Insurope - Network Partner: Company Profile

our Network Partner in Norway

Storebrand

The Storebrand group is a leading player in the markets for pensions, life and health insurance, banking and asset management. The group's activities are carried out through four main business areas: Life Insurance, Storebrand Investments, Storebrand Bank and Finansbanken. The merger of the two banks was announced in 2003. In addition Storebrand had a 22.5% interest in the non-life insurance company, "IF", however, Storebrand's shares in "IF" were sold to Sampo in 2004.

Storebrand resumed non-life operations in 2006 and, at the turn of the year, had established approximately 2,000 contracts.

Storebrand has roots back to 1767. Throughout all these years the basis for value creation in Storebrand has been the readiness and ability to meet the challenges of new situations.

Storebrand's life insurance business area
Storebrand is one of the largest and oldest life insurance company in Norway and a leading provider of financial security and financial services to both private individuals and to businesses.

Storebrand is the leading supplier in the Norwegian life insurance, pensions and savings market. The group's life insurance activities are well placed for continuing growth, particularly in areas such as unit linked products, personal risk insurance and defined contribution occupational pension schemes, with particular focus on products for the public sector and sales of individual products to employees of companies that use Storebrand for their pension schemes.

Storebrand is administrating more than 23,000 company pension plans and 3,800 life insurances. This is an enormous development for 2006, but only natural following new legislation for obligatory pension schemes. Storebrand has a dominant position in Norwegian insurance, with an approximately 27% share of the expanding life market as measured by premiums. Group net premium income totalled Norwegian kroner (NOK) 19.7 billion (USD 3.8 billion) in 2006.

Storebrand Investments business area
Storebrand is one of the largest asset management operators in Norway.
This business area manages assets for pension schemes, private and public sector institutions, private individuals and the Storebrand group companies. It offers discretionary asset management services, a wide range of Norwegian and international mutual securities funds through Storebrand Fondene and Delphi Fondsforvaltning and real estate management through Storebrand Eiendom.

Storebrand Bank
Storebrand Bank has the overall responsibility for distribution, customer service and marketing of financial products and services to the retail market.

The bank's objective is to be a leading supplier of financial services to private individuals with savings and an interest in managing their finances. Storebrand Bank offers this customer group a broad range of high quality financial products and services either through personal contact with its financial advisers, over the Internet or by telephone.

The merger between Storebrand Bank and Finansbanken was effective from 17 March 2003 with accounting effect from 1 January 2003.

Finansbanken was a specialist bank for high net worth individuals and selected segments of the corporate market. Its expertise will be retained in the future combined banking business of Storebrand Bank. The name "Finansbanken" will be kept as a brand name.

Nordben
Storebrand Livsforsikring AS is a part owner (25%) of Nordben Life and Pension Insurance Company Ltd. in Guernsey. Nordben provides specialized products and flexible pension and insurance solutions especially designed for Expatriates, Third Country Nationals and Local Key Personnel for multinational companies. Nordben products are also poolable with Insurope.

International Operations
The Storebrand International Life Department primarily serves the business areas Major Client Life and Corporate Life and is divided into the following four areas : Network (multinational pooling), Nordben (risk and savings), Provident Fund (retirement savings plan for seafarers) and BUPA (health care insurance - Storebrand is the Representative for BUPA International in Norway).

Service, funds and ratings
Storebrand serves its customers through Insurance Offices, Agencies and Bank Branches in five geographic regions, and have an excellent working relationship with its former non-life branch (now the independent non-life insurance company If, even if Sampo has taken over Storebrands 22,5% interest). This ensures that Storebrand has a presence throughout the country.

Storebrand Investment Management AS manages Storebrand's securities portfolios, including the investment assets of the life and non-life companies. The company had funds of more than NOK 227.4 billion (USD 44.3 billion) under management at the end of 2007.

Standard & Poor's Insurance Rating Analysis of the 'A' (Negative) and Moody's 'A2' (stable) claims-paying ability rating of Storebrand Skadeforsikring AS and Storebrand Livsforsikring A.S. is based on the strength of Storebrand in the Norwegian insurance market, its excellent capitalisation and its good operating performance.

local language

Storebrand livsforsikring AS er den ledende leverandøren på det norske spare- og livsforsikringsmarkedet. Livselskapet er organisert i separate produkt-, distribusjons- og kundebetjeningsmiljøer med selvstendig resultatansvar. Vi har om lag 23,000 bedriftskunder og 300.000 privatkunder. Antall bedriftskunder har økt voldsomt etter at det for 2006 ble innført obligatorisk tjenestepensjon.

Distribusjon og salg av våre produkter i privatmarkedet skjer primært gjennom Storebrand Bank.

Tilbudet til pensjonskasser er organisert gjennom datterselskapene Aktuar Consult, Storebrand Pensjonstjenester og Aktuarsystemer.

Salg og kundebetjening i livselskapet samordnes forøvrig i stor grad med de andre hel- og deleide livrelaterte selskapene i konsernet: Storebrand Fondsforsiring, Storebrand Helseforsikring, Nordben og Euroben.

Storebrand gjenopptok skadeforsikringsvirksomheten i 2006. Selskapet hadde ved årsskiftet 2,044 kunder og en portefølje på 17 millioner kroner i årlig premie.

Storebrand Kapitalforvaltning AS
Storebrands kapitalforvaltningsvirksomhet er en av Norges største kapitalforvaltere. Virksomheten omfatter rådgivning og forvaltning for pensjonskasser, private og offentlige institusjoner, privatpersoner og Storebrands datterselskaper.

Vi betjener om lag 150 institusjonelle kunder og rundt 100.000 privat- og bedriftskunder fra kontorer i Oslo, Stockholm, London, Paris og Luxembourg.

Storebrand Bank ASA
Inntil nylig hadde Storebrand to separate banker, Storebrand Bank og Finansbanken. Storebrand Bank har vært ansvarlig for størstedelen av Storebrand gruppens distribusjon, kundeservice og markedsaktiviteter. Finansbanken har vært en spesialbank for næringslivet og formuende privatpersoner.

Disse to bankene fusjonerte den 17. mars 2003, og har samlet sin virksomhet i en ny bank, Storebrand bank ASA.

market trend

The pension market in Norway has traditionally been dominated by pension solutions based on the Defined Benefit (DB) principle. Defined Contribution (DC) plans have been non-existent up to 2001/2002. With new legislation from 2001, this trend is definitely in the process of changing for new pension plans established in 2002 and 2003. For many small companies a DC-plan is regarded as more cost-controllable compared to a traditional DB-plan and thus presents opportunities for a new market for pension plans for groups of employees in businesses previously without a pension.

The existing DB-plans are in the process of being transformed in accordance with the newest legislation. A number of transitions have to be put into force, with the most important being eligibility requirements and linear accrual principles. The major part of this work was concluded by the end of 2003.

The newest interpretation of legislation regarding pension plans for employees in public service opens up the possibility of transferring such plans to private insurance companies. This area has been an important target for activities since 2006. The same applies to the new market for Mandatory Occupational Pensions which was opened in 2006.

typical benefit plan

The typical pension plan in Norway is still a Defined Benefit plan, ranging from 60 to 70 % of the pensionable salary for retirement and disablement (pensions from the National Insurance and the private pension plan combined). Pensions for surviving spouse and children are normally provided by the plan.

Following new legislations (Corporate Pensions Act, which became law on 1 January 2001) maximum pension benefits have been introduced in addition to the maximum pensionable salary which is already part of the rules since 1968. The newest limitations are on the pensions themselves (National insurance pension and company pension combined).

A typical pension plan will include the following provisions:

Eligibility:	All employees who have turned 20 years of age and are obligatory members of National Insurance. Part-time employees working less than 20% of a full-time position may be excused from membership.
Pensionable Salary:	Final salary, up to a maximum introduced in the Corporate Pensions Act.
Pensionable Service:	Usually 30 years, the pensions are to be reduced proportionately if the service period is less than 30 years.
Retirement Age:	67.
Retirement Pension:	60-70% of the pensionable salary, including National Insurance pension. A retirement pension can also be stipulated as being 15-25% of the pensionable salary, plus 28% in excess of "G" ("G" is the National Insurance Base amount).
Disability Pension:	Amount equal to the retirement pension for total disability. Proportionate reductions for partial disability. Child's supplement of 1/10th per child under age 18 or 21. Waiting period for disability pension is 12 months.
Pension to surviving spouse, cohabitee or partner:	Usually 55-60% of the net retirement pension, payable for life regardless of remarriage.
Orphan's Pension:	First child: 40-50% of the net retirement pension, payable to age 18 or 21. Other children: ½ the amount for first child. After age 18: Double benefit or add 40% of G.
Vesting:	Full vesting is mandatory, with some exceptions for short-term employment.

news

Social Security
There has been a strengthening of the National Insurance Basic Pension for married and cohabitant couples from 1 May 2003. The strengthening was further stepped up in 2004 and 2005.

Early retirement
The combination National Insurance and Trade Union wage agreements (tariff agreements) has for some years provided a possible early retirement for certain parts of the Norwegian work force. This possibility was extended beyond 1 January 2004 in spite of a government proposal to change the legal basis for early retirement. The proposal was withdrawn as part of a deal between the government and the opposition. However, there is no reason to believe that early retirement through wage agreements will survive the next parliamentary period.

Mandatory Occupational Pensions introduced in Norway
With effect from January 1, 2006, a new law concerning mandatory occupational pension schemes has been put into force. The new law requires all employers with a minimum number of employees to have established pension schemes by the end of 2006. The deadline for establishing an occupational pension scheme that satisfies the minimum requirements was December 31, 2006, but the scheme shall
have economic effect for employees from July 1, 2006.

The duty to establish pension schemes applies to employers that have:

At least two persons who both have working hours and wages that represents 75 % or more of a full time position,
At least one employee, without ownership interest, who has working hours and wages that represent 75 % or more of a full time position, or
Persons, who each have working hours and wages that represent 20 % or more of a full time position, and together carry out work representing at least two man-labour years.

At the establishment date the new scheme covered old age pension only, but waiver of premium has now been included.

The mandatory occupational pension scheme may be established as either a defined contribution scheme or a defined benefit scheme. If the company establishes a defined contribution scheme, the minimum requirement is to contribute 2 per cent of wages between 1 G and 12 G (G is currently NOK 70,256 as at 1 May, 2008). The minimum requirement for defined benefit schemes is that the level of annual pension benefits must be at least on the same level as expected benefits from a defined contribution scheme on the minimum level. The minimum requirements apply to the employers contributions. In addition it may be agreed that the employees shall contribute to the pension scheme.

Approximately 600,000 employees in 130,000 companies will be covered by the new pension schemes.