Innhold Introduksjon 1. This is Storebrand 2. Customer relations 3. People 4. Keeping Our House in Order Storebrand ASA 5. Director´s report 6. Finansielle mål 7. Konsernets resultaterAnnual 2020 Report 8. Utbytte for 2020 9. Kapitalforhold 10. Rating 11. fremtidsutsikter 12. Risiko 13. arbeidsmiljø og HMS 14. Annual Accounts and notes 15. Shareholder matters 16. Sustainability assurance 17. Appendix 2020 Table of contents Introduction 6. Shareholder matters How to navigate in the Annual 3 Facts and figures 2020 report 5 Letter from the Group Chief Executive Officer 7. Annual Accounts 7 Chairman’s foreword and Notes 1. This is Storebrand Storebrand Group 10 About Storebrand 78 Income statement Previous page 11 Organisation 79 Statement of total comprehensive income 14 Executive management 80 Statement of financial position 15 Board of directors 82 Statement of changes in equity 83 Statement of cash flow Next page 2. Customer relations 85 Notes 19 Greater financial security and freedom 21 Engaging, relevant and responsible advice Storebrand ASA 22 Digital innovator in financial services 163 Income statement 23 Simple and seamless customer experiences 163 Statement of total comprehensive income Full screen 24 Key performance indicators 164 Statement of financial position 165 Statement of changes in equity 3. People 166 Statement of cash flow 26 A culture for learning 167 Notes 28 Engaged, competent and courageous employees 180 Declaration by member of the Board and the CEO 29 Diversity and equality 181 Independent auditor´s report Table of contents 31 Key performance indicators 8. Governance On the left hand side, you will always 4. Keeping Our House 189 Corporate Governance have access to the table of contents. 197 Companies in the Storebrand Group Here you can easily navigate in Order between the chapters. If you are 33 Corporate governance and compliance Privacy and combating financial crime 9. Sustainability assurance looking for something you can 199 TCFD-index 37 Responsible resource use always go back to this page for a 201 GRI-index 38 Sustainable practices throughout our value chain complete overview. 208 Auditor’s statement on sustainability 40 Social responsibility 41 Key performance indicators 10. Appendix 5. Director´s report 209 Executive management CVs 213 Group Board of Directors CVs 43 Strategy 2021-23 221 Complete list of Sustainability KPIs 52 Official Financial Statements of Storebrand ASA 223 Definitions 53 Outlook 57 A driving force for sustainable investments 66 Risk 68 Climate risks and opportunities 72 Working environment and HSE 73 Progress on our most material sustainability KPIs 2 Contents Facts and figures 2020 3 Facts and figures Letter from the Group Chief Executive Officer 5 Chairman’s foreword 7 1. This is Storebrand 2020 2. Customer relations 3. People 4. Keeping Our House in Order Number of employees Group profit1), NOK million 5. Director´s report 6. Shareholder matters 1,824 2,711 7. Annual Accounts and Notes 8. Governance Return on equity2) Solvency margin3) 9. Sustainability assurance 10. Appendix 8.6 % 178 % Assets under Management, NOK billion Assets under Management screened for sustainability criteria 962 100 % Investments in fossil free funds, NOK billion Investments in solutions4), NOK billion 379.2 92.6 Real estate investments with green Rank in Global 100 among insurance companies certificates 43 % #1 1) Profit before amortisation 2) After tax, adjusted for amortisation of intangible assets 3) Including transitional rules 4) Solution companies, Green Bonds and real estate with Green Building Certificate 3 Contents Defined Contribution pensions Norway Pension investment profiles Sweden – Annualised return last 5 years* – Annualised return last 5 years**) Facts and figures 2020 3 Letter from the Group Chief Executive Officer 5 8.1 % 8.2 % Chairman’s foreword 7 7.5 % 7.4 % 7.6 % 6.4 % 5.9 % 1. This is Storebrand 7.3 % 7.2 % 2. Customer relations 7.0 % 3. People 4. Keeping Our House in Order 5. Director´s report Storebrand Balansert pensjon Competitors SPP Arbetsliv Competitors 6. Shareholder matters 7. Annual Accounts and Notes 8. Governance Unit Linked reserves (NOK billion) Written portfolio premiums (NOK billion) 9. Sustainability assurance 22 18 10. Appendix 268 5.56 4.70 220 2019 2020 2019 2020 Total assets under management Earnings per share, adj. for amortisation (NOK) (NOK billion) 16 13 6.07 962 5.38 831 2019 2020 2019 2020 *) Returns based on comparable investment portfolios with moderate risk (ca. 50% equity exposure) for active Defined Contribution plans. **) Returns based on comparable investment portfolios with moderate risk (ca. 50% equity exposure) for active pension plans in the accumulation phase with a guaranteed return. 4 Contents Facts and figures 2020 3 Letter from the Group Chief Executive Officer 5 Chairman’s foreword 7 A rather different year 1. This is Storebrand 2. Customer relations The year 2020 ended up very different from what we had foreseen. Still, we are 3. People satisfied by solid results and progress in key areas across the organisation. We 4. Keeping Our House in Order delivered value to customers, investors and employees, and we made significant 5. Director´s report progress in preserving our position as a leading player in sustainable finance. 6. Shareholder matters 7. Annual Accounts and Notes 8. Governance 9. Sustainability assurance 10. Appendix Odd Arild Grefstad Group Chief Executive Officer 5 Contents Facts and figures 2020 3 Letter from the Group Chief Executive Officer 5 After a strong year in 2019, we had a good momentum coming partnerships, including with Huseierne and Coop. Both organisations Chairman’s foreword 7 into the new year. Unexpectedly, reports of a seriously infectious represent a large number of members and strengthen our distribution virus started spreading rapidly. We soon realised that the world was and competitiveness towards retail clients all over Norway. The facing a new pandemic, but none of us could have predicted that purchase of Insr strengthened our position in non-life insurance. The 1. This is Storebrand the situation would prevail for so long. The health authorities have takeover of the Insr portfolio is well underway. started vaccinating populations, but it will take time before we can 2. Customer relations put Covid-19 behind us. Lock-down, layoffs and bankruptcies in the Sales of non-life insurance increased by 15 per cent from 2019 to business sector will probably be prevalent for years to come. 2020, and online sales in insurance rose by 63 percent. We see great 3. People growth opportunities in non-life insurance in the years to come. Storebrand provides products and services that are essential for 4. Keeping Our House in Order the functioning of our ociety. The pandemic put us all to the test. I In Norway, the “My Money” app was downloaded by over 120,000 am very proud of our ability to handle the situation in a good way, people. The cooperation between the savings branch in the retail 5. Director´s report both for our customers and each other. Customers, authorities market, and Storebrand asset management continued its positive and our auditors have given us feedback of a well-organised and development. We will build on our strong position in asset management 6. Shareholder matters effective emergency response. We handled the increased risk well, to strengthen our value proposal to retail clients. 7. Annual Accounts and Notes delivered good returns on the capital we manage on behalf of our customers, paid out pensions and insurance settlements, we issued Storebrand’s ability to create value contributed to several new 8. Governance loans and payment deferrals, and we provided extensive advice international agreements in asset management, including a mandate to our customers during a period of uncertainty. Most of the work of NOK 5 billion in England. We currently manage over NOK 960 billion 9. Sustainability assurance was carried out while working from home. We adopted new ways on behalf of our customers and have ambitions for further growth. of interacting and maintaining productivity, using digital tools and a 10. Appendix spirit of collaboration. We implemented infection control measures We are committed to ensuring that our sustainability work leads to quickly, which meant that we were fortunate enough to avoid real-world results, whether in cooperation with large international outbreaks of infection in connection with work carried out in our organisations to stop deforestation in Brazil, or through good returns premises throughout the year. in our specialised sustainability funds. In 2020, Storebrand was named the world’s most sustainable insurance company by Corporate Knights In the corporate market in Norway, we landed several large new Global 100. In addition, the Dow Jones Sustainability Index included customers in a competitive market. We also received renewed trust the Storebrand stock on its list of the 10 per cent most sustainable from existing customers who announced bids on tenders. We are companies in the world. Both are important recognitions of our long- prepared to roll up our sleeves as individual pension accounts are term work on sustainability, and on systematic reporting on targets introduced in Norway in 2021. We will continue to work hard to and results. In 2020, we introduced a new climate policy for the whole provide good customer experiences, so that customers will prefer group, a new climate strategy for Storebrand’s investments and a new Storebrand. purchasing policy with clear expectations for our suppliers. In the Norwegian public service pension market, we are the only Inspired by 2020, where developing new working habits were essential, challenger to KLP, which has had a monopoly for several years. we will, through the Future Storebrand project, further develop our Through our continuous efforts, we achieved several breakthroughs workplace and practices so that they are adapted to the needs of throughout the year with public enterprises, culminating in the individual teams and departments.