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 2024, 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 8)
• The Lancashire Way (page 33)
• Underwriting review (pages 16 to 20)
• ESG strategy, progress and areas of focus (page 40)
• TCFD report (pages 47 to 58)
• Section 172 (pages 73 to 76)
• Corporate governance report (pages 69 to 72)

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 2024, 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 and offset 100% of the Group’s carbon emissions from our own operations.  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 8)
• Underwriting review (pages 16 to 20)
• Enterprise risk management and principal risks (pages 24 to 32)
• Chair’s introduction to the ESG report (pages 39 and 40)
• TCFD report (pages 46 to 57)
• Operating responsibly and sustainably (pages 58 to 62)
• Investment Committee report (pages 86 to 87)

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 $23.9 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 the ESG report (pages 39 and 40)
• The Lancashire Foundation (pages 42 to 45)

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 (pages 4 and 5)
• Group Chief Executive’s review (pages 6 and 7)
• Financial review (pages 14 and 15)
• Underwriting review (pages 16 to 20)
• The Lancashire Way (pages 33 to 37)

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 8)
• The Lancashire Way (page 33)
• Our business model (page 9)
• Our strategy (page 12 to 13)
• Chair’s introduction to the ESG report (pages 39 and 40)
• ESG strategy,  progress and areas of focus (page 40)
• TCFD report (pages 46 to 57)
• Section 172 (pages 72 to 74)
• Corporate governance report (pages 68 to 91)
• Investment Committee report (pages 86 and 87)

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:
 

• Chair’s statement (pages 4 and 5)
• Group Chief Executive’s review (pages 6 and 7)
• Underwriting review (pages 16 to 20)
• Enterprise risk management and principal risks (pages 24 to 32)
• Chair’s introduction to the ESG report (pages 39 and 40)
• TCFD report (pages 46 to 57)
• Risk disclosures (pages 136 to 154)

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 24 to 32)
• TCFD report (pages 46 to 57)
• Risk disclosures – peak zone elemental loss exposures (pages 138)

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 8)
• Chair’s statement (pages 4 and 5)
• Group Chief Executive’s review (page 6 and 7)
• Underwriting review (pages 16 to 20)

The Board and management foster a nimble underwriting and business culture to respond to clients' risk requirements in a changing world.  In 2024, the Group continued implementing ESG and climate-related insurance underwriting guidelines.

• The Lancashire Way (page 33)
• Chair’s statement (pages 4 and 5)
• Group Chief Executive’s review (pages 6 and 7)
• Underwriting review (pages 16 to 20)
• TCFD report (pages 46 to 57)
• Underwriting Committee report (pages 88 and 89)

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 9)
• Business review – Net claims (page 20)
• TCFD report (pages 46 to 57)

We are fully committed to supporting a ‘broker market’ and 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 8)
• Section 172 (page 72 to 75)

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 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 30)
• TCFD report (pages 46 to 57)
• Investment Committee report (pages 86 and 87)

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 8)
• TCFD report (pages 46 to 57)
• Operating responsibly and sustainably (pages 58 to 62)
• Section 172 (pages 72 to 75)

We engage with industry bodies to develop and promote awareness of market issues (including environmental factors).  In 2022, we became a member of ClimateWise, which requires us to report annually on our activities by reference to the ClimateWise Principles.  These are aligned with the TCFD recommendations and other international frameworks.

For more information please see:
 

• Chair’s introduction to the ESG report (pages 39 and 40)
• TCFD report (pages 46 to 57)

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 39 and 40)
• TCFD report (pages 46 to 57)
• Section 172 (pages 72 to 75)

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 38)
• Operating responsibly and sustainably (pages 58 to 62)
• Section 172 (pages 72 to 75)
• Nomination Corporate Governance and Sustainability Committee report (pages 82 to 86)

The Board oversees the Company’s annual submission of the Group’s ClimateWise report.  

• TCFD report (pages 46 to 57))

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

For more information please see:
 

• Lancashire Group website
• LHL’s 2024 Annual Report and Accounts
• Lancashire Group ClimateWise report

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