Lloyd’s Gender Pay Gap
2019

Lloyd’s Gender Pay Gap Report

02

Statement from John Neal, Lloyd’s CEO
Tackling the gender pay gap is essential to the success of theLloyd’s market, today and in the future.

We want to attract the best and brightest talent toour market, so we can deliver maximum value to ourstakeholders and better reflect the diversity of ourcustomer base. However, we will only do this if wemake the market a fair and equitable place foreveryone to work within. Closing the gender pay gap
is, therefore, not only the right thing to do, it is thesmart thing to do.
As the leading specialist insurance and reinsurance
market in the world, Lloyd’s has a unique opportunity
to show leadership and drive change. Lloyd’s 2019
Gender Pay Gap report is an essential benchmarkof our progress in this regard. It shows we havecarried out the actions we promised to takethroughout the year, including increasing the numberof senior women working for the Corporation globally
by 9.3%. However, it also shows we have more work
to do to close the gender pay gap, which has seen aslight increase compared to 2018.

2019

This is to be expected. We were aware when
we started on this journey we were not going tochange things overnight. This is a long-term
strategy that will deliver results over the next few
years, so it is important we maintain our focus
over a sustained period.
This is the reason we are launching our first evergender balance plan in 2020 that will set clear andmeasurable targets for improving the representationof women at senior levels within the Lloyd’s market.
I look forward to continuing to build on the progress
we made last year.
John Neal, CEO Lloyd’sLloyd’s Gender Pay Gap Report

03Our numbers

Key: WomenMen20172018

2019

Mean

27.7%

19.9%

23.6%

Median

32.1%

29.9%

26.7%

Mean

36.7%

30.1%

28.3%

Median

40.5% 42.8%

33.2%

87.3%

82.4%

84%

84.7%

77.8%

83.5%

Key: Women

Men

Lloyd’s 2019 Gender Pay Gap
Lloyd’s gender pay gap of 23.6% represents the difference
between the average pay for a man in the Corporation of
Lloyd’s, compared with the average pay of a woman. This is anincrease of 3.7% percentage points compared to 2018, whichshowed a gap of 19.9%. This is primarily due to changes to ourexecutive team last year.

Gender pay gap

Bonus pay gap

Employees receivinga bonus
There has been better progress on our bonus paygap figures. The mean bonus pay gap, which at
28.3%, represents a decrease of 1.8% compared to
2018. The median bonus gap has also decreased by 9.6% to 33.2%. Our 2018 figures were partially
impacted by the way we paid bonuses that year,
however both mean and median bonus figures
over the past three years show the gap closing.

Gender pay gap drivers
There are several factors driving the gender pay
gap at the Corporation including:A higher proportion of men than women insenior roles
Overall, the Corporation has a significantly higher
proportion of men in our senior management
population who form a large proportion of theupper quartile (64.9%) and conversely a larger
proportion of women in more junior positions
shown in the lower quartile (61.9%).

2019 Employees by pay quartile

Upper quartile

35.1%

Upper middle quartile

43.8%

Lower middle quartile

52.5%

Lower quartile

61.9%

A higher proportion of women who work part-time
Bonuses are paid on a pro-rata basis and are
not adjusted to the full-time equivalent in thestatutory calculation. Within its part-time population,
the Corporation has a higher proportion of women(86.5%) working part-time, which also affects thebonus gap.

2019

64.9%
56.2%
47.5%
38.1%

Progress in 20192018 commitments
Mandate all external recruitment long lists to include a 50:50 gender splitof potential candidates
Review current succession plans, ensuring they are fully representative oftalent across the organisation, and put in place development for all key talent
Strengthen the pipeline of future talent through the development and pilot ofa bespoke women’s development programme
Carry out a full review of our family care policies and continue our workon improving flexible working for all employees, especially those with familycare giving responsibilities
Set a gender diversity target of at least 40% women and 40% men forour senior management population (in the highest 25% of employees)

2019 progress
Across senior level positions we achieved a 50:50 long list for 75% of hires.
When not achieved, a clear explanation is required from recruitment partners
Leadership assessment and development profiles completed for all
senior leaders
Succession planning completed for executive positions
Created accelerated development opportunities through stretch assignments/
roles for key female talent
The Lloyd’s Advance development programme has continued to expand with75 females expected to have completed the programme by the end of 2020
Lloyd’s introduced market-leading family friendly policies in Q2, 2019and further expanded these policies globally for all Corporation employees

04

Lloyd’s Gender Pay Gap Report

05

Actions we are taking in 2020

Additional activities in 2019
The Lloyd’s Corporation has an important role to play in closing
the gender pay gap across the insurance sector by leading on
actions and initiatives that serve as best practice for all Lloyd’s
market participants.

Dive In Festival
2019 was our fifth year sponsoring the Dive In festival,
with events held in more than 65 cities across 32
countries under the theme Inclusion Impact, raisingawareness for greater diversity within our sector. It
included gender-focused events for the first time in
Nigeria and Bahrain. To recognise growth of thefestival, Lloyd’s spearheaded two special events torecognise the impact of the festival across insurance.
The first, a CEO dinner hosted by The Bank ofEngland and the second an award evening tocelebrate the individuals who have made an Inclusion
impact over the past five years, In 2020, we lookforward to our sixth Dive In festival under the theme
Local Voice, Global Impact.
Inclusive Behaviours Pledge
Launched in July 2018, the Inclusive Behaviours inInsurance Pledge was established to set the standard
for inclusion in insurance, with more than 120 CEOs in
the UK signing the pledge, demonstrating theircommitment to a culture that is accepting ofdifference and inclusive for all employees. Building on
the work of the Inclusive Behaviours pledge, in 2019,
we ran mandatory workshops for senior leaders toenhance their knowledge and expertise inunderstanding the changing legal, cultural and social
norms impacting the workplace and the role ofleaders and businesses in continuing to build aninclusive environment.

2019

Women in Finance Charter
As part of the commitment to the Women in
Finance Charter, the Corporation set a gender
diversity target of at least 40% female and 40% malefor its senior management population (in the highest
25% of employees). As of 31 December 2019, therepresentation of women had increased year on
year by 0.6% to 39.1% in the UK (and by 9.3%
globally to 47.1%).
Employee resource groups and networks
We continue to support our gender-inclusive employee
resource group (Inspire), providing greater access tosenior leaders and a platform for colleagues to shareideas and network at all levels across the Corporation.
Across the sector we continue to sponsor and supportcross-market initiatives, such as the Gender Inclusion
Network for Insurance and the Balance programme,bringing together leaders to share best practice ongender balance and to help them become advocatesfor gender parity.
In 2019, we were proud to sponsor We Are The Citys
Rising Stars in Insurance for the fifth year in a row,recognising the emerging female talent within oursector. In continuing to provide development
opportunities for the third year we sponsored POWER:
Opening Doors for Women by connecting seniorleaders and high-potential talent to interact andexchange ideas with thought leaders, industry experts
and their peers. Fostering greater connections atcross-industry level, we continued our corporate
membership of Women in Banking & Finance,providing greater development opportunities for ourcolleagues. In 2020, we look forward to working withexternal partners to continue to create a more
inclusive workplace and drive gender parity for all.

The Corporation has demonstrated positive progress inthe 2019 Gender Pay Gap report. We are building on ourachievements in 2020 by carrying out the following actions:

1.
2.
3.
4.

Attract: continue to evolve the recruitment process throughour inclusive hiring training programme for those involved in
hiring decisions, and by mandating 50:50 short lists for allpositions mandate 50:50 long lists for all positions

Develop: build on the momentum of the Advance
programme by creating an alumni to provide ongoing
networking and development opportunities for Advanceparticipants. We will also launch a virtual pilot for theAdvance programme for global attendees

Retain: bring our global policies to life by using seniorleaders in the Corporation to role model flexible ways ofworking and the use of family care policies to increase
use by all employees

Gender balance plan: continue to build on ourcommitments with the development of a gender balance
plan to close the gender pay gap more quickly

The Lloyd’s Corporation commits to further build onthese actions and will continue to publicly report its
progress towards closing the gender pay gap, including
in our Annual Report.

Lloyd’s Gender Pay Gap Report

06

Conclusion
Lloyd’s remains committed to closing the gender pay gap by working
to increase the number of females taking up senior roles across theCorporation, together with improving the gender and broaderdiversity balance across all levels.
Redressing the gender imbalance requires a long-term approachand a range of actions over a sustained period. Lloyd’s has a wellestablished programme of initiatives aimed at attracting more
females, and enabling them to develop and thrive at each stage of
their career. We are building on this foundation to create the diverse
and inclusive market we must be to thrive in the future.

About the gender pay gap

Declaration

The gender pay gap is the difference between thegross hourly earnings for all males and the grosshourly earnings for all females.

I confirm that the data contained within this report isaccurate and meets the requirements of the Gender
Pay Gap reporting regulations.

— The mean gender pay gap figure represents thedifference between the average pay of all Lloyd’s
Corporation male employees, and female
employees

John Neal, CEO, Lloyd’s— The median gender pay gap figure represents thepay difference between the middle point of Lloyd’s
total number of male and female employees
The gender pay gap is different to equal pay whichrefers to males and females being paid the samesalary for the same work, or for work of equal value.
As part of our annual compensation review, the pay ofmale and female employees is assessed, and basedon this we are confident that Lloyd’s does not have an
equal pay issue.
In line with the reporting requirements, this report
relates to UK employees of the Corporation as of
5 April 2019.
Lloyd’s market firms that have more than 250
employees will individually be reporting their pay
gap as required by the UK Government.

2019