Strategic Report
Financial Statements
Governance
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DIRECTORS’ INDUCTION, TRAINING AND DEVELOPMENT Upon appointment, all Directors receive a formal and tailored induction programme to ensure their smooth transition and to enable them to gain an understanding of the Company’s purpose, vision, strategy, culture and values, alongside the governance framework, sustainability strategy and the opportunities and challenges facing our industry. The induction is tailored based on discussions with the Chair and the Group Company Secretary, considering existing expertise, business priorities, and any potential Board or Board Committee roles. The programme has evolved over time, culminating in a combination of senior management and advisor meetings, site visits, and a library of documents including past meeting papers and minutes, financial and operational plans and priorities, and compliance and regulatory information. The Group Company Secretary briefs new Directors on Company policies, Board and Committee procedures, and core governance practice, which includes Directors’ duties and market abuse regulatory requirements.
SPOTLIGHT ON TRAINING The Company is committed to fostering the continuous development of all employees and members of the Board, which is a core aspect of its culture and essential for Directors to effectively fulfil their responsibilities. Directors receive training on recent and forthcoming developments based on the annual Board skills and knowledge assessments and feedback from Directors, the Group Company Secretary, and other senior leaders to ensure their knowledge and skills remain current. Additionally, any Director may request further information or one-to-one sessions with management to support their individual duties or collective Board roles. Furthermore, during the annual Board performance review, the Chair engages with each Director to discuss their training and development needs, which are subsequently incorporated into their development plan and Board training programme. Just also facilitates ongoing opportunities for Directors to enhance and update their skills, knowledge and familiarity with the Company in the areas mutually identified as beneficial. Annually, the Nomination and Governance Committee reviews and approves the Board training programme, after which training sessions are scheduled throughout the year. These sessions typically consist of a live presentation followed by a question-and- answer segment, allowing Directors to delve into specific aspects of the presentation. The sessions not only enhance the Board’s knowledge and skills but also provide them access to senior leaders and other Company experts below the Board and Executive levels who frequently conduct the training. Valuable insights are also obtained from external advisers.
SAMPLE OF TRAINING SESSIONS HELD DURING 2024 Sustainability disclosures
The session, facilitated by Ernst & Young (“EY”), updated the Board on the principal regulatory requirements and standards for sustainability disclosures pertinent to UK insurers. It also sought to clarify the responsibilities of the Board and Group Audit Committee, as well as to provide insights into the current and forthcoming landscape of sustainable technology. The session, led internally by senior leaders from the Capital Management and Finance functions, refreshed the Board’s knowledge and comprehension of the key components of the Company’s IFRS and Solvency II balance sheets. The session, led internally by senior leaders of the Group Compliance function and the HUB business, provided an overview of the HUB business advice propositions, addressed mis-selling risks within the advice journeys, and discussed the broader regulatory environment. The session, led internally by a senior leader from the Finance function, refreshed the Board’s knowledge of the process to allocate expenses across products and categories within the financial statements, and how expense assumptions feed into the setting of the maintenance basis. The session, facilitated by Deloitte, informed our Directors of the upcoming requirements under Provision 29 of the revised Code. It aimed to provide a thorough cross-sector analysis of the processes being established or revised to ensure effective implementation of these new requirements.
IFRS and Solvency II balance sheets
HUB advised propositions
Expense allocation
Corporate Governance Code reform
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