We aim to 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 2025, 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, oversee our external reporting, and make recommendations to senior management and ultimately the Board.

For more information please see:
 

• Purpose statement (page 11)
• The Lancashire Way (page 12)
• Underwriting review (pages 19 to 24)
• ESG strategy, progress and areas of focus (page 46)
• TCFD report (pages 50 to 62)
• Section 172 (pages 82 to 85)
• Corporate governance report (pages 77 to 81)

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.  In 2025, the Group continued to take steps to implement the recommendations of the TCFD.  The Group has made and disclosed a reduction target of 30% of emissions of tCO2e per FTE by reference to its own operations from the 2015 baseline level by 2030.  We are committed to continuing to monitor the Group’s carbon emissions from our own operations and to purchase carbon credits as a dedicated climate contribution.  

• Purpose statement (page 11)
• Underwriting review (pages 19 to 24)
• Enterprise risk management and principal risks (pages 28 to 36)
• Chair’s introduction to the ESG report (pages 43 and 44)
• TCFD report (pages 50 to 62)
• A responsible business (pages 63 to 69)
• Investment Committee report (pages 96 to 98)

Management and the Board actively support the work of the Lancashire Foundation, which promotes engagement from our staff with a range of charitable and social projects.  Donations, totalling $24.8 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 introduction to the ESG report (page 43)
• The Lancashire Foundation (pages 47 to 49)

We value our people and the strategic benefits of a healthy business culture.  We actively engage with our employees, both formally and informally, and operate a 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 (page 10)
• Group Chief Executive’s review (page 14)
• The Lancashire Way (page 12)

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

• Purpose statement (page 11)
• The Lancashire Way (page 12)
• Our business model (page 7)
• Our strategy (page 16)
• Chair’s introduction to the ESG report (pages 43 and 44)
• ESG strategy, progress and areas of focus (page 46)
• The Lancashire Way (pages 12)
• TCFD report (pages 50 to 62)
• Section 172 (pages 82 to 85)
• Corporate governance report (pages 77 to 81)
• Investment Committee report (pages 98)

The Group has a strong culture of underwriting discipline and risk management, which values professionalism and embeds risk monitoring and control processes in our underwriting activities.  The assessment of environmental risk exposures, including assumptions related to climate change, is embedded into our risk management, capital management and underwriting processes. 

For more information please see:
 

• Enterprise risk management and principal risks (pages 28 to 36)
• Chair’s introduction to the ESG report (pages 43 and 44)
• TCFD report (pages 50 to 62)
• Risk disclosures (pages 158 to 174)

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 28 to 36)
• TCFD report (pages 50 to 62)
• Risk disclosures – peak zone elemental loss exposures (pages 159 and 160)

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 11)
• Chair’s introduction to the ESG report (pages 43 and 44)

The Board and management foster a nimble underwriting and business culture to respond to clients' risk requirements in a changing world.  In 2025, the Group continued implementing ESG and climate-related insurance underwriting guidelines.

• The Lancashire Way (page 12)
• TCFD report (pages 50 to 62)
• Underwriting Committee report (pages 99 to 101)

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, accurate and equitable claims resolution for our clients.

For more information please see:
 

• Business model – Customer focus (page 7)
• Business review – Net loss environment (page 24)
• TCFD report (pages 50 to 62)

We support a ‘broker market’ and maintain 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 11)
• Section 172 (page 82 to 85)

We actively manage our climate change transitional risk, with due regard to principles of responsible ESG investment.  Our principal investment managers are signatories to 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 34)
• TCFD report (pages 50 to 62)
• Investment Committee report (pages 96 to 98)

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 11)
• TCFD report (pages 50 to 62)
• A responsible business (pages 63 to 66)
• Section 172 (pages 82 to 85)

We engage with industry bodies to develop and promote awareness of market issues (including environmental factors).  

For more information please see:
 

• Chair’s introduction to the ESG report (pages 43 and 44)
• ESG strategy, progress and areas of focus (page 46)
• TCFD report (pages 50 to 62)

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 the ESG report (pages 43 and 44)
• TCFD report (pages 50 to 62)
• Section 172 (pages 82 to 85)
• ESG strategy, progress and areas of focus (page 46)
• Nomination Corporate Governance and Sustainability Committee report (pages 93 to 95)
• 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 Group Diversity Policy and Human Rights Policy, which are posted on the Company’s website.

We offer clear and transparent ESG reporting through multiple channels, including our Annual Report and Accounts and our website. 

For more information please see:
 

• Lancashire Group website
• LHL’s 2025 Annual Report and Accounts

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