Apollo Group – Section 172 statement

The directors adopt the responsibilities to promote the success of each managed syndicate as if Section 172 of the Companies Act 2006 were applicable and have acted in accordance with these responsibilities during the year. The AGHL Board has identified the following key stakeholders: capital providers to the Managed Syndicates, Apollo employees, the shareholders of AGHL, Lloyds’s and regulators, policyholders and brokers.

Throughout the year the AGHL 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 AGHL Board considers that the interests of all stakeholders were aligned for these decisions.

The support and engagement of capital providers of the managed syndicate is imperative to the future success of our business. We have regular meetings with capital providers and members’ agents throughout the year to discuss the performance and future prospects for the syndicates which they support. Feedback received during these meetings enables the Board to factor the views of these key stakeholders into the development of business plans for future years.

Developing and maintaining relationships with brokers and policyholders is central to the success of the Managed Syndicates. Underwriters travel widely with our broking partners to visit clients and attend industry events to promote the syndicate and the Lloyd’s brand and ensure we continue to provide an excellent service to our policyholders. In developing insurance propositions and marketing them with our broking partners and in settling claims, we always seek to ensure fair customer outcomes and provide products that deliver value.

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.

Apollo’s stated purpose is “Enabling a resilient and sustainable world”. Through 2023 we continued our work to develop and document our ESG principles and standards and assess our current business model against these standards. There is a defined referral process for underwriting risks to adhere to our ESG appetite and manage potential reputational risk. ESG considerations are integrated into the design of the investment strategy and asset allocation decisions, and ongoing attention given to staff engagement, particularly around Diversity, Equity & Inclusion (‘’DEI’’). Further work on ESG activities will continue through 2024.

We have put in place arrangements to assist in managing the financial risks and opportunities associated with the effects of climate change and to ensure that adequate oversight and control of this area in relation to underwriting, reserving, investment management and operations. The business meets the requirements for PRA Supervisory Statement 3/19. Whilst the Chief Risk Officer retains overall accountability for coordinating the approach and effectiveness within The Group, the responsibility is allocated to relevant managers of each business area. Further developments to ensure management of the risks and opportunities will continue through 2024.

Employee matters

The Group’s people are a key asset and their recruitment, retention and development are fundamental to the success of the business. ASML commits to positive employee engagement through effective communication, recognition, development opportunities and a continued focus on diversity, equity, inclusion and mental wellbeing.

Apollo acts as a single team where employees have mutual respect and enjoy working in a collaborative, hybrid environment. Our shared values enable a strong “speak up” and “no blame” culture and relevant channels allow employees to raise concerns ensuring a safe and supportive workplace that complies with relevant legislation. Compensation, benefits and terms offered to employees, as part of their overall remuneration package remain competitive with the London Market insurance industry and employees are provided with opportunities to develop their skills, capabilities and careers whilst at Apollo.

Business operations

The Group aims to maintain a lean, efficient operating model utilising technology and outsourcing arrangements enabling flexibility and scalability to meet the demands of the business. We continue to invest in resources across the business in order to ensure that there is an effective operating model and robust three lines of defence model.

Lloyd’s Market Blueprint Two initiatives offer several processing efficiency gains for the market, and we believe we are well positioned to adopt the new digital services to maximise the benefit to The Group, its syndicates and its capital providers. The Group continues to successfully maintain a hybrid working environment with all employees able to work effectively, both remotely and from the office, with suitable access to business systems.

Aligned with the FCA’s and PRA’s Operational Resilience and Third-Party Oversight policies, Apollo maintains a disciplined approach to 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 the integrity of our business.

Environmental, social and governance

During 2022 Apollo published its first Board approved ESG strategy on its website and an update to the strategy was approved in August 2023. The ESG strategy covers a variety of internal and external targets and aligns with the Group Vision statement as well as to Apollo’s purpose; “Enabling a resilient and sustainable world”.

The Board drives the overall ESG strategy. The Board and the Executive are actively engaged in embedding ESG considerations throughout the governance committees within The Group. The Group’s ESG Committee, which reports directly to the Executive Committee, coordinates the majority of ESG-related activities within The Group. It seeks to identify areas of improvement as well as to ensure progress against the ESG Strategy set by the Board.

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 risk appetites and investment metrics which were implemented during 2022 and a public commitment to be, in the short term, carbon neutral for emissions that are within The Group’s control (for Scope 1 & 2 emissions). Apollo is also seeking to support clients and partners as they transition to a low carbon sustainable economy.

At Apollo our people are at the heart of everything we do, and we are committed to creating a diverse and inclusive workplace, one where difference is celebrated and everyone is welcome, included and can thrive. Apollo operates 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 provides staff with Diversity, Equity & Inclusion (‘’DEI’’) training including inclusive hiring manager training and inclusive leadership training. Apollo sponsors and supports six Lloyd’s market inclusion networks and has nominated “Inclusion Champions” who each represent Apollo and provide links back to the business. All employees are given access to mental health and wellbeing tools via an independent partner organisation.

Apollo monitors various ESG metrics across multiple business areas. These include carbon emission data across scopes 1, 2 and some elements of 3 (scope 1 & 2 emissions are those directly produced by ASML and scope 3 are indirect emissions) as well as recycling, gender and racial diversity information, employee satisfaction and governance metrics. This information will be utilised over time to ensure Apollo makes progress with its broader ESG Strategy.

From a gender perspective, the ratio of female to male Board directors is 27%:73% at year-end 2023 (25%:75% at year-end 2022). Following the recent changes to the Board in 2024, the ratio of female to male Board directors is 33%:67%. For the Executive Committee and direct reports (excluding executive assistants) the ratio is 32%:68% at Q4 2023 (2022: 27%:73%). Within the overall business the ratio of female to male employees is 40%:59%, 1% prefer not to say (2022: 35%:65%).

Apollo will continue to develop its ESG strategy in 2024 with the assistance of external specialists, ensuring ESG remains integral to our purpose and values.