Apollo Group – Section 172 statement

The directors adopt the responsibilities to promote the success of each syndicate as if s172 of the Companies Act were applicable and have acted in accordance with these responsibilities during the year. The Board has identified the following key stakeholders: capital providers to each of the managed syndicates, employees, Lloyd’s and regulators, policyholders and brokers.

Throughout the year the Board considered the wider impact of strategic and operational decisions on its stakeholders. Examples include the development and execution of the business plans for the managed syndicates; the assessment and raising of capital; communications with capital providers; and changes to Board composition. The Board considers that the interests of all stakeholders were aligned for these decisions.

Developing and maintaining relationships with brokers and policyholders is central to the success of the managed syndicates. In developing insurance propositions and marketing them with our broking partners and in settling claims, we always seek to treat customers fairly.

‍We maintain open and transparent relationships with our regulators and Lloyd’s, which are managed through our compliance team. Regular meetings are held with representatives of Lloyd’s and the PRA and significant regulatory engagements are reported to the Board.

Employee matters
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The group’s people are a key asset and attraction, retention, and development is fundamental to the success of the business. The Group commits to positive employee engagement through effective communication, recognition, development opportunities and a continued focus on diversity, inclusion and mental health.

Apollo acts as a single team where employees have mutual respect and enjoy working in a collaborative, hybrid environment. A speak up culture and relevant channels allow employees to raise concerns ensuring a safe and supportive environment that complies with relevant legislation, as well as shared values.

Employees are encouraged and supported to develop their skills and capabilities.

‍Business operations

‍Apollo is Lloyd’s-centric with a purely London-based operation and distribution model. The Group fully embraces and supports Lloyd’s vision of being a broker market, as well as accessing local markets through third party cover holders.

The Group aims to maintain a lean operating model utilising technology and outsourcing arrangements where flexibility is required, or greater efficiency can be achieved. As a mid-sized business, the group is able to expand and contract as market conditions dictate. Through the use of specific outsourcing, the Group maintains an appropriate support function commensurate with its underwriting capacity. We continue to invest in actuarial, risk management, operations, and data management resources in order to ensure that the discipline we aim for in underwriting is matched by the intensity of scrutiny given to pricing, reserving and second line of defence activities.

We note Lloyd’s Blueprint initiatives offering a number of radical ideas for the future of the market. In our opinion there is a distance to go before these can be translated into workable options, but we continue to participate in consultations actively and position ourselves as necessary to maximise the benefit to the group, its syndicates and its capital providers.

‍As a result of the COVID-19 pandemic the Apollo office has been closed at times during the reporting period. All employees are able to work effectively, both remotely and from the office, with suitable access to business systems. Whilst social distancing policies have changed the working environment significantly, all Apollo teams are able to continue to operate in support of brokers and policy holders. This has been helped by the significant progress the Lloyd’s market has made in recent years with electronic placement of risks and claims handling. The banking and investment operations use online processes and have not been adversely impacted by the effects of hybrid working.

‍Aligned with the recent Financial Conduct Authority and Prudential Regulation Authority Operational Resilience and Third-Party Oversight policies, Apollo has successfully undertaken a thorough self-assessment of our operational resilience. We continue to focus on ensuring we maintain robust and resilient plans to prevent, adapt, respond and recover from operational disruptions with the primary objective to protect our customers and integrity of our business.

‍Environmental, social and governance

‍During 2021 Apollo has developed and begun implementing a formal ESG strategy that includes approaches to manage the financial risks associated with climate change and proactive diversity and inclusion initiatives. The majority of the ESG related activities were coordinated by the ASML Social Responsibility and Impact Group (SRIG) which comprises representatives from across Apollo, both in terms of seniority and breadth of business activities. The SRIG is currently chaired by an ASML Board director, and the group helps the Board and executive team to govern these considerations in an open, engaged, and constructive manner.

From an environmental perspective Apollo is committed to a long-term sustainable approach to protecting the environment, as well as socially responsible underwriting and sustainable investing.

This now includes specific ESG related underwriting and investment risk appetites to be implemented during 2022 and a public commitment to be net zero by year end 2023 for emissions that are within Apollo’s control (for Scope 1 & 2 emissions). Apollo will continue to support clients and partners to transition to a low carbon sustainable economy.

‍We operate a zero tolerance policy to bullying and harassment and all forms of discrimination. This includes, but is not limited to, all of the protected characteristics of the Equality Act of 2010 as well as neurodiversity, parental and caring responsibilities, socio-economic status and working patterns.

Apollo conducted a diversity survey which had a 91% completion rate and are implementing feedback from the survey. The Lloyd’s Culture survey was also completed with above market average engagement and positive results when compared to Lloyd’s benchmark data. Apollo also provided all employees with racial awareness training, and inclusive hiring manager training and inclusive leadership training for business managers and leaders. During the 2021 calendar year, Apollo began to sponsor and support six Lloyd’s market inclusion networks and has nominated “Inclusion Champions” who each represent Apollo on these Lloyd’s inclusion networks and provide a link back to the business. Apollo also sponsored an event within the 2021 Dive In festival in relation to neurodiversity. Neurodiversity training has been undertaken by teams within Apollo to further develop in-house learning.

The Group CEO and Board Chair are both Ambassadors for Race Action through Leadership. In 2021 Apollo also became a member of the Employers Network for Equality and Inclusion (ENEI) and the Employers Initiative on Domestic Abuse (EIDA). We also worked with SEO London to provide internships at Apollo and with BeMeta to provide our employees with access to weekly sessions of mental health coaching.

From a gender perspective, the ratio of female to male Board directors is 20% at year-end 2021 (11% at year-end 2020). The ratio is 26% (2020: 18%) for the executive and direct reports (excluding executive assistants). Within the overall business the ratio of male:female employees is 65%:35%. Further details in relation to current and planned D&I activities conducted within Apollo can be found on the website and LinkedIn.

The Board drives the tone for good governance and the overall ESG strategy. The Group has aligned its strategy with five of the UN Sustainable Development Goals in the short to medium term. The Board and executive are actively engaged in embedding ESG considerations throughout the governance committees within Apollo and have supported related considerations within Apollo suppliers and outsource service partners.

Apollo will continue to develop data and formalise ESG reporting metrics, which will include the development of specific climate related stress and scenario testing. Apollo has engaged an independent ESG rating specialist and will work with them to identify and continue to drive improvements throughout 2022.