand bank
Broken down by energy classes and technical standard at the end of
the fourth quarter of 2022. Green share is volume in “A”, “B” or “TEK
10 / TEK 17” in relation to the lending volume.

Energy label / technical standard

Lending volume MNOK

TEK 10 / TEK 17

Missing data

Green share

553

9,026

4,788

2,302

9,771

11,243

7,417

16,959

4,487

20.2%

103) Political uncertainty may arise due to rapid changes and transitions in the current unstable period of time. Investors and Business owners are more unsure of the regulatory framework condi-

tions and that may affect macro image negatively. Seen in isolation, it gives a weaker macro image and higher required rate of return and lower prices.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixGreen share

25.0 %

20.0 %

15.0 %

10.0 %

5.0 %

0.0 %

12.4 %
11.9 %

13.2 %

12.3 %

13.8 %
12.9 %

14.2 %

13.2 %

15.1 %
14.2 %

15.4 %
14.6 %

15.2 %
14.4 %

6.6 %

6.9 %

7.5 %

7.1 %

7.0 %

2.9 %

20.2 %

19.1 %

10.0 %

Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022

Green mortgages % of assets

Green asset ratio %

Green assets % liquidity portfolio

The green share of the lending portfolio is defined as mortgages
secured on dwellings with an “A”, “B” or “TEK 10 / TEK 17” classification
in relation to the lending portfolio. Storebrand’s green share is thus
20.2 per cent at the end of the fourth quarter of 2022.

Physical risk lending portfolio
Storebrand’s lending portfolio is to some extent exposed to physical
risk. This applies to physical risk associated with the mortgaged
objects. Property value collects different data on the property
mortgages where the risk of different natural hazards is entered.
The data are retrieved from the Norwegian Water Resources and
Energy Directorate (NVE). The main natural hazards are quick
clay, landslides in various forms and flood risk, both storm surges
and flood zones. Mortgaged objects are exposed to these risks to
varying degrees. There is a requirement that the mortgaged objects
are insured, and the policyholder is insured against such natural
damage. However, market value developments may be weaker for
objects that have a greater risk of natural hazards than objects that
are less exposed.

Lending portfolio by various areas of caution104

Physical risk

Flood Due Diligence Area

Avalanche Due Diligence Area

Flood Due Diligence Area

Quick clay hazard level

Not exposed

Lending balance

MNOK

4, 500

1, 357

297

917

59, 475

66, 546

104) Source: Eiendomsverdi (Norwegian property values service).

6.8 %

2.0 %

0.4 %

1.4 %

Risk, storm surge, lending portfolio 2022, 2050 and 2090

Mean high tide

Mean high tide storm surge -
20-year storm surge

20 - 200 years storm surge

200 - 1000 years storm surge

2022

146

172

2050

149

217

2090

243

227

1120

117

Not exposed

Lending balance

66,079

66,546

66,017

66,546

65,387

66,546

Lending balance in relation to different areas of caution for
flooding

Flooding, areas of caution

Areas of caution– flood zone 10 years

Flood zone 10 years – 20 years

Flood zone 20 years – 50 years

Flood zone 50 years – 100 years

Flood zone 100 years – 200 years

Flood zone 200 years – 500 years

Flood zone 500 years – 1000 years

Not exposed

Lending balance banking group

MNOK

4,500

122

165

6.76 %

0.11 %

0.02 %

0.05 %

0.18 %

0.02 %

0.25 %

61,606

66,546

92.58 %

100.00 %

89.4 %

The bank’s physical climate risk is considered low because the share

100.0 %

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix

of loans granted in areas where physical risk is limited. However,
there is uncertainty associated with the risk of natural hazards. For
the bank portfolio, it is difficult to determine the risk associated
with damage caused by stormwater. This is especially true in urban
areas, where stormwater measures and wastewater facilities can be
undersized in relation to rainfall and intensity.

can be valued by stakeholders in the short term, while increasing
the risk of not achieving the goals. This applies in particular to an
area where there are currently no credible plans from countries or
companies that will ensure that it is possible to achieve the target of
a maximum of 1.5 degrees of warming.

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. A customer base review shows that
Storebrand has significant exposure to the fossil fuel sector. The
risk of negative effects from transition risk may thus be great for
customers in the fossil fuel sector.

Reputational risk
A high profile on sustainability and climate may entail a risk that
customers or interest groups criticise Storebrand for not doing
enough to adapt investments or reduce the climate impact of its
own operations.

In recent years, public attention to so-called “greenwashing” has
increased. Greenwashing is a collective term for descriptions
of something as more sustainable than it is, from a climate and
environmental perspective.

For Storebrand, sustainability is very much about indirect influence
and indirect emissions through the companies we invest in. It may
therefore be difficult to document specific effects achieved as a
direct result of our role as a driving force or owner. In 2022, we
reviewed internal policy documents on communication to reduce
the risk of greenwashing. We also launched a mandatory training
to increase employee awareness of what we mean by sustainability.

Regular reporting progress on key parameters to reach our goal of
net zero emissions by 2050 is important to maintaining trust among
our stakeholders. We are constantly working on the collection of data
to be able to carry out and report more accurate measurements.

One risk in the longer term is that Storebrand’s goals are not
considered sufficiently ambitious, or that we do not achieve them
in line with the plans we have made. Our long-term goals are in line
with the Paris Agreement, on a par with other investor communities
such as the Net Zero Asset Owner Alliance. In Sweden, however,
several of our competitors have communicated a more ambitious
agenda to become climate neutral before 2050. Higher ambitions

Regulatory risk
New and expanded requirements for the management and reporting
of climate and other sustainability-related issues are constantly
emerging, especially from the EU. The most comprehensive
new requirements are requirements in the So-called Disclosure
Regulation (SFDR) for the categorisation of funds, requirements for
reporting sustainability factors and sustainability risk, requirements
to take sustainability preferences into account in investment advice
and reporting in line with the taxonomy. These rules began to
take effect in 2021, and entry into force has continued in 2022.
Consideration of sustainability preferences in investment advice is
the last to come into force, in August 2022. Also in 2023, updates
and detailing of the regulations will continue to be implemented.

Nature risk
Loss of biodiversity can affect companies’ ability to create value for
investors in the long term. Nature as a source of financial risk is now
being reported together with the Sustainable Finance Disclosure
Regulation (SFDR) and the Corporate Sustainability Reporting
Directive (CSRD). Nature has already had an important place in the
climate policy for investments, but in 2022 Storebrand launched a
new and more detailed and separate policy for nature. Storebrand’s
new105 industrial policy, with emphasis on the precautionary
principle, sets significantly stricter requirements for companies with
regard to nature than the Group’s climate policy does. The aim of
the policy is to reduce our own exposure to natural hazards and
encourage companies to reduce their negative impact. The policy is
based on expectations that in the coming years there will gradually
be more standardised company information on nature that will
make it possible to shift capital flows away from companies with a
high negative impact. 106

Nature risk is divided into physical risk because of changes in
nature, transition risk, and regulatory risk because of changes in
laws, regulations and framework conditions. In addition, there is
reputational, or liability risk associated with lawsuits or complaints
as a result of companies’ operational activities.

We want our investment activities to contribute to the protection

105) Storebrand Policy on Nature: https://www.storebrand.no/en/asset-management/sustainable-investments/active-ownership/biodiversity-and-ecosystems/_/attachment/inline/42b9db43-4da4-

4333-a1cc-21680cf63260:6732fab29b23c226a80b1f117a10462748ff675b/86158%20-Storebrand-Policy-on-Nature.pdf

106) The policy includes new exclusion criteria that are further described in the chapter A driving force for sustainable investments.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix
of biodiversity. In 2022, we mapped sectors we are exposed in
to get an overview of their dependence on natural resources.
We also mapped how much impact we have on nature through
our investments in companies, equities, and bonds. The analysis
provided an overall and preliminary picture of our portfolio’s
dependence on key ecosystem services and how the sectors/
companies we have invested in potentially affect nature. Further
analyses will be conducted in the time ahead for addiction-related
risks related to nature. 107

As an appendix to this report, we have prepared a TCFD table.

This shows how we respond to different recommendations for
reporting, and where in the report the information can be found.
The index ensures transparency and makes it easier to find relevant
information. The table is located on page 253.

“More than half of the world’s total GDP depends on nature
and the services it provides. Nevertheless, the value of nature
is most often invisible when making decisions. Market prices
capture only a small part of the value nature represents,
despite the fact that ecosystem collapse poses a systemic risk
to the world economy and society as a whole.”

107) Integrating Nature-Related Risk in the Finance Sector: Applying ENCORE to Storebrand Asset Management’s

Activities. https://www.storebrand.no/en/asset-management/sustainable-investments/active-ownership/integrating-nature-related-risk-in-the-finance-sector/_/attachment/inline/5452d8d4-f3ae-403

d-8d39-391a846de5b7:7973967cc827e11b9604784abd671998087938f3/Storebrand%20ENCORE%20Analysis%20Report_FINAL.pdf

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixWorking environment and HSE

Storebrand’s sick leave rate among employees has been at a stable
low level for many years. Sick leave among employees was 3.2 per
cent in Norway and 1.9 per cent in the Swedish business in 2022.
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.

Managers are encouraged to discuss ethics, ethical dilemmas,
information security, financial crime and HSE in departmental
meetings. This is followed up and further measures are implemented
as needed.

Storebrand believes it is important that employees learn more
about HSE to increase employee well-being and security. In 2022,
Storebrand therefore chose to focus on HSE by consolidating several
HSE-related activities into a separate HSE week. The week included
several HSE activities where employees could sign up to increase
knowledge and help create a safer workplace, such as defibrillator
courses and first aid courses. In addition, all employees received a
voluntary offer to take the free flu vaccine.

Storebrand’s employees regularly respond to employee engagement
surveys (so-called pulse measurements, which are conducted
every two weeks or monthly). These heart rate measurements are
extended with an HSE survey twice a year, one of which was sent out
in connection with the HSE week.

Storebrand had one accident that resulted in personal injury in
2022. No damage to property was reported.

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 233-246. A separate salary report has been
defined by the Board of Storebrand ASA and is available on our
website.

Insurance for Board Directors and the company’s Group
Executive 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 because of claims made against
the insured for personal management responsibility during the
insurance period.

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixProgress on our most material
sustainability KPIs

Carbon intensity from equity investments: tonnes of CO2e per NOK 1 million in sales
income (against index)

12 (18)

14 (18)

N/A108

Status 2021

Status 2022

Target 2025

Carbon intensity from bond investments: tonnes of CO2e per NOK 1 million in sales
income (against index) 109

Carbon intensity property investments: kg CO2e/m2

9 /17)

6.0

9 (5)

5.6

Exposure to high emission sectors: NOK billion/share of equity investments

42.5 / 9 %

49.7 /11.3 %

N/A107

6.5107

N/A

Investments in solutions: NOK billion/ share of total AUM

123.1 / 11.2 %

126.8 / 12.4 %

15 % of AUM

Property investments with green certificates: share of property investments 110

68 %

64.6 %

74 %

Number of companies that have been contacted to discuss ESG through active
ownership (share of invested capital) 111

601 / 12 %

645 (31.2 %)

Number/share of women in Group Executive Management

3 / 33 %

5 / 56 %

Number/share of women management level 3

22 / 37 %

27 / 42 %

Number/share of women management level 1-4

83 / 39 %

86 / 37 %

Gender balance management all levels: share of women

102 / 37 %

116 / 38 %

N/A

50 %

Engagement score all employees (Storebrand score/ industry average in Peakon,
scale from 1-10)

8.4 (7.8)

8.4 (7.9)

>8.0

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n
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m
t
s
e
v
n

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e
P

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

109) Previously, we have included government bonds (government, municipalities, etc.) together with corporate bonds, but now look exclusively at corporate bonds because it is best practice in

both the industry and SFDR to look at the figures separately.

110) We have moved from reporting active ownership as part of the total investment universe to looking at it relative to our total investments to provide a better insight into the proportion of our

investments we are in dialogue with.

111) In 2022, we included properties in Denmark for the first time. The share of environmentally certified real estate investments has therefore been somewhat reduced. Certifications per country

are the following: Norway (89%), Sweden (93%), Denmark (9%).

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. AppendixLysaker, February 7, 2023

Board of Directors, Storebrand ASA

Didrik Munch (sign.)

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

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s reportStrategy 2021-23 47Strategic highlights 2022 48The Group’s results 2022 53Official Financial Statements of Storebrand ASA 58Outlook 59A driving force for sustainable investments 64Risk 81Climate risk and opportunities 83Working environment and HSE 96Progress on our most material sustainability KPIs 976. Shareholder matters7. Annual Accounts and Notes8. Corporate governance9. Sustainability Assurance10. Appendix6

Shareholder matters

Foreign ownership
At the end of 2022, the share of shares owned by foreign investors
amounted to 50.1 per cent, compared with 50.1 per cent at the end
of 2021.

Trading volume for shares in Storeband
In 2022, 313 million Storebrand shares were traded, up from 289
million shares in 2021. Turnover was NOK 25,181 million in 2022, up
from NOK 22,931 million in 2021. Relative to the average number of
shares, the turnover rate of the share was 66 per cent.

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
51 countries. Measured by market value, Storebrand was the 18th
largest company on the Oslo Stock Exchange at the end of 2022.

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 2022, just over half of the Group’s employees
subscribed for a total of 393,185 shares.

Share-based remuneration for Group Executive Manage-
ment
Storebrand’s Group Executive Management shall to ensure that
Storebrand 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 Group 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 2022 and actual equity exposure at the end of 2022.
For more information, please refer to the Storebrand ASA Report on
Salaries and Other Remuneration to Executive Personnel available
on our website.

Geographical distribution of shareholders

50 % - Norway

15 % - USA

8 % - Sweden

8 % - Germany

9 % - England

10 % - Other

Name

Odd Arild Grefstad

Lars Aa. Løddesøl

Vivi Måhede Gevelt

Heidi Skaaret

Jenny Rundbladh

Jan Erik Saugestad

Karin Greve-Isdahl

Trygve Håkedal

Tove Selnes

Share-based remuneration
as a share of gross salary

Actual equity
exposure

35 %

25 %

253 %

206 %

13 %

182 %

8 %

153 %

85 %

63 %

84 %

100

Date 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 7.8 per cent through 2022. In the
corresponding period, the OSEBX index of the Oslo Stock Exchange
ended at – 1.0 per cent, while the European insurance index Beinsur
had a total return of 2.7 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 ambition of the Board of
Director’s 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 175 per cent, the Board of Directors intends
to propose special dividends or share buy backs. In 2022, NOK 3.50
per share was paid in ordinary dividend for the financial year of
2021. In addition, a share buyback program of NOK 500 million was

conducted in the third quarter of 2022, corresponding to NOK 1.07
per share.

Capital gains taxation
Dividends for personal shareholders are taxable. Dividends after
deduction for a shielding amount shall be multiplied by 1.72. This
amount is taxed at the tax rate for capital income (22 per cent),
which gives a real tax on dividends of 37.8 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)

2022

99.30

67.00

85.40

2021

92.08

62.30

88.52

2020

74.24

34.73

64.20

2019

73.98

50.86

69.02

2018

75.20

59.48

61.64

2017

47.10

28.45

45.92

Market cap 31/12 (NOK million)

40,307

41,779

30,034

32,289

28,836

20,660

Annual turnover (1000s of shares)

313,005

288,998

585,004

335,202

445,614

589,322

Average daily turnover (1000s of shares)

Annual turnover (NOK million.)

Rate of turnover (%)

1,237

25,819

66.32

1,147

22,931

61.60

2,321

30,552

125.10

1,346

21,348

71.70

3,094

30,477

95.30

2,780

21,249

131.00

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 (%)

5.07

3.70

7.75

6.68

3.50

42.90

5.02

3.25

-7.00

4.43

0.00

16.80

7.89

3.00

-4.70

4.73

1.55

31.40

101

2013201420152016201720182019202020212022102030405060708090100Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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. AppendixAnnual General 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 Annual General Meeting
must register with the company no later than 4 p.m. on the third
business day before the meeting. Shareholders who have not
registered their arrival before the deadline may attend in the Annual
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 prioritises extensive and effective communications with
the financial market. Continuous dialogue with owners, investors and
analysts is a high priority. The Group has its own investor relations
department, which is responsible for establishing and coordinating
the contact between the company and external connections such
as stock exchanges, analysts, shareholders, and other investors.
Quarterly reports and representations, as well as press releases, are
posted on the Group’s website: http://www.storebrand.no/ir.

The 20 largest shareholders
Based on a screening of the shareholder list as of 31.12.2022.

Fund Manager

Folketrygdfondet

Allianz Global Investors

T Rowe Price Global Investments

Vanguard Group

EQT Fund Management

KLP

Alfred Berg

BlackRock

Storebrand Asset Management

DNB Asset Management

Handelsbanken Asset Management

Nordea Asset Management

Danske Bank Asset Management

Storebrand ASA

Solbakken AS

OM Holding AS

Eika Kapitalforvaltning

Union Investment

SSGA

BNP arbitrage account

Current rank

Ownership in %

Change since

31.12.2021

46,533,752

32,427,101

27,896,744

17,199,843

14,900,000

14,093,381

12,775,215

10,578,279

10,484,540

9,658,063

9,525,608

9,288,690

8,960,545

7,764,226

6,770,000

6,465,577

5,891,665

5,762,251

4,797,339

4,777,778

9.86

6.87

5.91

3.64

3.16

2.99

2.71

2.24

2.22

2.05

2.02

1.97

1.90

1.65

1.43

1.37

1.25

1.22

1.02

1.01

-5,107,529

-441,210

-176,220

4,612,322

-3,602,130

-437,943

-3,757,654

2,186,073

1,010,282

-184,194

-326,454

1,737,478

-271,963

5,924,238

3,213

-2,359,626

2,169,330

4,572,114

312,343

4,738,238

102

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

103

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

104

Note

21,22,23,24

2022

48,870

-8

208

1,254

-20

-21,631

-2,107

-20,082

3,662

453

713

-314

4,913

16,101

-39,677

25,834

8,471

-6,142

-497

-1,374

-13,385

2,716

-596

2,120

270

2,390

2,376

2,390

5.07

468.4

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

Statement of total comprehensive income

NOK million

Profit/loss for the year

Note

2022

2,390

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

Total

-12

-63

-1

-13

-123

-15

-137

-150

2,240

2,226

2,240

2021

3,130

131

139

-139

140

-167

-52

-219

-79

3,051

3,042

3,051

105

Statement of Financial Position

Note

31.12.22

31.12.21

1,289

7,339

1,174

442

10,31,32

11,741

10,31

109

10,31,33

52,546

31.35

7,720

8,13,31,36

453

8,10,13,31,37

23,516

10,13,31,38

10,31

317

319

4,573

55,005

166,554

1,104

6,667

1,266

387

12,955

38,503

11,024

543

27,706

903

489

3,543

54,912

160,101

8,469

7,141

10,31,32

110,299

104,974

10,31,32

10,31,33

7,402

18,679

311

8,13,34

33,481

13,34

31.35

1,689

800

8,13,31,36

8,10,13,31,37

10,13,31,38

10,31

270,079

132,699

14,026

6,757

9,938

614,629

781,184

8,441

23,051

33,376

1,659

638

277,783

140,810

4,012

7,443

6,443

615,784

775,885

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

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

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

106

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

31.12.22

31.12.21

9,31

13,163

24,445

327

37,935

10,585

23,952

13,192

24,291

226

37,709

11,441

33,693

39,40

575,051

575,457

9,13,31

10,13,31,38

9,31,41

162

1,363

403

19,478

32,791

713

11,994

1,120

10,630

55,005

743,249

781,184

181

832

502

17,239

24,924

208

2,935

1,210

14,643

54,912

738,177

775,885

Lysaker, 7 February 2023
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

107

Statement of changes in equity

NOK million

capital 1)

premium

equity

differences

equity 2)

earnings

capital 3)

equity

Own

paid in

translation

Other

retained

Hybrid

Total

Equity at 31 December 2019

2,339

-2

10,521

12,858

1,208

21,631

22,839

226

35,923

Majority’s share of equity

Total

Currency

Total

3,121

-167

3 208

-79

3 042

3,130

-79

3 051

Profit for the period

Total other comprehensive
income elements

Totalresultat for perioden

Equity transactions with
owners:

Own shares

Issues of shares

Hybrid capital classified as equity

Paid out interest hybrid capital

Dividend paid

Other

Profit for the period

Total other comprehensive
income elements

Total comprehensive income
for the period

Equity transactions with
owners:

Own shares

Hybrid capital classified as equity

Paid out interest hybrid capital

Dividend paid

Other

Equity at 31 December 2021

2,360

-9

10,842

13,192

1,041

23,249

24,291

-7

320

-7

341

-97

-1,513

2,376

-123

-27

-150

-104

341

-9

-1,513

37,709

2,390

-150

-9

226

-123

2,348

2,226

2,240

-30

-431

-1,646

100

-13

-460

104

-13

-1,646

Equity at 31 December 2022

2,360

-39

10,842

13,163

919

23,527

24,445

327

37,935

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

2) Includes undistributable funds in the risk equalisation fund amounting to NOK 820 million and security reserves/natural perials capital amounting NOK 197 million.

3) Perpetual hybrid tier 1 capital classified as equity.

108

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

Receipts - loans from financial institutions

Payments - repayments of loans from financial institutions

Receipts - issuing of share capital / sale of shares to employees

Payments - repayment of share capital

Payments - dividends

Receipts - hybrid capital

Payments - interest on hybrid capital

Net cash flow from financing activities

109

2022

2021

34,488

-24,218

-1,704

30,472

1,466

-152

-1,105

-6,542

7,912

40,616

-9,027

2,239

-30,148

1,447

610

-1,509

-3,567

-39,955

661

-2,405

-137

-632

-3,173

9,822

-1,932

-621

1,650

-2,708

-534

16,690

-16,789

-500

-1,646

100

-13

3,563

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

4,634

-5,784

-144

-1,513

-9

4,043

Statement of cash flow (continue)

NOK million

Net cash flow for the period

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

2022

1,051

3,611

4,681

109

4,573

4,681

2021

665

2,878

3,611

3,543

3,611

The cash flow analysis shows the Group’s cash flows for operating, investing and financing activities pursuant to the direct method. The
cash flows show the overall change in means of payment over the year.

Operating activities
A substantial part of the activities in a financial group will be classified as operating. All receipts and payments from insurance activities
are included from the insurance companies, and these cash flows are invested in financial assets that are also defined as operating
activities. One subtotal is generated in the statement that shows the net cash flow from operations before financial assets and banking
customers, and one subtotal that shows the cash flows from financial assets and banking customers. This shows that the composition
of net cash flows from operational activities for a financial group includes cash flows from both operations and investments in financial
assets. The life insurance companies’ balance sheets include substantial items linked to the insurance customers that are included on
the individual lines in the cash flow analysis. Since the cash flow analysis is intended to show the change in cash flow for the company,
the change in bank deposits for insurance customers is included on its own lines in operating activities to neutralise the cash flows
associated with the customer portfolio in life insurance.

Investing activities
Includes cash flows for holdings in group companies and tangible fixed assets.

Financing activities
Financing activities include cash flows for equity, subordinated loans and other borrowing that helps fund the Group’s activities. Payments
of interest on borrowing and payments of share dividends to shareholders are financial activities.

Cash/cash equivalents
Cash/cash equivalents are defined as claims on central banks and loans to and claims from financial institutions. The amount does not
include claims on financial institutions linked to the insurance customers portfolio, since these are liquid assets that are not available
for use by the Group.

110

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

Events after the balance sheet date

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

111

1. COMPANY INFORMATION
Storebrand ASA is a Norwegian public limited company that is listed on the Oslo Stock Exchange. The consolidated financial statements
for 2022 were approved by the Board of Directors of Storebrand ASA on 7 February 2023.

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
result 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
deferred until implementation of IFRS 17. The Storebrand Group qualifies for temporary deferral of IFRS 9 because over 90 per cent of
the Group’s total liabilities as at 31 December 2015 were linked to the insurance businesses. For the Storebrand Group, IFRS 9 will be
implemented together with IFRS 17 from 1 January 2023.

The Storebrand Group has conducted a provisional analysis of the classification and measurement of financial instruments in accordance
with the present IAS 39 for the transition to IFRS9, based on the business model for the individual instruments. For debt instruments
that are expected to be classified and measured at amortised cost or fair value through total comprehensive income upon transition to
IFRS9, a SPPI (”Solely payment of principal and interest”) test is carried out. A significant majority of the financial assets are measured at
fair value (the fair value option is used).

The Ministry of Finance has stipulated regulatory provisions that permit pension providers to recognise investments that are measured
at fair value through total comprehensive income in accordance with IFRS 9 at amortised cost in the customer and company accounts.
For the consolidated financial statements, the financial assets will be measured at fair value through profit or loss, where the fair value
option is used because the insurance liabilities are measured at fair value.

112

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

1.1.2022

31.12.2022

Booked value

Fari value

Booked value

Fari value

FVOCI

9,986

12,955

9,986

12,981

14,511

11,741

109

14,510

11,189

109

38,086

49,146

416

452

11,661

73,172

11,661

73,199

8,519

84,477

8,519

83,924

17,239

19,478

502

24,924

11,441

14,643

68,749

502

25,000

11,441

14,643

68,824

403

32,791

10,585

10,630

73,887

403

32,777

10,556

10,629

73,842

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

1.1.2022

31.12.2022

Booked value

Fari value

Booked value

Fari value

Shares and fund units

FVP&L (FVO)

Bonds and other fixed-income securities

FVP&L (FVO)

Bonds and other fixed-income securities

FVP&L

278,326

270,532

168,516

113,416

7,931

23,052

168,516

116,745

7,931

23,060

156,215

117,701

7,075

21,628

156,215

108,489

7,075

21,193

FVP&L (FVO)

Loans to customers

Derivatives

Total financial assets

Financial liabilities

Derivatives

Total financial liabilities

FVP&L/ Hedge
accounting

4,912

3,816

14,343

596,153

598,395

587,494

577,848

FVP&L/ Hedge

accounting

3,144

2,048

12,708

An assessment of the effects for the Storebrand Group upon transition from IAS 39 to IFRS 9 shows that the most significant changes
in the transition from IAS 39 to IFRS 9 will be linked to hedge accounting and new calculation of expected losses. According to IFRS 9,
provisions for losses must be calculated based on expected credit losses when establishing a commitment and must be continuously
assessed for impairment in subsequent periods. At year-end 2022, expected credit loss (ECL) was calculated at NOK 60.4 million for the
Storebrand Group. The expected credit loss has not changed significantly when compared with the loss provision under IAS 39. The
most important changes in hedge accounting for the Storebrand Group are that IFRS 9 sets different criteria than IAS 39 for being able
to use hedge accounting. It is no longer a requirement under IFRS 9 that the hedging arrangement needs to be within a specific interval,
and it is now possible to rebalance the hedge under existing hedging arrangements and it is also possible to use multiple hedging
instruments for the same hedge item. The transition to IFRS 9 has no accounting effects for existing hedging.

113

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. Intangible assets are 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
No new accounting standards that have a significant impact on the consolidated financial statements were implemented in 2022. For
changes in estimates, see Note 2 for further information.

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

5.1 New standards and changes to the accounting policies applied
IFRS 17 replaces IFRS 4 Insurance Contracts effective from 1 January 2023. IFRS 17 Insurance Contracts introduces new requirements for the
recognition, measurement, presentation and disclosure of issued insurance contracts and reinsurance contracts. The purpose of the new
standard is to establish uniform practices for the accounting treatment of insurance contracts and greater transparency between insurance
companies. Storebrand will only implement IFRS 17 in the statutory reporting for Storebrand Forsikring AS (P&C insurance business). For the
remaining companies within the Storebrand Group, including the life insurance companies, the statutory reporting will remain unchanged
in the company accounts from the present date. The Storebrand Livsforsikring Group and the Storebrand Group will implement IFRS 17 in
the consolidated financial statements.

5.1.1 Scope:
IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts. An insurance
contract pursuant to IFRS 17 is a contract in which Storebrand accepts significant insurance risk from a policyholder by consenting to pay
compensation to the policyholder if an insured event adversely affects the policyholder. When classifying contracts under IFRS 17, the
company takes into consideration its substantive rights and obligations, irrespective of whether these stem from a contract, a law, or a
regulation. Contracts that have a legal form of an insurance contract, however that do not expose the company to significant insurance risk,
are classified as investment contracts under IFRS 9.

114

5.1.2 Aggregation level for insurance contracts
Under IFRS 17, insurance contracts are measured at group level. Groups of insurance contracts are determined by identifying portfolios
of insurance contracts that include contracts that are subject to similar risk and are managed together. Storebrand identifies groups of
insurance contracts by assessing the underlying insurance risk in the contracts and how changes in underlying assumptions influence the
contracts. The insurance risks that are used in the assessment of the aggregation level are described in more detail in Note 7. Furthermore,
joint management is assessed based on, among other things, how the business areas follow up the insurance contracts internally, the levels
used when reporting to management and in risk management. Contracts within different product lines or that are issued by different group
companies are expected to be included in different portfolios of contracts.

Contracts within a portfolio must be divided into:
a. A group of contracts that are onerous at initial recognition.
b. A group of contracts that at initial recognition have no significant
c. possibility of becoming onerous subsequently.
d. A group of remaining contracts in the portfolio.

In addition, the standard prohibits the grouping of contracts issued more than one year apart in the same group. This involves requirements
for further division into annual cohorts based on the year of issue. In adopting IFRS 17, the EU has introduced an optional exemption from
annual cohorts for contracts with direct participation features. This means that portfolios of contracts with direct participation features are
grouped solely based on profitability, irrespective of the year of issue. Storebrand has chosen to make use of the EU exemption from annual
cohorts for contracts with direct participation features.

5.1.3 Cash flows within the boundaries of a contract
When measuring a group of insurance contracts under IFRS 17, all future cash flows within the boundaries of an existing insurance contract
are included. For some product lines, Storebrand expects significant changes in the scope of cash flows that will be included when recognising
and measuring the insurance contracts.

Cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations that exist during the
reporting period in which the entity can compel the policyholder to pay the premiums or in which the entity has a substantive obligation to
provide the policyholder with insurance contract services. Such an obligation to provide insurance contract services ends when:
-

Storebrand has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price or level of benefits
that fully reflects those risks; or
Storebrand has the practical ability to set a price or level of benefits that fully reflects the risk in the portfolio until the date when the
risks are reassessed and does not take into account the risks that relate to periods after the reassessment date.

For guaranteed products, the boundaries of the contract will generally include future premiums, as well as the associated fulfilment cash
flows. This is because the Group is unable to reassess the policyholder’s risk and thus cannot set a new price or level of benefits that fully
reflects these risks. This applies both to the individual contract and at portfolio level.

The estimated cash flows for a group of contracts include all ingoing and outgoing payments that are directly related to the fulfilment of
insurance contract services. This includes benefits and compensation to policyholders including, but not limited to:
-
-
-
-
-
-
-

Premiums and any additional cash flows resulting from these premiums.
Claims and benefits to or on behalf of a policyholder.
Costs associated with handling compensation claims.
Costs associated with handling and maintaining policies.
Transfer to and from the company.
Transaction-based taxes and fees for SPP.
An allocation of fixed and variable joint expenses that are directly attributable to fulfilling insurance contracts (for example, costs of
accounting, HR and IT). Allocation takes place at group level using systematic and rational methods that are applied consistently.

In addition, cash flows arising from expenses relating to the sale, subscription and establishment of a group of insurance contracts will be
included in the measurement of an insurance contract. This applies to cash flows that are directly attributable to the portfolio of insurance
contracts to which the group belongs.

115

Insurance contracts are subject to different requirements for the measurement method based on whether the insurance contracts are
classified as contracts with direct participation features that are measured according to the variable fee approach or contracts without
direct participation features that are measured according to the general method. Insurance contracts with direct participation features are
contracts in which:
-
-
-

The contractual terms specify that the policyholder participates in a share of a clearly identified pool of underlying items.
The entity expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items.
The entity expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair
value of the underlying items

Storebrand determines whether a contract meets the definition of a contract with direct participation features when entering into the
contract. There is no new classification of the contracts unless the contract is modified by amending the contract terms in such a manner
that they no longer meet the aforementioned conditions.

Storebrand issues a number of insurance contracts which are essentially investment-related service contracts for which the company
promises a return on investment based on underlying items. These satisfy the definition of insurance contracts with direct participation
features and include a substantial proportion of the Group’s guaranteed products. Insurance contracts with direct participation features
are covered by IFRS 17 and are measured using the variable fee approach (VFA). Other insurance contracts do not have elements of
direct participation and are primarily measured according to the premium allocation approach (PAA), with the exception of group disability
pensions, which follow the general measurement method (GMM) due to the long coverage period.

The premium allocation approach (PAA) is an optional, simplified measurement model adapted to insurance and reinsurance contracts
with a short coverage period that is a maximum of one year. The coverage period is defined as the period during which the entity provides
insurance contract services, which includes the insurance contract services that apply to all premiums within the limits of the contract. The
premium allocation approach simplifies the measurement by the liability for the remaining coverage period being based on premiums
received, rather than the present value of expected future fulfilment cash flows. Storebrand expects to apply the premium allocation
approach to all P&C insurance and personal risk products in the Norwegian and Swedish markets, as well as employee insurance and certain
pension-related insurance policies.

Unit link for Storebrand and unit link at SPP are not considered to satisfy the definition of an insurance contract pursuant to IFRS 17 due to
the insurance risk being considered immaterial. The contracts are therefore recognised in accordance with IFRS 9.

Company

Product category

Measurement model

Storebrand Livsforsikring

Group pension, paid-up policy and paid-up policy with investment
choice (Private)

Individual endowment and pension insurance

Group pension (Public)

Company pension

Group pension related disability

Individual personal and person risk

SPP Pension & Försäkring

Individual pension insurance

Group pension (Private)

Individual pension related

Storebrand Forsikring

Non-life

VFA

GMM

PAA

VFA

PAA

116

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 104Statement of total comprehensive income 105Statement of Financial Position 106Statement of changes in equity 108Statement of cash flow 109Notes 112Storebrand ASAIncome statement 198Statement of total comprehensive income 198Statement of Financial Position 199Statement of changes in equity 200Statement of cash flow 201Notes 203Declaration by members of the Board and the CEO 215Independent auditor’s report 2168. Corporate governance9. Sustainability Assurance10. Appendix5.1.5 Measurement: contracts that are not measured according to the PAA.
At initial recognition, the carrying value of the liability will be measured as the sum total of:
1. An explicit, unbiased and probability-weighted estimate of all cash flows within the contract’s limit.
2. An adjustment for the time value of money based on a risk-free yield curve that is adjusted to reflect the liquidity of the cash flows.
3. An explicit risk adjustment for non-financial risk.
4. Contractual service margin (CSM) which represents the unearned profit the entity will recognise as it provides insurance contract

services in accordance with the insurance contracts in the group.

An insurance contract is not onerous at initial recognition if the following cash flows are a net inflow:
a.
The fulfilment cash flows that are allocated in the contract.
b. Any previously recognised contract flows upon acquisition, and
c. Any cash flows that arise from the contract at initial recognition.

The contractual service margin is the amount that does not provide a profit in the income statement at initial recognition and is included
in the insurance liability for contracts that are not onerous. The contractual service margin is systematically recognised in the income
statement over the coverage period based on the pattern of transferred insurance contract services. Determining the dissolution pattern is
subject to significant exercising of discretion and is determined by:
•

Identifying the coverage units in the group based on the quantity of the insurance contract services that are provided under the
contracts in the group and the expected coverage period.
Allocating the contractual service margin equally to each coverage unit provided in the current period and expected to be provided in
the future.
Recognising in profit or loss the amount allocated to coverage units provided in the period.

•

The coverage units are determined based on the expected duration linked to the group of insurance contracts. For the calculation of
the coverage unit per group of insurance contracts, the policyholders’ reserves are used as a basis for the assessment for Storebrand’s
insurance contracts. For SPP, policyholder funds, including the deferred capital contribution (DCC), are used as a basis for the assessment
of coverage units.

If the contractual service margin is negative, the entity shall recognise a loss in profit or loss equivalent to the net outflow for the group
of onerous contracts. The determination of a loss component entails that the carrying value of the liability for the group is equal to the
fulfilment cash flows, and that the group’s contractual service margin is equal to zero after the loss recognition.

Upon subsequent measurement, the carrying value of a group of insurance contracts at the reporting date will correspond to the sum total
of the liability for remaining coverage and the liability for incurred claims. The liability for the remaining coverage period corresponds to the
present value of future fulfilment cash flows that relate to future services and the remaining contractual service margin (CSM). The liability for
incurred claims includes fulfilment cash flows that relate to incurred claims, including events that have occurred but for which claims have
not been reported, and other incurred insurance expenses.

The present value of expected future cash flows is updated at the end of each period based on updated estimates of future cash flows, yield
curve and risk adjustment for non-financial risk. The change in fulfilment cash flows is recognised as follows for contracts measured using
the VFA:

Changes that apply to future services, such as changes in assumptions relating to long life

expectancy, disability and mortality.

Adjusted in relation to contractual service margin

Changes that apply to current or previous services, for example, estimate discrepancies and

incidents related to long life expectancy, disability and death.

Recognised in profit or loss from insurance services

Effect as a result of time value of money, financial risk and the effect of these on the cash flows Adjusted in relation to contractual service margin

In the subsequent measurement, the contractual service margin is only adjusted for changes that apply to future services. This entails that
changes in cash flows for future services are recognised as profit or loss as the company provides services. At the end of each reporting
period, the contractual service margin represents the profit that is not recognised in the income statement as profit or loss because it relates
to future services.

One of the primary differences between the VFA and GMM is that when using the VFA, the CSM must be adjusted for effects resulting from
market variables and their effect on the cash flows. The purpose of the adjustment is to reduce mismatch and volatility by recognising the
entity’s share of changes in the value of the underlying portfolio in the service margin.

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Changes that apply to future services, such as changes in assumptions relating to long life

expectancy, disability and mortality.

Adjusted in relation to contractual service margin

Changes that apply to current or previous services, for example, estimate discrepancies and

events that have occurred that relate to long life expectancy, disability and mortality.

Recognised in profit or loss from insurance services

Effect as a result of time value of money, financial risk and the effect of these on the cash flows

Recognised as financial insurance income or expenses.

CONSEQUENCES OF THE CHANGES IN THE INCOME STATEMENT:

Change from IFRS 4

The present value of fulfilment cash flows increases as a result of a reduction in discounting, since IFRS 17 requires the use of

updated assumptions.

IFRS 17 requires the calculation of a risk adjustment for non-financial risk that increases the present value of fulfilment cash

flows.

The contractual service margin upon transition is determined using the fair value method.

Reclassification of risk equalisation reserve from equity to liability.

Under IFRS 4, the value-of-in-force (VIF) that arises in connection with acquisitions is classified as intangible assets and

amortized on an ongoing basis. With the introduction of IFRS 17, VIF is included as part of CSM and thus the total intangible

assets will be reduced upon the transition to IFRS 17.

Effect on equity upon

transition to IFRS 17

Reduction

5.1.6 Contracts measured according to the premium allocation approach
Upon initial recognition of each group of insurance contracts, the carrying value of the liability for the remaining coverage period will
be measured as the sum total of premiums received as of the recognition date. Storebrand has chosen to recognise cash flows for the
acquisition of insurance costs in the income statement as these are incurred.

In the subsequent measurement, the carrying value of the liability for the remaining coverage period will be increased by new premiums
received and reduced by the share of premiums the company recognises during the period for services the company has provided. Insurance
income for the period is equal to the amount of expected premium payments allocated to the period. The expected premium payments are
allocated over each period based on the passage of time, unless the expected pattern for release of risk during the coverage period differs
significantly from the passage of time. Since Storebrand provides insurance services within one year of receiving the premiums, there will be
no need to adjust the liability for the remaining coverage period for the time value of money in accordance with IFRS 17.

If, at any time during the coverage period, facts and circumstances indicate that a group of insurance contracts is onerous, Storebrand will
recognise a loss in the income statement and correspondingly increase the liability for the remaining coverage period.

Storebrand will recognise a liability for incurred claims for claims that are incurred as of the reporting date. The cash flows for incurred claims
are adjusted for non-financial risk (risk adjustment) and discounted using the current yield curve if cash flows are expected to be paid out
more than 12 months from the claim date.

The premium allocation model applies correspondingly to reinsurance contracts, with some adjustments which reflect that the reinsurance
contracts held by the company generally entail that the insured company has a net asset and that the risk adjustment is negative.

Change from IFRS 4

The present value of cash flows for fulfilment related to claims incurred is discussed if the cash flows are paid more than 12

months from the date of the claim.

IFRS 17 requires the calculation of a risk adjustment for non-financial risk that increases the present value of fulfilment cash

flows. This is not a requirement under IFRS 4.

Effect on equity upon

transition to IFRS 17

Increase

Reduction

IFRS 17 requires adjustment of the income profile/liability for remaining coverage if the expected pattern of release of risk

during the coverage period differs significantly from the passage of time.

Increase/decrease

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Estimation of fulfilment cash flows.
Determination of discount rate.
Determination of risk adjustment for non-financial risk.
Identifying the coverage units in a group of insurance contracts and determining the pattern for recognising CSM over the coverage
period based on the services that are provided.

5.1.8 Risk adjustment
The risk adjustment for non-financial risk relates to risks arising from insurance contracts other than financial risk. The following non-financial
risks will be included in the risk adjustment:
• mortality
•
•
•
•
•
•

long life expectancy
disability/reactivation
P&C insurance risk
loss
expenses
disaster

The risk adjustment under IFRS 17 will be calculated based on cost of capital. This shares similarities with the risk margin under Solvency II,
with some adjustments, primarily the exclusion of operational risk and counterparty risk. The confidence level will be calculated by the partial
internal model, including a simplified approach for risks not included in the partial internal model.

5.1.9 Discount rate
To calculate a present value of future expected cash flows, a discount rate must be defined that reflects the time value of money and
the financial risks associated with those cash flows. The discount curve is determined for the first time at the transition date and then
continuously at each reporting date. Storebrand has chosen to use a bottom-up approach for determining the discount rate, whereby a
risk-free yield curve is used that is adjusted for liquidity premium to reflect the liquidity characteristics of insurance contracts.

5.1.10 Transition to IFRS 17
The entity must disclose information that enables users of the financial statements to identify the impact on the measurement of the
insurance contracts at the transition date. As a starting point, the retrospective transition method must be applied for the opening
balance sheet, however a modified retrospective transition method or application is permitted based on the fair value at the transition
date if retrospective application is impracticable. Storebrand has decided to use the determination of fair value at the transition date
when transitioning to IFRS 17, where the retrospective transition method is not considered to be practicable. This applies to large parts of
contracts with a coverage period of more than one year. Storebrand uses the fair value hierarchy in accordance with IFRS 13, where fair
value has to reflect the market price that two well-informed parties would agree on as a fair transaction price. For products for which there
is an active transfer market, the transfer value is used as an estimate of fair value. For product categories in which there is no active market,
Storebrand uses relevant transactions as a reference point to determine the market price. By using the fair value approach at the transition
date of 1 January 2022, the difference between the fair value of a group of contracts and the fulfilment cash flows, with the addition of risk
adjustment in accordance with IFRS 17, will form the basis for the contractual service margin (CSM). For all contracts measured under the fair
value approach, Storebrand has used reasonable and documentable information available at the transition date of 1 January 2022 to make
assessments related to the recognition and measurement of the contracts, including:
-
-

Determining the level of aggregation based on portfolios and profitability groups. Determining risk adjustment.
Determining measurement method, including assessment of criteria for the use of PAA for contracts with a short coverage period and
VFA for contracts that satisfy the definition of contracts with direct participation features. How to identify discretionary cash flows for
insurance contracts without direct participation features

Upon transitioning to IFRS 17, preliminary calculations indicate a decrease in equity of approximately 20% when compared to the present
standard. There is uncertainty associated with the estimate and there may be changes leading up to the adoption of the quarterly report for
the 1st quarter of 2023. The decrease in equity will largely be offset by the establishment of CSM. Under IFRS 4, the value-of-in-force (VIF)
that arises in connection with acquisitions is classified as intangible assets and amortized on an ongoing basis. With the introduction of IFRS
17, VIF is included as part of CSM and thus the total intangible assets will be reduced upon the transition to IFRS 17.

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.

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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 Storebrand Danica AS, and the Swedish holding
company Storebrand Holding 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. 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 2023. An exemption has been granted to operate life insurance activities in Storebrand Livsforsikring
AS and Storebrand Danica Pensjonsforsikring AS until the end of 2023.

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 ownership 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
currencies 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 eliminated
in the consolidated financial statements. Transactions between the customer portfolios and the company portfolio in the life insurance
business and between the customer portfolios in the life insurance business and other companies in the Group will not be eliminated in the
consolidated financial statements. The reason for this is that the result in the customer portfolio is assigned to the customers each financial
year and must not influence the result and equity of the company. Pursuant to the life insurance regulations, transactions with customer
portfolios are carried out at fair value.

7. Business combinations
The acquisition method is applied when accounting for acquisition of businesses. The consideration is measured at fair value. The direct
acquisition expenses are expensed when they arise, with the exception of expenses related to raising debt or equity (new issues).

When making investments in subsidiaries, including purchasing investment properties, a decision is made as to whether the purchase
constitutes acquisition of a business pursuant to IFRS 3. When such acquisitions are not regarded as an acquisition of a business, the
acquisition method pursuant to IFRS 3 is not applied. Among other things, this does not entail provisions for deferred tax such as for
business combinations.

8. Segment information
The segment information is based on the internal financial reporting structure of the most senior decision-maker. At Storebrand, the
executive management is responsible for following-up and evaluating the results of the segments and is defined as the most senior decision-
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 statement
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.

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9. Income recognition

Premium income
Net premium income includes the year’s premiums written (including savings elements, administration premium, fees for issuing Norwegian
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 recognised
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 depreciated, but is tested for impairment annually when assessing the recoverable amount or if there are indications
that impairment has occurred. In the subsequent measurement, Goodwill is allocated to the relevant cash generating units where future
cash flows are expected to flow. If the discounted cash flow for the cash-generating unit(s) that goodwill is allocated to is lower than the
recognised value, goodwill will be written down. Reversal of an impairment loss for goodwill is prohibited even if information later comes to
light showing that there is no longer a need for the write-down or the impairment loss has been reduced.

Intangible assets with limited useful economic lives are measured at acquisition cost less accumulated amortisation and any write downs.
The useful life and amortisation method are reassessed 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.

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Financial assets are derecognised when the contractual right to the cash flow from the financial asset expires, or when the company
transfers the financial asset to another party in a transaction by which all, or virtually all, the risk and reward associated with ownership of
the asset is transferred.

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
carrying amount and the present value of the estimated future cash flows (excluding future credit losses that have not occurred) discounted
at the financial asset’s original effective interest rate (i.e. the effective interest rate calculated at initial recognition). The amount of the loss
is recognised in the income statement.

Losses expected as a result of future events, no matter how likely, are not recognised.

13-2. Classification and measurement of financial assets

Financial assets are classified into one of the following categories:
•
•
•
•

Financial assets held for trading
Financial assets at fair value through profit or loss in accordance with the fair value option (FVO)
Financial assets held to maturity
Financial assets, loans and receivables

Held for trading
A financial asset is classified as held for trading if:
•
•

it has been acquired principally for the purpose of selling or repurchasing it in the short term,
is part of a portfolio of identified financial instruments that are managed together and there is evidence of a recent actual pattern of
short-term profit-taking, or
it is a derivative that is not designated and effective as a hedging instrument.

•

With the exception of derivatives, only a limited proportion of Storebrand’s financial assets fall into this category.

Financial assets held for trading are measured at fair value at the reporting date, Changes in fair value are recognised in the income
statement.

Fair value through profit or loss in accordance with the fair value option (FVO).
A significant proportion of Storebrand’s financial instruments are classified in the category of fair value through profit or loss because:
•

such classification reduces the mismatch in the measurement or recognition that would otherwise arise as a result of the different rules
for measuring assets and liabilities, or
the financial assets form part of a portfolio that is managed and reported on a fair value basis

•

The accounting is equivalent to that of the held for trading category (the instruments are measured at fair value and changes in value are
recognised in the income statement).

Investments held to maturity
Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity and that a company
has the intention and ability to hold to maturity, with the exception of:
•
•

assets that are designated upon initial recognition as assets at fair value through profit or loss, or
assets that are defined as loans and receivables.

Assets held to maturity are recognised at amortised costs using the effective interest method. The category is used in the Norwegian life
insurance business for assets linked to insurance contracts with interest rate guarantees.

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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. 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.

Cash flow hedging
Some borrowing in foreign currency is hedged by means of hedging instruments (derivatives). Storebrand uses cash flow hedging of the
foreign exchange risk on the principal amount and foreign exchange risk for the credit margin. The net ongoing changes in value in the
hedging instrument that is considered effective hedging are recognised in total comprehensive income and the non-effective share is
recognised through profit or loss.

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-
uniform 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 acquired
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.

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Claims for own account
Claims for own account comprise claims settlements paid out, less reinsurance received, premium reserves transferred to other companies,
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 contracts,
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
(administration 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
administration costs expected to be financed by future premium receipts.

A substantial proportion of the Norwegian insurance contracts have a one-year interest rate guarantee, meaning that the guaranteed return
must be achieved every year. In the Swedish business, there are no contracts with an annual interest rate guarantee, but there are insurance
contracts with a terminal value guarantee.

Insurance liabilities, special investments portfolio
Insurance liabilities associated with the value of the special investments portfolio must always equal the value of the investments portfolio
assigned to the contract. The proportion of profit in the risk result is included. The company is not exposed to investment risk on customer
assets, since the customers are not guaranteed a minimum return. The only exception is in the event of death, when the beneficiaries are
repaid the amount originally paid in for annuity insurance and for 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
historical 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, buffer fund, conditional bonus and the profit for the year. Transferred additional reserves and buffer funds 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 business, parts of the
selling costs are recorded in the balance sheet and amortised over the expected duration of the contract.

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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 assigned
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 insurance
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.

Buffer funds
Rules for a combined and customer-distributed buffer fund were introduced for municipal pension schemes effective from 1 January 2022.
The buffer fund replaces the previous additional statutory reserves and market value adjustment reserves for municipal pension schemes.
The buffer fund is divided among the contracts and can be used to cover a negative interest result up to the contract’s annual interest rate
guarantee. In the event that the company does not achieve a return that equals the annual interest rate guarantee in any given year, the
buffer fund can be reversed from the contract to enable the company to meet the annual interest rate guarantee. This means that the buffer
fund is reduced and that there is a corresponding increase in the premium reserve for the contract.

Market value adjustment reserve
The current year’s net unrealised gains/losses on financial assets at fair value in the group portfolio are allocated to or reversed from the
market value adjustment reserve in the balance sheet 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.

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Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 104Statement of total comprehensive income 105Statement of Financial Position 106Statement of changes in equity 108Statement of cash flow 109Notes 112Storebrand ASAIncome statement 198Statement of total comprehensive income 198Statement of Financial Position 199Statement of changes in equity 200Statement of cash flow 201Notes 203Declaration by members of the Board and the CEO 215Independent auditor’s report 2168. Corporate governance9. Sustainability Assurance10. AppendixConditional 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 portion
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 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 information 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 pension
plans for its employees. A group defined-benefit pension implies that an employee is guaranteed a certain pension based on the pay scale
at the time of retirement on termination of the employment.

15-1. Defined-benefit scheme
Pension costs and pension obligations for defined-benefit pension schemes are determined using a linear accrual formula and 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 fixtures and fittings, IT systems and properties used by the Group for its own activities.

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 revaluation
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 useful
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.

126

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 income
statement.

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

18. Provision for dividends
The proposed dividend is classified as equity until approved by the general meeting and presented as liabilities after this date. The proposed
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
depreciation 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
statements were prepared.

A description of the most important elements and assessments in which discretion is used and which may influence recognised amounts
or key figures is provided below and in Note 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.

127

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 104Statement of total comprehensive income 105Statement of Financial Position 106Statement of changes in equity 108Statement of cash flow 109Notes 112Storebrand ASAIncome statement 198Statement of total comprehensive income 198Statement of Financial Position 199Statement of changes in equity 200Statement of cash flow 201Notes 203Declaration by members of the Board and the CEO 215Independent auditor’s report 2168. Corporate governance9. Sustainability Assurance10. Appendix
In the consolidated accounts, insurance liabilities with a guaranteed interest rate are included, but using different principles in the
Norwegian and the Swedish activities. An immaterial asset (value of business in-force – VIF) linked to the insurance contracts in the
Swedish activities 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 2.9 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
impairment 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 insurance 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
valuation during a 3 year period.

Reference is also made to Notes 8 and 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 properties, and other financial instruments where theoretical models are used in pricing. Any changes to the assumptions could
affect recognised amounts. The majority of such financial instruments are included in the customer portfolio.

There is uncertainty linked to the valuation of fixed-rate loans recorded at fair value, due to variation in the interest rate terms offered
by banks and since individual borrowers often have different credit risks.

Reference is also made to note 13, in which the valuation of financial instruments at fair value is described in more detail.

128

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 managers of alternative investment
funds. 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
review 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. The Ministry of Finance conducted
an assessment of this issue in January 2023. In the view of the Ministry of Finance, the Insurance Activities Act does not adequately clarify
that there is a requirement for using gross method accounting. In light of the fact that the legal status is considered unclear, and in order to
ensure uniform practice in the industry, the Ministry is of the opinion that there is a need to clarify the rules by way of legislative or regulatory
amendment.

The Ministry of Finance has therefore asked the Financial Supervisory Authority of Norway to carry out an assessment of how management
fees associated with the investment of customer funds into funds should be treated in accordance with the rules for price tariffs and profits,
and that the Financial Supervisory Authority of Norway prepares a consultation memo with proposed statutory or regulatory provisions
based on this assessment.

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 estimates.

The Group’s business activities may give rise to disputes, etc. related to tax positions with an uncertain outcome. The Group makes provisions
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.

Note 3: Acquisitions

DANICA PENSJONSFORSIKRING NORGE
Storebrand Livsforsikring AS has acquired Danica Pensjonsforsikring AS. Danica is the sixth largest provider of defined-contribution pensions
in Norway, with a 5 per cent market share. In addition to managing NOK 22 billion in defined-contribution pensions for 14,000 companies
and 98,000 active members, Danica manages NOK 6 billion of retail savings and a portfolio of guaranteed products of NOK 1 billion. Total
assets under management amount to approximately NOK 30 billion. Danica also offers commercial and personal risk products, totalling
approximately NOK 300 million in annual premiums for own account. The transaction was completed on 1 July 2022.

The transaction was announced on 20 December 2021, and was approved by the Financial Supervisory Authority of Norway in June 2022. In
connection with the acquisition, the company has changed its name to Storebrand Danica Pensjonsforsikring AS. A parent-subsidiary merger
was completed on 2 January 2023.

129

Book values in the

Excess value upon

company

acquistion

Book values

Assets

- Distribution

- Customer relationships

- IT systems

Total intangible assets

Financial assets

Other assets

Bank deposits

Total assets

Liabilities

Insurance liabilities

Current liabilities

Deferred tax

Net identifiable assets and liabilities

Goodwill

Fair value at acquisition date/cash payment

INCOME STATEMENT

Income 1)

Profit 2)

28,479

309

362

29,170

27,724

282

1,140

260

809

-21

1,048

240

722

260

809

1,069

28,479

309

362

30,218

27,792

300

264

1,862

186

2,048

After acquisition

Before acquisition

2,905

-782

1) According to the Group’s statement, income includes premium income, net financial result and other income.

2) According to the Group’s statement, profit includes premium income, claims, changes in insurance liabilities, financial result and other income and expenses.

S:t Erik Livsförsäkring AB
SPP Pension & Försäkring acquired S:t Erik Livsförsäkring AB on 8 July 2022. The company manages the City of Stockholm’s pension agreements
through the employees of the Stockholm Stadshus Group. The company manages approximately SEK 2.3 billion, distributed among 5,000
members. The company was merged with SPP Pension & Försäkring from 1 November 2022.

ACQUISITION ANALYSIS S:T ERIK

Assets

- Customer relationships

Total intangible assets

Financial assets

Other assets

Bank deposits

Total assets

Liabilities

Insurance liabilities

Deferred tax

Net identifiable assets and liabilities

Fair value at acquisition date/cash payment

Book values in the

Excess value upon

company

acquistion

Book values

2,289

382

2,733

2,443

260

2,289

382

2,703

2,443

230

130

Income 1)

Profit 2)

Etter overtakelse 3)

Før overtakelse

-77

-160

-26

1) According to the Group’s statement, income includes premium income, net financial result and other income.

2) According to the Group’s statement, profit includes premium income, claims, changes in insurance liabilities, financial result and other income and expenses.

3) Following acquisition is from the date of purchase until 1 November 2022, when St:Erik was merged with SPP Pension og Försäkring AB

QUANTFOLIO AS
Storebrand Asset Management AS purchased 3,100,000 shares in Quantfolio AS on 11 January 2022 at a purchase price of NOK 65
million. This represents a 34.13% ownership interest in the company. Quantfolio is a fintech company that provides B2B(2C) advisory
technology to banks and asset managers throughout the Nordic region.

KRON AS
Storebrand ASA entered into an agreement to acquire the Norwegian fintech company Kron AS (”Kron”), and the transaction was
approved by the Financial Supervisory Authority of Norway in December 2022. The company has its office in Oslo. The transaction was
completed on 3 January 2023.

Kron offers its customers a wide selection of funds through engaging digital tools and digital consulting. The company was established
in 2017 as a spin-off from the Nordic financial advisory firm, Formue. Approximately NOK 7 billion is managed on behalf of 67,000 retail
market customers who have established an investment account on Kron’s platform. Kron has also assumed a position as a popular
alternative for people who want to manage their pension account with a provider of their choice.

The purchase price (equity value) was NOK 399 million. Additional consideration will be contingent on future business development at
Kron. Kron’s annual financial statements were not completed as of 31 December 2022, and an acquisition analysis will be presented in
the quarterly accounts for the first quarter of 2023.

Note 4: Resultat per segment

Storebrand’s business activities are divided into the following result areas: Savings, Insurance, Guaranteed Pension and Other.

Savings
Consists of products that include long-term saving for retirement with no interest rate guarantees. The business area consists of defined
contribution pensions in Norway and Sweden, asset management and retail banking products. In addition, certain other subsidiaries
are part of Storebrand Livsforsikring and SPP.

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
insurances.

Other
The result for the holding company Storebrand ASA is reported under Other, as well as the result for the company portfolios 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.

131

Reconciliation between the profit and loss statement and alternative statement of the result (segment)
The results in the segments are reconciled against the Group result before amortisation and write-downs of intangible assets. The
Group’s income statement includes gross income and costs linked to both the insurance customers and owners (shareholders). The
alternative statement of the result only includes result elements relating to owners (shareholders) which are the result elements that the
Group has performance measures and follow-up for. The result lines that are used in segment reporting will therefore not be identical
with the result lines in the corporate profit and loss account. Below is an overall description of the most important differences.

Fee and administration income consists of fees and fixed administrative income. In the Group’s income statement, the item is classified
as premium income, net interest income from bank or other income depending on the type of activity. The Group’s income statement
also includes savings elements for insurance contracts and possibly transferred reserve.

Price of return guarantee and profit risk (fee incomes) – Storebrand Life Insurance AS
The return guarantees in group pension insurance with a return guarantee must be priced upfront. The level of the return guarantee,
the size of the buffer capital (additional statutory reserves and unrealised gains), and the investment risk of the portfolio in which the
pensions assets are invested determine the price that the customer pays for his or her return guarantee. Return guarantees are priced
on the basis of the risk to which the equity is exposed. The insurance company bears all the downside risk and must carry reserves
against the policy if the buffer reserves are insufficient or unavailable.

The insurance result consists of insurance premiums and claims

Insurance premiums consist of premium income relating to risk products (insurance segment) that are classified as premium income in
the Group’s income statement.

Claims consist of paid-out claims and changes in provisions for claims incurred but not reported (IBNR) and claims reported but not
settled (RBNS) relating to risk products that are classified as claims in the Group’s income statement.

Administration costs consist of the Group’s operating costs in the Group’s income statement minus operating costs allocated to traditional
individual products with profit sharing.

Financial items and risk result life and pensions include risk result life and pensions and financial result includes net profit sharing and
Loan Losses.

Risk result life and pensions consists of the difference between risk premium and claims for products relating to defined-contribution
pension, unit linked insurance contracts (savings segment) and defined-benefit pension (guaranteed pension segment). Risk premium
is classified as premium income in the Group’s income statement.

The financial result consists of the return for the company portfolios of Storebrand ASA, Storebrand Livsforsikring AS and SPP Pension
& Försäkring AB (Other segment), while returns for the other company portfolios in the Group are a financial result within the segment
which the business is associated with. Returns on company portfolios are classified as net income from financial assets and property
for companies in the Group’s income statement. The financial result also includes returns on customer assets relating to products
within the insurance segment, and in the Group’s income statement this item will be entered under net income from financial assets
and property for customers.

Net profit sharing
Storebrand Livsforsikring AS
A modified profit-sharing regime was introduced for old and new individual contracts that have left group pension insurance policies
(paid-up policies), which allows the company to retain up to 20 per cent of the profit from returns after any allocations to additional
statutory reserves. The modified profit-sharing model means that any negative risk result can be deducted from the customers’ interest
profit before sharing, if it is not covered by the risk equalisation fund.

Individual endowment insurance and pensions written by the Group prior to 1 January 2008 will continue to apply the profit rules
effective prior to 2008. New contracts may not be established in this portfolio. The Group can retain up to 35 per cent of the total result
after allocations to additional statutory reserves.

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

132

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
indexing 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 guaranteed 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 RESULT BY RESULT AREA

NOK million

Savings

Insurance

Guaranteed pension

Other

Group profit before amortisation

Amortisation of intangible assets

Group pre-tax profit

2022

1,653

580

903

-420

2,716

-596

2,120

2021

2,355

423

1,432

293

4,503

-527

3,976

133

Fee and administation income

Insurance result

- Insurance premiums f.o.a.

- Claims f.o.a.

Operating cost

Operating profit

Financial items and risk result life & pension

Group profit before amortisation

Amortisation of intangible assets 1)

Group pre-tax profit

NOK million

Fee and administation income

Insurance result

- Insurance premiums f.o.a.

- Claims f.o.a.

Operating cost

Operating profit

Financial items and risk result life & pension

Group profit before amortisation

Amortisation of intangible assets 1)

Group pre-tax profit

Savings

2022

4,733

2021

5,215

Insurance

Guarranteed pension

2022

2021

2022

1,597

2021

1,631

1,670

6,088

-4,419

-1,112

558

580

1,201

5,175

-3,974

-875

326

423

-850

747

157

903

-3,031

1,701

-49

1,653

-2,927

2,288

2,355

Other 2)

Storebrand Group

2022

-267

2021

-239

-15

-282

-138

-420

-225

518

293

2022

6,062

1,670

6,088

-4,419

-5,008

2,724

-8

2,716

-596

2,120

-890

741

691

1,432

2021

6,607

1,201

5,175

-3,974

-4,678

3,130

1,372

4,503

-527

3,976

1) Amortisation of intangible assets are included in Storebrand Group

2) Includes eliminations of group transactions

GEOGRAPHICAL DISTRIBUTION

The Storebrand Group are represented in the following countries:

Segment/Land

Norway

Sweden

Savings

Insurance

Guaranteed pension

Other

Finland

Denmark

Germany

Luxemburg

Ireland

134

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

2022

2021

5.07

37,935

23,483

314,992

1,019,988

67,061

7,822

73 %

18 %

91 %

273,465

46.5 %

-2,892

6.3 %

19.6 %

184 %

49,570

21.3 %

17.2 %

6.68

37,709

21,212

308,351

1,096,556

57,033

6,445

77 %

17 %

94 %

290,862

48.5 %

-2,591

11.2 %

17.8 %

175 %

74,074

20.3 %

16.8 %

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.

135

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 populations. 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.

Styret

Konsernsjef

Konsernledelsen

CRO Konsern
Uavhengige kontrollfunksjoner

Internrevisjon

Risiko-
styring

Aktuar-
funksjoner

Compliance

Anti-hvit-vasking
(AML)

Personvern
(DPO)

The boards of directors of both Storebrand ASA and the group companies have the overall responsibility for limiting and following up the
risks associated with the activities. The boards set annual limits and guidelines for risk-taking in the company, receive reports on the actual
risk levels, and perform a forward-looking assessment of the risk situation.

The Board of Storebrand ASA has established a Risk Committee consisting of 3 Board members. The main task of the Risk 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 compliance with the regulations (Compliance Function), for ensuring the insurance liabilities are calculated correctly (Actuary Function),
for data protection (Data Protection Officer), for money laundering (Anti Money Laundering) and for the bank’s lending. Relevant functions
have been established for both the Storebrand Group (the Group) and all of the companies requiring a licence. The independent control
functions are organised directly under the companies’ managing directors and report to the respective company’s board.

In terms of function, the independent control functions are affiliated with Governance Risk & Compliance (GRC). GRC is a knowledge
community headed 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.

136

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 purpose of operational risk management is to avoid operational incidents that impact customers, result in serious operational
disruptions, violations of regulations and/or direct financial loss.

The Group seeks to reduce operational risk through an effective system for internal control. Risks are followed up through the
management’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.

Cyber risk is becoming an increasingly more important operational risk. The threat landscape for cybercrime broadened in 2022 due
to, among other things, organized crime and heightened geopolitical tensions. As a result of this situation, Storebrand had an elevated
level of preparedness during parts of 2022.

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.

Stable and secure technology and infrastructure are vital to the business and for reliable financial reporting. Errors and disruptions
may impact both customer and shareholder trust. In a phase of the transition to cloud-based technology services, greater attention is
being paid to the complexity and integrations in existing solutions. Cloud-based services and infrastructure have good inbuilt security
solutions and reduce the risk associated with self-developed systems and, in the long term, outdated infrastructure. For those parts of
the technology services that have been outsourced, risk-based follow-up of providers has been established with the aim of managing
the risk associated with the IT systems’ development, management, operation and information security.

Note 7: Insurance risk

Storebrand offers traditional life and pension insurance as both group and individual contracts. Contracts are also offered in which the
customer has the choice of investment.

The insurance risk in Norway is largely standardised for contracts within the same product category as a result of detailed regulation
from the authorities. In Sweden, the framework conditions for insurance contracts entail major differences between the contracts within
the same product category.

The insurance risk associated with an increase in life expectancy and thereby an increase in future pension payments (long life expectancy)
is the greatest risk for the Group. Other risks include disability risk and mortality risk. The life insurance risks are:

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.

137

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 104Statement of total comprehensive income 105Statement of Financial Position 106Statement of changes in equity 108Statement of cash flow 109Notes 112Storebrand ASAIncome statement 198Statement of total comprehensive income 198Statement of Financial Position 199Statement of changes in equity 200Statement of cash flow 201Notes 203Declaration by members of the Board and the CEO 215Independent auditor’s report 2168. Corporate governance9. Sustainability Assurance10. Appendix
In the Guaranteed Pensions segment, the Group has a significant insurance risk relating to estimation of life expectancy and future
pension payments for group and individual insurance agreements. In addition, there is an insurance risk associated with estimates of
disability and pensions left to spouses and/or children. The disability coverage in Guaranteed Pensions is primarily sold together with
a retirement pension. The risk of mortality is low in Guaranteed Pensions when viewed in relation to other risks. In SPP it is possible
to change the future premiums for the IF portfolio, reducing the risk significantly. In Norway it is also possible to change the future
premiums of group policies, but only for new accumulation, entailing reduced risk.

Occupational pension agreements (hybrid) are reported in the Guaranteed Pension segment when a customer has an agreement
without a choice for investment of the pension assets. This is a small portfolio with limited insurance risk.

In the Savings segment the Group has a low insurance risk. The insurance risk is largely associated with death, with some long-life risk
for paid-up policies with investment options. Own pension account is also included in the Savings segment. Storebrand has no insurance
risks related to own pension accounts.

Occupational pension agreements (hybrid) are reported in the Savings segment when a customer has an agreement with a choice for
investment of the pension assets. This is a small portfolio with limited insurance risk.

In the Insurance segment, the Group has an insurance risk associated with disability and death. In addition, there are insurance risks
associated with occupational injury, critical illness, cancer insurance, child insurance, 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 insurance
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 associated with the effect of the outbreak of Covid-19 on the insurance risk at Storebrand Livsforsikring. On
the whole, it has been found that there is a need for the extraordinary provisions related to Covid-19, because there is considered
to be an increased risk of disability among cohorts in connection with society having been locked down. This is linked to the effect
in industries directly impacted by lockdowns among people who were able to remain in full-time employment despite reduced work
capacity. It is also linked to greater pressure on industries in which employees are/were exposed to stress as a result of being required
to travel to work while being exposed to the risk of contracting a virus that the authorities wanted to protect the population from.
Some choose to leave their jobs. Others who have underlying illnesses, injuries or the like who qualify for sick leave with subsequent
work assessment allowance use this rather than resigning or continuing to work. As an example, during the pandemic, there was a
great deal of media attention around kindergarten employees who wanted to be prioritized for vaccination, precisely because of this
same factor. The pandemic started almost three years ago and the effect of increased disability has still not fully materialized in the
company’s standard provision models. The provisions as at 31 December 2022 are the company’s best estimate and these provisions
are considered adequate.

Rules for pensions from the first krone and day entered into force
The rules for pensions from the first krone and day entered into force on 1 January 2022. The companies were given until 30 June 2022
to adjust their pension schemes to the new rules. Among other things, the new rules entail that there are 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) has been removed. Furthermore, the minimum requirement of having
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 are no longer be separate exemption rules for seasonal
workers.

The overall annual increased savings for Storebrand Livsforsikring are estimated at NOK 600 million. Increased savings also depend on
how companies with savings rates that are higher than the minimum rate will potentially adapt the pension scheme.

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).

138

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 insurance
companies on the basis of their shared experience. This applies to both endowment and pension insurance. Disability premiums are
based on the company’s own experience.

The 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.

Management of insurance risk
Insurance risk is monitored separately for every line of insurance in the current insurance portfolio. The development of the risk results
is followed throughout the year. For each type of risk, the ordinary risk result for a period represents the difference between the risk
premiums the company has collected for the period and the 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 disability
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.

139

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

2022

2021

2022

2021

192

250

475

-8

933

281

180

-1

-38

-2

447

-16

-2

-17

123

-1

-22

139

Storebrand

Danica Pensjons-

forsikring 1)

2022

-14

-1

1) Figures for the entire year 2022, are included in the consolidated accounts from 1st July 2022.

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 2022, and these therefore had no impact on the
results in the financial statements for 2022.

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 long life expectancy

140

Guaranteed pension

NOK million

private sector

public sector

pension

Paid-up policies

guarantee

Total

Group pension

Occupational

Individual with

Mortality

Longevity

Disability

Recovering to work after
disability

-3

-6

-3

-1

-2

-1

-3

-16

-19

-74

-10

-4

-8

-3

-25

-93

-17

-23

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.
The table below shows the estimated increase in the premium reserve.

Effect on result before tax

private sector

public sector Paid-up policies

guarantee

Group pension

Individual with

Mortality

Disability/recovering

243

154

1,118

206

Total

1,584

277

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.

GUARANTEED PENSION AND SAVING - SWEDISH BUSINESS (SPP PENSION & FÖRSÄKRING)

SEK million

Mortality

Longevity

Disability

Recovering to work
after disability

Guaranteed pension

Savings

Individual pension and occupational

pension insurance

Group pension

Unit Linked

-5

Total

-23

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 long life expectancy and mortality have their full impact in SPP’s result.

Furthermore, the need for increased provisions has been estimated as a result of a permanent change in the assumptions. The table
below shows the estimated increase in the premium reserve. Disability cover for IF also includes risk insurance that is linked to Funds.

SEK million

Mortality

Disability/recovering

Individual pension and occupational pension

insurance

Group pension

259

556

Total

814

141

Effect on profit before tax

5 per cent change in premium income

5 percentage point change in combined ratio

NOK million

304

277

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 percentage
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.

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. Nevertheless,
changes in value do affect Storebrand’s profit indirectly. Income is based largely on the size of the reserves, while the costs tend to be fixed.
Lower returns on the financial market than expected will therefore have a negative effect on Storebrand’s future income and profit.

For customer portfolios with a guarantee, the net risk for Storebrand will be lower than the gross market risk. The extent of measures to
reduce risk depends on several factors, the most important being the size and flexibility of the customer buffers and level and duration
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. Rising interest rates are a negative factor for
the investment return in the short term because falling prices for bonds and interest rate swaps reduce investment returns and customer
buffers. However, they are positive in the long term because this increases the likelihood of a return higher than the guarantee. Both short-
term money market rates and long-term interest rates increased significantly in Norway and Sweden in 2022.

The composition of the assets within each sub-portfolio is determined by the company’s investment strategy. The investment strategy
also establishes guidelines and limits for the company’s risk management, credit exposure, counterparty exposure, currency risk, use of
derivatives, and requirements regarding liquidity.

ASSET ALLOCATION

Properties at fair value

Bonds at amortised cost

Money market

Bonds at fair value

Equities at fair value

Loans at amortised cost

Other

Total

Customer portfolios

with guarantee

without guarantee

Company

portfolios

13 %

40 %

7 %

15 %

8 %

17 %

0 %

2 %

0 %

1 %

16 %

79 %

2 %

0 %

1 %

27 %

15 %

37 %

0 %

19 %

1 %

100 %

142

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 share allocation and interest rate sensitivity of the investments were reduced during 2022. 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.

Inflation and economic uncertainty continued to increase during 2022 and global GDP growth expectations were sharply revised
downwards throughout the year. Inflation driven by supply chain bottlenecks, possible energy crisis and risk of recession, together with
Russia’s invasion of Ukraine, impacted both the news situation and economic uncertainty. Central banks have commenced a series of
resolute interest rate increases in an attempt to avoid further rising and/or continued inflation. The equity markets have been volatile
and experienced a sharp decline since peaking around the New Year. Recession in the Eurozone has, in many ways, become the
consensus, and the question now is to what extent future bailouts in the form of energy subsidies or for the labour market will curb
the recession that was partly triggered by the war and subsequent energy crisis. Norges Bank has raised the key policy rate by 2.25
percentage points to 2.75 per cent and is signalling a further increase to about 3 per cent in 2023. Sveriges Riksbank (central bank of
Sweden) has raised its key policy rate to 2.25 per cent from zero and is signalling that the interest rate will increase to just below 3 per
cent in early 2023.

The aforementioned economic uncertainty means that there is an elevated risk associated with the valuation of financial instruments.
Storebrand has established risk management through guidelines and principles that mitigate the effect of volatile financial markets,
however investment results are impact by the market downturn. There is thus greater uncertainty related to pricing of financial
instruments that are priced on the basis of models, and it has to be assumed that, when concerning illiquid assets, there is a difference
between the estimated value and the price achieved when sold in the market. Valuations related to investment properties are considered
to have particularly increased uncertainty as a result of macroeconomic developments, and the total transaction volume for investment
properties was significantly lower in 2022 when compared to 2021. Furthermore, the valuation of investment properties is sensitive to
changes in input factors such as inflation and interest rates. There is a wide spectrum of possible outcomes for these input factors and
thus for the modelled valuations. The values therefore reflect management’s best estimate, however contain greater uncertainty than
what would be the case in a normal year.

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 currency
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.

143

Balance sheet items

excluding currency

NOK million

Net in balance sheet

Net sales

in currency

in NOK

derivatives

Forwad contracts

Net position 2021

Net position 2020

DKK

CHF

HKD

CAD

EUR

GBP

JPY

SEK

USD

NOK1)

Other currency types

Insurance liabilities in SEK

Total net currency positions

124

163

173

1,817

26,843

235,965

3,373

65,664

-246

-106

-582

-425

-1,578

-306

-60,172

-14,314

-6,131

-582

-122

-37

-419

-252

239

-208

-33,329

221,651

-2,758

65,082

-227,393

-172

-399

-528

-1,831

2,513

-2,470

-2,493

209,557

-27,170

65,082

-407

-214,985

26,695

-102

-178

-682

-1,203

-807

-1,668

-1,567

244,595

-16,320

61,158

-312

-244,602

38,313

1) Equity and bond funds denominated in NOK with foreign currency exposurein i.a. EUR and USD NOK 62 billion.

The table above shows the currency positions as at 31 December 2022. The currency exposure is primarily related to investments in
the Norwegian and Swedish insurance business.

Storebrand Life Insurance:
The company hedges most of the foreign exchange risk in the customer portfolios on an ongoing basis. Foreign exchange risk exists
primarily as a result of investments in international securities, as well as subordinated loans in a foreign currency to a certain extent.
Hedging is performed by means of forward foreign exchange contracts at the portfolio level, and the currency positions are monitored
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 uses a principle for currency hedging called block
hedging, which strealines the implementation of currency hedging.

SPP:
SPP uses currency hedging for its investments to a certain degree. Currency exposure may be between 0 and 30 per cent in accordance
with the investment strategy.

Storebrand Danica Pensjonsforsikring:
The company hedges net items on the balance sheet with forward contracts and there is virtually no foreign exchange risk in the company
and guaranteed customer portfolios. For non-guaranteed customer portfolios, there is partial hedging with foreign exchange contracts
in the funds, however this will also involve a significant foreign exchange risk.

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 0.30 per cent of primary capital, which is approximately 13 million at present.

Guaranteed customer portfolios in more detail

Storebrand Livsforsikring
The annual guaranteed return to the customers follows the basic interest rate. New premiums were taken in with a basic interest rate
of 2.0 per cent, and pensions were adjusted upwards with a basic interest rate of 0.5 per cent.

The percentage distribution of the insurance reserves by the various basic annual interest rates as at 31 December is as follows:

144

6.00 %

5.00 %

4.00 %

3.40 %

3.00 %

2.75 %

2.50 %

2.00 %

1.50 %

0.50 %

0.00%

The table includes premium reserve including IBNS.

Average interest rate guarantee in per cent

Individual endowment insurance

Individual pension insurance

Group pension insurance

Paid-up policy

Group life insurance

Total

Tabell inkluderer premiereserve inklusive IBNS.

2022

0.2 %

36.9 %

0.4 %

28.1 %

1.6 %

10.1 %

16.5 %

2.6 %

2.2 %

1.2 %

2022

2.4 %

3.8 %

2.2 %

3.2 %

0.1 %

2.9 %

2021

0.2 %

39.4 %

0.4 %

28.6 %

1.7 %

10.4 %

14.2 %

2.2 %

1.8 %

0.9 %

2021

2.5 %

3.8 %

2.3 %

3.2 %

0.1 %

3.0 %

There is a 0 per cent interest rate guarantee for premium funds, defined-contribution funds, pensioners’ surplus funds and additional
statutory reserves.

The interest rate guarantee must be fulfilled on an annual basis. If the company’s investment return in any given year is lower than the
guaranteed interest rate, the equivalent of up to one year’s guaranteed return for the individual policy can be covered by transfers from
the policy’s additional statutory reserves.

To achieve good, risk-adjusted returns, it is desirable to take an investment risk. This is primarily done by investing 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 important
risk management tool.

145

Interest rate

2.75 %

2.50 %

2.00 %

The table includes premium reserve excluding IBNS

Average interest rate guarantee in per cent

Individual pension insurance

Group pension insurance

Total

The table includes premium reserve including IBNS

2022

11.0 %

15.0 %

74.0 %

2022

2.0 %

2.1 %

SPP Pension & Försäkring
The guaranteed interest rate is determined by the insurance company and is used when calculating the premium and the guaranteed
benefit. The guaranteed interest rate does not entail that there is an annual minimum guarantee for the return as is the case in Norway.

New premiums in individual defined-contribution pensions (IF) have a guarantee of 1.25% for 85% of the premium. Group defined-
benefit pension (KF) is closed to new members.

SPP bears the risk of achieving a return equal to the guaranteed interest on the policyholders’ assets over time and that the level of the
contracts’ assets is greater than the present value of the insurance liabilities. For IF, profit sharing becomes relevant in SPP if the return
exceeds the guaranteed yield. The contracts’ buffer capital must be intact in order for profit sharing to represent a net income for SPP.
In the case of KF, a certain degree of consolidation, i.e. that the assets are greater than the present value of the liabilities by a certain
percentage, is required in order for the owner to receive profit-sharing income (indexing fee).

If the assets in an insurance contract in the company are less than the market value of the liability, an equity contribution is allocated
that reflects this value shortfall. This is termed a deferred capital contribution (DCC), and changes in DCC are recognised in the profit
and loss account as they occur. When the contracts’ assets exceed the present value of the liabilities, a buffer, which is termed the
conditional bonus, is established. Changes in this customer buffer are not recognised in the profit and loss account.

Interest rate

5.20 %

4,5%-5,2%

4.00 %

3.00 %

2,75%-4,0%

2.70 %

2.50 %

1.60 %

1.50 %

1.25 %

1,25% *

0,5%-2,5%

0.00 %

* 1,25 per cent on 85 per cent of the premium

146

2022

9.3 %

0.0 %

4.9 %

48.5 %

4.8 %

0.0 %

5.1 %

0.0 %

2.3 %

6.3 %

12.1 %

1.8 %

4.8 %

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 %

Individual pension insurance

Group pension insurance

Individual occupational pension insurance

Total

2.8 %

3.1 %

3.0 %

2021

3.0 %

2.9 %

3.1 %

In the Swedish operations management of interest rate risk is based on the principle that the interest rate risk from assets shall
approximately 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 as a result of immediate changes in
value related to financial market risk. The calculation is model-based and the result is dependent on the choice of stress level for each
category of asset. The stresses have been applied to the company portfolio and guaranteed customer portfolios as at 31 December
2022. The effect of each stress changes the return in each profile.

Unit linked insurance without a guaranteed annual return is not included in the analysis. For these products, the customers bear the
market risk and the effect of a falling market will not directly affect the result or buffer capital.

The amount of stress is the same that is used for the company’s risk management. Two stress tests have been defined. Stress test 1 is
a fall in the value of shares, corporate bonds and property in combination with lower interest rates. Stress test 2 is a somewhat smaller
fall in the value of shares, corporate bonds and property in combination with higher interest rates.

LEVEL OF STRESS

Interest level (parallel shiftt)

Equity

Property

Credit spread (share of Solvency II)

Stresstest 1

Stresstest 2

-100bp

-20 %

- 12 %

50 %

+100bp

- 12 %

- 7 %

30 %

Because it is the immediate market changes that are calculated, dynamic risk management will not affect the outcome. If it is assumed
that the market changes occur over a period of time, then dynamic risk management would reduce the effect of the negative outcomes
and reinforce the positive to some extent.

As a result of customer buffers, the effect of the stresses on the result will be lower than the combined change in value in the table. As
at 31 December 2022, 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

1,452

-1,914

-2,884

-864

-4,210

0.6%

-0.9 %

-1.3 %

-0.4 %

-1.9 %

-171

-2,353

-1,490

-712

-4,725

-0.2%

-2.6 %

-1.7 %

-0.8 %

-5.3 %

Storebrand Life Insurance

SPP Pension & Försäkring

NOK Million

Share of portfolio

NOK Million

Share of portfolio

-1,452

-1,149

-1,682

-518

-4,801

147

-0.6 %

-0.5 %

-0.8 %

-0.2 %

-2.1 %

171

-1,412

-869

-427

-2,537

0.2 %

-1.6 %

-1.0 %

-0.5 %

-2.8 %

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 4.8 billion, which is equivalent to 2.1 per cent of the investment portfolio.

If the stress causes the return to fall below the guarantee, it will have a negative impact on the result if the customer buffer is not
adequate. Other negative effects on the result are a lower return from the company portfolio and that there is no profit sharing from
paid-up policies and individual contracts.

SPP Pension & Insurance
For SPP it is stress test 1, which includes a fall in interest rates, that creates the greatest impact. The overall market risk is SEK 4.7 billion,
which is equivalent to 5.3 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.

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 investments 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 management and liquidity

indicators. The Bank’s risk strategy stipulates that the liquidity risk must be low to moderate. 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.

148

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

291

605

403

2-3

years

4,556

4-5

Total

booked

Total

booked

years

> 5 years

cashflows

value 2022

value 2021

5,147

4,790

15,389

10,585

11,441

403

502

19,165

157

19,478

17,239

4,724

10,511

4,087

15,975

3,246

58,717

-137

1,141

15,958

13,498

780

109

32,791

10,630

24,924

14,643

36,101

10,630

4,087

15,975

3,246

1,441

20,684

18,741

5,727

105,310

73,887

2,276

147

-72

17,127

12,862

-13

4,313

-5

94,297

68,749

Total financial liabilities 2021

57,719

Derivatives related to funding

2021

-118

-96

-88

-154

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.

149

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 5)

Storebrand Livsforsikring AS 3) 5)

Storebrand Livsforsikring AS 3) 6)

Storebrand Livsforsikring AS 3) 5)

Storebrand Bank ASA

Nominal value

Currency

Interest

Maturity

2022

2021

Book value

1,100

900

899

900

1,000

500

650

750

1,250

300

150

125

300

400

NOK

SEK

NOK

EUR

NOK

Variable

Fixed

Variable

Fixed

Variable

2,024

2,026

2,022

2,025

2,024

2,025

2,027

2,023

2,031

2,022

2,025

2,026

2,027

1,101

856

1,100

876

976

877

976

499

2,685

2,876

150

125

300

851

947

500

651

773

1,261

421

2,397

126

300

402

Total subordinated loans and hybrid tier 1 capital

10,585

11,441

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 Novmeber 2022

5) Green bonds

6) The loan has partly been repaid 2021 and December 2022

SPECIFICATION OF LOANS AND DEPOSITS FROM CREDIT INSTITUTIONS

NOK million

Call date

2022

2023

Total loans and deposits from credit institutions

SPESIFICATION OF SECURITIES ISSUED

NOK million

Call date

2022

2023

2024

2025

2026

2027

2031

Total securities issued

150

Book value

2022

403

Book value

2022

4,321

6,110

8,326

7,375

5,907

752

32,791

2021

502

2021

5,532

3,282

6,100

6,139

3,075

795

24,924

Covered bonds
Covered bonds are issued by Storebrand Boligkreditt. There is a regulatory requirement for minimum overcollateralisation of 5 per cent.

Credit facilities
Storebrand ASA has an unused credit facility of EUR 200 million which will run until December 2025.

FINANCING ACTIVITIES - MOVEMENTS DURING THE YEAR

Subordinated

Liabilities to financial

Securities

NOK million

Book value 1.1.22

Admission of new loans/liabilities

Repayment of loans/liabilities

Change in accrued interest

Exchange rate adjustments

Change in value/amortisation

Book value 31.12.22

Note 10: Credit risk

loan capital

institutions

502

16,690

-16,789

11,441

3,048

-2,708

-82

-496

-618

10,585

issued

24,924

9,822

-1,932

-94

403

32,791

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.

151

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
securities

Total interest
bearing securities
stated by rating

Bond funds not
managed by
Storebrand

Non-interest bearing
securities managed
by Storebrand

Total

Total 2021

AAA

Fair

value

20,780

15,482

Fair

value

6,919

5,019

5,021

106

Fair

value

BBB

Fair

value

NIG

Fair

value

Not rated

Total

Fair

Fair value

value

2022

2021

290

29,661

30,403

2,222

1,683

27,992

84,469

34,068

100,233

5,173

6,405

41,283

12,043

29,995

30,501

2,222

1,683

117,727

140,749

41,283

48,000

12,043

17,056

29,995

34,613

30,501

34,962

2,222

4,513

1,683

1,604

36,592

24,224

1,897

156,215

3,543

168,516

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 2021

AAA

Fair

value

Fair

value

Fair

value

BBB

Fair

value

NIG

Fair

value

Not rated

Total

Fair

Fair value

value

2022

2021

15,708

5,982

958

22,648

24,886

14,562

8,642

1,843

20,048

18,396

128

18,529

14,868

32,112

71,725

14,868

958

23,204

21,966

21,890

26,135

18,396

15,558

128

41,181

33,397

119,664

29,574

81,451

17,788

913

129,726

152

NOK million

Derivatives

Of which derivatives
in bond funds,
managed by
Storebrand

Total derivatives
excluding
derivatives in bond
funds

Total derivatives
excluding derivatives
in bond funds 2021

Bank deposits 1)

Of which bank
deposits in bond
funds, managed by
Storebrand

Total bank deposits
excluding bank
deposits in bond
funds

Total bank deposits
excluding bank
deposits in bond
funds 2021

Loans to financial
institutions

1) of which tied-up

bank deposit (tax

deduction account)

AAA

Fair

value

175

Fair

value

1,513

Fair

value

10,330

BBB

Fair

value

NIG

Fair

value

Not rated

Total

Fair

Fair value

value

2,666

2022

14,684

2021

5,208

138

201

341

293

175

1,375

10,129

2,664

14,343

1,611

4,281

2,985

11,200

256

213

210

15,955

4,915

11,690

1,189

256

1,445

1,704

4,281

10,012

210

14,510

318

3,769

5,900

356

9,987

109

358

324

Rating classes based on Standard & Poor’s.

NIG = Non-investment grade.

153

CREDIT RISK FOR THE LOAN PORTFOLIO

COMMITMENTS BY CUSTOMER GOUPS

Lending to and

NOK million

customers

credit-lines

commitments

write- downs

commitments

receivables 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

receivables from

customers 2021 1)

Total loans to and

receivables from

customers 2020 2)

1) 2022:

- Of which

Storebrand Bank

- Of which

10,268

66,659

1,761

78,693

-332

-60

3,875

3,898

10,268

70,534

1,784

82,591

-332

-60

78,300

3,898

82,198

69,486

3,384

72,870

49,917

3,737

53,654

Storebrand Livsforsikring

28,385

161

28,546

2) 2021:

- Of whcih Storebrand

Bank

- Of which Storebrand

Livsforsikring

38,992

3,322

42,314

30,495

30,556

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
administered by Storebrand Bank, but a significant share of the loans have been transferred to Storebrand Livsforsikring as a part of the
investment portfolio. Storebrand Livsforsikring and SPP also have loans to companies as part of the investment portfolio. Storebrand
Bank’s corporate market segment has largely been discontinued.

As at 31 December 2022, Storebrand had net loans to customers totalling NOK 78.7 billion before provisions for losses of NOK 0.4
billion. Of this, NOK 12.0 billion was to the corporate market and NOK 66.7 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. There is a low level of non-performing loans in the retail market portfolio.

The weighted average loan-to-value ratio for home loans is approximately 57 per cent. Approximately 57 per cent of home loans have a
loan-to-value ratio within 60 per cent, 97 per cent are within a 85 per cent loan-to-value ratio, and 99 per cent are within a 100 per cent
loan-to-value ratio. The portfolio is considered to have a low credit risk.

154

NOK million

Up to one month

1 - 3 months

4 months - 1 year

2 -5 years

More than 5 years

Total gross commitments

2022

2021

Loans to and

receivables

Loans to and

receivables

from

Unused

Total

from

Unused

Total

customers

credit line

commitments

customers

credit line

commitments

386

2,683

11,314

64,264

78,694

144

422

3,233

3,898

485

2,827

11,736

67,496

82,592

686

633

12,858

55,395

69,627

191

477

2,686

3,384

716

823

13,334

58,081

73,011

Default occurs after 90 days with arrears/overdrafts above both absolute and relative thresholds. All debtor commitments are considered
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

Sale and operation of real estate

Other service providers

Wage-earners and others

Others

Total 2022

Total 2021

Gross non-

Net non-

Total recognised

performing commit-

Individual

performing commit-

value changes

ments

write-downs

ments

during the period

-315

-298

-66

-2

-85

In the case of default, Storebrand Bank ASA will sell the securities or repossess the properties if this is most suitable.

TOTAL ENGAGEMENT AMOUNT BY REMAINING TERM TO MATURITY

NOK million

Overdue 1-30 days

Overdue 31-60 days

Overdue 61-90 days

Overdue more than 90 days

Total

2022

Loans to and

receivables

2021

Loans to and

receivables

from

Unused

Total

from

Unused

Total

customers

credit line

commitments

customers

credit line

commitments

132

289

142

143

131

285

155

NOK million

fin. assets

fin. liabilites

liabilities

(+/-)

Securities (+/-)

exposure

Booked value

fin. assets/

Cash

Net

Net booked

Collateral

Investments subject to netting a
greements

Investments not subject to netting

agreements

Total 2022

Total 2021

14,319

12,708

1,612

301

-150

1,461

14,343

4,915

12,708

3,143

1,636

1,772

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.

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.

Note 11: Concentrations of risk

2022

163,291

-1,019

-1,023

2021

176,448

666

125

Most of the risk for the Storebrand Group relates to the guaranteed pension products in the life insurance companies. These risks are
consolidated in the Storebrand Livsforsikring Group, which includes Storebrand Livsforsikring AS, SPP Pension & Försäkring AB and
Storebrand Danica AS. Other companies directly owned by Storebrand ASA that are exposed to significant risks are Storebrand Forsikring
AS, Storebrand Helseforsikring 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 risk of long life expectancy 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 associated
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 management could
result in errors in the insurance businesses.

156

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.

The greatest risk is from the investments. The value of stocks and bonds in companies with high greenhouse gas emissions may
decrease in the event of a rapid transition to low emissions. Storebrand has a climate strategy which entails that there is limited
exposure to stocks and bonds in fossil fuel companies. Emissions of greenhouse gases in relation to turnover for the overall investment
portfolio are lower than the general market. The risk can be counteracted somewhat by Storebrand’s investments in solution companies
that will benefit from a rapid transition to low emissions. However, these companies are also at risk of losing value, particularly if the
transition to low emissions is slower than expected.

Physical climate change can also impact the value of investments. Storebrand has a well-diversified portfolio of stocks and bonds. This
diversification applies to geographical areas, industries and individual companies. This limits the risk that some parts of the world, some
industries and some companies are experiencing major losses in value as a consequence of climate change. However, climate change
can also result in lower economic growth and lower investment returns for the broader market, particularly in the long term.

For investments priced in an active market, Storebrand’s valuation is based on climate risk being taken into consideration in market
pricing.

Storebrand has climate risk in connection with property investments. There is a transition risk from the potential high costs of adapting
buildings to reduce greenhouse gas emissions. There is also physical risk, particularly from increased incidence of extreme rainfall and
flooding.

The valuation of property is based on information that is not observable, level 3, ref. Note 13. Climate risk can impact the valuation
through both calculated cash flows and the required rate of return for the property. For example, the cash flow may be impacted
because climate change creates a need to upgrade or because the costs of ownership are affected by the building’s energy efficiency.
The property’s environmental standard is one of the factors that is considered when setting the required rate of return.

In commercial terms, Storebrand has a risk that there may be lower demand for our products if customers are adversely affected by
climate risk. A rapid transition to low emissions could impact the Norwegian economy in general and the fossil fuel sector in particular.
In Norway, there is usually a correlation between unemployment and disability. The adverse effects for the Norwegian economy from a
rapid transition to low emissions may therefore result in more incidents of disability.

For P&C insurance, there may be more claims and higher claims payouts as a consequence of climate change. The greatest risk is
damage from extreme rainfall or flooding, particularly for properties that are below ground level. Storebrand’s risk is limited by the fact
that losses from natural disasters are covered under the Norwegian Natural Perils Pool.

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 for which reliable prices are not regularly quoted are
theoretically valued based on the discount cash flow. The discount rate consists of swap rates assigned to a credit spread that is specific
to the individual bond. Unlisted derivatives, such as forward exchange contracts and interest rate and foreign exchange swaps, are also
valued theoretically. Swap rates and exchange rates that form the basis for the valuation are supplied by Reuters and Bloomberg. The
valuations of currency options and swaptions are provided by Markit.

157

Level 1: Financial instruments valued on the basis of quoted prices for identical assets in active markets
This category encompasses listed equities that for the most recent quarter have experienced average daily trading equivalent to
approximately NOK 20 million or more. Based on this, the equities are regarded as sufficiently liquid to be included at this level. Bonds,
certificates or equivalent instruments issued by national governments in local currencies are generally classified as level 1. When it
comes to derivatives, standardised stock index futures and interest rate futures will also be included at this level.

Level 2: Financial instruments valued on the basis of observable market information not covered by level 1
This category encompasses financial instruments that are valued on the basis of market information that can be directly observable or
indirectly observable. Market information that is indirectly observable means that the prices can be derived from observable related
markets. Level 2 includes shares or equivalent equity instruments for which market prices are available, but where the volume of
transactions is too limited to fulfil the criteria in level 1. Shares at this level will normally have been traded during the final quarter.
Bonds and equivalent instruments are generally classified at 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.

Equities
The Group’s internal companies are classified at level 3 and are valued at book value. Alternative investments organised as limited
liability companies make up the majority of external companies. These are valued based on the value-adjusted equity reported by
external sources when available.

Units
Of the fund units, it is private equity funds that represent the majority at level 3. Moreover, there are also some other types of funds,
such as infrastructure funds, microfinance funds, loan funds and property funds here. 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. The reporting takes place
with a one-month delay for the Group’s own private equity funds in funds and up to three-months’ delay for other funds. The most
recently received valuations are used as a basis, adjusted for cash flows and estimated market effects in the period from the most recent
valuation until the reporting date when relevant. The market effect is calculated for the company’s own vintage private equity fund in
fund 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 discount
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 2022. The value shortfall is calculated by discounting the difference between the
agreed margin and the current market price over the remaining duration.

Corporate bonds
There are not normally bonds at level 3, however non-performing bonds are categorised here and valued based on expected payment.
As at 31 December 2022, this was not a significant amount for Storebrand’s financial statements.

Investment properties
The investment properties primarily consist of office buildings located in Oslo and Stockholm and shopping centres in Southern Norway.

158

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.

The required rate of return is divided into the following elements:
•
•

Risk-free interest
Risk premium, adjusted for:
Type of property
•
Location
•
Structural standard
•
Environmental standard
•
•
Duration of the contract
• Quality of tenant
• Other factors such as transactions and perception in the market, vacancy and general knowledge about the market and the

individual property.

When calculating fair value, Storebrand uses internal cash flow models. Net cash flows for the individual property are discounted by an
individual required rate of return. A future income and expense picture for the first 10 years has been estimated for the office properties
and a final value has been calculated for the end of the 10th year based on market rent and normal operating costs for the property.
A future income and expense picture for the first 6 years has been estimated for the shopping centre properties and a final value has
been calculated for the end of the 6th year based on market rent and normal operating costs for the property. In both models, the net
income stream has been taken into consideration for existing and future loss of income due to vacancy, necessary investments and an
assessment of the future development in the market rent. The majority of new contracts that are entered into have a duration of five
or ten years for offices (three to five years for trading). The cash flows from the lease agreements (contractual rent) are included in the
valuations. To estimate the long-term, future non-contractual rental incomes, a forecasting model has been developed. The office model
is based on the rental price overview from 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.

External valuation:
For properties in the Norwegian business, a methodical approach is taken to a selection of properties that are to be externally valued
each quarter so that all properties have had an external valuation at least every three years. In 2022, external valuations were obtained
for properties worth NOK 22.7 billion (92 per cent of the portfolio’s value as at 31 December 2022).

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. The assumptions for the external valuation
are critically reviewed and there is an assessment of reasonableness in relation to internal assumptions. 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 discretionarily considered to be best practice in the market. If there is a discrepancy of more than 5% between the internal and
external valuation, 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 annually,
while other wholly-owned property investments are valued on a quarterly basis.

159

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 31.12.2022

Total financial assets 31.12.2021

Financial liabilities

Debt raised by issuance of securities

Loans and deposits from credit

institutions

Deposits from banking customers

Subordinated loan capital

Total financial liabilities 31.12.2022

Total financial liabilities 31.12.2021

Level 1

Non-

Total

Quoted

Observable

observable

fair value

Book

value

prices

assumptions

31.12.22

Total

fair value

31.12.21

Book

value

31.12.21

621

109

49,595

7,474

111,569

168,746

168,296

32,777

403

19,478

10,513

63,171

54,324

4,392

16,800

21,192

23,077

109

4,391

66,395

7,474

109

4,541

66,683

7,402

5,057

56,521

9,103

5,046

56,507

8,441

112,190

190,558

122,039

200,774

120,623

117,929

191,371

187,991

32,777

32,791

25,000

24,924

403

19,478

10,513

63,171

403

19,478

10,585

63,256

502

17,239

11,584

502

17,239

11,441

54,324

54,106

160

NOK million

Assets:

Equities and units

- Equities

- Fund units

Total equities and fund units 31.12.22

Total equities and fund units 31.12.21

Loans to customers

- Loans to customers - corporate

- Loans to customers - retail

Loans to customers 31.12.22

Loans to customers 31.12.21

Bonds and other fixed-income securities

- Government bonds

- Corporate bonds

- Structured notes

- Collateralised securities

- Bond funds

Total bonds and other fixed-income securities 31.12.22

Total bonds and other fixed-income securities 31.12.21

Derivatives:

- Interest derivatives

- Currency derivatives

Total derivatives 31.12.22

- of which derivatives with a positive market value

- of which derivatives with a negative market value

Total derivatives 31.12.21

Properties:

Investment properties

Properties for own use

Total properties 31.12.22

Total properties 31.12.21

Level 1

Level 2

Level 3

Quoted
prices

Observable
assumptions

Non-
observable
assumptions

31.12.22

31.12.21

402

18,105

18,507

15,054

6,757

319

7,076

7,932

13,810

13,818

12,670

33,481

1,689

35,171

35,035

47,728

222,804

270,532

6,757

319

7,076

24,762

43,066

4,506

83,839

156,215

-759

2,394

1,636

14,343

-12,708

33,481

1,689

35,171

40,707

237,619

278,326

7,443

489

7,932

31,148

55,354

5,550

76,464

168,516

2,292

-519

4,915

-3,143

1,772

33,376

1,659

35,035

30,690

40,071

16,635

204,699

221,334

223,201

8,559

43,058

4,506

70,029

126,195

139,124

-8,519

2,394

-6,125

6,583

-12,708

1,772

16,203

16,722

7,761

161

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 01.01.22

Net gains/losses on financial

instruments

Supply

Sales

Exchange rate adjustments

Other

Equities

Fund

units

Loans to

Corporrate

Bond

Investment

Properties

customers

bonds

funds

properties

for own use

376

14,678

7,932

12,663

33,376

1,659

-268

250

1,318

762

1,432

-85

-204

367

-802

-214

-2

233

1,501

-258

-329

-380

1,448

-610

-364

-86

Book value 31.12.22

402

18,105

7,076

13,810

33,482

1,689

As of 31.12.22, Storebrand Livsforisikring had NOK 8.211 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.

The sensitivity of financial instruments and property at fair value

Equities
Level 3 equity investments primarily consist of funds organised as limited liability companies and privately owned limited liability
companies. These have a similar sensitivity assessment to fund units in which private equity funds dominate.

NOK million

Change in fair value per 31.12.22

Change in fair value per 31.12.21

Change in value at change in discount rate

Increase + 25 bp

Decrease - 25 bp

-11

-1

Units
The majority of these investments are private equity funds invested in companies that are priced in relation to comparable listed
companies. The valuation will therefore be sensitive to fluctuations in global equity markets. The private equity portfolio has an estimated
beta relative to MSCI World (Net – currency hedged to NOK) of around 0.5.

NOK million

Change in fair value per 31.12.22

Change in fair value per 31.12.21

Change MSCI World

Increase + 10 %

Decrease - 10 %

835

861

-835

-861

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 real estate investments are no longer leveraged

162

Change in fair value per 31.12.22

Change in fair value per 31.12.21

Change in value underlying real estate

Increase + 10 %

Decrease - 10 %

-1

Loans to customers
Loans are valued at fair value. The value of these loans is determined by future cash flows being discounted by an associated swap curve
adjusted for a credit spread specific to the issuer.

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 31.12.22

Change in fair value per 31.12.21

Change in marketspread

+ 10 bp

-25

-31

- 10 bp

Corporate bonds
Securities 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 31.12.22

Change in fair value per 31.12.21

Properties
The sensitivity assessment of properties applies to investment properties.

Change MSCI World

Increase + 10 %

Decrease - 10 %

The valuation of property is particularly sensitive to a change in the required rate of return and the expected future cash flow. Higher
interest rates have a negative impact in the form of yield increases and more demanding conditions for loan financing in connection with
transactions. At the same time, property investments have historically provided protection from inflation through adjustments in market
rent and increased cash flows. A change of 0.25 per cent in the required rate of return when everything else remains unchanged will
result in a change in the value of Storebrand’s property portfolio of approximately 6 per cent. About 25 per cent of the property’s cash
flow is linked to lease contracts that have been entered into. This entails that the changes in the uncertain parts of the cash flow of 1 per
cent will mean a change in value of 0.70 to 0.75 per cent. The property’s cash flows will also be impacted by expectations of inflation and
the vacancy rate in the portfolio. Storebrand’s property portfolio largely consists of office properties with attractive locations in central
business districts (CBD). These locations mean that the properties have historically been less exposed to market fluctuations than
properties located on the outskirts of a town or city, however there is uncertainty associated with calculating the values when taking into
consideration the volatility in the market. See Note 8 for further reference to uncertainty.

NOK million

Change in fair value per 31.12.22

Change in fair value per 31.12.21

Change in required rate of return

0.25 %

-2,251

-2,128

-0.25 %

2,555

2,401

Infrastructure
The valuation of the underlying infrastructure investments will be impacted by changes in the required rate of return and assumptions
relating to future cash flow.

NOK million

Change in fair value per 31.12.22

Change in fair value per 31.12.21

Change in value underlying real estate

Increase + 5 %

Decrese - 5 %

136

-136

-66

163

The Storebrand Group is an insurance-dominated, cross-sectoral financial group with capital requirements in accordance with Solvency
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 the minimum capital requirement for the Group are calculated in accordance with
Section 46 (1)-(3) of the Solvency II Regulations in accordance with the standard method.

Capital management
Storebrand pays particular attention to the levels of equity in the Group, which are continually and systematically optimised. The level is
adapted to the financial risk and capital requirement in the business, where the growth and composition of business segments will be
important motivating 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 agency requirements. If there is a need for new
equity, this is obtained by the holding company Storebrand ASA, which is listed and 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 business has capital requirements
that are 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’s ambition is to ensure that
the ordinary dividend per share shall at least be at the same nominal level as the previous year. The normal dividend is paid out at a
sustainable solvency margin of over 150 per cent. If the solvency margin is over 175 per cent, the Board’s intention is to propose an
extraordinary dividend or buyback of shares. In general, equity in the Group can be controlled without material limitations if the capital
requirement is met and the respective legal units 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

Not- counting tier 3 capital

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

Group 1
unlimited

2,360

10,842

25,877

-4,804

-1,718

32,557

Total

2,360

10,842

25,877

9,661

540

-231

905

-4,804

-1,718

43,431

4,804

48,236

31.12.22

Group 1
limited

Group 2

Group 3

1,894

7,766

905

540

-231

31.12.21

Total

2,360

10,842

28,711

10,860

356

616

-3,728

-1,645

1,894

8,671

309

48,369

3,728

52,098

40,688

36,381

32,557

1,894

1,929

164

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

31.12.22

21,267

1,119

9,004

971

620

1,485

-7,075

-4,954

22,438

3,837

26,276

184%

9,647

377%

31.12.21

25,258

720

10,829

931

590

1,550

-7,804

-5,218

26,856

2,944

29,800

175%

10,738

379%

The Storebrand Group also has 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 REQUIREMENTS 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

31.12.22

31.12.21

4,079

22,438

26,517

4,804

43,431

48,236

21,719

3,125

26,856

29,982

3,728

48,369

52,098

22,116

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 CRD IV 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 2022, the difference amounted to NOK 242 million.

165

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

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

2022

21,020

12,290

33,310

9,799

3,793

812

1,375

260

6,240

7,018

656

218

1,428

9,320

4,413

48,870

14,247

2021

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

166

NOK million

income etc.

nancial assets

investments

Dividend/

Net gains and

Net reva-

interest

losses on fi-

luation on

Total

2022

Of which

Company

Customer

Total

2021

Profit on equities and fund units

1,048

11,594

-34,281

-21,639

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

2,714

949

4,782

3,770

2,564

3,805

1,707

5,511

-592

-11,445

-4,152

-9,543

-2,030

-20,039

-47,975

-43,637

-11

3,729

2,564

3,870

1,707

-443

-30

Write-downs/income recognition for loans and guarantees for the period

Change in individual loan write-downs for the period

Change in grouped loan write-downs for the period

Other corrections to write-downs

Realised losses on loans where provisions have previously been made

Realised losses on loans where no provisions have previously been made

Recovery of loan losses realised previously

Write-downs/income recognition for loans and guarantees for the period

Note 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

167

-21,631

53,813

-2,107

-20,082

1,000

-2,740

-43,789

52,102

-8

152

4,321

995

208

1,254

3,662

453

5,576

1,461

4,115

5,316

2022

2021

-1

-18

2022

1,586

-408

-128

1,050

-379

713

-45

713

-1

-12

-1

-2

-5

-20

2021

1,589

-381

-183

1,025

206

933

2,164

104

-42

2,164

NOK million

Fee and commission income, banking

Net fee and commission income, banking

Management fees, asset management

Interest inome

Return commissions/Kick-back

Insurance related income

Revenue from companies other than banking and insurance

Profit sale of subsidaries

Other income

Total other income

Note 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

Total insurance claims

Of which premium reserve transferred to company

1) Individual life and disability, property and caualty insurance

2) Group life, workers comp. And health insurance

The table below shows the anticipated compensation payments

168

2022

107

2,632

164

1,264

295

273

177

4,913

2022

-13,736

-6,773

-20,509

-13,937

-2,441

-601

-221

-3,263

-53

-1,995

-6,934

-1,154

-5,821

-15,905

-518

-39,677

-14,508

2021

3,128

1,321

324

235

591

5,698

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

NOK mrd.

0-1 year

1-3 years

> 3 years

Total

Storebrand Life Insurance

296

342

SPP

179

202

Storebrand Danica

DEVELOPMENT IN INSURANCE CLAIM PAYMENT - P&C INSURANCE, EXLUSIVE RUN-OFF

NOK million

2017

2018

2019

2020

2021

2022

Sum

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 31.12.22

Total disbursed to present

Claims reserve

Claims reserve for previous years (before

2017)

Total claims reserve

797

764

756

745

738

725

709

760

749

744

734

731

704

998

1,026

825

814

805

795

1,457

1,425

1,828

743

966

1,299

127

1,209

618

5,630

900

918

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 buffer fund

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

169

2022

5,193

3,189

356

-268

8,471

2022

-2,871

-360

-2,910

-6,142

2021

861

-1,566

-4,122

-4,827

2021

-2,725

-329

-2,731

-5,784

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)

NUMBER OF EMPLOYEES 1)

Number of employees 31.12

Average number of employees

Number of person-years 31.12

Average number of person-years

1) Including Storebrand Helseforsikring with 100 per cent.

2022

-12

-142

-205

-2

-360

2022

2,138

2,069

2,125

2,054

2021

-7

-136

-185

-1

-329

2021

1,901

1,862

1,886

1,845

Note 22: Pension expenses and pension liabilities

Storebrand’s employees in Norway have a defined-contribution pension scheme. In a defined-contribution scheme, the company allocates
an agreed contribution to a pension account. The future pension depends upon the amount of the contributions and the return on the
pension account. When the contributions have been paid, the company has no further payment obligations relating to the defined-
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 111,477 at 31 December 2022)
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 2.6 % in 2022.

There are also pension liabilities for the defined-benefit scheme related to direct pensions for certain former employees and former
board members.

The pension plan for employees at SPP in Sweden follows the plan for bank employees in Sweden (BTP).

SPP has a defined-contribution occupational pension known as BTP1. All new employees were enrolled in this pension agreement from
and including 1 January 2014. In BTP1, the employer pays a premium for pension savings that is calculated based on pensionable salary
up to 30 times the ”basic income amount” (inkomstbasbelopp). The insurance includes retirement pension with or without 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”.

170

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 104Statement of total comprehensive income 105Statement of Financial Position 106Statement of changes in equity 108Statement of cash flow 109Notes 112Storebrand ASAIncome statement 198Statement of total comprehensive income 198Statement of Financial Position 199Statement of changes in equity 200Statement of cash flow 201Notes 203Declaration by members of the Board and the CEO 215Independent auditor’s report 2168. Corporate governance9. Sustainability Assurance10. AppendixThe 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 71,000 in 2022 and will be SEK 77.300 in 2023), 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 pension scheme.
In addition to the defined-benefit part, the BTP plan has a smaller defined-contribution component. Here the employees can decide
themselves how assets are to be invested (traditional insurance or unit-linked insurance). The defined-contribution part is 4 per cent of
the annual salary for employees born in 1967 and later, while the rate is 2 per cent for employees born in 1966 and earlier.

The retirement age for SPP’s CEO is 65 years. The CEO is covered by BTP1. In addition, the CEO has a defined-contribution based additional
pension with SPP. The premium for this insurance is 20 per cent of salary that exceeds 30 times the “basic income amount”.

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

Interest expenses on pension liability

Estimate deviations

Pensions paid

Changes to pension scheme

Pension liabilities additions/disposals and currency adjustments

Net pension liabilities 31.12

2022

709

-867

-158

168

152

162

2022

162

2022

1,185

-287

-45

-2

-21

861

2021

1,009

-1,035

-26

175

181

2021

181

2021

1,433

-155

-49

-74

1,185

171

NOK million

Pension assets at fair value 01.01

Expected return

Estimate deviation

Premiums paid

Pensions paid

Changes to pension scheme

Pension liabilities additions/disposals and currency adjustments

Net pension assets 31.12

Expected premium payments (pension assets) in 2023

Expected premium payments (contributions) in 2023

Expected AFP early retirement scheme payments in 2023

Expected payments from operations (uninsured scheme)

in 2023

2021

1,082

-27

-67

1,035

2022

1,035

-161

-28

-2

-28

866

214

PENSION ASSETS ARE BASED ON THE FINANCIAL ASSETS HELD BY STOREBRAND LIFE INSURANCE/SPP COMPOSED AT 31.12:

NOK million

Real estate at fair value

Bonds at amortised cost

Loans at amortised cost

Equities and units at fair value

Bonds at fair value

Loans at fair value

Other short-term financial assets

Total

Storebrand Life Insurance

2022

14 %

43 %

16 %

5 %

20 %

1 %

100 %

2021

13 %

39 %

15 %

13 %

19 %

1 %

100 %

SPP

2022

15 %

17 %

44 %

24 %

2021

13 %

53 %

21 %

100 %

The table shows the percentage asset allocation of pension assets at year-end managed by Storebrand Life Insurance.

Realised return on assets

0.5 %

4.5 %

-12.8 %

1.9 %

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

2022

286

321

2021

243

285

172

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 Livsforsikring

2022

3.8 %

3.5 %

0.0 %

2021

2.0 %

2,25 %

0.0 %

2022

-287

-3

159

137

SPP

2022

3.7 %

3.5 %

2021

-117

-33

-16

-131

2021

1.8 %

3.5 %

2.0 %

K2013BE

DUS14

Financial assumptions:
The financial assumptions have been determined on the basis of the regulations in IAS 19. Long-term assumptions such as future
inflation, real interest rates, real wage growth and adjustment of the basic amount are subject to a particularly high degree of uncertainty.

In Norway, a discount rate based on covered bonds is used. Based on the market and volume trends observed, the Norwegian covered
bond market must be perceived as a deep market.

Specific company conditions including expected direct wage growth are taken into account when determining the financial assumptions.

Actuarial assumptions:
In Norway standardised assumptions on rates of mortality and disability as well as other demographic factors are prepared by Finance
Norway. With effect from 2014 a new mortality basis, K2013, has been introduced for group pension insurance in life insurance
companies and pension funds. Storebrand has used the mortality table K2013BE (best estimate) in the actuarial calculations at 31
December 2022.

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 2022 and are calculated for each individual when all
other assumptions are kept constant.

173

Percentage change in pension:

- Pension liabilities

- The period's net pension costs

Discount rate

Expected earnings growth

life expectancy

1.0 %

-1.0 %

1.0 %

-1.0 %

+ 1 year

- 1 year

Mortality - change in expected

-8 %

-11 %

9 %

12 %

-5 %

4 %

-7 %

-3 %

3 %

1 %

-3 %

-1 %

Note 23: Remuneration to senior employees and elected officers of the company

NOK thousand

Senior employees

Odd Arild Grefstad

Lars Aa. Løddesøl

Geir Holmgren 5)

Heidi Skaaret

Staffan Hansén 6)

Jan Erik Saugestad

Karin Greve-Isdahl

Trygve Håkedal

Tove Selnes

Vivi Måhede Gevelt 7)

Jenny Rundbladh 8)

Total 2022

Total 2021

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)

7,952

6,451

5,271

5,341

5,506

7,052

3,450

4,311

3,507

1,556

1,457

169

184

186

168

149

140

8,122

6,635

5,457

5,510

5,529

7,201

3,473

4,333

3,648

1,564

1,463

51,854

50,154

1,080

1,354

52,934

51,507

1,549

1,191

991

1,011

1,469

1,361

611

781

621

150

200

9,933

9,842

5,938

7,976

5,675

2,891

247,520

156,271

110,558

119,115

107,196

1,200

131,305

18,596

8,786

11,003

35,705

32,412

35,772

7,413

4,424

62,065

71,284

987,691

900,666

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) Geir Holmgren resigned from his position as Executive Vice President for Corporate Market on 3 June 2022, however remained employed until 31 December 2022. The number of shares is

at the date of resignation

6) Staffan Hansén resigned from his position as Executive Vice President for SPP on 31 August 2022, however remained employed until 31 October 2022. The number of shares is at the date

of resignation.

7) Vivi Måhede Gevelt assumed the role of Executive Vice President for Corporate Market on 1 September 2022. Total remuneration relates to the period after assuming the position.

8) Jenny Rundbladh assumed the role of Executive Vice President for SPP on 1 September 2022. Total remuneration relates to the period after assuming the position.

174

Board of Directors

Didrik Munch

Martin Skancke

Karin Bing Orgland

Christel Elise Borge

Karl Sandlund

Marianne Bergmann Røren

Fredrik Åtting

Bodil Catherine Valvik

Hans-Petter Salvesen

Hanne Seim Grave

Total 2022

Total 2021

Remuneration

Loan 1)

No. of shares

owned 2)

873

702

587

444

494

435

636

489

418

489

5,568

5,468

2,304

255,000

32,500

27,000

11,000

7,000

15,300,000

1,910

650

15,642,060

18,841,540

4,904

5,451

1,830

14,489

18,662

1) Loans up to NOK 7 million follow ordinary employee- term while 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.

Loans to Group employees totalled NOK 3.721 million.

Note 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

Exchange rate insurance reserves

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

175

2022

-12

-2

-1

-16

2022

-149

-166

-108

-75

-497

2022

-578

-628

-126

-1

-41

-1,374

2021

-12

-2

-1

-15

2021

-463

-91

-283

-836

2021

-413

-193

-41

-12

-27

-686

TAX EXPENSES ON ORDINARY PRE-TAX PROFIT

NOK million

Tax payable

Change in deferred tax

Total tax expenses on ordinary profit

RECONCILIATION OF TAX EXPENSES AGAINST ORDINARY PRE-TAX PROFIT

NOK million

Ordinary pre-tax profit

Expected income tax at nominal rate

Tax effect of

shares ("Fritaksmetoden")

share dividends received

associated companies

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)

2022

-59

328

270

2022

2,120

-522

-28

-331

331

771

270

-13%

2021

-90

-755

-846

2021

3,976

-986

161

-26

-582

582

-25

-14

-846

21%

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 and differences from currency hedging of the Swedish

subsidiary SPP. The tax rate for companies’ subject to the financial tax is 25 per cent. The Storebrand Group includes companies that are both subject to and not subject to the financial tax.

Therefore, when capitalising deferred tax/deferred tax assets in the consolidated financial statements, the company tax rate that applies for the individual companies is used (22 or 25 per cent).

The tax rate for companies in Sweden is 20.6 per cent.

TAX EXPENSES ON OTHER COMPREHENSIVE INCOME ELEMENTS

NOK million

Tax on other comprehensive income elements not to be reclassified to profit/loss

Total tax expenses on other comprehensive income elements

2022

-1

2021

176

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

2022

4,265

1,009

5,473

-599

-18

-26

-122

-1

-765

-4,539

169

175

1,289

1,363

2021

2,748

1,234

4,078

-59

-16

-21

-150

-1

-248

-3,332

499

504

-273

1,104

832

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 considers

it to be probable that the Norwegian Tax Administration’s interpretation will be accepted in a court of law. Any paid tax related to the uncertain tax positions is not recognized in the financial

statements and is classified as receivables. 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 will challenge the decision. The company considers it to be

probable that Storebrand’s understanding of the tax legislation will be accepted by 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.

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,

177

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. In April 2022 and January 2023 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 and has challenged the decision to the Norwegian Tax Appeals Committee. The uncertain tax position has therefore been recognised in the financial statements. Based on our

revised best estimate, the difference between Storebrand’s interpretation and the Norwegian Tax Administration’s interpretation is approximately NOK 6.4 billion in an uncertain tax position. If

Storebrand’s interpretation is accepted, a deferred tax expense of approximately NOK 1.6 billion will be derecognised from the financial statements.

C. The outcome of the interpretation of tax rules for group contributions referred to above under (A) will have an impact when calculating the effect from the transitional rules for the new tax

rules referred to under point (B). An equivalent interpretation to that described under (A) has been used as a basis in the financial statements when calculating tax input values on property

shares owned by customer assets for 2016 and 2017. There is thus an uncertain tax position relating to the effect from the transitional rules described in (B). The decisions that Storebrand

received in April 2022 and in January 2023 (described under point B) have reduced the uncertain tax position and have resulted in tax revenues of NOK 0.6 billion in the first quarter and NOK

0.2 billion in the fourth quarter. The effect as mentioned in point B depends on the interpretation and outcome of point A. If Storebrand’s view prevails under item A, Storebrand will account

for additional tax revenues of approximately NOK 0.044 billion if the company’s view also prevails under item B. If the Norwegian Tax Administration prevails with its argument under point (A),

Storebrand will recognise a tax expense of approximately NOK 0.5 billion.

Storebrand has reviewed the uncertain tax positions as part of the reporting process. The review has not reduced the company’s assessment of the probability that Storebrand’s interpretation

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

Other changes

Acquisition cost 31.12

Accumulated depreciation and write-

downs 01.01

Write-downs in the period

Amortisation in the period

Disposals in the period

Exchange rate adjustments

Other changes

Acc. depreciation and

write-downs 31.12

Book value 31.12

Intangible assets

IT systems

1,693

VIF 1)

9,923

Other

intangible

assets

2,227

Goodwill

3,069

232

-87

-11

-7

-283

1,067

-8

-9

186

2022

16,912

245

1,291

-94

-300

-7

2021

16,419

191

1,067

-8

-817

1,912

9,669

3,290

3,258

18,129

16,912

-7,792

-1,264

-305

-10,245

-10,116

-884

-9

-196

-349

227

-1,079

833

-7,914

1,755

-247

-1

-1,493

1,797

-304

2,954

-9

-792

248

-23

-689

577

-10,790

7,339

-10,245

6,667

1) Value of business-in-force, the difference between market value and book value of the insurance liabilities in SPP and Silver

178

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

NOK million

IT systems

Value of business in force SPP

Value of business in force Silver

Useful

economic life

5 years

20 years

10 years

Depr.

rate

20 %

5 %

10 %

Depr.

method

Straight line

Customer contracts Danica

8 to 15 years

7 % - 13 %

Straight line

Distribusion Danica

Customer lists Skagen

Customer lists Cubera

Customer lists Insr

Customer contracts Cubera

Brand name Skagen

Database Cubera

Customer relations Capital Investment

Other intangible assets

Total

15 years

10 years

7 years

5 years

10 years

3 years

7 years

7 %

10 %

14 %

20 %

10 %

33 %

14 %

Straight line

GOODWILL DISTRIBUTED BY BUSINESS ACQUISITION

2022

-349

-247

-596

2021

-366

-161

-527

Book

value 2022

value 2021

833

1,614

141

774

251

198

107

149

206

809

1,963

168

238

138

205

232

4,384

3,903

Accumulated

Supply/

disposals/

Acquisition

write-downs

Book value

currency

Book value

NOK million

Business area

cost 01.01

Delphi Fondsforvaltning

Storebrand Bank ASA

SPP

SPP Fonder

Danica

Skagen

Cubera

Capital Investment

Total

Savings

Other

Guarant.
pension/
Savings

Savings

Guarant.
pension/
Savings/
Insurance

Savings

422

778

1,007

206

572

3,068

Goodwill is not amortised, but is tested annually for impairment.

01.01

-4

-300

-304

179

01.01

122

778

1,007

206

572

2,764

effect

31.12.22

31.12.21

122

756

186

1,007

206

600

2,954

122

778

1,007

206

572

2,764

-22

-1

186

190

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 104Statement of total comprehensive income 105Statement of Financial Position 106Statement of changes in equity 108Statement of cash flow 109Notes 112Storebrand ASAIncome statement 198Statement of total comprehensive income 198Statement of Financial Position 199Statement of changes in equity 200Statement of cash flow 201Notes 203Declaration by members of the Board and the CEO 215Independent auditor’s report 2168. Corporate governance9. Sustainability Assurance10. AppendixIntangible 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.

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 2026 to 2032, 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 2 per cent is used.
This is in line with the Riksbanken’s inflation target. The primary drivers of improved long-term results will be the return on total assets,
underlying inflation and wage growth in the market (which drive premium growth). In addition to cash flows from the forecasted result,
the change in expected regulatory tying-up of capital is also used in the valuation. The utility value is calculated using a required rate of
return of 9.0 per cent. The required rate of return is calculated based on the risk-free interest rate and added to a premium that reflects
the risk of the business.

Calculations related to the future are uncertain. The value will be impacted by various growth parameters, expected return and the
required 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 assessments
for the period from 2026 to 2032, and the annual growth has been determined in the income statement. A growth rate of 2.0 per cent is
used when calculating the terminal value. This is in line with Norges Bank’s inflation target. 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.

There will be uncertainty related to the assumptions that have been made in the valuation. The value will be affected by the assumptions
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 assumptions 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 2026 to 2032, 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 2.0 per cent is used when calculating the terminal value. This is in line with
Norges Bank’s inflation target. The utility value is calculated using a required rate of return of 8.2 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 2026 to 2032, a projected forecast has been used that is based on the
expected development in the private equity market. A growth rate of 2.0 per cent is used when calculating the terminal value. This is in
line with Norges Bank’s inflation target. The utility value is calculated using a required rate of return after tax of 8.2 per cent.

180

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 104Statement of total comprehensive income 105Statement of Financial Position 106Statement of changes in equity 108Statement of cash flow 109Notes 112Storebrand ASAIncome statement 198Statement of total comprehensive income 198Statement of Financial Position 199Statement of changes in equity 200Statement of cash flow 201Notes 203Declaration by members of the Board and the CEO 215Independent auditor’s report 2168. Corporate governance9. Sustainability Assurance10. Appendix
There are uncertainty related to the assumptions that have been made in the valuation. The value will be influenced by changes in the
assumptions regarding expected returns of the financial markets, costs, management fees, growth parameters, and the required rate
of return that is used as the discount rate. The aim of the calculations is to achieve a satisfactory level of certainty that the entity specific
value, cf. IAS 36, is not lower than the value recognised in the accounts. Simulations with reasonable and also conservative assumptions
indicate a value that justifies the book value.

Intangible assets linked to the acquisition of Silver
Storebrand Livsforsikring AS acquired Silver Pensjonsforsikring AS (Silver) in 2018 and the company was merged with Storebrand
Livsforsikring 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
contracts 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 comparison
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 development
and the discount rate. Simulations with reasonable and also conservative assumptions indicate a value that justifies the book value, cf.
IAS 36.

Intangible 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
Insurance 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 A/S (Capital Investment) in 2021. The intangible assets associated with
Capital Investment are customer relations 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 2026 to 2032, a projected forecast has been used that is based on the expected
development. A growth rate of 2.0 per cent is used when calculating the terminal value. This is in line with Danmarks Nationalbank’s
(central bank of Denmark) inflation target. The utility value is calculated using a required rate of return after tax of 8.2 per cent.

There will be uncertainty related to the assumptions that have been made in the valuation. The value will be influenced by the
assumptions regarding expected returns in the financial markets, costs, management fees, growth parameters, and the required rate
of return that is used as a basis. 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 financial statements. Simulations with reasonable and also conservative
assumptions indicate a value that justifies the book value.

Intangible assets linked to the acquisition of Danica
Storebrand Livsforsikring AS acquired Danica Pensjon AS (Danica) in 2022. Intangible assets related to the acquisition of Danica are
customer relations, distribution agreements and goodwill. Budgets and forecasts approved by the Board for the next three years are
used as the basis for the valuation. See further reference to the acquisition in Note 3.

The utility value will be influenced by the assumptions regarding expected returns in the financial markets, costs, customer loss, income
development and the required rate of return that is used as a basis. Simulations with reasonable and also conservative assumptions
indicate a value that justifies the book value, cf. IAS 36.

181

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 91. This is Storebrand2. Customer relations3. People4. Keeping Our House in Order5. Director’s report6. Shareholder matters7. Annual Accounts and NotesStorebrand GroupIncome statement 104Statement of total comprehensive income 105Statement of Financial Position 106Statement of changes in equity 108Statement of cash flow 109Notes 112Storebrand ASAIncome statement 198Statement of total comprehensive income 198Statement of Financial Position 199Statement of changes in equity 200Statement of cash flow 201Notes 203Declaration by members of the Board and the CEO 215Independent auditor’s report 2168. Corporate governance9. Sustainability Assurance10. Appendix
Sensitivities in the valuations
Calculations related to the future will be uncertain. The utility value will be influenced by the assumptions regarding expected returns in
the financial markets, costs, customer loss, income development and the required rate of return that is used as a basis. Simulations with
reasonable and also conservative assumptions indicate that all cash generating units have a value that justifies the book value, cf. IAS 36.
The sensitivity analyses indicate that the utility value for all units exceeds the book value even with a minimum increase in the required
rate of return of 2.5 percentage points or with a growth rate of 0 per cent in the terminal value.

Note 29: Tangible fixed assets and lease agreements

NOK million

Book value 01.01

Additions

Disposals

Depreciation

Exchange rate adjustments

Book value 31.12

Vehicles/ equipment

Real estate

2022

2021

-11

-1

-12

-1

-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

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

Total 2022

Total 2021

1,099

1,173

1173

1,173

1,191

1,266

1266

1,266

182

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

1,510

-18

1,543

-338

-125

-462

1,080

-2

-60

-17

-75

-0

-1

2022

1,590

-20

1,638

-399

-142

-539

1,099

2021

1,604

-7

-47

1,591

-267

-135

-400

1,191

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 recognise
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.

CHANGES IN LEASE LIABILITIES

NOK million

Upon initial adoption 01.01

New/changed lease liabilities recognised during the period

Payment of principal

Accrued interest

Exchange rate adjustments

Total lease liabilities 31. 12

183

2022

154

127

123

122

578

1,166

2022

1,210

-150

-18

1,109

2021

144

126

114

113

651

1,260

2021

1,355

-145

-44

1,210

NOK million

Lease expenses for assets with low value

Total lease expenses included in operating expenses

2022

-17

2021

-17

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 financial 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

2022

2021

Equity-method

Insurance

Joint venture

Equity-method

Insurance

Joint venture

780

101

514

1,059

-2

748

120

451

937

184

NOK million

Associated companies

Storebrand Eiendomsfond Norge KS

Quantfolio AS

Other associated companies

Joint ventures

Försäkringsgirot AB

VIA

Storebrand Helseforsikring AS

Total

Booked in the statement of financial position

Investments in associated companies - company

Investments in associated companies -
customers

Total

Business

Book value

location Ownership share

Profit 31.12

31.12.22

31.12.21

Bærum

Oslo

Stockholm

Oslo

Lysaker

33.8 %

34.0 %

16.7 %

50.0 %

-183

-7

-145

-1

-335

-20

-314

-335

5,290

4,089

3,386

155

8,910

442

8,469

8,910

3,259

164

7,528

387

7,141

7,528

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 2021

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 2021

Investments,

Liabilities at

Loans and

held to

Fair value,

amortised

receivables

maturity

held for sale

FVO

cost

Total

2022

Total

2021

14,511

122,039

109

71,225

8,519

216,403

201,199

7,402

8,441

270,532

156,215

7,075

433,876

454,833

14,511

9,986

270,532

278,326

285,657

294,887

109

78,301

8,519

14,343

671,970

69,486

11,661

4,915

669,328

10,585

11,441

403

19,478

32,791

10,630

73,887

68,749

403

19,478

32,791

12,708

10,630

86,595

502

17,239

24,924

3,143

14,643

71,892

14,289

4,855

12,640

3,092

185

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 Life Insurance

Modified duration

Average effective yield

Distribution beween company and customers

Loans and receivables company

Loans and receivables customers with guarantee

Loans and receivables customers without 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

2022

2021

Book value

Fair value

Book value

Fair value

34,025

69,463

17,591

961

32,112

64,251

14,868

958

28,171

70,854

17,993

911

29,574

71,189

17,581

913

122,039

112,190

117,929

119,257

0.1

0.9 %

8.0

2.5%

0.1

3.3 %

7.9

4.2%

3.0%

12,955

104,975

117,929

2.9%

11,741

110,220

122,039

2022

2021

Book value

Fair value

Book value

Fair value

7,474

3.0

4.1%

7,402

4.2%

7,402

8,441

4.3%

8,441

9,103

3.5

2.0%

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 security’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.

186

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

Net loans to customers - customers without 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.

2022

11,342

67,066

78,408

-108

78,301

49,917

28,384

52,865

24,420

1,016

78,301

2022

-17

2021

12,532

57,042

69,574

-88

69,486

38,992

30,494

38,992

30,493

69,486

2021

-18

187

NOK million

31.12.22

31.12.21

of return % 1)

lease (years) 3)

KVM

31.12.22

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:

Housing properties Sweden 2)

Hotel Sweden 2)

Service properties Sverige 2)

Properties under development Norway

Total investment properties

Properties for own use

Total properties

Allocation by company and customers:

Properties - customers with guarantee

Properties - customers without guarantee

Total

6.1

3.6

6.4

3.0

5.4

5.5

0.6

10.4

9.9

6.6

96,607

86,619

1,573

181,009

112,247

27,393

91,788

35,872

58,971

38,820

730,899

18,894

749,793

3.75 - 4.90

4.03 - 5.83

3.75

4.86 - 6.72

5.61

4.65

3.55

4.36

3.93

7.50

8,854

4,760

5,725

2,829

8,715

4,988

724

5,611

2,807

944

933

3,574

2,720

3,008

995

33,482

1,689

35,171

30,994

4,177

35,171

3,905

2,550

2,434

709

33,376

1,659

35,035

30,202

4,833

35,035

1) The properties are valued on the basis of the following effective required rate of return (inluded 2 per cent inflation). For 2023, rents have been adjusted by the CPI of 7.5 per cent, however the

model uses Norges Bank’s inflation target of 2 per cent as a basis for other years.

2) All of the properties in Sweden are appraised externally. The appraisal is based on the required rates of return in the market (including 2 per cent inflation, for 2023, 4.75 per cent is assumed)

3) The average duration of the leases is weighted based on the value of the individulal properties.

As of 31.12.22, Storebrand Life Insurance had NOK 8 211 million invested in Storebrand Eiendomsfond Norge KS and VIA, Oslo.
The investments are classified as “Investment in associated Ccmpanies and joint ventures” in the Consolidated Financial Statements.
Storebrand Eiendomsfond Norge KS and VIA, Oslo invest exclusively in real estate at fair value.

Vacancy
Norway
The vacancy rate for lettable areas was 5,6 per cent (7.7 per cent) at the end of 2022
The vacancy rate is decreasing largely due to Filipstad Brygge having been transferred to the development portfolio.
At the end of 2022, a total of 13.9 per cent (10.7 per cent) of the floor space in the investment properties was vacant
Sweden
At the end of 2022, the vacancy for investment properties was 0,4 per cent

Transactions:
Purchases: No further property acquistions has been agreed in SPP in addtition to the figures that have been finalised and included in the
finacial statements as of 31 December 2022.
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 2022

188

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

2022

1,659

-14

-49

1,690

586

610

-705

-719

1,690

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

Collateral

Tax receivable

Activated sales costs (Swedish business)

Paid tax uncertain tax positions 1)

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

1) Paid tax related to uncertain tax positions, see note 27 Tax

189

2022

1,410

573

270

387

2,712

1,036

318

722

774

317

8,519

7,720

800

8,519

2021

1,609

124

-13

-106

1,659

559

586

-692

-705

1,659

Straight line

50 years

2021

1,078

498

272

886

5,350

2,335

284

699

259

11,661

11,024

638

11,661

NOK million

Receivables not fallen due

Past due 1 - 30 days

Past due 31 - 60 days

Past due 61 - 90 days

Past due > 90 days

Gross accounts receivable

Provisions for losses

Net accounts receivable

Note 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

190

2022

1,369

1,416

-6

2022

Fair value

47,517

15,277

78,592

129,146

270,532

453

25,598

244,481

270,532

2022

Fair value

24,762

43,066

4,506

83,839

156,215

23,516

73,649

59,050

156,215

2021

1,061

1,081

-3

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

Storebrand

Danica

Modified duration

Average effective yield

Storebrand

SPP Pension

Pensjons-

Storebrand

Life Insurance

& Insurance

forsikring

3.0

3.7 %

8.1

4.6 %

2.2

2.8 %

Bank

0.2

3.5 %

Insurance

0.6

4.1 %

ASA

0.6

4.1 %

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 position
produces a gain if interest rates fall, as is the case for bonds. For currency derivatives, a long position results in a positive change in value if the
relevant exchange rate strengthens against the NOK. Average gross nominal volume are based on daily calculations of gross nominal volume.

NOK million

Interest derivatives 2)

Currency derivatives

Total derivater 31.12.

Total derivater 31.12.21

Gross nominal

Gross booked

volume 1)

value fin. assets

176,041

176,974

11,122

3,221

14,343

4,915

Gross booked

value fin.

liabilities

11,881

827

12,708

3,143

Distribution between company and

customers:

Derivatives - company

Derivatives - customers with guarantee

Derivatives - customers without guarantee

Total

1) Values 31.12.

2) See note 43 collateral for derivative trading classified as derivatives

Net amount

2022

-759

2,394

1,636

-396

459

1,573

1,636

2021

2,317

-545

1,772

695

1,514

-437

1,772

191

SPECIFICATION OF BUFFER CAPITAL ITEMS CONSERNING LIFE INSURANCE

NOK million

Additional statutory reserves

Buffer fund

Conditional bonus

Market value adjustment reserve

Total buffer capital

Guaranteed

Total

Storebrand

pension

Savings

Insurance *)

Group 2022

Group 2021

9,643

1,137

12,540

693

24,013

9,643

1,137

12,540

632

23,952

13,602

13,781

6,309

33,693

-61

SPECIFICATION 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

Supplerende avsetning

Guaranteed

pension

246,874

4,753

2,943

Savings

Insurance *)

Group 2022

Group 2021

Total

Storebrand

314,918

6,660

1,595

599

779

664

568,452

569,376

6,348

3,606

779

664

4,180

3,500

661

573

Total insurance liabilities - life insurance

249,824

314,992

8,037

572,853

573,539

*) 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

2022

2,047

-1,415

632

2021

5,195

1,115

6,309

192

Total insurance liabilities - life insurance 01.01

Purchase of business

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

Longevity swap

Surplus allocated to additional statutory reserves

Allocated risk equalisation fund

Transfer to/from owner

Other changes

Total change in insurance liabilities in income
statement

Transfer between products

Yield tax

Longevity swap

Fair value adjustment of properties for own use in
Other comprehensive income

Change in reinsurance share

Change in premium fund

Latent capital contribution

Other

Acquisition of insurance portfolio

Exchange rate adjustments

Total insurance liabiliteis - life insurance 31.12.

*) Including personal risk and employee insurance of the Insurance segment.

See note 40 for insurance liabilities - P&C.

Guaranteed

pension

258,263

768

9,595

-12,258

5,002

-16,161

-595

-52

-1,508

3,506

-12,373

1,124

-73

-7

323

800

3,192

-2,295

249,824

Note 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.

193

-117

-411

-15,067

-127

-201

-4,353

314,992

Savings

Insurance *)

Total 2022

Total 2021

308,351

26,322

33,310

-26,992

-20,457

6,925

611

3,318

-26

191

-1,137

-400

-148

573,539

534,683

27,701

46,223

-39,275

5,193

-37,755

-595

-52

-2,056

3,506

-405

-626

51,512

58,831

861

-50,945

-4,504

-127

-2,557

-1,653

-109

-425

-268

-25,834

50,615

-288

-305

1,606

-1,075

-20

-11

-200

-7

323

837

2,991

-6,648

8,037

572,853

2022

1,132

1,066

1,017

2,198

-31

-186

127

-11

796

299

2,551

-15,306

573,538

2021

985

933

893

1,918

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

Note 42 Hedge accounting

2022

288

891

335

394

1,339

1,071

2,833

284

2,614

479

2021

286

990

231

358

2,756

1,449

5,096

320

2,411

205

454

10,630

14,643

2022

-15

-1

2021

-22

-3

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 103per cent per 31.12.22.

194

2022

Book value 1)

2021

Book value 1)

Contract/

nominal value

Recognised of

comprehensive

Conract/

nominal

Recognised of

comprehensive

NOK million

(Euro)

Assets

Liabilities

income

value (Euro) Assets

Liabilities

Booked

income

112

-38

421

-590

578

703

250

-250

2,685

-1

-391

335

Interest rate swaps

Subordinated loans

Debt raised through

issuance of securities

1) Book values as at 31.12.

HEDGING INSTRUMENT/HEDGED ITEM

2022

Book value 1)

2021

Book value 1)

Contract/

nominal

Conract/

nominal

NOK million

value (NOK)

Assets

Liabilities

Booked

value (NOK)

Assets

Liabilities

Booked

Interest rate swaps

Subordinated loans

Debt raised through issuance

of securities

730

1) Book values as at 31.12.

-46

480

680

480

475

-4

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 attributable to the hedged risk adjust the carrying amount of the hedged item
and are recognised through profit or loss. Hedging loans in Euro also includes hedging foreign exchange risk.

Hedge effectiveness is monitored at an individual security level. Hedge effectiveness was 88 and 100 per cent as at 31 December 2022.

HEDGING INSTRUMENT/HEDGED ITEM

2022

Book value 1)

2021

Book value 1)

Contract/

nominal

Contract/

nominal

NOK million

value (Euro)

Assets

Liabilities

Booked

value (Euro)

Assets

Liabilities

Booked

300

-300

648

2,397

300

-300

158

2,876

Interest rate swaps

Subordinated loans

Debt raised through issuance

of securities

1) Book values as at 31.12.

195

2022

Book value 1)

Contract/

nominal

value (NOK)

Assets

Liabilities

750

-750

773

NOK million

Interest rate swaps

Subordinated loans

Debt raised through issuance of

securities

1) Balanseførte verdier per 31.12.

Hedging of net investment in Storebrand Holding AB
In 2022, 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. . As of 31 December
2022, three loans have been taken out that are used as hedging instruments. 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 226 million were recognised in total comprehensive income
in connection with the hedging of Storebrand Holding AB, compared with a revenue of NOK 577 million in 2021.

HEDGING INSTRUMENT/HEDGED ITEM

2022

Book value 1)

2021

Book value 1)

Contract/

nominal value

(SEK)

-9,691

-2,800

Assets

Liabilities

-111

2,654

Conract/

nominal value

(SEK)

-4,696

-3,800

Assets

Liabilities

-18

3,704

11,823

9,538

NOK million

Currency derivatives

Loan used as hedging instrument

Underlying items

1) Balanseførte verdier per 31.12.

The phasing out of LIBOR as a reference rate for various currencies had a slightly less attention in 2022 than in 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 was replaced by new “overnight rates”, SOFR, SONIA, EURSTR, SARON and TONA. The value of
some of the LIBOR rates has still been quoted in 2022, however this will only be synthetic for GBP and JPY. The transition to and use of the
new official “overnight rates” has continued 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 338 million.

196

NOK million

Collateral provided in cash in connection with derivatives trading

Collateral provided in bonds

Cash collateral received in connection with derivatives trading.

Collateral received in bonds

Collateral received in connection with Derivatives trading

Total received and pledged collateral

2022

8,765

3,596

-1,337

-93

10,953

2021

1,200

-3,445

-322

-2,568

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 calculated
based on the NOWA and EONIA rates respectively.

Security provided for futures and options is adjusted daily on the basis of a daily margin settlement for each contract.

Security is received and provided in the form of both cash and securities. Security in the form of cash is recognised in the balance sheet and
classified as other receivables and other current liabilities in Notes 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

2022

1,590

151

1,741

2021

651

151

802

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 two F-loan in
Norges Bank as per 31.12.2022.

Of the total lending of NOK 49.5 billion in the Bank Group, NOK 37.5 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 32,2 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 10.11 per cent at the end of 2022. The statutory
OC is 5 per cent. Storebrand Boligkreditt AS has security that is NOK 5,7 billion more than what the present rating requires. Storebrand Bank
ASA therefore considers the security to be adequate.

197

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

2022

3,737

3,246

4,087

12,238

23,309

2021

3,322

3,516

4,870

10,093

21,801

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

NOK million

Lending of shares

Collateral received for lent securities

2022

1,274

-1,411

2021

207

-227

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%.

Note 46: Information related parties

Companies in the Storebrand Group have transactions with related parties who are shareholders in Storebrand ASA and senior employees.
These are transactions that are part of the products and services offered by the Group‘s companies to their customers. The transactions 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 48: Events after the balance sheet date

Storebrand ASA has acquired the Norwegian Fintech company Kron AS, and the transaction was completed on January 3 2023. See further
information in note 3.

198

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

Other financial income

Operating income

Interest expenses

Other financial expenses

Operating expenses

Personnel expenses

Other operating expenses

Total operating expenses

Total expenses

Pre-tax profit

Tax

Profit for year

Note

2022

4,5,6

3,187

-25

3,215

-23

110

-50

-170

-220

-133

3,082

-143

2,939

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

2022

2,939

-3

2021

4,542

-2

204

4,783

-18

-79

-44

-136

-180

-277

4,505

-258

4,248

2021

4,248

-1

Total comprehensive income

2,949

4,252

199

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

31.12.22

31.12.21

24,100

24,164

3,178

10,11

11,13

4,629

433

8,294

32,458

2,360

-39

10,842

13,163

15,932

29,095

118

501

618

1,002

1,718

2,745

32,458

23,006

23,079

4,542

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

Lysaker, 7 February 2023
Board of Directors of Storebrand ASA

Didrik Munch (sign.)
Chairman of the board

Karin Bing Orgland (sign.)

Martin Skancke (sign.)

Marianne Bergmann Røren (sign.)

Christel Elise Borge (sign.)

Karl Sandlund (sign.)

Fredrik Åtting (sign.)

Martin Skancke (sign.)

Hanne Seim Grave (sign.)

Hans Petter Salvesen (sign.)

Bodil Chaterine Valvik (sign.)

Odd Arild Grefstad (sign.)
Chief Executive Officer

200

STOREBRAND ASA

Statement of changes in equity

NOK million

Share capital 1)

Own shares

Share premium

Other equity

Total equity

Equity at 31. December 2020

2,339

-2

10,521

320

10,842

Profit for the period

Total other result elements

Total comprehensive income

Issues of shares

Provision for dividend

Own shares sold 2)

Employee share 2)

Equity at 31. December 2021

2,360

Profit for the period

Total other result elements

Total comprehensive income

Provision for dividend

Own shares bought back 2)

Own shares sold 2)

Employee share 2)

Equity at 31. December 2022

2,360

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

-7

-9

-32

-39

12,609

4,248

4,252

-1,640

-97

15,128

2,939

2,949

-1,718

-468

25,467

4,248

4,252

341

-1,640

-104

28,321

2,939

2,949

-1,718

-500

10,842

15,932

29,095

2) In 2022, Storebrand ASA has bought 6.477.024 own shares. In 2022, 552.574 shares were sold to our own employees. Holding of own shares 31. December 2022 was 7.764.226.

201

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

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

2022

224

-233

4,551

4,541

-1,511

-1,512

-500

-23

-500

-1,646

-2,624

405

433

2021

130

-184

3,126

3,071

202

-1,675

-1

-1,473

-18

-144

-1,513

-1,631

-33

202

Innhold noter

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

203

Storebrand ASA is the holding company of the Storebrand Group. The Storebrand Group is engaged in life and P&C insurance, banking
and asset management, with insurance being the primary business. The financial statements of Storebrand ASA have accordingly been
prepared in accordance with the Norwegian Accounting Act, generally accepted accounting policies in Norway, and the Norwegian
Regulations relating to annual accounts for nonlife insurance companies. Storebrand ASA has used the simplified IFRS provisions in the
regulations for recognition and measurement.

Use of estimates and discretionary assumptions
In preparing the annual financial statements, Storebrand has made assumptions and used estimates that affect the reported value of
assets, liabilities, revenues, costs, as well as the information provided on contingent liabilities. Future events may cause these estimates
to change. Such changes will be recognised in the financial statements when there is a sufficient basis for using new estimates. The
most important estimates and assessments are related to the valuation of the company’s subsidiaries and the assumptions used for
pension calculations.

Classification and valuation policies
Assets intended for permanent ownership and use are classified as fixed assets, and assets and receivables due for payment within one
year are classified as current assets. Equivalent policies have been applied to liability items.

Profit and loss account and statement of financial position
Storebrand ASA is a holding company with subsidiaries in the fields of insurance, banking and asset management. The layout plan in
the Regulations relating to annual financial statements for nonlife insurance companies has not been used, a custom layout plan has
been used.

Investments in subsidiaries, dividends and group contributions
In the company’s accounts, investments in subsidiaries and associated companies are valued at the acquisition cost less any write-
downs. The need to write down is assessed at the end of each accounting period. Storebrand ASA’s primary income is the return on
capital invested in subsidiaries. Group contributions and dividends received in respect of these investments are therefore recorded
as ordinary operating income. Proposed and approved dividends and group contributions from subsidiaries at the end of the year are
recognised in the financial statements of Storebrand ASA as income in that financial year.

A prerequisite for recognition is that this is earned equity by a subsidiary. Otherwise, this is recognised as an equity transaction, which
means that the ownership interest in the subsidiary is reduced by dividends or group contributions.

Tangible fixed assets
Tangible fixed assets for own use are recognised at acquisition cost less accumulated depreciation. Write-downs are made if the book
value exceeds the recoverable amount of the asset.

Pension liabilities for company’s own employees
Storebrand ASA have defined-contribution pension but have some pension obligation that are recorded as defined-benefit pension.

The defined-contribution pension scheme involves the company paying an annual contribution to the employees’ collective pension
savings. The future pension will depend upon the size of the contribution and the annual return on the pension savings. The company
does not have any further work-related obligations after the annual contribution has been paid. No provisions are made for ongoing
pension liabilities for these types of schemes. Defined-contribution pension schemes are recognised directly in the financial statements.

Tax
The tax cost in the profit and loss account consists of tax payable and changes in deferred tax. Deferred tax and deferred tax assets
are calculated on the differences between accounting and tax values of assets and liabilities. Deferred tax assets are recorded on the
balance sheet to the extent it is considered likely that the company will have sufficient taxable profit in the future to make use of the
tax asset. Deferred tax is applied directly against equity to the extent that it relates to items that are themselves directly applied against
equity.

Currency
Current assets and liabilities are translated at the exchange rate on the balance sheet date. Shares held as fixed assets are translated
at the exchange rate on the date of acquisition.

204

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 ownership
of the asset is transferred.

Bonds and other fixed income securities are recognised at fair value.
Fair value is the amount for which an asset could be sold for, or a liability settled with, between knowledgeable, willing parties in an
arm’s length transaction. For financial assets that are listed on an exchange or other regulated market place, fair value is determined as
the bid price on the last trading day up to and including the balance sheet date, and in the case of an asset that is to be acquired or a
liability that is held, the offer price.

Financial derivatives
Financial derivatives are recognised at fair value. The fair value of such derivatives is classified as either an asset or a liability with changes
in fair value through profit or loss.

Bond funding
Bond loans are recorded at amortised cost using the effective interest rate method. The amortised cost includes the transaction costs
on the date of issue.

Note 2: Income from investments in subsidiaries

NOK million

Storebrand Livsforsikring AS

Storebrand Bank ASA

Storebrand Asset Management AS

Storebrand Forsikring AS

Storebrand Facilities AS

Storebrand Helseforsikring AS

Total

Group contribution from Storebrand ASA, see note 8.

2022

2,325

208

510

134

3,187

2021

3,210

238

948

146

4,542

205

NOK million

income

on realisation

gain/loss

2022

2021

Dividend/

Net

interest

Net gain/loss

unrealised

Net income from equities and units

Net income from bonds and other fixed income securities

Net income and gains from financial assets at fair value

– of which FVO (Fair Value Option)

-30

-25

-11

-25

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.

2022

-25

-7

-8

-11

-50

-2

2021

-24

-6

-7

-44

Note 5 : Pensions costs and pension liabilities

Storebrand Group has country-specific pension schemes.

Storebrand’s employees in Norway have a defined-contribution pension scheme. In a defined-contribution scheme, the company
allocates an agreed contribution to a pension account. The future pension depends upon the amount of the contributions and the
return on the pension account. When the contributions have been paid, the company has no further payment obligations relating to
the defined-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 111,477 as at 31 December 2022)
– 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

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

206

2022

-7

-6

123

118

2021

-7

-6

147

142

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

2022

149

-14

-13

125

2022

2021

165

-6

-12

149

2021

Expected premium payments are estimated to be NOK 2 million and the payments from operations are estimated to be NOK 15 million
in 2023.

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:

NET PENSION COST BOOKED TO PROFIT AND LOSS ACCOUNTS IN THE PERIOD

NOK million

Net interest/expected return

Total for defined benefit schemes

The period's payment to contribution scheme

Net pension cost booked to profit and loss accounts in the period

OTHER COMPREHENSIVE INCOME (OCI) IN THE PERIOD

NOK million

Actuarial loss (gain) - change in discount rate

Actuarial loss (gain) - experience DBO

Remeasurements loss (gain) in the period

2022

14 %

43 %

16 %

5 %

20 %

1 %

100 %

0.5 %

2021

13 %

39 %

15 %

13 %

19 %

1 %

100 %

4.5 %

2022

2021

2022

-13

-1

-14

2021

-6

207

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

2022

3.80 %

3.50 %

0.00 %

2021

2.00 %

2.25 %

0.00 %

K2013BE

In Norway, a discount rate based on covered bonds is used. Based on the market and volume trends observed, the Norwegian covered
bond market must be perceived as a deep market.

Specific company conditions including expected direct wage growth are taken into account when determining the financial assumptions.

Actuarial assumptions:
In Norway standardised assumptions on rates of mortality and disability as well as other demographic factors are prepared by Finance
Norway. With effect from 2014 a new mortality basis, K2013, has been introduced for group pension insurance in life insurance companies
and pension funds. Storebrand has used the mortality table K2013BE (best estimate) in the actuarial calculations at 31 December 2022.

Note 6: Remuneration of the CEO and elected officers of the company

Tusen kroner

Chief Executive Officer 1)

Salary 2

Other taxable benefits

Total remuneration

Pension costs 3)

Chairman of the Board

Board of Directors including the Chairman

Remuneration paid to auditors 4)

Statutory audit

Other reporting duties

Other non-audit services

2022

7,952

169

8,122

1,549

873

5,568

3,417

436

2021

7,638

185

7,823

1,493

874

5,468

2,415

246

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.

208

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

2022

3,082

-94

-2,331

-70

-39

549

2022

-137

-6

-143

2021

4,505

-135

-203

-3,214

1,042

2021

-260

-258

CALCULATION 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

Tax cost

Effective tax rate

209

2022

2021

-26

-118

-1

-144

2022

3,082

-770

604

-143

5 %

-40

-142

-1

-183

2021

4,505

-1,126

784

-258

6 %

Business

office

Interest/

votes in %

Carrying amount

2022

2021

Oslo

100%

50%

NOK million

Subsidiaries

Storebrand Livsforsikring AS 1)

Storebrand Bank ASA 2)

Storebrand Asset Management AS

Storebrand Forsikring AS 3)

Storebrand Facilities AS

Jointly controlled/associated companies

Storebrand Helseforsikring AS

Sum

1) Group contribution in 2022 of NOK 428 million as capital contribution.

2) Group contribution in 2022 of NOK 407 million as capital contribution.

3) Group contribution in 2022 of NOK 30 million as capital contribution.

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

16,030

3,455

3,430

1,083

24,100

Fair value

2022

Fair value

2022

4,629

0.6

4.12 %

15,603

2,823

3,425

1,053

23,006

2021

4,811

0.6

1.25 %

210

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

1,369

Supranational organisations

268

1,637

1,506

Other

Total 2022

Total 2021

COUNTERPARTIES

NOK million

Bank deposits

433

503

573

1,732

1,736

2,199

665

710

530

Virkelig verdi

428

Total

Fair value

2022

4,199

292

4,629

2021

194

4,171

439

4,811

Total

Virkelig verdi

433

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

0-6 months

7-12 months

2-3 years

4-5 years

Total value

Securities issued/bank loans

Total financial liabilities 2022

Total financial liabilities 2021

508

512

519

1,031

505

Carrying

amount

501

1,001

Storebrand ASA had as per 31 December 2022 liquid assets of NOK 5,1 billion.

Currency risk
Storebrand ASA has investments of SEK 36 million.

211

EQUIPMENT, FIXTURES & FITTINGS

NOK million

Acquisition cost 01.01

Accumulated depreciation

Carrying amount 01.01

Additions

Carrying amount 31.12

Property, plant and equipment mainly includes art that is not depreciated.

Note 13: Securities issued

2022

2021

-7

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

2022

501

2021

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.

212

Note 14: Shareholders

THE 20 LARGEST SHAREHOLDERS

Folketrygdfondet

Allianz Global Investors

T Rowe Price Global Investments

Vanguard Group

EQT Fund Management

KLP

Alfred Berg

BlackRock

Storebrand Asset Management

DNB Asset Management

Handelsbanken Asset Management

Nordea Asset Management

Danske Bank Asset Management

Storebrand ASA

Solbakken AS

OM Holding AS

Eika Kapitalforvaltning

Union Investment

SSGA

BNP arbitrage account

Foreign ownership of total shares

Ownership

interest in %

9.9

6.9

5.9

3.6

3.2

3.0

2.7

2.2

2.0

1.9

1.6

1.4

1.2

1.0

50 %

213

Senior employees

Odd Arild Grefstad

Lars Aa. Løddesøl

Heidi Skaaret

Jan Erik Saugestad

Karin Greve-Isdahl

Trygve Håkedal

Tove Selnes

Vivi Måhede Gevelt

Jenny Rundbladh

Board of Directors

Didrik Munch

Martin Skancke

Karin Bing Orgland

Christel Elise Borge

Karl Sandlund

Marianne Bergmann Røren

Fredrik Åtting

Bodil Catherine Valvik

Hans-Petter Salvesen

Hanne Seim Grave

Number of

shares 1)

247,520

156,271

119,115

131,305

35,705

32,412

35,772

7,413

4,424

255,000

32,500

27,000

11,000

7,000

15,300,000

1,910

650

1) The summary shows the number of shares owned by the individual, as well as his or her immediate family and companies where the individual exercises significant influence, confer the

Accounting Act, Section 7-26.

TRANSACTIONS BETWEEN GROUP COMPANIES

NOK million

Profit and loss account items:

Group contributions and dividends from subsidiaries

Purchase and sale of services (net)

Statement of financial position items:

Due from group companies

Payable to group companies

Note 16: Number of employees/person-years

Number of employees

Number of full time equivalent positions

Average number of employees

214

2022

3,187

-141

3,178

1,002

2022

2021

4,542

-108

4,542

1,193

2021

- 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 2022 financial year and as at 31 December 2022 (2022
Annual Report).

The consolidated financial statements have been prepared in accordance with the EU-approved International Financial Reporting
Standards (IFRS) and the associated interpretations, as well as the other disclosure obligations stipulated in the Norwegian Accounting
Act that must be applied as at 31 December 2022. The annual financial statements for the parent company have been prepared in
accordance with the Norwegian Regulations relating to annual accounts, the Norwegian Regulations relating to annual accounts for
nonlife 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 2022.

In the best judgment of the Board and the CEO, the annual financial statements for 2022 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 2022. 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, 7 February 2023
Board of Directors of Storebrand ASA

Didrik Munch (sign.)
Chairman of the Board

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

215

Independent auditor’s report

To the General Meeting of Storebrand ASA

Independent Auditor’s Report

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Storebrand ASA, which comprise:

•

the financial statements of the parent company Storebrand ASA (the Company), which
comprise the statement of financial position as at 31 December 2022, the income statement,
statement of total comprehensive income, the statement of changes in equity and statement of
cash flow for the year then ended, and notes to the financial statements, including a summary
of significant accounting policies, and
the consolidated financial statements of Storebrand ASA and its subsidiaries (the Group),
which comprise the statement of financial position as at 31 December 2022, the income
statement, statement of total comprehensive income, statement of changes in equity and
statement of cash flow for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies.

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 2022, and its financial performance and its cash flows for the year then ended in
accordance with Norwegian Accounting Act and accounting standards and practices generally
accepted in Norway, and
the consolidated financial statements give a true and fair view of the financial position of the
Group as at 31 December 2022, 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 relevant laws and regulations in Norway and the International Ethics Standards
Board for Accountants’ International Code of Ethics for Professional Accountants (including
International 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.

PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap

216

We have been the auditor of the Company for 5 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 2022 financial statements.

Key Audit Matters

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.

We also considered and found that the information
regarding the insurance liabilities in notes to the
financial statements is sufficient and adequate, and that
the information satisfies the requirements of the
accounting rules.

2 / 7

217

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.

Through our audit we have assessed and tested design
and effectiveness of established controls for review of
applied assumptions and calculation methods,
including the company’s internal valuation of
investment properties. We particularly examined
whether management had established controls to
ensure assessment of market rent and discount rate.
We found that routines to ensure that these elements
regularly were checked against both external valuations
and marked data was established. Those controls that
we elected to base our audit on, was in our view
working efficiently.

We obtained, read through and understood the internal
valuation model. We concluded that the model contains
the elements required by the financial reporting
framework and therefore is appropriate as a basis for
determining fair value on the Group’s investment
properties. We tested whether, and concluded that the
model made mathematically correct calculations.

In our assessment of the valuation, we challenged the
assumptions for expected future cash flows and
discount rate by comparing a sample of properties
against information from relevant external sources.
Substantial changes in value from previous periods was
subject to discussions with management. We concluded
that assumptions were consistent with information
from relevant sources and that explanations regarding
substantial changes in value were based on changes in
the information from relevant sources.

We also assessed the qualifications, competence and
objectivity of the external valuers. We reviewed the
engagement letters with the valuers to assess whether
there were any clauses or fee provisions that may have
affected their objectivity or in any other way limited
their engagement. We did not find any indications of
such circumstances.

We compared the internal valuations against the
valuers estimates on values for a sample of properties.
We challenged management on substantial deviations
and obtained explanations on deviations. We challenged
the management and external valuers on the possible

3 / 7

218

effects from climate risk in setting fair value. We
assessed the explanations 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.

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.

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.

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

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 sources. We
considered the reliability of the sources of information,
when relevant. Our tests did not reveal substantial
deviations.

We also assessed and found that the information in the
notes regarding the Group’s valuation principles and
fair value determination were sufficient and adequate.

We have reviewed and challenged management
assessment of the uncertain tax positions. Management
obtained external legal opinions as a basis for their
conclusions. We evaluated the competence, integrity
and objectivity of the external legal advisors. We

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219

uncertain tax positions have occurred as
part of the group’s activities related to
liquidation of a subsidiary in 2015 and
new tax rules for life insurance companies
in 2018. Management applied significant
judgment in their assessment of whether
the uncertain tax positions should be
recognized in the financial statements
and have therefore been a focus area.

evaluated the external legal opinions, and whether the
arguments used by the legal advisors are reasonable
and that the considerations were neutral.

We also assessed the information regarding the
uncertain tax positions in the financial statements. We
found that the information meets the requirements in
the accounting standards.

Other Information

The Board of Directors and the Managing Director (management) are responsible for the information
in the Board of Directors’ report and the other information accompanying the financial statements. 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 nor the other information accompanying the financial
statements.

In connection with our audit of the financial statements, our responsibility is to read the Board of
Directors’ report and the other information accompanying the financial statements. The purpose is to
consider if there is material inconsistency between the Board of Directors’ report and the other
information accompanying the financial statements and the financial statements or our knowledge
obtained in the audit, or whether the Board of Directors’ report and the other information
accompanying the financial statements otherwise appear to be materially misstated. We are required
to report if there is a material misstatement in the Board of Directors’ report or the other information
accompanying the financial statements. 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 statutory 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. The financial statements of the Company use the going concern basis of accounting insofar
as it is not likely that the enterprise will cease operations. The consolidated financial statements of the
Group use the going concern basis of accounting unless management either intends to liquidate the
Group or to cease operations, or has no realistic alternative but to do so.

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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 and 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's 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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221

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 Requirement on European Single Electronic Format (ESEF)

Opinion
As part of the audit of the financial statements of Storebrand ASA, we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the
annual report, with the file name storebrandasa-2022-12-31-nb.zip, have been prepared, in all material
respects, in compliance with the requirements of the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant to
Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the
preparation of the annual report in XHTML format, and iXBRL tagging of the consolidated financial
statements.

In our opinion, the financial statements, included in the annual report, have been prepared, in all
material respects, in compliance with the ESEF regulation.

Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF
regulation. This responsibility comprises an adequate process and such internal control as
management determines is necessary.

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, 7 February 2023
PricewaterhouseCoopers AS

Thomas Steffensen
State Authorised Public Accountant

Note: This translation from Norwegian has been prepared for information purposes only.

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222

Corporate governance

225 Corporate governance

231 Companies in the Storebrand Group

Good corporate governance is a prerequisite for companies to
achieve their objectives, including the best possible use of resources
and optimal value creation. Storebrand’s Board of Directors and
Group Executive Management work to continuously improve
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 and management
conduct an annual review of Storebrand’s corporate governance
policies and compliance. 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 18.

Storebrand complies with the Code of Practice without significant
deviations, except
regarding Board
for minor deviations
authorisations to make capital increases and to purchase own
shares, in section 3 below. The discrepancy relates to the fact that it
was not facilitated for the Annual 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.

Storebrand’s strategy and values are described in the framework
“Our driving force”, which forms a common direction for how
Storebrand will create value for customers, owners and society in
general.

Storebrand’s goal
is to deliver profitable growth within the
established focus areas through simple and sustainable solutions.
The board conducts continuous evaluations of goals, strategy and
risk profile. More information about “Our driving force” and focus
areas can be found on page 10.

Storebrand has worked with sustainable investments for almost
30 years and has taken an active position on how both customers’
and own assets are invested. Storebrand believes that companies
that integrate environmental, social and corporate governance
considerations into their business activities reduce risk and create
new opportunities for the business and its owners. See chapter A
driving force for sustainable investments in the annual report.

Storebrand’s principles for sustainability summarise how the
work is an integral part of the Group’s overall objectives and
management and control processes. The principles were updated
in 2022 and cover all parts of the business, including investments,
product development, sourcing, employee management and facility
operations.

Storebrand shall take sustainability into account, both through our
products, services and through our cooperation with suppliers and
partners. This is a key part of the Group’s strategy and trademark. The
following principles form the basis for the work within sustainability:

• We base our business activities on the UN Sustainable

Development Goals (SDGs).

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.

• We help our customers make more sustainable choices,

through the products and services we offer.

• We are a responsible employer.
• We consider sustainability in all processes and decisions – from
the Board and Group Executive Management, who have the
ultimate responsibility, to each manager and employee.

• We cooperate with our customers, suppliers, authorities, and

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 updated on Storebrand’s goals, strategies and
creation of value through quarterly performance presentations and
other thematic presentations. Read more about the Group’s goals
and main strategies in the Directors’ Report on page 46.

224

partners in our work with sustainability.

• We are transparent about our work on sustainability and the

results we achieve.

The Board of Directors of Storebrand ASA determines Storebrand’s
overall ambitions and principles for the Group’s work in sustainable
finance and sustainable investments. The latter includes the “Policy
of sustainable investments” with principles for exclusion and
active ownership (company dialogue and voting). An overarching
strategic goal in recent years has been to strengthen sustainability
as a competitive advantage. This goal affects Storebrand’s internal

The Board has the overall responsibility for ensuring that the Group
works with and reports on sustainability in compliance with national
laws, regulations, and regulations of the European Union. It also
is responsible for overseeing that the Group meets self-imposed
obligations and aspirations.

The Board determines the responsibilities and tasks of the CEO within
sustainability and approves the organisation of responsibilities and
tasks of Group Executive Management. The Board follows up on the
company’s work with sustainability through business area reports,
as well as status, risk and compliance reporting from independent
control functions and internal audit.

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.
Storebrand’s integrated report presents detailed goals and results
for the above areas on pages 25, 33, 45 and 80. The materiality
analysis will be updated in 2023.

Storebrand has its own Code of Conduct. In addition, guidelines
have been established for events, whistleblowing and combating
corruption. The board is informed of the reports received in
accordance with the adopted guidelines for whistleblowing. These
guidelines are published on Storebrand’s website.

3. Equity and dividends (deviations from the code of
practice).
The Board of Storebrand ASA continuously monitors Storebrand’s
capital adequacy in light of the Group’s goals, strategy and risk
profile. Read more about Storebrand’s capital situation and solvency
on page 57 in the Director’s Report. The Board of Directors has
adopted and communicated a dividend policy whereby Storebrand
aims to pay a dividend of more than 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
ratio of more than 150 per cent. With a solvency ratio above 175 per
cent, the Board’s intention is to propose extraordinary dividends or
the buyback of shares.

The dividend is adopted by the Annual General Meeting, based on a
proposal put forward by the Board.

The Annual General Meeting may, by simple majority, authorise
the Board 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
Annual 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 Annual General Meeting was not requested to provide
such authorisation in 2022. Read more about Storebrands dividend
policy on page 57.

Storebrand ASA would like to have various tools available for its to
maintain an optimal capital structure for Storebrand to be able to
offer good shareholder returns and retain financial resilience. At the
2022 Annual General Meeting, the Board was granted authorisation
to increase the share capital through issuing new shares for a total
maximum value of NOK 235,987,445. 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 authorisation.
This authorisation may be used for one or more new issues. This
authorisation is valid until the next Annual General Meeting.

At the same Annual General Meeting, the Board was authorised
to buy back shares for a maximum value of NOK 235,987,445. The
total holding 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 ordinary dividends. In addition, Storebrand ASA each
year sells shares to employees from its own holdings in connection
with the share purchase scheme and long-term incentive schemes
for employees. Accordingly, it is appropriate to authorise the Board
to buy shares in the market. 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 Annual
General Meeting to vote on each individual purpose to be covered
by the authorisation.

4. Equal treatment of shareholders and transactions with
close associatess (no deviation from the code of practice)
Storebrand ASA has only one class of shares. There are no special
ownership and voting restrictions beyond the restrictions imposed
by the Act on Financial Undertakings and Financial Groups. The
Board and Group Executive Management of Storebrand place great
emphasis on equal treatment of the shareholders.

The general competence rules for Board Directors 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 Directors must inform the Group
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 Director 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 Director is responsible for continuously assessing whether or
not such a situation exists.

225

Transactions with
involving Storebrand’s
employees or employee representatives of the Group are regulated
by Storebrand’s Code of Conduct. Employees shall report to their
immediate supervisor any conflicts of interest that may arise, as soon
as they become aware of such a situation. In general, an employee
is defined as disqualified if circumstances lead to other persons
question his or her impartiality in matters related to 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 chapter
Shareholder matters.

5. Freely negotiable shares (no deviation from the code of
practice)
Shares in Storebrand ASA are listed on Oslo Børs (Oslo Stock
Exchange). The Articles of Association do 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 Annual
General Meeting was held on 6th April 2022. All shareholders with
a known address will receive notice of the meeting, which will be
sent out no later than 21 days prior to the Annual 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 Annual 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 Annual General. 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 on the agenda,
including elections to board positions. Further information about
voting in advance, use of proxies and the shareholders’ rights to
have matters discussed at the Annual General Meeting is available
both in the notice of Meeting and on Storebrand’ s website.

The access to electronic voting and the use of proxy allows
shareholders to cast their votes without attending the Annual
General Meeting in person. All shareholders are thus given an
opportunity to exert influence on Storebrand using the right to vote.

The Board Chair, at least one representative from the Nomination
Committee and the external auditor must attend the Annual General
Meeting. Board Directors’ are encouraged to attend, but they are
not obligated to attend. Management representation comprises the

CEO, members of the Executive Management Team as well as the
Chief Legal Officer. The minutes of the Annual General Meeting are
available on Storebrand’s website in both Norwegian and English.
The Annual General Meeting is opened by the Chair. The Board
endorses an independent meeting chair elected by the Annual
General Meeting.

The Annual 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, including its
leader, as well as members to the Board, including 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

Decisions are generally made based on an ordinary majority. Pursuant
to Norwegian law, however, a special majority is required for certain
decisions, including decisions about setting aside pre-emptive rights
in connection with any share issues, mergers, spin-offs, amendments
to the Articles of Association, or authorizations to increase or reduce
the share capital. Such decisions require approval by at least two-
thirds of both the votes cast and the share capital represented at
the Annual 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 three and a maximum of five members.
For the election period 2022-2023, the Nomination Committee has
consisted of five members.

The leader and members of the Nomination Committee are elected
annually by the Annual General Meeting.

A majority of the Nomination Committee members are independent
of the Board and the administration. The committee is composed
with a view to safeguarding the interests of the shareholder
community. The Annual General Meeting’s instructions to the
Nomination Committee include provisions on rotation for members
of the committee.

226

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
proposals to the Annual 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 eight
meetings in 2022.

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 Directors are elected by the Annual General Meeting at the
recommendation of the Nomination Committee. The Board Chair is
elected separately by the Annual General Meeting.

Two members, or three members if the Annual General Meeting
elects six or seven Board Directors, are elected by and among the
employees. Board Directors 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 2022, the Board consisted of 10 members
(five men and five women).

None of the Board Directors elected by the Annual General Meeting
has had any form of employment, nor professional or consultancy
relationship with Storebrand, beyond his or her appointment to
the Board. The backgrounds of the individual Board Directors are
described in the annual report on page 275 and on Storebrand’s
website. The composition of the Board of Directors satisfies the
independence requirements set forth in the Code of Practice. There
have been no cases of partiality during the Board’s deliberations
during 2022.

An overview of the number of shares in Storebrand ASA owned by
members of governing bodies as of 31 December 2022 is included
in the notes to the financial statements for Storebrand ASA (Note
15: Information on related parties) on page 213. None of the Board
Directors 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 2022, 12 Board meetings were held. Storebrand’s future strategic
direction was 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 Group’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 stating that Board Directors
and senior employees have a responsibility to proactively address
essential interests they may have in matters being considered by the
Board. 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.

One Board Director reported valid absence for one Board meeting
in 2022. Otherwise, all Board Directors participated in all Board
meetings. The work of the Board is regulated by special rules of
procedure, which are reviewed annually. To ensure sound decisions,
it is important to prepare Board meetings so that all 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 decided in consultation with the Board Chair. Time is set aside
at each Board meeting to evaluate the meeting without (the CEO
or members of) the Executive Group Management present. The
Board is entitled to appoint external advisers to help it with its work
whenever it deems this necessary. The Board has also drawn up
instructions for the CEO.

The Board annually carries out an evaluation of its work and
working method. The evaluation provides the basis for changes
and measures. The report from the Board’s evaluation, or relevant
excerpts, is made available to the Nomination Committee.

Board Committees
The Board has established four subcommittees in the form of the
Compensation Committee, Audit Committee, Risk Committee and
Strategy Committee. The composition helps ensure a thorough and
independent consideration of matters that concern internal control,
financial reporting, risk assessment and remuneration of executive
personnel. The committees are preparatory and advisory working
committees and assist the Board with the preparation of items for
consideration. Decisions are made, however, by the full Board. The
committees can hold meetings and consider matters at their own
initiative and without the participation of Group management.

227

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 eight meetings in 2022. The external and
internal auditors participate in the meetings. The external auditor
attends the meetings. The majority of the Committee members are
independent of the company.

The main task of the Risk Committee is to prepare matters to be
considered by the Board in the area of risk, with a special focus
on Storebrand’s risk appetite and risk strategy, including the
investment strategy. The Committee contributes forward-looking
support related to the Board’s discussions and decisions related to
risk taking, financial forecasts and the treatment of risk reporting.
The Risk Committee held six meetings in 2022.

The main task of the Strategy Committee is to prepare the Board on
topics related to the Group’s work on strategy, including mergers
and acquisitions. The Committee provides forward-looking support
related to the Board’s discussions and decisions regarding the
Group’s strategic choices and targets. The Strategy Committee held
three meetings during 2022.

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 CEO’s areas of
responsibility are defined in the rules of procedure for the Board
and the instructions for the CEO, respectively. The Board 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, financial instituttions and other
stakeholders in the securities market.

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.

Risk management and internal control
The assessment and management of risk are integrated into
Storebrand’s corporate governance. This management system shall
ensure that there is a correlation between goals and actions at all
levels of Storebrand as well as the overall policy of creating value for
Storebrand’s shareholders.

Storebrand’s financial and operational goals are defined annually in
a business plan approved by the Board. 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 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 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., as well as the risk of incurring losses
due to inadequate or failing internal processes, systems, human
error or external events. Developments in the financial markets
are important risk factors in relation to Storebrand’s earnings and
solvency position. In addition to assessing the effects of sudden shifts
in the equity markets or interest rate levels (stress tests), scenario
analysis is used to estimate the effect of various sequences of events
in the financial markets on Storebrand’s financial performance and
solvency. This provides important premises for the Board’s general
discussion of risk appetite, risk allocation and capital adequacy.

The responsibility for Storebrand’s independent control functions
for risk management and compliance is gathered in Governance
Risk & Compliance, led by the Group Chief Risk Officer (CRO). The
CRO reports directly to the CEO and the Board. The CRO function
is responsible for supporting the Board and Group Executive
Management with respect to the establishment of a risk strategy ,
implementation of agreed limits and monitoring of risk raking across
Storebrand’s business areas.

As an extension of the general policies and guidelines, a Code of
Conduct has been drawn up that applies to all employees and
representatives of Storebrand, in addition to corporate rules for

Storebrand’s internal audit function 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

228

loans and shareholdings of Board Directors and Employee
Representatives can be found in Note 23 (Group) and Note 15 (ASA).
Board Directors are encouraged to hold shares in Storebrand ASA.

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 CRO and employees in control functions
within risk management, internal control and compliance have fixed
remuneration.

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. The statements are
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 for 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 particularly on the discretionary
valuations and estimates 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 Director’s (no deviation
from the code of practice)
The Annual General Meeting determines 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
carries out any duties for Storebrand beyond his or her role as a
Board Director. More detailed information on the remuneration,

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. Guidelines on the remuneration
(previously the executive remuneration statement) are presented
to the Annual 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
optimalisation. The Board’s stance is that the total remuneration
should be competitive, but not leading within the industry.

The salary of the Group Executive Management is determined
based on the level of responsibility and complexity of the position.
To ensure a competitive salary level, regular comparisons are made
with similar roles in other companies in the financial services industry.
Storebrand’s guidelines for financial remuneration are adapted
to the company’s business strategy. To safeguard customers and
shareholders in the best possible way, Storebrand believes it is
appropriate to primarily emphasise fixed wages as an instrument
in total financial compensation, and to a limited extent make use
of variable remuneration. Group Executive Management has a
fixed salary only. To ensure that senior executives have incentive
schemes that coincide with the long-term interests of Storebrand’s
shareholders, a significant proportion of gross fixed salary is tied to
the purchase of physical Storebrand shares with a three-year lock-in
period.

Senior executives are encouraged to own shares in Storebrand ASA
also beyond the lock-in period.

Execution of Storebrand’s strategy and achievements of operational
objectives are taken into account when making annual individual
assessments of the remuneration of employees. This strengthens
the alignment of interests between owners and the administration
further. Sustainable solutions are a key part of Storebrand’s business
strategy and, as such, are 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). In
addition, further information can be found in the Board’s guidelines
on remuneration, which is included in the notice of the Annual
General Meeting, and the report on Salary and remuneration of
senior executives, which is available on Storebrand’s website.

13. Information and communication (no deviation from the
code of practice)
The Board has issued guidelines for the company’s reporting of
financial and other information and for contact with shareholders
other than through the Annual General Meeting. Storebrand’s
reporting on sustainable
investments exceeds the statutory
requirements. Storebrand’s financial calendar is published on the
website and in the annual report. Financial information is published

229

Storebrand Asset Management AS has had 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. The guidelines regulate, for
example, the number of external Board positions.

14. Corporate takeover (no deviation from the recommen-
dation)
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 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 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 will,
in the event of a 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 Annual 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, with the exception of
Storebrand Danica Pensjonsforsikring AS, which has continued its
engagement with the existing auditor (Deloitte) for the current year
pending a merger with Storebrand Livsforsikring AS.

Other
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 the Group.

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.

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.

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.

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.

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 is discussed in the People chapter
of the annual report.

230

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 Danica Pensjonsforsikring AS

Storebrand Bank ASA

Storebrand Boligkreditt AS

Storebrand Asset Management AS

Storebrand Fonder AB

Storebrand Fastigheter AB

SKAGEN AS

Cubera Private Equity AS

Cubera Private Equity AB

Institutional Holding P/S

Capital Investment A/S

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

977 465 478

953 299 216

990 645 515

930 208 868

556397-8922

556801-1802

867 462 732

989 580 353

556812-8184

39504251

32343775

930 553 506

924 353 554

980 126 196

100.0 %

25.0 %

100 %

100.0 %

20.0 %

100.0%

100.0 %

50,0 %

231

Sustainability
assurance

233 Sustainability indicators and definitions

247 Financed emissions

252 Carbon accounting summary

253 TCFD-index

257 GRI-index

263 Auditor’s statement

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.

Customer relations

Categories and indicators

2019

2020

2021

2022

2023

2025

Results

Targets

Brand

Brand awareness: Norwegians who answer that Storebrand
is one of the first three companies they think of in a broad
financial category (position / share)

Recognised for sustainable value creation (Retail market,
Norway)

Recognised for sustainable value creation (Corporate market,
Norway)

Customer satisfaction

Customer Satisfaction (Net Promoter System, retail market)

Customer Satisfaction (EPSI): Insurance, retail market, Norway

Customer Satisfaction (EPSI): Banking, retail market, Norway 112

Customer Satisfaction (EPSI): Savings and investments, retail
market, Norway 113

Customer Satisfaction (ESPI): Pension, corporate market,
Norway

Customer Satisfaction (EPSI): Insurance, corporate market,
Norway

Customer Satisfaction: Corporate market, Sweden

Market share

Market share: Mutual funds, Asset Management, Sweden

Market share: Mutual funds, Asset Management, Norway 114

Markets share: Savings, retail market Norway 115

Market share: Banking, retail market, Norway

Market share: Insurance, retail market, Norway

Market share: Pension, corporate market, Sweden

Market share: Pension, corporate market, Norway 116

Market share: Insurance, corporate market, Norway

Market position

Market positions: Savings, retail market, Norway

Market position: Insurance, retail market, Norway

Market position: Insurance, corporate market, Norway

Market position: Pension, corporate market, Norway

Savings women

New

New No. 5 / 21.1 %

Top 3

No. 3

No. 5

No. 3

No. 5

Top 3

No. 1

No. 4

No. 3

No. 1

No. 4

New

No. 6

68.6

New

No. 5

68.9

70.9

No. 5

69.5

69.3

Top 3

Increase

New

65.4

63.9

Increase

No. 1

No. 2

No. 1

New

No. 3

4.7 %

16.1 %

20 %

1.7 %

3.6 %

14.1 %

29.1 %

2.0 %

No. 2

No. 7

No. 10

No. 1

New

No. 3

4.9 %

16.1 %

21.7 %

1.6 %

4.1 %

15.1 %

29.4 %

2.1 %

No. 2

No. 7

No. 10

No. 1

65.7

No. 4

4.9 %

15.4 %

19.6 %

1.8 %

5.9 %

14.3 %

27.0 %

2.5 %

No. 2

No. 5

No. 10

No. 2

65.7

No. 2

5.3 %

16.2 %

21.0 %

2.0 %

6.4 %

14.6 %

30.8 %

2.8 %

No. 2

No. 5

No. 9

No. 1

Increase

Top 3

Increase

N/A

No. 1

Savings Mutual Funds: Share of women

42.3 %

42.7 %

43.3 %

43.8 %

N/A

112) The decline is mainly driven by weakened relationship/service quality and dissatisfaction with communication around increased interest rates..

113) We fall less than the industry (-1.5 vs. -2.8 points), and thus end up stronger relative to our competitors. We maintain scores on all key underlying drivers. The decline is

mainly due to market turmoil and negative returns.

114) Market share includes total market (including institutional customers) for Storebrand and Skagen

115) Market share for savings retail market includes in 2022 Danica which we acquired in 2022.

116) Pension, corporate market share in 2022 includes Danica that we acquired in 2022.

233

Market share: Mutual funds, Asset Management, Sweden: Total assets
under management for Storebrand Fonder per Q4.

Brand
Brand awareness: Norwegians who answer that Storebrand is one of
the first three companies they think of in a broad financial category
(position / share): Share of Norway’s population who mention
Storebrand as one of the first three companies they think of when
they are asked the following question: “Which companies within
banking, insurance, savings and pensions do you know?” (average
share Q4).

Recognised for sustainable value creation: Proportion that associates
Storebrand with the statements “Invests 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” (average across the statements and average
proportion Q4).

Customer satisfaction
Customer satisfaction, NPS: Score 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 being the best result.

Customer satisfaction, EPSI: Scores are based on a customer
satisfaction index from EPSI Norway, which range from 0 to 100
(where 100 is the best). The index consists of 3 questions: “How
satisfied are you overall”, “To what extent do you feel that Storebrand
meets your expectations” and “How close or far away is Storebrand
from being the perfect supplier”.

Customer satisfaction, Sweden: Score from 1-10 (10 being the best)
based on the question: “Overall, how satisfied are you?”

Market share/Market position
We calculate market share mainly based on volume figures and
premium figures from publicly available sources and some internal
statistics. Our market position is determined on the same basis.

Market share: Mutual funds, Asset Management, Norway: Total assets
under management for Storebrand and Skagen per Q4.

Market share: Savings, retail market, Norway: Total assets under
management for respectively free funds retail market (incl. nominee)
and Unit Linked products retail market including Pension Capital
Certificates and Paid-up Policy with investment choice. Based on Q3
figures from Finans Norge and VFF (Verdipapirfondenes forening).

Market share: Banking, retail market, Norway: Market share lending
retail market Norway. Figures are based on Statistics Norway and
the banks’ own accounting figures.

Market share: Insurance, retail market, Norway: Market share makes
up land-based insurance in total. Figures are taken from Finans
Norge and are based on Q3.

Market share: Pension, corporate market, Sweden: Figures are based
on relevant product areas within occupational pensions and are
obtained from Svensk Försäkring. Gross contributions Q3.

Market share: Pension, corporate market, Norway: Market share is
calculated based on private collective pension insurance, gross
contributions, deposit-based with and without investment choice.
Danica is included from 2022. Figures are based on Q3.

Market share: Insurance, corporate market, Norway: Market share
constitutes land-based insurance in total (industry). The data is
collected from Finans Norge and are based on Q3.

Savings women
Savings Mutual Funds: Share of women: Share of women out of the
total number of customers with active transferable fund-based
savings in Storebrand (excl. Skagen).

234

Categories and indicators

Employees (total number and gender)

Number of employees

Number of female employees

Number of male employees

Number of employees with non-specified gender

Share of women in total workforce (as % of total
workforce)

Employees (age and gender)

Total employees under 30 (total / % FTEs)

Total employees 30-50 (total / % FTEs)

Total employees over 50 (total / % FTEs)

Male employees under 30 (total / % FTEs)

Female employees under 30 (total / % FTEs)

Male employees 30-50 (total / % FTEs)

Female employees 30-50 (total / % FTEs)

Male employees over 50 (total / % FTEs)

Female employees over 50 (total / % FTEs)

Employees (Nationality)

Norwegian - share in total workforce (as % of total
workforce)

Swedish - share in total workforce (as % of total
workforce)

Danish - share in total workforce (as % of total
workforce)

Finnish - share in total workforce (as % of total
workforce)

British - share in total workforce (as % of total
workforce)

German - share in total workforce (as % of total
workforce)

Norwegian - Share in all management positions,
including junior, middle and senior management
(as % of total management workforce)

Swedish - Share in all management positions,
including junior, middle and senior management
(as % of total management workforce)

Danish - Share in all management positions,
including junior, middle and senior management
(as % of total management workforce)

Finnish - Share in all management positions,
including junior, middle and senior management
(as % of total management workforce)

British - Share in all management positions,
including junior, middle and senior management
(as % of total management workforce)

German - Share in all management positions,
including junior, middle and senior management
(as % of total management workforce)

Results

2019

Results

2020

Results

2021

Results

Targets

2022

2023

2025

1,742

798

904

46 %

New

109

117

531

379

264

302

New

1,824

839

959

46 %

New

119

112

572

425

268

302

New

2,161

980

1,158

N/A

46 %

N/A

1,914

875

1,017

46 %

15 %

57 %

28 %

154 / 8 %

132 / 7 %

287 / 14 %

1,189 / 57 %

566 / 27 %

157 / 8 %

130 / 6 %

631 / 33 %

673 / 33 %

484 / 25 %

516 / 25 %

260 / 13 %

287 / 14 %

280 / 14 %

279 / 13 %

N/A

76.6 %

79.2 %

N/A

21.8 %

20.0 %

N/A

1.3 %

0.0 %

0.2 %

0.1 %

1.4 %

N/A

0.1 %

N/A

0.3 %

N/A

0.1 %

N/A

New

80.9 %

83.1 %

N/A

New

17.6 %

15.6 %

N/A

New

1.1 %

1 %

N/A

New

0.0 %

0 %

N/A

New

0.4 %

0.3 %

N/A

New

0.0 %

0 %

N/A

235

Gender balance in management positions

Women in the Board of Directors at Storebrand
ASA: number of women / share of women

Women in the Group Executive Management:
number of women / share of women

Women at management level 3: number of women
/ share of women

Women at management level 1-4: number of
women / share of women

Women in all management positions, including
junior, middle and top management (as % of total
management positions): number of women / share
of women

Women in junior management positions, i.e.
first level of management (as % of total junior
management positions): number of women / share
of women

Women in top management positions, i.e.
maximum two levels away from the CEO
or comparable positions (as % of total top
management positions): number of women / share
of women

Women in management positions in revenue-
generating functions (e.g. sales) as % of all such
managers (i.e. excluding support functions such as
HR, IT, Legal, etc.): share of women

Share of women in STEM-related positions (as % of
total STEM positions). STEM = Science, technology,
engineering and mathematics.

Results

2019

Results

2020

Results

2021

Results

Targets

2022

2023

2025

4 / 44 %

4 / 40 %

5 / 50 %

50 %

3 / 30 %

3 / 33 %

5 / 56 %

50 %

41 %

24 / 38 %

22 / 37 %

27 / 42 %

50 %

New

38 %

83 / 39 %

86 / 37 %

50 %

39 %

103 / 39%

102 / 37%

116 / 38 %

50 %

New

39 %

84 / 36 %

N/A

50 %

New

30 %

34 %

32 / 44 %

N/A

50 %

New

39 %

35 %

43 %

N/A

50 %

New

32 %

30 %

N/A

50 %

Employee remuneration: compensation ratio between CEO and employee

Total CEO Compensation (NOK)

6,899,000

7,373,000

7,638,000

7,952,280

N/A

The ratio between the total annual compensation
of the Chief Executive Officer and the mean
employee compensation 117

8.2 : 1

8.9 : 1

8.76 : 1

8.86 : 1

N/A

Employee remuneration: compensation by country and gender

Mean Employee Compensation, Group (NOK)

Mean Female Employee Compensation, Group
(NOK)

Mean Male Employee Compensation, Group (NOK)

Average salary female employees, Norway (NOK)

Average salary male employees, Norway (NOK)

Average salary female employees, Sweden (SEK)

Average salary male employees, Sweden (SEK)

Median hourly pay for female employees

Median hourly pay for male employees

Global Median raw gender pay gap

Average hourly pay for female employees

Average hourly pay for male employees

Global mean (average) raw gender pay gap

New

743,684

914,107

644,484

811,717

New

760,948

923,686

671,159

842,226

New

871,579

897,065

N/A

New

796,854

968,096

705,162

873,155

352

435

19 %

381

455

16 %

811,667

967,873

839,644

994,716

746,384

864,131

364

440

17 %

416

496

16 %

N/A

117) Ratio figures in 2019 and 2020 only include employees in Norway. From 2021, we included all employees to calculate the ratio between the CEO and all employees in the Group.

236

Results

2019

Results

2020

Results

2021

Results

Targets

2022

2023

2025

Employee remuneration: compensation for management positions

Ratio of basic salary and remuneration of women
to men for specific employment categories (level or
function) 118

Expanded top management, women's share of
men's salary per position category (Hay Grade
21-26) 119

Employees up to middle managers, women’s share
of men’s salary per position category (Hay Grade
12-20) 120

Average salary executive level (base salary only)
(Men): NOK

Average salary executive level (base salary only)
(Women): NOK

Average salary executive level (base salary + other
cash incentives) (Men): NOK

Average salary executive level (base salary + other
cash incentives) (Women): NOK

Average salary management level (base salary only)
(Men): NOK

Average salary management level (base salary only)
(Women): NOK

Average salary management level (base salary +
other cash incentives) (Men): NOK

Average salary management level (base salary +
other cash incentives) (Women): NOK

Average salary non-management level (Men): NOK

Average salary non-management level (Women):
NOK

Employees represented by a trade union

Share of employees represented by an
independent trade union or covered by collective
bargaining agreements

Human Capital Development: Training

Average amount spent per FTE on training and
development: NOK

Average hours per FTE of training and
development: Hours / Days

Average hours per FTE of training and
development (Men): Hours

Average hours per FTE of training and
development (Women): Hours

Average hours per FTE of training and
development (<30 years old): Hours

Average hours per FTE of training and
development (30-50 years old): Hours

Average hours per FTE of training and
development (>50 years old): Hours

New

97 %

96 %

N/A

100 %

104 %

97 %

95 %

100 %

99 %

97 %

96 %

100 %

New

3,459,449

6,103,652

5,250,000

N/A

New

2,588,333

3,986,833

4,412,533

N/A

New

3,459,449

6,103,652

5,250,000

N/A

New

2,588,333

3,986,833

4,412,533

N/A

New

1,339,248

1,425,365

1,428,596

N/A

New

1,177,527

1,236,121

1,250,607

N/A

New

2,165,446

1,478,333

1,515,479

N/A

New

2,165,446

1,258,104

1,278,346

807,417

825,949

894,631

N/A

680,338

710,497

743,578

N/A

100 %

N/A

New

3.9

New

8,353

7,262

N/A

3.6 (0.5)

6.0 (0.8)

N/A

2.4

2.9

3.0

2.5

2.7

5.8

6.3

6.6

6.0

5.8

N/A

118) Hay Grade 12-26 where there are employees of both genders.

119) From 2022, Hay Grade was extended to 21-26 (from previously 21-25). The positions were re-evaluated as the complexity of the roles has changed since the last assessment.

120) From 2022, Hay Grade has been extended to 12-20 (from previously 13-20).

237

Human Capital Development: Return on investment

Results

2019

Results

2020

Results

2021

Results

Targets

2022

2023

2025

Total Revenue (NOK) 121

87,403,000,000

81,031,000,000

119,781,000,000

16,103,000,000

Total operating expenses (NOK)

4,015,000,000

4,068,000,000

4,678,000,000

5,008,000,000

N/A

Total employee-related expenses (salaries +
benefits) (NOK)

Human capital return on investment (HC ROI)
(profitability)

Engagement score

Engagement score all employees:
Storebrand score/ industry average in peakon,
scale from 1-10

Employee Engagement men

Employee Engagement women

Employee engagement employees under 30

Employee engagement employees 30-50

Employee Engagement employees over 50

Recruitment

New hires to the group (total)

Number of women recruited this year

Number of men recruited this year

Number of new hires under 30 (male/female)

Number of new hires aged 30-50 (male/female)

Number of new hires aged over 50 (male/female)

Average hiring cost/FTE (NOK)

Number of women recruited or promoted into
management positions: number/share

Number of men recruited or promoted into
management positions: number/share

Number of internal hires (total)

Number of internal hires (women)

Number of internal hires (men)

Percentage of open positions filled by internal
candidates (internal hires)

2,281,000,000

2,320,000,000

2,725,000,000

2,871,000,000

N/A

37.6

34.2

43.2

4.9

N/A

8.0 (7.8)

8.3 (7.8)

8.4 (7.8)

8.4 (7.9)

>8.0

New

204

126

New

8.3

9.0

8.2

8.3

285

124

161

147 (82 / 65)

122 (72 / 50)

16 (7/9)

New

8.4

8.5

8.7

8.3

337

152

175

157

154

8.4

8.5

8.4

8.5

416

184

232

186 (84 / 102)

199 (110 / 89)

31 (20 / 11)

90,000

N/A

6 (46 %)

9 (53 %)

N/A

7 (54 %)

8 (47 %)

126

N/A

25 %

23 %

N/A

121) Total revenue includes net income from customers’ funds associated with the life business. The decrease in total revenue is due to negative returns on financial instruments in customer

funds.

238

Turnover

Total turnover rate 122

Voluntary turnover rate (total)

Turnover rate for women (Group)

Turnover rate for men (Group)

Turnover employees under 30

Turnover employees 30-50

Turnover employees over 50

Sick leave

Sick leave Norway

Sick leave Sweden

Absentee rate: employees (% of total days
scheduled)

Data coverage (% of employees)

Incidents rate: Number of staff injuries

Employees (temporary employees)

Number of Consultants

Number of fixed terms employees

Number of interns

Results

2019

Results

2020

Results

2021

Results

Targets

2022

2023

2025

8.0%

New

9.7 %

9.2 %

New

3.1 %

2.5 %

3.1 %

74 %

New

6.4 %

6.1 %

6.8 %

13.0 %

7.7 %

1.4 %

2.3 %

1.8 %

2.3 %

75 %

New

6.6 %

6.5 %

5.2 %

7.8 %

9.6 %

8.2 %

2.3 %

2.5 %

1.6 %

2.5 %

77 %

New

8.1 %

8.5 %

7.7 %

11.3 %

10.4 %

2.4 %

N/A

3.2 %

< 3.5 %

1.9 %

< 3.5 %

3.2 %

80 %

1,143

N/A

Definitions for indicators about People

Employees (total number and gender)
Number of employees: Total number of employees at Storebrand ASA
as of 31.12.2022.

Employees (age and gender)
Number of employees in different age groups/gender: Includes all
permanent employees in all countries. Capital Investment and
Danica are not included.

Employees (nationality)
Number of employees with different nationalities:
Includes all
permanent employees in all countries. Only Danica is not included.

Gender balance in management positions
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 and Danica are not included.
Level 4: Reports to management level 3. Everyone at this level
has personnel responsibilities. Administrative roles are not
included. Capital Investment and Danica are not included.

•

Women in all management positions, including junior, middle and top
management (as per cent of total management positions): Includes all
female managers with personnel responsibilities. Capital Investment
and Danica are not included.

Women in junior management positions, i.e. first level of management
(as per cent of total junior management positions): Includes all female
managers at management level 4, 5 and 6. Capital Investment and
Danica are not included.

Women in top management positions, i.e. maximum two levels
away from the CEO or comparable positions (as per cent of total top
management positions): Includes all female managers who are at
management level 2 and 3. Capital Investment and Danica are not
included.

Women in management positions in revenue-generating functions (e.g.
sales) as per cent of all such managers (i.e. excluding support functions
such as HR, IT, Legal, etc.): Includes female managers in the corporate
market, retail market, SPP and Storebrand Asset Management. All
levels including Group Executive Management. Administrative roles
are not included. Capital Investment and Danica are not included.

Share of women in STEM-related positions (as % of total STEM positions).
STEM = Science, Technology, Engineering and Mathematics: share of
women who are permanent employees in the Digital business area.
Capital Investment and Danica are not included.

122) In 2022, there has been low unemployment and high competition for talent. This may have contributed to an increase in turnover.

239

Human Capital Development: return on investment
Total revenue (NOK): Total revenue includes net income from
customers’ funds associated with the life business.

Totale operating expenses (NOK): Operating expenses refer to all the
expenses the company has from operations.

Total employee-related expenses (salaries + benefits) (NOK): This includes
training and development programs, pensions, employment, etc., as
it covers all costs directly related to employees.

Human capital return on investment (HC ROI) (profitability): The
figure is total revenue minus (total operating expenses minus total
employee-related expenses), divided by total employee-related
expenses.

Recruitment
Number of recruitments: Number of recruitments
including
permanent employees, temporary employees and interns in all
countries. Capital Investment and Danica are not included. The
figures also include recruited employees who left the group later
in 2022.

Turnover
Total turnover: Permanent employees who left in the last twelve
months with the exception of voluntary termination agreements
between employer and employee, reduction in the workforce or
retirement, divided by the average number of permanent employees
in 2022. Capital Investment and Danica are not included.

Voluntary turnover: Permanent employees who leave voluntarily
(with the exception of retirements and mutual agreements) divided
by the average number of permanent employees in 2022. Capital
Investment and Danica are not included.

Sick leave
Sick leave: Number of sick leave days divided by number of working
days at end of the year. Sick leave in Norway includes sick children
days. Sick leave in Sweden does not include sick children days.
Capital Investment and Danica are not included.

Employees (temporary employees)
Number of employees, temporary employment: Includes employees
who are consultants, temporary employees and interns. Capital
Investment and Danica are not included.

Employee remuneration: compensation by country and
gender
Average salary based on gender, position and geography: Average
salary for all permanent employees in the Group. Capital Investment
and Danica are not included.

Average salary and median hourly pay: Annual salary divided by
1,950 hours per year (Norwegian statistics incl. holiday). Includes
permanent employees in all countries and salaries have been
converted to NOK. Capital Investment and Danica are not included.
Employee remuneration: compensation for management positions

Employee remuneration: Compensation for management
positions
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 salaries for positions that have the
same requirements for competence, experience and complexity.
The system is used to compare salaries 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 12-26 covers roles except CEO.

Employees represented by a trade union
Share of employees represented by an independent trade union or
covered by collective agreements: The various trade unions can only
enter into agreements on behalf of their own members, and only the
members can be bound directly through the individual agreements.
The employer does not (and does not need) an overview of where
and who is organised. The central point is the standard of non-
deviation, which means that the company is obliged to implement
the collective agreement with the largest trade union towards
employees who are not bound by another collective agreement,
and who would otherwise be covered by this agreement. We know
that the collective agreements that have been concluded with the
Finansforbundet (The Finance Sector Union of Norway) are the
collective agreements that apply to most employees and the non-
departure norm dictates that the same terms apply to everyone
who is not covered by other collective agreements.

Human Capital Development: training
Average amount spent on development per full-time employee (NOK):
Average amount per permanent employee spent on courses
through 2022. Capital Investment and Danica are not included.

Average number of hours spent on development per full-time employee
(hours/days): Applies to all permanent employees. Capital Investment
and Danica are not included.

240

Categories and indicators

Sustainability rating

CDP-rating

DJSI score/global percentile

Climate data: suppliers

Environmentally certified purchases (share of the
total expenditure that went to suppliers with certified
environmental management system)

Climate data: own operations 123

Energy consumption, head offices (kWh per m2)

Water consumption, head offices (total m3 / m3 per m2)

Results

2019

Results

2020

Results

2021

Results

Targets

2022

2023

2025

A -

A-

75 / 81

81 / 93

82 / 92

88 / 99

Top 10 %

57 %

62 %

60.3 %

64.2 %

55 %

60 %

150

0.32

142

139

145

6,617 / 0.18

5,326 / 0.16

9,305 / 0.26

148

0.31

145

0.30

Total waste, head offices (tonnes / kg per FTE)

203 / 123

120 / 73

99.7 / 51

110.7 / 60

198 / 119

190 / 110

72 %

71 %

82 %

66 %

75 %

80 %

Share of waste sorted for recycling, head offices (share of
total waste) 124

Greenhouse gas emissions from own operations

Greenhouse gas emissions from own operation (total)
scope 1-3: tonnes of CO2e / tonnes CO2e per FTE

1,519 / 0.92

477 / 0.28

320 / 0.18

787 / 0.39

Scope 1-emission: tonnes CO2e / tonnes CO2e per FTE

1,1 / 0

1.2 / 0

0.5 / 0

0.8 / 0

Scope 2-emission: tonnes CO2e / tonnes CO2e per FTE

179 / 0.11

164 / 0.09

130.6 / 0.07

131.6 / 0.07

Scope 3-emission: tonnes CO2e / tonnes CO2e per FTE

1339 / 0.74

313 / 0.18

188,9 / 0,11

654.6 / 0.3

CO2e-emissions per FTE due to air travel: Scope 3,
tonnes per FTE 125

E-learning

0.67

0.10

0.07

0.29

0.8

N/A

0.6

N/A

E-learning conducted, ethics: total / share of man-years

1,518 / 89 %

1,660 / 91 %

1,694 / 91 %

1,668 / 82%

100 %

1,479 / 87 %

1,642 / 90 %

1,659 / 89 %

1,623 / 80%

100 %

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

New

1,368 / 75 %

1,662 / 89 %

1,567 / 78%

1,523 / 89 %

1,678 / 92 %

1,673 / 90 %

1,596 / 79%

100 %

learning completed, information security: total/ share of
man-years

Governance incidents

Number of complaints processed by the Financial Appeals
Board 126

Number of breaches of the Code of Conduct 127

Number of information security incidents

Number of privacy incidents 128

Privacy incidents uncovered externally

Privacy incidents uncovered internally

New

1,567 / 78%

100 %

192

New

218

New

198

125

New

244

141

N/A

123) We have seen increased activity in the main offices after covid-19, but see that the numbers are still lower than pre-covid levels .

124) The degree of waste sorted for recycling has been reduced somewhat due to, among other things, relocation of other tenants at the head office with large quantities of waste that were not

recycled. In addition, increased capacity in the office has led to more residual waste.

125) In 2022, our activity related to business travel increased, but since 2019 (before covid-19) we have still more than halved our internal emissions. This indicates that changed travel habits, as

well as our internal carbon price and new guidelines for business travel help to reduce internal emissions. Emissions related to flights are calculated with emissions per flight route (leg) through the

system of our travel agency.

126) The figures apply to our Norwegian companies, as these are complaints processed in the financial complaints board. SPP is not included here.

127) Internal misconduct by agents is not included in the key figure on breaches of ethical guidelines, but is included in the detailed reporting of violations of ethical guidelines on page 36.

128) See explanation of trends related to privacy incidents in the in the subchapter Corporate governance and compliance: Privacy and digital trust.

241

Sustainability rating
CDP-rating: Rating performed by CDP. CDP is an independent
organisation focused on 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.

•

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.
CO2 emissions from air travel: Emissions from business trips the
employees of the Group’s Norwegian and Swedish operations
have done by air.

DJSI score: The Dow Jones Sustainability Indices (DJSI) assesses
companies’ performance in sustainability, and rank companies
based on a range of economic, social and environmental (ESG)
criteria.

E-learning
E-learning course completed: Employee who
completed in our e-learning system.

is registered as

Climate data: suppliers
Environmentally certified purchases (share of the total expenditure
that went to suppliers with certified environmental management
system): 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.

Climate data: own operations
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
monitoring 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.

Greenhouse gas emissions from own operations
Greenhouse gas emissions from own operation (total) scope 1-3: tonnes
of CO2e / tonnes CO2e per FTE: 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.

Governance incidents
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.

Breaches of the Code of Conduct/ethical guidelines: 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.

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.

Privacy incidents: A privacy incident is an incident where there have
been deviations related to compliance with the privacy policy.

242

Categories and indicators

Financial results

Return on equity

Solvency ratio

Dividend ratio

Sustainability

Results

2019

Results

2020

Results

2021

Results

Targets

2022

2023

2025

8.0 %

176 %

0 %

8.6 %

178 %

65 %

10.7 %

175 %

52 %

8.3 %

>10 %

184 %

>150 %

72 %

>50 %

Share of total assets screened against sustainability criteria

100 %

82 %

85 %

88.6 %

91.5 % Increase

Increase

GRESB score direct real estate investments
(value-weighted average) 129

Fossil-free investments

NOK billion invested in fossil-free products /
Share of AUM130

Equity investments in companies active in fossil fuel sector131

Bond investments in companies active in fossil fuel sector 132

New

4,93 %

0.33 %

277 / 33 %

379.2 / 39 %

483 / 44 %

449 / 44 %

N/A

Solutions investments

Investments in solutions (solutions companies, green bonds,
green infrastructure and property with environmental
certification): NOK billion / share of total assets

Equity investments in solutions: NOK billion/ share of total
equity investments

Bond investments in solutions: NOK billion/ share of total
bond investments 133

Investments in green bonds: NOK billion/ share of total
bond investments

Investments in green infrastructure: NOK billion / share of
total infrastructure investments

Investments in certified green property: NOK billion/ share
of total real estate investments 134

Carbon emissions in equity and bond investments

Carbon intensity from equities investments: tonnes of CO2e
per NOK 1 million in sales income (against index) 135

Carbon intensity from corporate bond investments: tonnes of
CO2e per NOK 1 million in sales income (against index) 136

53.7 / 6.5 %

92.6 / 9.6 % 123.1 / 11.2 % 126.8 / 12.4 %

13 %

15 %

24.3 / 9.3 %

50.3 / 13 %

62.6 / 13 %

39.3 / 9 %

N/A

New

35.0 / 9 %

N/A

12.4 / 3.1 %

22.2 / 5 %

25.7 / 6 %

32.0 / 8.3 %

N/A

New

1.5 / 100%

3.5 / 100 %

75 %

90%

17 / 41 %

20.1 / 43 %

33.3 / 68 %

49.0 / 64.6 %

70 %

78 %

14 (24)

13 (18)

12 (18)

14 (18)

N/A

9 (5)

N/A

129) The goal is for all our portfolios to achieve 5 stars in GRESB. This means that you must be among the top 20 per cent globally, and therefore cannot be directly translated into a score (va-

lue-weighted average). Capital Investment that we bought in 2021 has not yet reported to GRESB, and is not included in the figures.

130) Fossil-free products are one of several ways to reach our overall goal of net zero emissions, and we have therefore not set a specific goal for how much should be invested in fossil-free

products.

131) Figures are linked to PAI. 1.4 in the SFDR regulations.

132) Figures are linked to PAI. 1.4 in the SFDR regulations.

133) This includes investments in solution companies, green and social bonds.

134) In 2022, we included Denmark for the first time. Therefore, the share of environmentally certified real estate investments has been somewhat reduced. Certifications per country are as

follows: Norway (89%), Sweden (93%), Denmark (9%).

135) Data was obtained through Trucost (S&P Global) systems and weighted by market capitalization per position. For index figures, corresponding calculations are weighted per index and weigh-

ted together with the portfolios’ indices based on portfolio values. This represents a 95 % coverage ratio in our carbon footprint from equity investments, and a 93 % coverage ratio for the index.

136) Data were obtained through Trucost (S&P Global) systems and estimated management data, weighted by market value per position. For index figures, corresponding calculations are weigh-

ted per index and weighted together with the portfolios’ indices based on portfolio values. This represents a 42% coverage ratio in our carbon footprint from corporate bond investments, and a

48% coverage ratio for the index. Coverage has decreased because we no longer use estimates, but only data from data providers. Previously, we have included government bonds (government,

municipalities, etc.) together with corporate bonds, but now look exclusively at corporate bonds because it is best practice in both the industry and SFDR to look at the figures separately. We will

consider having a separate KPI for government bonds next year.

243

Total carbon emissions from equity investments: tonnes of
CO2e Scope 1-2 137

Total carbon emissions from corporate bond investments:
tonnes of CO2e Scope 1-2

Exposure to high emitting sectors: NOK billion / share of
equity investments 138

Greenhouse gas emissions in real estate investments

Carbon footprint direct real estate investments:
tonnes CO2e / kg CO2e per m2

Scope 1 emissions: kg CO2e /m2

Scope 2 emissions: kg CO2e /m2

Scope 3 emissions: kg CO2e /m2

Climate data in direct real estate investments

Energy intensity direct real estate investments: kWh/m2

Water intensity direct real estate investments: m3/m2

Waste quantity direct real estate investments: kg/m2

Share of waste sorted for recycling in direct real estate
investments

Active ownership and exclusions

Companies that have been contacted to discuss ESG through
active ownership: number (share of invested capital) 139

Votes at general meetings to promote Storebrand’s ESG
criteria: number (share of invested capital) 140

Number of active dialogues related to climate and
environmental risks and opportunities

Number of companies that have been excluded due to
serious climate and environmental damage

Companies excluded from the investment universe of the
Storebrand Group: number

Companies excluded from MSCI ACWI Index: number/share
of MSCI ACWI investment universe

Social impact

Ratio of female board members in companies as a
percentage for equity investments 141

Results

2019

Results

2020

Results

2021

Results

Targets

2022

2023

2025

3,258,508

3,113,714

2,504,453

2,492,038

N/A

482,504

616,743

262,922

391,993

N/A

34.6 / 13 %

32.2 / 8 %

42.5 / 9 %

49.7 / 11.3 %

N/A

10,228 / 9.12

8,456 / 7.9

6,803 / 6.0

5,704 / 5.6

0.15

7.67

1.26

194

0.46

9.2

0.08

6.8

1.04

181

0.44

8.1

0.02

4.96

1.02

170

0.38

8.3

0.04

4.29

1.29

169

0.38

9.2

8.6

N/A

190

0.45

N/A

6.5

N/A

181

0.43

N/A

68.9 %

72.5 %

72.4 %

71.7 %

73 %

80 %

408

151

New

182

572

503

433

139

215

601

645 (31.2 %)

N/A

947

1348 (68.6 %)

N/A

318

176

257

465

N/A

199

N/A

323

N/A

178 / 7.6 %

198 / 8.1 %

212 / 7.9 %

217 / 10 %

N/A

New

32.2 %

N/A

137) This year, we have chosen to change from financed emissions based on revenues at the companies we are invested in to reporting the figure based on enterprise value. We have done this

both because it allows us to include corporate bonds in our emission figures, and because this is in line with the SFDR. Based on the old method, the number would have been reduced from

3,661,218 tco2e to 3,318,508 tco2e (2019-2021).

138) A large part of the increase comes from the energy sector, which has experienced increased turnover in the current period of geopolitical unrest.

139) We have moved from reporting active ownership as part of the total investment universe to looking at it relative to our total investments to provide a better insight into the proportion of our

investments we are in dialogue with.

140) We have moved from reporting voting as part of the total investment universe to looking at it relative to our total investments to give a better insight into the proportion of the companies we

are invested in that we vote at general meetings of.

141) Key figures are linked to PAI.1.13 in the SFDR regulations.

244

Financial results
Return on equity: Return on equity after tax, adjusted for amortisation
of intangible assets.

Solvency ratio: 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 57).

Sustainability
Share of
total assets screened against sustainability criteria:
All companies in our investment universe are screened for
sustainability according to our standards: https://www.storebrand.
no/en/sustainability/investments

GRESB score direct real estate investments (value-weighted average): The
score is a global ESG benchmark for real estate investments, which
reflects sustainability quality in the management dimension and in
the physical property stock. The overall score is a value-weighted
average of the scores in the reporting portfolios: Storebrand
Eiendom Trygg AS, Storebrand Eiendom Vekst AS, Storebrand
Eiendomsfond Norge KS, and SPP Fastigheter AB. The score is
calculated annually by the Global Sustainability Benchmark for Real
Assets (GRESB).

Fossil-free investments
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, or more than 25
per cent of their income from products and services for the oil and
gas industry, and the fossil reserves shall not exceed 100 million
tonnes of CO2.

Equity investments in companies active in fossil fuel sector: Share of
investments in shares that are invested in fossil fuel companies.
This includes companies that have income from the production
or distribution of fossil fuels. Investments in companies based on
SFDR’s definition of Principle Adverse Impact Indicator 1.4.

Bond investments in companies active in fossil fuel sector: Share of
investments in bonds that are invested in fossil fuel businesses.
This includes companies that have income from the production
or distribution of fossil fuels. Investments in companies based on
SFDR’s definition of Principle Adverse Impact Indicator 1.4.

Solutions investments
Investments in solutions (solutions companies, green bonds, green
infrastructure and property with environmental 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.

•

Equity investments in solutions: Share of investments in equities
in solution companies multiplied with each company’s solution
exposure. These are investments in shares in companies that
we believe are well positioned to solve challenges related to the
UN’s Sustainable Development Goals. Investments 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.
Bond investments in solutions: Share of investments in bonds
in either green bonds or solution companies multiplied with
each company’s solution exposure. These are investments
in bonds in companies that we believe are well positioned to
solve challenges related to the UN’s Sustainable Development
Goals. Investments 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 in green bonds: Share of investments in green bonds.
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).
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.
Investments in certified green property: Share of direct real estate
investments under operational control in Norway, Sweden and
Denmark with environmental certification. The certification
system is mainly BREEAM, but can also include LEED, the Nordic
Ecolabel or Miljöbyggnad.

Carbon emissions in equities and bond investments
Carbon intensity from equities and corporate bond investments:
Calculations for carbon intensity are based on data from our data
supplier in the third quarter of 2022, and on SFDR’s definition of
Principle Adverse Impact Indicator 1.3. and TCFD definition. The total
carbon intensity 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.

245

Water intensity direct real estate investments: 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
monitoring system.

Waste quantity and recycling rate direct real estate investments: Share
of recycled waste from real estate including tenants. Residual waste
is sorted mechanically at the recycling plant, and mainly goes to
energy recovery.

Social impact
Share of women on the boards of companies in which we invest in:
Average proportion of women in board composition for invested
companies. Investments in companies based on SFDR’s definition of
Principle Adverse Impact Indicator 1.13.

Total carbon emissions from equity investments: tonnes of CO2e Scope
1-2: A company’s carbon emissions are distributed over a company’s
enterprise value and multiplied by our ownership. Based on SFDR’s
definition of Principle Adverse Impact Indicator PAI 1.1.

Total carbon emissions from corporate bond investments: tonnes of
CO2e Scope 1-2: A company’s carbon emissions are distributed
over a company’s enterprise value and multiplied by our ownership.
Based on SFDR’s definition of Principle Adverse Impact Indicator PAI
1.1.

Exposure to high-emitting sectors: This shows our exposure to high-
emitting sectors as a share of total equity investments. The definition
of high-emitting 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

Carbon footprint in real estate investments
Carbon footprint direct real estate investments: CO2 emissions from
direct real estate investments under operational control, per square
meter of heated area. Includes direct and indirect emissions (Scope
1-3), including the tenant’s energy and water consumption as well
as waste production. The carbon footprint is calculated by Cemasys
AS in accordance with the GHG protocol (The Greenhouse Gas
Protocol). The Nordic mix emission factor is the basis for calculating
location-based emissions from electricity.

246

We transparently disclose information about carbon intensity and absolute carbon emissions for equities, corporate bonds and real
estate investments. The information is available both at a total level, per sector and per geographical location.

Emission from equities

The figures for the calculations for carbon intensities are based on data from our data supplier. The fund’s total carbon intensity is the sum
of the companies ‘carbon emissions over the companies’ income, weighted for our ownership in the respective companies.

Total carbon absolute emissions from equities investments: tonnes of CO2 e Scope 1-2, by sector 142

Indicators

Total carbon absolute emissions from equities investments:
tonnes of CO2 e Scope 1-2

Total carbon intensity from equities investments: tonnes of CO2
e Scope 1-2 per NOK 1 million in sales income

Coverage: % equities portfolio

Agriculture, forestry and fishing

Mining and quarrying

Manufacturing

Electricity, gas, steam and air conditioning supply

Water supply; sewerage; waste management and remediation

Construction

Wholesale & retail trade; repair of motor vehicles

Transportation and storage

Accommodation and food service activities

Information and communication

Financial and insurance activities

Real estate activities

Professional, scientific and technical activities

Administrative and support service activities

Education

Human health and social work activities

Arts, entertainment and recreation

Other services activities

Results

2019

Results

2020

Results

2021

Results

2022

3,258,508

3,113,714

2,504,453

2,492,038

13.88

90.7 %

10,979

342,531

12.56

91.0 %

10,295

368,065

12.47

96.7 %

12,591

309,388

14.08

95 %

8,525

344,392

1,465,039

1,685,674

1,951,128

1,621,406

82,864

104,733

17,617

111,103

721,527

6,554

94,458

21,579

16,077

4,179

7,363

364

5,837

699

288

42,295

104,811

22,411

114,969

327,438

6,382

77,987

138,935

13,817

2,721

5,764

399

4,884

585

64,958

131,088

28,158

123,411

278,992

7,058

81,292

21,906

16,326

3,391

3,137

526

5,263

438

35,275

104,090

15,363

67,896

176,938

7,239

52,052

30,793

10,309

8,680

3,887

226

2,366

329

Total carbon absolute emissions from equities investments: tonnes of CO2e Scope 1-2, by region

Africa

Asia / Oceania

Europe

North America

South America

287,733

608,344

313,652

623,977

15,412

473,988

34,841

399,916

1,387,127

1,203,608

1,236,455

1,178,402

779,304

46,208

793,210

40,504

760,541

18,058

860,348

18,532

142) The data on emissions by sector is based on Nomenclature of Economic Activities (NACE) codes. NACE codes are the European statistical classification of economic activities. NACE groups

organisations according to their business activities.

247

Results

2019

Results

2020

Results

2021

Results

2022

Total carbon intensity from equities investments: tonnes of CO2e Scope 1-2 per NOK 1 million in sales income, by sector

Agriculture, forestry and fishing

Mining and quarrying

Manufacturing

Electricity, gas, steam and air conditioning supply

Water supply; sewerage; waste management and remediation

Construction

Wholesale & retail trade; repair of motor vehicles

Transportation and storage

Accommodation and food service activities

Information and communication

Financial and insurance activities

Real estate activities

Professional, scientific and technical activities

Administrative and support service activities

Education

Human health and social work activities

Arts, entertainment and recreation

Other services activities

13.67

57.66

16.19

50.11

90.74

3.98

4.78

75.08

7.25

3.64

1.23

10.86

3.17

3.52

5.24

8.53

6.33

6.84

8.87

66.47

15.25

21.92

93.82

3.50

3.82

40.67

12.20

3.30

1.74

11.84

2.86

4.43

4.97

9.19

4.93

5.18

Total carbon intensity from equities investments: tonnes of CO2e Scope 1-2 per NOK 1 million in sales income, by region

Africa

Asia/Oceania

Europe

North America

South America

74.70

12.67

11.96

14.53

11.23

60.08

15.85

10.76

11.70

7.49

8.22

71.05

15.82

25.21

86.52

3.11

4.44

50.37

24.68

3.46

1.01

8.57

2.44

2.83

6.67

8.13

5.23

4.66

26.77

14.95

14.48

10.27

24.16

9.50

59.12

18.41

33.72

84.98

3.93

3.88

47.37

23.90

3.39

1.60

9.58

2.41

2.92

6.35

7.75

8.38

4.90

31.82

14.43

15.34

12.83

21.86

248

Indicators

Total carbon absolute emissions from corporate bond investments: tonnes
of CO2e Scope 1-2

Total carbon intensity from corporate bond investments: tonnes of CO2e
Scope 1-2 per NOK 1 million in sales income

Coverage: % corporate bond portfolio

Results

2019

Results

2020

Results

2021

Results

2022

482,504

616,743

262,922

391,993

10.13

61.1 %

11.67

63.3 %

9.22

48.1 %

8.82

42 %

Total carbon absolute emissions from corporate bond investments: tonnes of CO2e Scope 1-2, by sector

1,549

169,253

183,832

27,552

3,154

181,823

198

15,511

17,898

5,376

4,989

244

2 776

84,114

64,248

129,153

109,876

395

324

88,520

12,366

7,759

40,170

93,109

2,722

2,029

1,565

4,776

2,408

5,986

3,035

339,135

49,786

23,770

458,851

131,650

1,263

231,936

29,723

Total carbon absolute emissions from corporate bond investments: tonnes of CO2e Scope 1-2, by region

Agriculture, forestry and fishing

Mining and quarrying

Manufacturing

Electricity, gas, steam and air conditioning supply

Construction

Wholesale & retail trade; repair of motor vehicles

Transportation and storage

Accommodation and food service activities

Information and communication

Financial and insurance activities

Real estate activities

Professional, scientific and technical activities

Administrative and support service activities

Public admin. & defense; compulsatory social sec.

Human health and social work activities

Water supply; sewerage; waste management and remediation

Activities of extraterritorial orgs. and bodies

195

28,996

211,449

10,987

25,353

4,599

168,942

176

6,126

16,514

4,853

Africa

Asia / Oceania

Europe

North America

South America

868

374,994

104,042

249

Results

2019

Results

2020

Results

2021

Results

2022

Total carbon intensity from corporate bond investments: tonnes of CO2e Scope 1-2 per NOK 1 million in sales income,
by sector

Agriculture, forestry and fishing

Mining and quarrying

Manufacturing

Electricity, gas, steam and air conditioning supply

Construction

Wholesale & retail trade; repair of motor vehicles

Transportation and storage

Accommodation and food service activities

Information and communication

Financial and insurance activities

Real estate activities

Professional, scientific and technical activities

Administrative and support service activities

Public admin. & defense; compulsatory social sec.

Human health and social work activities

Water supply; sewerage; waste management and remediation

Activities of extraterritorial orgs. and bodies

10.72

34.32

15.54

76.84

9.01

4.05

89.61

5.58

6.82

0.73

7.37

1.02

3.92

14.83

577.84

0.00

7.18

95.31

19.31

10.40

12.03

4.12

80.05

5.52

3.66

0.87

6.75

1.05

0.00

22.14

566.85

119.88

0.00

Total carbon intensity from corporate bond investments: tonnes of CO2e Scope 1-2 per NOK 1 million in sales income,
by region

Africa

Asia/Oceania

Europe

North America

South America

6.27

5.89

10.33

9.43

0.75

9.96

12.27

8.23

2.07

87.58

22.13

4.78

2.49

3.85

5.53

76.24

28.18

184.78

9.91

4.64

103.79

137.53

3.23

2.21

1.07

7.39

0.76

0.00

19.86

4.10

0.00

15.16

4.87

5.23

3.38

2.75

0.45

5.88

1.00

0.96

5.98

0.48

4.81

8.51

11.73

0.94

250

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 intensity is calculated
by Cemasys AS according to the GHG protocol (The Greenhouse Gas Protocol). The Nordic mix emission factor is the basis for calculating
location-based emissions from electricity.

Indicators

Total carbon absolute emissions from direct real estate investments: tonnes
of CO2e Scope 1-3

Total carbon intensity emissions from direct real estate investments (Scope
1-3): kgCO2e per m2 investments

Coverage: % real estate portfolio

Results

2019

Results

2020

Results

2021

Results

2022

10,228

8,456

6,803

5,704

9.12

100 %

7.90

100 %

6.01

100 %

5.61

100 %

Total carbon absolute emissions from direct real estate investments: tonnes of CO2e Scope 1-3, by sector

Real estate

10,228

8,456

6,803

5,704

Total carbon absolute emissions from direct real estate investments: tonnes of CO2e Scope 1-3, by region

Europe

10,228

8,456

6,803

5,704

Total carbon intensity from direct real estate investments (Scope 1-3): kgCO2e per m2 investments, by sector

Real estate

9.12

7.90

Total carbon intensity from direct real estate investments (Scope 1-3): kgCO2e per m2 investments, by region

Europe

9.12

7.90

6.01

5.61

143) All property investments are located in Europe. Emissions data related to property investments only include properties from Norway and Sweden. We lack complete data for the Danish portfo-

lio (with the exception of environmental certifications) and have a goal of obtaining this in 2023-2024.

251

Total greenhouse gas emissions from Storebrand’s operations 144

Indicators

Scope 1 emissions: tonnes CO2e

Scope 2 emissions: tonnes CO2e (location based)

Scope 2 emissions: tonnes CO2e (market based)

Scope 3 emissions: tonnes CO2e (own operations, equity investments,
real estate investments)

Results

2019

1.1

179

60.2

2020

1.2

164

41.2

2021

0.5

130.6

41.5

2022

0.8

131.6

32.8

Scope 3 emissions: tonnes CO2e own operations

1,339

313

188.9

654.6

Scope 3 emissions: tonnes CO2e equity and corporate bond investments
(Scope 1-2) 145

3,741,012

3,730,457

2,767,375

Scope 3 emissions: tonnes CO2e equity investments (Scope 1-2)

3,258,508

3,113,714

2,504,453

Scope 3 emissions: tonnes CO2e corporate bond investments (Scope 1-2)

482,504

616,743

262,922

2,884,031

2,492,038

391,993

Scope 3 emissions: tonnes CO2e real estate investments
(Scope 1-3 location based) 146

Scope 3 emissions: tonnes CO2e real estate investments
(Scope 1-3 market based) 147

Total Scope 1-3 emissions: tonnes CO2e (location based)

Total Scope 1-3 emissions: tonnes CO2e (market based)

10,228

8,456

6,803

5,704

31,710

36,267

3,752,760

3,739,391

3,774,123

3,767,079

31,888

2,774,498

2,799,494

35,284

2,890,522

2,920,003

In total, emissions in equity investments have decreased since 2019, but have increased somewhat from 2021 to 2022 due to an increase
for corporate bonds emissions, as well as an increase in the energy mix for property investments for market-based emissions. In 2022, we
have chosen to change calculations for financed emissions reporting from being based on income in the companies we are invested in, to
calculations based on Enterprise Value. This gave us the opportunity to include corporate bonds in our emission figures. The change is in
line with the definition of “Principle Adverse Impacts” as part of the EU’s Sustainable Finance Disclosure Regulation (SFDR).

The calculation method comes from “Regulatory Technical Standards Annex I” and is shown below:

144) For Scope 3 own operations, the target is -7.6% per year with a base year from 2019 and for Scope 1-2 the target is -52% by 2030 with a base year from 2018.

145) Equity investments are included in our Scope 3, but we look at Scope 1 and 2 for these companies because Scope 3 data is still of limited quality.

146) Real estate investments are included in our Scope 3 and we look at Scope 1 to 3 for these investments.

147) Market-based emissions are based on estimates.

252

TCFD-recommended disclosures

Governance

Disclose Storebrand’s governance around climate-related risks and opportunities.

Describe the Board of Directors’
oversight of climate-related risks
and opportunities.

Describe the Group Executive
Management’s role in assessing
and managing climate-related risks
and opportunities.

Pages

81-82,
83-95

•

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 the Group 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 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 responsible for 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.

81-82,
83-95

• 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
is particularly important for our property and insurance
subsidiaries.

•

• Storebrands CEO has appointed an EVP Sustainability that is

part of the executive management team.

• All business areas have designated employees with

responsibility for ESG risks and opportunities, and progress
is followed up each quarter by Executive Vice President
Sustainability. Members of the Group Executive Management
are also followed up by the CEO.

253

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 risk
formulations:

83-95

• 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
ambitions are insufficient (in relation to zero-emission
commitments or customer expectations).

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.

13-14,
64-80,
83-95,
97

• Business strategy is influenced by reputational risks related to

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.

254

81-82,
83-95

83-95

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.

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

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 the Group 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.

255

59-63,
81-82,
83-95

40-41, 45,
64-80,
83-95

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

risk and opportunities of this report.

Metrics and Targets

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.

• Carbon intensity in equity investments: 14 tonnes CO2

equivalents per NOK 1 million in sales income (compared to 18
index).

• Carbon intensity in bond investments: 9 tonnes CO2

equivalents per NOK 1 million in sales income (compared to 5
index).

• Carbon intensity in real estate investments (Scope 1-3 (kg/m2)):

5.6.

• Exposure to high-emitting sectors: NOK 49.7 billion / 11.3 per

•

cent of total equity investments
Investments in solutions (solutions companies, green bonds,
green infrastructure and property with environmental
certification): NOK 126.8 billion / 12.4 per cent of total assets
under management.

• Number of active company engagements related to climate and

environmental-related risks and opportunities: 465.

• Number of companies that have been excluded due to severe

climate and environmental damage: 199.

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 Sustainability Assurance’s sub-chapters Sustainability
indicators and definitions and Carbon Accounting Report.

45, 80, 97

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 2022.

40-41, 45, 80,
83-95, 97

256

GRI-
Standard Title

GRI Standard and disclosures

GRI 2: General Disclosures

Text

The organisation and its reporting practices

2-1

Organisation details

Storebrand ASA

Professor Kohts vei 9, Lysaker,

Oslo, Norge.

Chapter

Page
number

Annual Accounts

135, 224

and Notes, Director’s

231, 257

report, Corporate

governance,

GRI-index

2-2

Entities included in

On the investment side, all data is collected for equities and corporate bonds.

This is Storebrand,

12-13,

the organisation’s

It goes across Storebrand and Skagen. For real estate, we obtain data from

Director’s report,

18-19, 120,

sustainability reporting

Storebrand Eiendom, SPP Fastigheter and Capital Investment. For figures on

Corporate

231, 257

total assets under management, we have collected data for all legal entities

governance,

included under Storebrand Asset Management. In the climate accounting

GRI-index

report, 94 per cent of the workforce across the group is covered by climate

data based on the location of employees.

2-3

Reporting period,

Reporting period for the sustainability report: 1. January 2022 to 31. December

GRI-index

257

frequency and contact

2022. Annual reporting.

point

Reporting period for the financial report: 1. January 2022 to 31. December

2022. Annual reporting.

Publication date for the report: 21.03.23

Contact information for questions about the report:

https://www.storebrand.no/en/investor-relations

2-4

2-5

Restatements of

information

External assurance

Sustainability

243-244,

Assurance

252

Annual Accounts and

216-222,

Notes, Sustainability

263-264

Assurance

2-6

Activities, value chain,

The supply chain’s risks related to country, sector and product are described

This is Storebrand,

10, 12,

and other business

in the report that is published for the Transparency Act. The report will be

Keeping our house in

42-43,

relationships

published in the updated policy on Human Rights Policy and Responsible

order, GRI-index

135, 257

Business Conduct that can be found on Storebrand’s Sustainability Library:

https://www.storebrand.no/en/sustainability/sustainability-library

We describe Storebrand ASA’s main activities per country in the accounts in

note 4.

2-7

Employees

We only have permanent employees in the annual report. In our Gender

People,

Equality Report (Likestillingsredegjørelse), we divide employees into temporary

GRI-index

and permanent employees, and shows the distribution of women and men

per company. The gender equality report can be found in Storebrand's

sustainability library here: https://www.storebrand.no/en/sustainability/

sustainability-library

32,

235-237

257

2-8

Workers who are not

The most common type of temporary workers and contractual relationships

Sustainability

239, 257

employees

that are not permanent employees are external consultants. They have

Assurance,

temporary contracts and performs work related to the needs of the business

GRI-index

areas. Most of the consultants are from the same supplier, and it has been

relatively stable over time.

257

Governance

Text

2-9

Governance structure and

composition

2-10

Nomination and selection

of the highest governance

body

2-11

Chair of the highest

governance body

2-12

Role of the highest

governance body

in overseeing the

management of impacts

2-13

Delegation of

responsibility for

managing impacts

2-14

Role of the highest

governance body in

sustainability reporting

Chapter

Page
number

This is Storebrand,

16-19 ,

People, Corporate

31,

governance,

Appendix

Corporate

governance

Corporate

governance

227-228,

270-279

226-227

227

This is Storebrand,

13,

Corporate

governance

227-228

This is Storebrand,

13, 17-18,

Keeping our house

35-36,

in order, Corporate

225, 254

governance

Director’s report,

98, 215,

Annual Accounts and

224-225,

Notes, Corporate

227

governance

2-15

Conflicts of interest

The Board adopts our internal document ”Guidelines for managing conflicts

Corporate

226, 258

of interest”. The guidelines describe our procedures for identifying, assessing,

governance,

documenting and managing conflicts of interest.

2-16

Communication of critical

concerns

2-17

Collective knowledge of

the highest governance

body

2-18

Evaluation of the

performance of the

highest governance body

2-19

Remuneration policies

GRI-index

People,

Keeping our house

in order

People

29, 36

Corporate

governance

225, 227

Annual Accounts and

173-174,

Notes,

Corporate

governance

229

2-20

Process to determine

We use external benchmarks to assess and compare salaries in the market. We

Corporate

229, 258

remuneration

do not use external consultants to look at pay ratios.

2-21

Annual total

compensation ratio

Strategy, policies and practices

2-22

Statement on sustainable

development strategy

governance

GRI-index

Sustainability

236-237

Assurance

This is Storebrand,

5, 13, 64

Keeping our house

in order,

Director’s report

258

Text

2-23

Policy commitments

Storebrand-Standard.

Chapter

Page
number

People, Keeping

14,

our house in order,

41-42,

In the document Human Rights Policy and Responsible Business Conduct at

Director’s report,

71,

Storebrand, we describe the company’s work related to human rights, decent

GRI-index

working conditions and responsible business operations:

76-77,

257

https://www.storebrand.no/en/sustainability/sustainability-library/_/attachment/

inline/9fbb435e-1a4a-4b8a-a45d-f473c56d3cbb:92e6fa7160b8ea47016b5d2a

5c798c8b94783676/Human%20Rights%20Policy%20and%20Responsible%20

Business%20Conduct%20at%20Storebrand%202022.pdf

2-24

Embedding policy

We are working to streamline the document hierarchy, which includes

People,

29-30, 35,

commitments

guidelines, routines and routines that have not been adopted, but which

Keeping our house

42-43, 259

operationalise the governing documents.

2-25

Processes to remediate

negative impacts

2-26

Mechanisms for seeking

advice and raising

concerns

2-27

Compliance with laws and

regulations

in order,

GRI-index

People,

Keeping our house

in order,

29, 31,

36, 39,

64, 67,

Director’s report

74-75, 76

People,

29, 35-36,

Keeping our house

38-39

in order

Keeping our house

35-36, 39,

in order,

Sustainability

Assurance

241

2-28

Membership associations

Accounting for Sustainability

GRI-indeks

259

Investor group under UNEP FI working with TCFD

Climate Action 100+

Nature 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

Just Transition on Climate Change

Skift – Næringslivets klimaledere

UN Global Compact

UNEP Finance Initiative

UN Principles for Responsible Investment

UN Principles for Sustainable Insurance

Stakeholder engagement

2-29

Approach to stakeholder

engagement

This is Storebrand

17-18

2-30

Collective bargaining

100 % in Norway and 100 % in Sweden.

GRI-index

259

agreements

Material Topics

GRI 3: Material Topics 2021

259

Text

Chapter

Page
number

3-1

Process to determine

Storebrand carried out an initial materiality analysis i 2017. This was adjusted,

This is Storebrand,

17-18, 260

material topics

following ongoing stakeholder engagement, both in 2018 and 2019. In 2020,

GRI-index

we carried out a new, thorough analysis based on qualitative and quantitative

input from both internal and external sources to further develop our materiality

analysis. A new and comprehensive materiality analysis was initiated in 2022

and will be completed in 2023.

See the document Materiality analysis Storebrand ASA here: https://

www.storebrand.no/en/sustainability/sustainability-library/_/attachment/

inline/03dea882-579e

3-2

List of material topics

Storebrand carried out an initial materiality analysis i 2017. This was adjusted,

This is Storebrand,

17-18, 260

following ongoing stakeholder engagement, both in 2018 and 2019. In 2020,

GRI-index

we carried out a new, thorough analysis based on qualitative and quantitative

input from both internal and external sources to further develop our materiality

analysis. A new and comprehensive materiality analysis was initiated in 2022

and will be completed in 2023.

See the document Materiality analysis Storebrand ASA here: https://

www.storebrand.no/en/sustainability/sustainability-library/_/attachment/

inline/03dea882-579e

3-3

Management of material

We have started the process of renewing our materiality analysis. The four

This is Storebrand,

17-18, 260

topics

important topics we have from 2020 are largely what we still consider to be the

GRI-index

most important. Since we are working with a new materiality analysis, GRI point

3-3 is unfinished, and will be completed for the next annual report.

Economic Performance

201-1

Director’s report 2022,

Annual Accounts and

Notes

201-2

Financial implications and

other risks

and opportunities due to

climate change

Anti-corruption

205-2

Communication and

training about anti-

corruption policies and

procedures

Emissions

Director’s report,

104,

Annual Accounts and

132-135,

Notes

198

Director’s report

83-95

Keeping our house in

30, 36,

order, Sustainability

241

Assurance

305-1

Direct (Scope 1) GHG

Storebrand ASA’s total emissions figures are shown in the Carbon Accounting

Keeping our house in

45, 241,

Emissions

Summary.

order, Sustainability

252, 260

Assurance,

The climate accounts for Storebrand and SPP can be accessed here: https://

GRI-index

www.storebrand.no/en/sustainability/sustainability-library/_/attachment/

inline/82e8ffb9-8c56-4080-b71b-7335a7bf4801:c4528df26af779cffee1d07544e

3b5fa19b87892/2022-Storebrand-SPP-Carbon-Accounting-Report.pdf

The climate accounts for Skagen can be accessed here: https://www.

storebrand.no/en/sustainability/sustainability-library/_/attachment/

inline/4ca2259c-78d0-409c-a520-52fbe255194b:05e09282894a930c7e5e39bb

d5cffd65cc8aa1bb/2022-Skagen-Carbon-Accounting-Report.pdf

260

Text

Chapter

305-2

Energy indirect (Scope 2)

Storebrand ASA’s total emissions figures are shown in the Carbon Accounting

Sustainability

GHG emissions

Summary.

Assurance,

GRI-index

The climate accounts for Storebrand and SPP can be accessed here: https://

www.storebrand.no/en/sustainability/sustainability-library/_/attachment/

inline/82e8ffb9-8c56-4080-b71b-7335a7bf4801:c4528df26af779cffee1d07544e

3b5fa19b87892/2022-Storebrand-SPP-Carbon-Accounting-Report.pdf

The climate accounts for Skagen can be accessed here: https://www.

storebrand.no/en/sustainability/sustainability-library/_/attachment/

inline/4ca2259c-78d0-409c-a520-52fbe255194b:05e09282894a930c7e5e39bb

d5cffd65cc8aa1bb/2022-Skagen-Carbon-Accounting-Report.pdf

305-3

Other indirect (Scope 3)

Storebrand ASA’s total emissions figures are shown in the Carbon Accounting

Director’s report,

GHG emissions

Summary. In addition, emissions figures related to equities, bonds and real

Sustainability

estate investments can be seen in the sub-chapter Financed Emissions.

Assurance,

GRI-index

The climate accounts for Storebrand and SPP can be accessed here: https://

www.storebrand.no/en/sustainability/sustainability-library/_/attachment/

inline/82e8ffb9-8c56-4080-b71b-7335a7bf4801:c4528df26af779cffee1d07544e

3b5fa19b87892/2022-Storebrand-SPP-Carbon-Accounting-Report.pdf

The climate accounts for Skagen can be accessed here: https://www.

storebrand.no/en/sustainability/sustainability-library/_/attachment/

inline/4ca2259c-78d0-409c-a520-52fbe255194b:05e09282894a930c7e5e39bb

d5cffd65cc8aa1bb/2022-Skagen-Carbon-Accounting-Report.pdf

Page
number

241, 244,

247-251,

252, 261

80, 241,

243-244,

247-251,

252, 261

305-4

GHG emissions intensity

Storebrand ASA’s total emissions figures are shown in the Carbon Accounting

Director’s report,

Summary. In addition, emissions figures related to equities, bonds and real

Sustainability

estate investments can be seen in the sub-chapter Financed Emissions.

Assurance,

GRI-index

247-251,

252, 261

The climate accounts for Storebrand and SPP can be accessed here: https://

www.storebrand.no/en/sustainability/sustainability-library/_/attachment/

inline/82e8ffb9-8c56-4080-b71b-7335a7bf4801:c4528df26af779cffee1d07544e

3b5fa19b87892/2022-Storebrand-SPP-Carbon-Accounting-Report.pdf

The climate accounts for Skagen can be accessed here: https://www.

storebrand.no/en/sustainability/sustainability-library/_/attachment/

inline/4ca2259c-78d0-409c-a520-52fbe255194b:05e09282894a930c7e5e39bb

d5cffd65cc8aa1bb/2022-Skagen-Carbon-Accounting-Report.pdf

In the annual report, we mainly report carbon intensity for equities, bond and

property investments. For own operations, the intensity figure is calculated as

follows (emissions / revenues148):

Scope 1: 0.0001 tonnes CO2e / MNOK

Scope 2: 0.02 tonnes CO2e / MNOK

Scope 3: 0.08 tonnes CO2e / MNOK

Sum scope 1-3: 0.08 tonnes CO2e / MNOK

Employment

401-1

New employee hires and

employee turnover

Training and education

Sustainability

238-239

Assurance

148) The figures from the climate accounts show that Scope 1-3 emissions in own operations are 787 tco2e (Scope 1: 0.8 tco2e, Scope 2: 131.6 tco2e, Scope 3: 654.6 tco2e). Revenues are defined

in the appendix Taxonomy reporting and are aggregated to the following: NOK 7,731.6 million

Text

404-2

Programs for upgrading

employee skills and

transition assistance

programs

404-3

Percentage of employees

receiving regular

performance and career

development reviews

Diversity and Equal Opportunity

405-1

Diversity of governance

bodies and employees

Page
number

27-28, 126

Chapter

People,

Annual Accounts and

Notes

People

People,

Sustainability

Assurance,

Appendix

32-33,

235-236,

270-279

405-2

Ratio of basic salary and

In our Gender Equality Report we describe a detailed breakdown of pay ratios

People,

236-237

remuneration of women

based on Hay Grade and per region. See the report (Likestillingsredegjørelse)

Sustainability

to men

here: https://www.storebrand.no/en/sustainability/sustainability-library/_/

attachment/inline/53349f97-2b67

Assurance,

GRI-index

Public Policy

415-1

Political Contributions

We do not make contributions to political parties.

GRI-index

262

Marketing and labeling

417-2

Incidents of non-

We work to ensure that all marketing communications and sales of products

Keeping our house

35, 262

compliance

and services meet relevant legal requirements and industry standards. We have

in order,

concerning product and

not had any incidents related to this or received any notices, orders or fines for

GRI-index

service information and

this from supervisory authorities or others

labeling

417-3

Incidents of non-

We work to ensure that all marketing communications and sales of products

Keeping our house in

35, 262

compliance

and services meet relevant legal requirements and industry standards. We have

order, GRI-index

concerning marketing

not had any incidents related to this or received any notices, orders or fines for

communications

this from supervisory authorities or others

Customer Privacy

418-1

Substantiated complaints

concerning breaches of

customer privacy and

losses of customer data

FS - Egne KPIer

FS10

Share and number

of companies in the

portfolio with which the

reporting organisation

has interacted on

environmental or social

matters

FS11

Share of assets subject

to positive and negative

environmental or social

screening

Keeping our house

35, 241

in order

Director’s report,

80, 244

Sustainability

Assurance

Director’s report,

80, 243

Sustainability

Assurance

262

To the Board of Directors of Storebrand ASA

Independent statement regarding Storebrand's sustainability reporting

We have examined whether Storebrand ASA has prepared a GRI Index for 2022 and measurements
and reporting of key performance indicators for sustainability (sustainability reporting) for the year
ending 31 December 2022. Our assurance engagement was conducted to obtain limited assurance.

Storebrand's GRI index for 2022 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
sustainability information is reported. Storebrand’s GRI Index for 2022 is available and included
in Storebrand’s annual report for the period ending 31 December 2022. We have examined
whether Storebrand has developed a GRI Index for 2022 and whether mandatory disclosures are
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 measures and controls. The tables are available and included in Storebrand’s annual
report for 2022, specifically in the chapters "Sustainability indicators and definitions", "Financed
Emissions" and "Carbon Accounting Summary". Storebrand has defined the key figures and
explained how they are measured in the chapter “Sustainability indicators and definitions” under
each material topic “Customer relations”, “Our people”, “Keeping our house in order” and
“Financial capital and investment universe” (criteria).

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,
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

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
(including International Independence Standards) (IESBA Code), and we have fulfilled our ethical
obligations in accordance with these requirements. We use ISQM 1 - Quality management for firms
that perform audits or reviews of financial statements, or other assurance or related services
engagements and maintain a comprehensive system of quality control including documented
guidelines and procedures regarding compliance with ethical requirements, professional standards
and applicable legal and regulatory claim.

Auditor's responsibilities

Our responsibility is to express a limited assurance conclusion on Storebrand’s sustainability reporting
based on the procedures we have performed and the evidence we have obtained. We conducted our
work in accordance with the Standard on Assurance Engagements ISAE 3000: “Assurance
engagements other than audits or review of historical financial information". A limited assurance

263

engagement in accordance with ISAE 3000 involves assessing the suitability in the circumstances of
management's use of the criteria as the basis for the preparation of the sustainability reporting,
assessing the risks of material misstatement of the sustainability reporting whether due to fraud or
error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall
presentation of the sustainability reporting. 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.

The procedures we performed were based on our professional judgement and, among others, included
an assessment of whether the criteria used are appropriate, as well as an assessment of the overall
presentation of the sustainability reporting. Our procedures also included 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 key performance indicators for sustainability; and controlling the calculations of key performance
indicators for sustainability based on an assessment of the risk of error.

The procedures performed in a limited assurance engagement vary in nature and timing from, and are
less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance
obtained in a limited assurance engagement is substantially lower than the assurance that would have
been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express
a reasonable assurance opinion about whether the sustainability reporting has been prepared, in all
material respects, in accordance with the criteria.

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 2022 is not, in all material respects, developed 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, 7 February 2023
PricewaterhouseCoopers AS

Thomas Steffensen
State Authorized Public Accountant

Note: This translation from Norwegian has been prepared for information purposes only.

(2)

264

Appendix

266 Taxonomy reporting

270 Group Executive Management CVs

275 Board of Directors CVs

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
with 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

Share of taxonomy eligible activities aggregated at Group level

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 linked to the EU taxonomy will over time
become increasingly important as a measure for climate change as
data quality and the degree of 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.

In this reporting we have used templates from Finance Norway,
which are based on the reporting framework from the EU. Since we
are a cross-sector financial group, the reporting will be somewhat
different for the different business areas. Below is a table showing
the Group’s business activities that are Taxonomy eligible at an
aggregated level.

Business area

Banking

Insurance (non-life)

Insurance (life)

Other (asset management, savings, guaranteed and other)

Total

Revenue

(MNOK) 149

708.6

730.8

495.8

5,796.5

7,731.6

Share of eligibile

Share of total

activities for each

activities weighted

revenue

business area

against total revenue

9 %

6 %

75 %

99 %

98 %

0 %

0.01 %

18 %

9 %

0 %

18 %

149) For the Insurance business, premium payment - compensation payment (the insurance result) is used as the basis for total revenue. For other segments,

Fee and administration income is used as the basis for total revenue. Relevant from the reporting year 2023.

266

Key indicators related to non-life insurance activities

Share of non-life insurance premiums that is Taxonomy-eligible

98 %

Share of taxonomy eligible activities for non-life insurance

Activities

A.1 Non-life insurance activities and reinsurance that
is taxonomy eligible 151

A.1.1 Of which is reinsured 152

A.1.2 Of which constitutes reinsurance activity 153

A.1.2.1 Of which the remainder is reinsured
(retrocession)

A.2 Non-life insurance activities and reinsurance not
taxonomy eligible

Sum A.1+A.2

Total gross written

Share of total gross written

Total gross written

premium for the

premium for the reporting

premium previous

reporting year (MNOK)

year (percentage)

year (MNOK) 150

3,326.8

37.0

55.4

3,382.2

98 %

1 %

0 %

100 %

N/A

Non-life insurance activities that is taxonomy eligible for each line of business
Non-life insurance activities covered by the taxonomy, for each line of business. Reported values must correspond with the company’s
Solvency II reporting.

Line of business

Medical expense insurance 155

Income protection insurance

Workers' compensation insurance

Motor vehicle liability insurance

Other motor insurance

Marine, aviation and transport insurance

Fire and other damage to property insurance

Assistance (travel insurance)

Other 156

Gross written

premium (MNOK)

Share of total gross

written premium154

552.7

94.8

11.2

526.3

1,075.9

913.5

152.4

55.4

16 %

3 %

0 %

16 %

32 %

0 %

27 %

5 %

2 %

150) Relevant from the reporting year 2023.

151) Implicit coverage of climate-related risks is to be regarded as covered by the taxonomy.

152) Share that is reinsured with other companies.

153) This row is only relevant for companies that offer reinsurance.

154) ”Total gross written premium” is here limited to insurance coverage that is taxonomy eligible.

155) We only report 50 per cent of Storebrand Helse’s data since we only own 50 per cent of the company. This is in line with how we report financial data.

156) This is mainly Animal Insurance (Dog and Cat) and is not covered by the taxonomy.

267

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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. AppendixTaxonomy reporting 266Group Executive Management CVs 270Board of Directors CVs 275
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.157 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.158 If the product does not specifically mention that it excludes compensation as a result of
climate-related risks, then it is considered covered by the taxonomy. Most of our non-life insurance products have additional coverage
defined by the natural damage regulations and will then be covered by the taxonomy.159 Activities related to health insurance are included
in the reporting, but as Storebrand only owns 50 per cent of the health insurance business, only half of the activities are reported in our
calculation.

The insurance products in Storebrand, which are both defined under Solvency II and which refer to climate-related risks, correspond to 98
per cent of the total insurance premium. The rest of our insurance business is not covered by the taxonomy.

Key indicators related to activities within the bank’s lending

Share of the bank’s lending that is Taxonomy-eligible

99 %

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.

r
o
t
a
r
e
m
u
N

r
o
t
a
n
m
o
n
e
D

Financial corporations

NFCs subject to NFRD/CSRD disclosure obligations

Households

Excluded from numerator

Activities non-assessed by EU taxonomy & Non-Significant Impact (NSI)

NFCs subject to NFRD/CSRD disclosure obligations

Non-EU country counterparties

Derivatives & others

Total Assets Covered

Other Assets excluded from GAR scope

Sovereigns

Central banks

Trading book

Total balance sheet

Share of the bank’s lending that is taxonomy eligible

Key indicators related to investment activities

Share of investments that is Taxonomy-eligible in the mandatory reporting

Exposure (MNOK)

66,552

442

67,047

6,307

73,354

99 %

0.01 %

157) 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

158) 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

159) Norwegian Natural Disaster Regulations: Act no. 70 of 16 June 1989 relating to natural disaster insurance.

268

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.

There is only one company that has reported share of activities that are taxonomy eligible and which is included in the mandatory reporting.

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 in the voluntary reporting. Below you will find the voluntary taxonomy reporting, with a more detailed description for equities,
corporate bonds, real estate, infrastructure and private equity.

Voluntary reporting for Storebrand as an insurance-dominated cross-sectoral financial group:

Key indicators related to activities within equity and bond investments

Share of equity investments that is Taxonomy-eligible

Share of bond investments that is Taxonomy-eligible

10.15 %

4.76 %

The data provider Sustainalytics provides estimates of how much of the investee companies’ activites that are eligible in accordance with
the Taxonomy.

The numerator multiplies our investments (assets under management) in companies with headquarters in Europe by the proportion of
activities covered by the Taxonomy of the respective companies. Exposures to governments, central banks and supranational issuers are
excluded from the calculation of the numerator.

The denominator includes all investments globally, with the exception of exposures to central governments, central banks and supranational
issuers. Thus, only 10.15 per cent of Storebrand’s equity investments and 4.76 per cent of Storebrand’s bond investments are covered by
the Taxonomy. This is the share of companies that are taxonomy eligible in accordance with the regulations, i.e. companies that are either
located within the EU and are covered by the taxonomy’s environmental goals. These are estimates based on information from our data
suppliers and may change somewhat when the data quality improves.

Key indicators related to activities within investments in infrastructure

Share of infrastructure investments that is Taxonomy-eligible

69.6 %

69.9 per cent of our infrastructure investments are in activities that are eligible in accordance with 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 are also Taxonomy eligible.

Key indicators related to activities within investments in private equity

Share of investments in private equity that is Taxonomy-eligible

2 %

Only 2 per cent of private equity investments are eligible in accordance with the taxonomy. 52 per cent of investments in private equity are
outside Europe, and the remaining companies are not covered by the NFRD.

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 eligible in accordance with the taxonomy. Real estate investments are not
covered by the NFRD, and are thus not reported as mandatory reporting, but as voluntary.

269

Group Executive
Management CVs

Odd Arild Grefstad (1965)

Lars Aa. Løddesøl (1964)

Group Chief Executive Officer Storebrand ASA

Group Chief Financial Officer and Executive Vice President Strategy,

Education

State-Authorised Public Accountant

Authorised Financial Analyst (AFA)

Finance and Legal, Storebrand ASA

Education

MSc in Economics and Business Administration, BI Norwegian Business School

MBA Thunderbird School of Global Management (AGSIM), USA

Previous positions

AMP, Columbia University, USA

Managing Director, Storebrand Livsforsikring (2011–2012)

Executive Vice President Finance and Legal, Storebrand ASA (2008–2011)

Previous positions

Executive Vice President Finance, Storebrand ASA (2002–2008)

Executive Vice President, Life and Pensions Norway and Managing Director,

Manager of the Group Controller Unit, Storebrand ASA (1998–2002)

Storebrand Livsforsikring AS (2008–2011)

Group Controller, Life Insurance, Storebrand ASA (1997–1998)

Executive Vice President, Corporate Market Life Insurance, Storebrand

Vice President, Internal Auditing, i Storebrand ASA (1994–1997)

Livsforsikring AS (2004–2008)

External Auditing, Arthur Andersen & Co (1989–1994)

CFO, Storebrand ASA (2001–2004)

Ownership in Storebrand

Number of shares as of 31.12.2022: 245 520

Vice President/Relationship Manager, Citibank International plc (1994–2001)

Asst. Treasurer, Scandinavian Airlines Systems (1990–1994)

Number of shares owned by the close associate: 2 000

Ownership in Storebrand

Number of shares as of 31.12.2022: 156 271

270

Executive Vice President, Retail Market

Vivi Måhede Gevelt (1983)

Executive Vice President, Corporate Market

Education

MSc in Economics and Business Administration, University of Washington,

Master in Technology Management (NTNU)

Seattle, USA

Previous positions

Interest rate analyst (NFF)

Master of Business Administration - Master of Science in Business

Administration (NHH)

Lindorff Group AB, Executive Vice President, Scandinavia Region, Managing

Director of Lindorff AS in Norway (2008–2012)

Previous positions

Managing Director, IKANO Finans ASA (2001–2008)

Head of Service and Settlement, Storebrand Livsforsikring AS (2021–2022)

Managerial positions at DNB ASA (1987–2000)

Head of Product and Service, Storebrand Livsforsikring AS (2019–2021)

Financial Services Officer, Bank of America, San Francisco, USA (1986–1987)

Head of Settlement, Storebrand Livsforsikring AS (2015–2019)

Ownership in Storebrand

Head of Operations, Storebrand Forsikring AS (2014–2015)

Head of Service, Storebrand Forsikring AS (2013–2014)

Number of shares as of 31.12.2022: 119 115

Head of Finance and Business Development, Storebrand Forsikring AS

(2011–2013)

Business Controller, Storebrand Livsforsikring AS (2009-2011)

Management Trainee, Storebrand Livsforsikring AS (2007-2009)

Ownership of Storebrand

Number of shares as of 31.12.2022: 7 413

271

Jenny Rundbladh (1977)

Executive Vice President, Storebrand Asset Management

Managing director, SPP

Education

MSc in Engineering, Norwegian University of Science and Technology (NTNU)

Master in Psychology, Luleå University of Technology, Sweden

MBA INSEAD, France

Previous positions

Executive Training Business Administration and Management,

Harvard Business School

Executive Training, Sales and marketing, Harvard Business School

Investment Director, Storebrand Asset Management (2006–2015)

Senior Portfolio Manager, Storebrand Asset Management (1999–2006)

Previous positions

Sector Head Equities, Energy/Shipping, Handelsbanken Markets (1997–1999)

Sales Director/CCO SPP Pension och försäkring AB (2019–2022)

Partner, Marsoft Capital (1995–1997)

Sales Manager SPP Pension och försäkring AB (2018–2019)

Head of Research, Christiania Markets (now: Nordea Markets) (1992–1995)

Managing Director, Aon SE & Head of Affinity (2016-2018)

Junior Consultant, McKinsey & Company (1990–1991)

Head of Sales and Customer Service, If Care (2012-2016)

Ownership in Storebrand

Marketing Manager, Sveriges Ingeniörer (2008–2012)

Sales and Marketing Manager, Union (2004–2008)

Number of shares as of 31.12.2022: 131 305

Project manager, Sif (2002–2004)

Management Consultant, Miljöteknik Orbit AB (1999)

Ownership of Storebrand

Number of shares as of 31.12.2022: 4 424

272

Executive Vice President, Communications,

Sustainability and Public Affairs

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 31.12.2022: 35 705

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 31.12.2022: 32 412

273

Executive Vice President, People

Education

Master in Law, University of Oslo, Norway

Previous positions

HR Director, Sorebrand Livsforsikring (2015–2020)

Group Director HR, Opera Software (2007–2015)

HR Director, Eltel Networks (2004–2007)

HR Manager East Norway Region, Avinor (1997–2004)

Legal Advisor, Aetat (1995–1997)

Ownership in Storebrand

Number of shares as of 31.12.2022: 35 772

274

Didrik Munch (1956)

Christel Elise Borge (1967)

Board Chair at Storebrand ASA since 2017

Board Director, Storebrand ASA since 2021

Position

Self-employed

Education

Position

CEO, Entur AS

Education

Norwegian Police University College

Master in Law

Master of Science, Computer Science, NTNU, Norway

MBA Programme INSEAD, Fontainebleau, France

Previous positions

Group Chief Executive Officer, Schibsted Norway (2011-2018)

Telenor ASA (2005-2020)

Group Chief Executive Officer, Media Norway (2008–2011)

CEO, Dipper AS

Chief Executive Officer, Bergens Tidende (1997–2008)

Senior Vice President, Head of Group Strategy and CEO Office

Division Director, Corporate Market, DNB (1995–1997)

Senior Vice President, Head of Group Strategy and Portfolio Development

Regional Bank Manager, Corporate Market Bergen, DNB (1992–1995)

Strategy Director, Telenor Nordics, Oslo

Various managerial roles at Nevi and DNB (1987–1992)

Strategy Advisor, Innovation AS (2002-2004)

Attorney, Kyrre AS (1987–1987)

Project Manager, Schibsted (2001)

Police intendant I/II, the Bergen Police Department (1984–1986)

Director, Cell Network AS (2000-2001)

Police inspector, the Oslo/Bergen Police Department (1979–1984)

Strategy Advisor, McKinsey & Company (1991-1999)

Positions of trust

Board Chairman, NWT Media AS

Board Director, Grieg Maritime Group AS

Board Director, Lerøy Seafood Group

Board Chairman, SH Holding (Solstrand Fjord Hotell)

Ownership in Storebrand

Number of shares as of 31.12.2022: 40 000

Number of shares owned by the close associate: NWT Media AS: 215 000

Board Director, Sparebank1 Midt-Norge, SND Invest, Telenor Digital, Telenor

Denmark, Talkmore, Component Software

Ownership in Storebrand

Number of shares as of 31.12. 2022: 11 000

275

Board Director, Storebrand ASA since 2015

Marianne Bergmann Røren (1968)

Board Director, Storebrand ASA since 2020

Position

Self-employed

Education

Position

CEO, Mesta AS

Education

MSc Economics and Business Administration, Norwegian School of Economics

Master in Law, University of Oslo, Norway

(NHH)

Top Manager Programme (IMD, BI and Management in Lund)

Previous positions

Danske Bank Corporate & Institutions (2007-2019):

Global Head of COO Office

Executive Vice President of DNB, and various managerial positions in the same

Global Head of Risk

group (1985–2013)

Global Head of AML Programme

Consultant, Ministry of Trade and Shipping Handels og skipsfartsdepartementet

COO and Deputy Country Manager

(1983–1985)

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 Corporate Assembly, Telenor ASA

Board Director and Chair of the Audit Committee, Grieg Seafood ASA

Board Director, SmartCraft ASA

Ownership in Storebrand

Number of shares as of 31.12. 2022: 5 000

Number of shares owned by the close associate: 2 000

Board Chair, GIEK

Positions of trust

Board Chair, Entur AS

Board Director and Chair of the Audit Committee, KID ASA

Board Director, Eksportfinansiering Norge (eksfin)

Board Director and Chair of the Audit Committee, NRC Group ASA

Ownership in Storebrand

Number of shares as of 31.12. 2022: 27 000

276

Martin Skancke (1966)

Board Director, Storebrand ASA since 2019

Styremedlem i Storebrand ASA siden 2014

Position

COO, AcadeMedia AB

Education

Position

Self-employed

Education

MSc Industrial Engineering and Management, University of Linköping,

Authorised Financial Analyst, Norwegian School of Economics (NHH), Norway

Sweden

Previous positions

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

Executive Vice President & CCO, SAS (2019-2022)

MSc Economics and Business Administration, Norwegian School of

EVP Commercial, SAS (2017-2020)

EVP & Chief Strategy Officer, SAS (2014-2017)

Vice President, Network, SAS (2009-2014)

Economics, Norway

Previous positions

Vice President, Commercial, SAS (2007-2009)

Special Adviser, Storebrand (2011–2013)

Vice President, Corporate Development, SAS (2006-2007)

Deputy Director General and Director General, Ministry of Finance, Norway

Director, Business Strategies, SAS (2004-2006)

(1994–2001, 2006–2011)

Consultant, McKinsey & Company (2001-2004)

Director General, Office of the Prime Minister, Norway (2002–2006)

Ownership in Storebrand

Number of shares as of 31.12. 2022: 7 000

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: 32 500

277

Hanne Seim Grave (1974)

Board Director, Storebrand ASA since 2020

Employee Representantive, Storebrand ASA since 2021

Position

Partner EQT

Education

MSc (Stockholm School of Economics)

Previous positions

Position

Senior Authorised Insurance Advisor, Storebrand Forsikring AS

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, Securitas AB

Member of the Nomination Comittee, Storytel AB

Ownership in Storebrand

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

Number of shares as of 31.12.2022: 400 000

Sales, Storebrand Skadeforsikring

Number of shares owned by the close associate, EQT Public ValueInvestments

Manpower, Storebrand Eiendom

S.à r.l.: 14 900 000

Ownership in Storebrand

Number of shares as of 31.12.2022: 650

278

Bodil Catherine Valvik (1973)

Employee Representantive, Storebrand ASA since 2020

Position

Head of Union Representantives, the Finance Sector Union of Norway,

Head of Fund Administration, Storebrand Asset Management ASA

Storebrand ASA

Education

BA(Hons) Travel & Tourism Management, University of Northumbria at Newcastle

Marketing Communications, BI Norges Markedshøyskole/NMH

People Management, Høyskolen i Akershus, Norway

Previous positions

Internship top union representatives, Høyskolen Kristiania

Manager, Customer Services, Public pensions, Storebrand Pensjonstjenester AS

Previous positions

Manager, Customer Services, Pensions & Savings, Storebrand PM (2013-2018)

Sales Manager, Storebrand Bank ASA (2016-2020)

Manager, Customer Services, Link and Mutual Funds, Storebrand

Sales Manager, Storebrand Finansiell Rådgivning AS (2014-2016)

Kapitalforvaltning (2007-2012)

Head of Dialogue Marketing/CRM, Storebrand ASA, (2012-2014)

Manager, Customer Services, Link, Storebrand Livsforsikring (2002-2006)

Operational Manager, Storebrand Baltic UAB (2010-2012)

Manager for Helpline Link, Storebrand Livsforsikring (2001-2002)

Key Account Manager, Storebrand Bank ASA (2005-2010)

Financial Advisor, Storebrand Livsforsikring (1999-2001)

(2019-2020)

Web Manager/Project Management, Storebrand Bank ASA (2003 – 2005)

Web Manager/Project Management, Finansbanken ASA (2000-2003)

Ownership in Storebrand

Employee, Gjensidige Forsikring (1988-2000)

Number of shares as of 31.12.2022: 1 910

Ownership in Storebrand

Number of shares as of 31.12. 2022: 0

279

Table of contentsFacts and figures 2022 3Foreword by our CEO 5Foreword by the Chair 7Highlights in 2022 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. AppendixTaxonomy reporting 266Group Executive Management CVs 270Board of Directors CVs 275
Page 1 Photo: Johnér Bildbyrå AB
Page 5 Photo: Lise Eide Risanger / Storebrand
Page 7 Photo: Adobe Stock
Page 7 Photo: Lise Eide Risanger / Storebrand
Page 7 Photo: Karoline Næss / Storebrand
Page 7 Photo: Johnér/Stefan Isaksson
Page 11 Photo: Johnér Bildbyrå AB / Hans Berggren
Page 15 Photo: Karoline Næss / Storebrand
Page 16 Photo: Ihne Pedersen
Page 19 Photo: Shutterstock
Page 21 Photo: Shutterstock
Page 23 Photo: Storebrand
Page 24 Photo: Johnér Bildbyrå AB
Page 26 Photo: Johnér Bildbyrå AB
Page 28 Photo: Johnér Bildbyrå AB
Page 30 Photo: Johnér Bildbyrå AB / Pernille Tofte
Page 34 Photo: Shutterstock
Page 38 Photo: Shutterstock
Page 41 Photo: Caiaimage/Johnér Bildbyrå AB
Page 44 Photo: Johnér Bildbyrå AB / Susanne Kronholm
Page 46 Photo: Johnér Bildbyrå AB
Page 50 Photo: Shutterstock
Page 54 Photo: Maskot / Offset.com
Page 58 Photo: Johnér Bildbyrå AB
Page 64 Photo: Shutterstock
Page 70 Photo: Julien McRoberts Photography / Offset.com
Page 71 Photo: Jens Lindström / Johnér Bildbyrå AB
Page 78 Photo: Erik Isakson Photographics / Offset.com
Page 82 Photo: Johnér Bildbyrå AB
Page 95 Photo: Johnér Bildbyrå AB
Page 96 Photo: Cultura / Offset.com
Page 99 Photo: Johnér Bildbyrå AB
Page 223 Photo: Maskot bildbyrå
Page 232 Photo: Johnér Bildbyrå AB / Michael Jönsson
Page 265 Photo: Fredrik Schlyter / Johnér Bildbyrå AB

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.

280

Professor Kohts vei 9, P.O. Box 474, N-1327 Lysaker, Phone: +47 915 08 880, storebrand.no

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