We embed ESG issues within our Board and management’s strategic and business planning processes to foster a robust, purposeful, sustainable and profitable culture within a responsible governance framework. The business is led by a strong management team who are accountable to an independent, diverse and effective Board and Committee structure. During 2023, the Lancashire ESG Committee, which includes senior representatives from across the business, continued to work to align our Group-wide consideration of sustainability and governance matters. They analyse a range of topics and make recommendations to both senior management and ultimately the Board.

For more information please see:
 

• Purpose statement (page 9)
• Lancashire values (inside cover)
• Underwriting review (pages 14 to 19)
• ESG strategy and progress (page 43)
• TCFD report (pages 49 to 64)
• Section 172 – Delivering responsibly for stakeholders (pages 80 to 82)
• Corporate governance report (pages 76 to 79)

Our principal strategic purpose is to deliver bespoke risk solutions that protect our clients and support economies, businesses and communities in the face of uncertain loss events, including those influenced by the effects of climate change. During 2023, the Group has continued to take steps to implement the recommendations of the TCFD. The Group has targets both to reduce the emissions arising from its own operations per FTE by 15% by 2030, and to be net-zero by 2050.  We are committed to continuing to monitor and offset 100% of the Group’s carbon emissions from its own operations during this transition. We will also continue to develop greater formality around the understanding of the impacts of climate change risk and the implementation of appropriate governance frameworks for climate change management. We formally monitor our climate exposures and build this into our risk management and strategic planning, as both a risk and an opportunity for the business. 

• Purpose statement (page 9)
• Underwriting review (pages 14 to 19)
• Enterprise Risk Management and principal risks (pages 23 to 31)
• Chair’s introduction to sustainability section (pages 41 and 42)
• TCFD report (pages 49 to 64)
• Operating responsibly (pages 65 to 70)
• Investment Committee report (pages 96 to 98)

Management and the Board actively support the work of the Lancashire Foundation, which promotes engagement of our staff with a range of charitable and social projects. Donations, totalling $23 million since the establishment of the Foundation, have been given to longstanding charitable partners in recognition of their phenomenal work assisting those affected by natural disasters, as well as to other charities nominated and supported by our employees.

• Chair’s statement (pages 4 and 5)
• Chair’s introduction to sustainability section (pages 41 and 42)
• The Lancashire Foundation (pages 45 to 48)

We value our people and the strategic benefits of a healthy business culture. Our management team and Board promote an active programme of engagement and we operate a robust, yet flexible, programme of staff training and opportunities for career development. We offer attractive remuneration and employee benefits packages and have a planned approach to succession, staff retention and employee satisfaction. 

• Chair’s statement (pages 4 and 5)
• Group Chief Executive’s review (pages 6 and 7)
• Financial review (pages 12 and 13)
• Underwriting review (pages 14 to 19)
• People and Culture (pages 33 to 39)

There is regular engagement with our shareholders and other stakeholders by management, the Board and the business, touching upon a range of strategic and business issues, including the Group’s approach to a range of ESG matters.

• Purpose statement (page 9)
• Business model and Strategy (pages 9, 10 and 11)
• Chair’s introduction to sustainability section (pages 41 and 42)
• ESG Strategy and progress (page 43)
• People and culture (pages 33 to 39)
• TCFD report (pages 49 to 64)
• Section 172 – Delivering responsibly for stakeholders  (pages 80 to 82)
• Corporate governance report (pages 76 to 79)
• Investment Committee report (pages 96 and 98)

There is a strong culture of underwriting discipline and risk management within the Group, which values professionalism and embeds risk monitoring and control processes in our underwriting activities. Environmental risk exposures, including assumptions related to climate change, are embedded into our risk management, capital management and underwriting processes. 

For more information please see:
 

• Chair’s statement (pages 4 and 5)
• Group Chief Executive’s review (pages 6 and 7
• Underwriting review (pages 14 to 19)
• Enterprise risk management and principal risks (pages 23 to 31)
• Chair’s introduction to sustainability (pages 41 and 42)
• TCFD report (pages 49 to 64)
• Risk disclosures (pages 148 to 166)

Management and the Board agree and monitor performance against formal risk tolerances, in particular with regard to the Group’s exposures to natural catastrophe loss events, including weather events impacted by climate change. 

• Enterprise risk management and principal risks (pages 23 to 31)
  
• TCFD report (pages 49 to 64)
• Risk disclosures – peak zone elemental loss exposures (page 150)

Our (re)insurance products and services help our clients manage the threats they face from climate catastrophe risks and other unpredictable perils, contributing towards the resilience of businesses and communities faced with the threat of climate and other natural catastrophes. 

For more information please see:
 

• Purpose statement (page 9)
• Chair’s statement (pages 4 and 5)
• Group Chief Executive’s review (page 6 and 7)
• Underwriting review (pages 14 to 19)

The Board and management foster a nimble underwriting and business culture to respond to the risk requirements of clients in a changing world. Included within the Group’s energy underwriting business is an established portfolio of renewable energy products and clients. In 2023, the Group continued to implement ESG and climate-related insurance underwriting guidelines.

• Lancashire values (inside cover)
• Chair’s Statement (pages 4 and 5)
• Group Chief Executive’s review (pages 6 and 7)
• Underwriting review (pages 14 to 19)
• TCFD report (pages 49 to 64)
• Underwriting Committee report (pages 96 and 98)

Our experienced team of claims specialists is well-equipped with specific knowledge of our diverse product lines. We have high levels of expertise that allow us to effectively manage and thoroughly investigate any loss our clients may sustain. Our goal is to ensure timely and equitable claims resolution for our clients.

For more information please see:
 

• Business model – Our policyholders (page 9)
• Business review – Net claims (page 19)
• TCFD report (pages 49 to 64)

We are fully committed to supporting a ‘broker market’ and to maintaining a strong working relationship with the largest global broking firms, as well as with independent brokers, who distribute our products. We seek to engage with our clients and their brokers to provide relevant and targeted risk solutions based on a sustainable strategy and business model.

For more information please see:
 

• Purpose statement (page 9)
• Section 172 – Delivering responsibly for stakeholders (page 80 to 82)

We actively manage our climate change transitional risk, with sensitivity to, and promotion of, ESG responsible investment. Our principal investment managers are signatories to the world’s leading proponent of responsible investment, the UN-supported ‘Principles for Responsible Investment’. The Group uses proprietary industry benchmark tools to formally monitor the sensitivity of its investment portfolio for value at risk due to the impacts of different carbon transition scenarios and for the carbon intensity of assets, in order to develop a better understanding of the resilience of the portfolio to carbon transition risk.

For more information please see:
 

• Principal risks – investment and liquidity (page 29)
• TCFD report (pages 49 to 64)
• Investment Committee report (pages 94 and 95)

We engage constructively with our clients, brokers and other suppliers to address environmental, social and governance issues relevant to the operation of our business and to address our clients’ needs for risk management solutions across a range of specialty and property lines.

For more information please see:
 

• Purpose statement (page 9)
• TCFD report (pages 49 to 64)
• Operating Responsibly (Pages 65 to 70)
• Section 172 – Delivering responsibly for stakeholders (pages 80 to 82)

We engage with industry bodies to develop and promote awareness of market issues (including environmental factors). In 2022 we joined the ClimateWise organisation. Through our membership we collaborate with others and better support our clients in their journey to transition away from carbon-based forms of energy.

For more information please see:
 

• Chair’s introduction to sustainability (pages 41 and 42)
• TCFD report (pages 49 to 64)

Our Board and business operate constructively within a highly regulated insurance and financial services environment in the UK and Bermuda, as well as internationally. Throughout the year, our Bermuda and UK entities have engaged with their respective national regulators in relation to all relevant matters, including the management of climate change risk and the TCFD’s requirements. As a listed company, LHL systematically monitors, records and reports its compliance with the UK Corporate Governance Code.

For more information please see:
 

• Chair’s introduction to sustainability (pages 41 and 42)
• TCFD report (pages 49 to 64)
• Section 172 – Delivering responsibly for stakeholders (pages 80 to 82)

The Board and business monitor and comply with all relevant laws and regulations. Examples include the Board’s clearly articulated position regarding slavery and human trafficking, pursuant to the provisions and requirements of the UK Modern Slavery Act 2015. The business adheres to a Board approved Human Rights Policy, which is posted on the Company’s website.   Our Board also regularly discusses the recommendations of both the Hampton-Alexander and the Parker Reviews and related gender and ethnic diversity topics and has articulated objectives in these areas which are set out  in the Group Diversity Policy, posted on the Lancashire website. 

• People and culture (pages 33 to 39)
• Operating Responsibly (pages 65 to 70)
• Section 172 – Delivering responsibly for stakeholders (pages 80 to 82)
• Nomination Corporate Governance and Sustainability Committee report (pages 89 to 93)

The Board oversees the Company’s annual submission to the Carbon Disclosure Project (CDP) and the Group’s annual ClimateWise report. The Group and its regulated subsidiaries are implementing the recommendations of the TCFD. 

• TCFD report (pages 49 to 64)

We offer clear and transparent ESG reporting through multiple channels, including our Annual Report and Accounts; our website, and our work with the CDP and ClimateWise. 

For more information please see:
 

• Lancashire Group website
• LHL’s 2023 Annual Report and Accounts
• LHL’s responses on the CDP website

We are committed to being transparent and accountable, by publicly disclosing the business’s implementation of the Principles. 

• This section of our website will be updated as we further progress our work in this area.