Gender andEthnicity Pay Gap
Reports 2020

Lloyd’s Gender and Ethnicity Pay Gap Reports

02

Statement from John Neal, Lloyd’s CEO
Lloyd’s is the world’s most advanced insurance marketplace and its
long-term success is dependent on its ability to attract and retain
the very best people. Pay gaps point to the under-representation ofspecific employee groups and communities, and therefore Lloyd’s
is committed to minimising pay gaps as part of our ambition to build
a high performance and inclusive working environment both within
the Corporation and across the market.

In this report we demonstrate the progress madewithin Lloyd’s Corporation in closing the gender pay
gap in 2020 and, for the first time, we are also
publishing the Corporation’s ethnicity pay gap.
Our 2020 mean gender pay gap is 20.4%, an
improvement of 1.8% on 2019. While there is stillmuch more to do, this shows a continually improving
trend since the 27.7% pay gap in our first report in2017. In our most senior roles (Council, Executive
Committee and their Direct Reports), I am pleased
to report that we are close to parity in gender
representation.
Continued improvements to the gender pay gap will
require a continued focus on recruiting and actively
supporting women throughout their careers, as wellas addressing the barriers that get in the way of theirsuccess. The global pandemic has accelerated
progress towards more flexible ways of working, andat Lloyd’s we are determined to ensure that, as we
adapt to the ‘better normal’, we capitalise on thesechanges to benefit not just women, but all our people.

2020

The Corporation’s mean ethnicity pay gap in 2020 is
15.3% (and median 6.1%). In our reporting, we havebroken this down to illustrate the differences acrossBlack, Asian and Mixed backgrounds, as this allows
us to see and understand the differences for all ourcommunities and make our actions more specific.
As for gender, the ethnicity pay gap is driven byunder-representation in senior roles within theCorporation and we will have to use a range ofdifferent levers to develop Lloyd’s pipeline of talentthat reflects all of our communities. More details
about our plans are listed below.
Closing our pay gaps will take time, but we arecommitted to long-term actions and will continue
to hold ourselves to account.
John Neal, CEO Lloyd’sLloyd’s Gender and Ethnicity Pay Gap Reports

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Our numbers

Lloyd’s gender pay gap of 20.4% 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 a reduction of
1.8% on 2019, primarily due to more balance in our executive andmost senior leaders.

This progress is also reflected in our bonus paygap figures - the mean bonus pay gap is 28.1%,
representing an overall decrease of 8.6% since2017, further demonstrating long-term improvement
in both mean and median bonus figures over thepast four years.

Gender pay gap drivers

Bonus
pay gap

2020

20182019

Mean

27.7%

19.9%

22.2% 20.4%

Median32.1%

29.9% 26.5% 20.8%

Mean

36.7%

30.1%

Median

40.5% 42.8% 40.5% 33.6%

Employees
receivinga bonus

There are several factors driving the gender pay
gap at the Corporation including:

37.4%

28.1%

87.3%

82.4% 74%

68.3%

84.7%

77.8%

71.1%

64.6%

Key: WomenMen

A higher proportion of men than women insenior roles
When considering the upper quartile of roles by pay(rather than the most senior), the Corporation still has
a higher proportion of men in these positions (61.3%of those in the highest paid roles). Conversely, there
is a larger proportion of women in the positions
shown in the lower quartile (63.8%).

2020 Employees by pay quartile

Upper quartile

38.7%

61.3%

Upper middle quartile

40.9%

59.1%

Lower middle quartile

51.1%

Lower quartile

63.8%

A higher proportion of women work part-time
Bonuses are paid on a pro-rata basis and are notadjusted to the full-time equivalent in the statutory
calculation. Within its part-time population, theCorporation has a higher proportion of women
working part-time (86.3% of part-time workers),
which also affects the bonus gap.

2020

Men

2017

Lloyd’s 2020 Gender Pay Gap
Genderpay gap

Key: Women

48.9%
36.2%

05

Progress in 2020

2020 GPG Actions

Update on Actions

Attract: continue to evolve therecruitment process through ourinclusive hiring training programme
for those involved in hiring decisions,and by mandating 50:50 long andshort lists.

Our inclusive hiring programme was
moved to fully virtual as a result of
the COVID-19 pandemic, enabling abroader, global reach. We havecontinued to monitor our candidate
long and short lists to ensure genderbalance in our recruitment process.

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

We hosted two cohorts of ourAdvance programme for future
women leaders. Plans for an alumni
network for Advance participants
were postponed in 2020, while wetransitioned our current in-person
programme to a fully virtual offering.

Retain: bring our global policies tolife by using senior leaders in the
Corporation to role model flexible
ways of working and the use offamily care policies to increase
use by all employees.

2020 saw an increased number of
secondary carers requesting leave.
We have continued to profile
colleagues who are role modelling
flexible working and adoption of ourfamily care policies. In addition, due
to lockdown rules, we increased
our emergency leave allowance toten days and allowed additional
carry-over of annual leave.

Gender Balance Plan: continue tobuild on our commitments with thedevelopment of a gender balance
plan to close the gender pay gap
more quickly.

We have reviewed our gender balance
gender representation across differentlevels. We have increased our focus onunderstanding gender variances within
the employee lifecycle to further target
our efforts on reducing the pay gap.

Lloyd’s Gender Pay Gap Report

06

Additional activities in 2020 focusing on women

Actions we are taking in 2021 to continue to close
our gender pay gap
Edge Certification
We have recently joined a global community of organisationscommitted to giving equal opportunities to men and women in
the workplace who together share the use of the EDGE global
assessment methodology and business certification standard
for gender equality. EDGE is distinguished by its rigor and focus
on business impact, assessing gender representation, pay
equity, effectiveness of policies and practices and inclusivenessof the culture. A first step towards certification is collecting
survey data from our employees, and then demonstrating thatwe are acting on the findings to progress towards equity.

Women in Finance Charter

We Are The City

We remain committed to the Women in Finance
Charter. As part of that commitment, the Corporation
set a gender diversity target of at least 40% female
and 40% male for its senior management population,
which we surpassed in 2020. This made theCorporation one of 35 signatories to meet the target
ahead of deadline. In progressing our commitments
and in line with the Hampton Alexander criteria ofleadership (Board, Exco and Direct Reports to Excoin leadership positions), the Corporation set a newleadership target to achieve gender parity, which it
achieved at the end of 2020.

In 2020, we were proud to sponsor We Are The
City’s Rising Stars in Insurance for the sixth year
in a row, recognising the emerging female talent
within our sector.
In 2021, we look forward to working with external
partners to continue to create a more inclusive
workplace and drive gender parity for all.

Showcasing women role models
Throughout our internal communication, we ensure that
achievements by our employees and leaders are shared andcelebrated whatever their gender, across Corporation andFunctional events and channels. Key to this is celebrating theachievements of female role models by ensuring that theirstories and participation in employee events or news stories
on our intranet happen as a matter of course.

Maintaining gender parity by strengthening
talent management practices
We will strengthen our pipeline of future women leaders
by embedding a rigorous talent review process, to be apermanent fixture in our annual calendar. Through a holistic
approach to talent management, we will have a seamlessthread between our attraction, development and retention oftalent. In addition, we will nurture the alumni of the Advance
programme, as we continue to build on its success.

2020

Lloyd’s Gender Pay Gap Report

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Ethnicity pay gap information
Mean
pay gap

Medianpay gap

Bonusmeangap

Black

19.7%

19.3%

23.6% 30.4% 56.8%

Asian

14.4%

2.1%

22.0% 3.3%

50.5%

Mixed / multiple

9.4%

-4.9%

-23.8% 2.1%

35.3%

Total ethnicity
gap

15.3%

6.1%

19.2%

50.6%

Ethnicity Pay Gap 2020 Reporting
Ethnicity pay gap reporting is a voluntary reporting metric,
however we believe that collecting and publishing data for theCorporation demonstrates our commitment to transparency
and taking action.

In addition, recent engagement across the market
has shown several market firms preparing to produce
their own ethnicity pay gap reports alongside theirgender pay gap reports, which we encourage.
The Lloyd’s ethnicity pay gap information has been
calculated for relevant full-time employees, whereethnicity has been declared as at 5th April 2020.
The data below reports on the aggregated ethnicity
pay gap, as well as breaking down our ethnicity pay
and bonus gaps to show Black, Asian and Mixed
Ethnicity pay gaps.

2020

The most notable mean gaps are of Asian colleagues(14.4%) and Black colleagues (19.7%) when comparedto their white colleagues. The data indicates that
Black and Minority Ethnic colleagues areoverrepresented in the lower middle quartile (29.0%)
and underrepresented in the upper quartile, withethnic minorities making up 15.2% of the quartile.

Bonus
mediangap

6.7%

Ethnicminorities
receivingbonus** 60.9% of white employees received a bonus

Employees bypay quartile

WhiteEthnic minority

Top quartile

84.8%

15.2%

Upper middle

75.7%

24.3%

Lower middle

71.0%

29.0%

Lower quartile

79.8%

20.2%

Lloyd’s Gender Pay Gap Report

Actions on ethnicity that should build confidence
In June 2020 we committed to taking meaningful andmeasurable action to help improve the experience of Black,
Asian and Minority Ethnic talent in the Lloyd’s market. Since then,we have made progress on these initial commitments:

1.
2.
3.
4.
2020

Develop Black, Asian and Minority Ethnic Talent: we launched ourAccelerate programme in January 2021 for 15 future leaders, with participantsfrom across the market. This programme incorporates training for line
managers/sponsors, virtual fire side chats and role model events, and coredevelopment modules. Following the success of our first programme, we’re
now recruiting for our second cohort.

Review of employee and partner policies and historical artefacts: as part ofour work to ensure our policies and historical artefacts are explicitly non-racist,
we have now recruited an archivist after receiving 80 applications. We also
worked with stakeholders from the Corporation and market to help restate thenarrative that accounts for Lloyd’s role in the history of slavery and developed aset of communications principles for how we tell the history narrative anddrafted outline points to shape the narrative.

Commitment to Education and Research: we gathered research on the lived
experience of Black, Asian and Minority Ethnic colleagues in the Corporation,with a follow up session to playback the key themes and discuss the proposed
long-term ethnicity plan we will publish in 2021. We also held racial literacy
workshops for our Cultural Advisory Group members and have developed
inclusive leadership training to commence in Q3 2021.

Charitable support: donations of over £100,000 have been made to five keycharities aimed at support Black, Asian and Ethnic minority individuals andformed a new partnership with SEO London in January, which has seen over
600 students participate in the first nine events. We aim to offer 40 work
placements in summer 2021 through this partnership.

10Actions we are taking in 2021

Publish Lloyd’s long-term ethnicity plan,
including data collection requirements andCorporation Targets
Publish our long-term ethnicity plan to address the insightsfrom research into the lived experiences of our Black andMinority Ethnic colleagues and to improve representation.
In addition, we will publish our ambition to increase therepresentation of ethnic minority colleagues in theCorporation in 2021.

Educate and Develop
Continue to roll out ‘Accelerate’, a targeted development
programme for Black and Minority Ethnic future leaders,incorporating training for line managers / sponsors, virtual fireside chats and role model events and development modules.
Alongside this, initiate a targeted programme of development
activities for leaders on racial fluency.

Attract and Retain Ethnic Minority Talent
Build on our external and community partnerships toattract minority ethnic talent into the Corporation throughenhancing our inclusive hiring practices and increase
the diversity of available interviewers. Optimise theretention of our employees through greater advocacyand promotion of diverse role models.

Lloyd’s Gender and Ethnicity Pay Gap Reports

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Lloyd’s Gender and Ethnicity Pay Gap Reports

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Other activities impacting gender and ethnicity

Dive In Festival

Lloyd’s Culture ToolkitFamily care policies

Ethnic Diversity in the Workplace report2020 was our sixth year sponsoring the Dive In
festival, with the theme “Local Voice, Global Impact”.
Due to the pandemic, the events were fully online forthe first time. The new virtual format meant its global
impact was truly felt as festival goers were ablechoose from 144 online events taking place in 35
countries, all around the world. As a result, the festival
saw its highest turnout with over 30,000 attendees,
almost three times that of the previous year.

In October 2020, we published a toolkit for themarket (including the Corporation) with practicaltools, techniques and training advice for firms wishing
to move towards a high-performing culture. Thisfocuses on the factors required to create a highperforming culture in firms and builds on many yearsof research. The toolkit is in two parts:

We extended our market-leading family care policies
in January 2020 to cover all our colleagues, globally.
These policies are designed to provide employeeswith the support they need to enjoy happy andhealthy working and home lives, whatever that looks
like for them. This family care provision provides
26 weeks paid leave for primary or secondary caregivers when you start a family, with an additional fourweeks full pay to support a phased return to work.
It is not gender-specific and applies regardless of
how you want to start a family.

In October 2020, we published this report as theculmination of an 18-month exploration into racialand ethnic diversity in the Lloyd’s market, producedwith the support of Inclusion@Lloyd’s. The reportis part research (with stories and data from over
900 employees) and part practical blueprint forchange, with experiences from within the market
accompanied by case studies of positive action
from other knowledge-based industries including
advertising and law.

Other care policies applicable globally include
emergency leave for any unforeseen challenges
employees may face; sabbaticals with one month
paid leave once you’ve worked for Lloyd’s for morethan five years; an online parental leave toolkit to
support expecting and adopting parents and theirline managers throughout the parental leavetransition plus flexible day-to-day working practices.

Employee resource groups and networks

Against a backdrop of a global pandemic and theBlack Lives Matter movement, the festival welcomed
503 speakers on a range of pressing topics fromracial equality to mental health.

– An overview of our culture framework and then thekey behaviours that manifest the five foundational
elements of the framework.
– Then Culture Maturity Checklists to guide readersfrom establishing the building blocks for a highperforming culture through to becoming highperforming for each of the foundational elementsof leadership, ethics, respect, trust, motivation, allunderpinned by diversity and inclusion.

We continue to support our gender-inclusive
employee resource group (Inspire) and our Cultural
Awareness Network, providing greater access tosenior leaders and a platform for colleagues toshare ideas and network at all levels across theCorporation.
Across the sector we continue to sponsor andsupport cross-market initiatives, such as the Gender
Inclusion Network for Insurance and the Balance
programme, bringing together leaders to share bestpractice on gender balance and to help them become
advocates for gender parity. This is also our second
year sponsoring ACIN, and we continue to encourage
support for resource groups across the market
through our Inclusion@Lloyd’s governing body,comprised of a group of senior executives
representing the companies and membershiporganisations within Lloyd’s and the wider
insurance market.

2020

2020

Lloyd’s Gender and Ethnicity Pay Gap Reports

14Conclusion
Lloyd’s is committed to closing gender and ethnicity pay gaps byseeking to increase the number of under-represented groups atsenior roles across the Corporation as we create a truly inclusive
environment for everyone.
We have publicly committed to a range of actions that over timeshould help us to attract and retain the employees who are underrepresented today, enabling them to develop and thrive at eachstage of their career.

About the pay gaps
A mean gap is a calculation of the averagehourly pay or bonus of a person in one group in
the Corporation versus the average hourly payof a person in a comparator group, including all
relevant additional payments and regardless of
the role held within our organisation.
A median gap is a calculation of the exact
midpoint between the lowest and highest-paid
person in one group versus the equivalent personin the comparator group.
Quartiles are calculated by ranking the pay foreach employee from lowest to highest. This list isthen divided into four equal sized groups of one
group and the comparator group. To the right itshows the percentage of people in each ofthese groups.
By law, we are only required to calculate anddisclose our gender pay figures. In addition to this,
we are continually assessing pay from a range ofother perspectives, including in relation to ourethnic minority employees.

2020

These pay gaps are different to equal pay whichrefers to employees being paid the same salary forthe same work, or for work of equal value regardlessof their gender or ethnicity. As part of our annualcompensation review, the pay of all employees isassessed and, based on this, we are confident that
Lloyd’s does not have an equal pay issue.
Declaration
In line with the reporting requirements, this report
relates to UK employees of the Corporation as of
5 April 2020.
Lloyd’s market firms that have more than 250
employees will individually be reporting their pay
gap as required by the UK Government.
I confirm that the data contained within this report isaccurate and meets the requirements of the Gender
Pay Gap reporting regulations.
John Neal, CEO, Lloyd’s