Risk Appetite

The risk appetite statements and associated risk objectives align to our strategy and inform the way we think about and report on risk within the business. They are split into key risk themes with supporting Key Risk Indicators which incorporate a range of quantitative and qualitative measures of risk against which the business is monitored. This monitoring is reflected in regular reporting to the Executive Committees, the Risk Committee and the Board. The Risk Appetite statements can be found below:

| Risk Appetite                         | Risk Objective                                                                   | Key Risks                                                         |
|---------------------------------------|----------------------------------------------------------------------------------|-------------------------------------------------------------------|
| Strategy and Trading                  | Deliver a strategy of growth                                                     | - Group                                                           |
| and profitability based upon use      | - Strategic                                                                      |                                                                   |
| of multiple product streams and       | - Trading and Pricing                                                            |                                                                   |
| varied distribution approaches.       | - Distribution - Insurance Capacity - Reputation - Change Management/Integration |                                                                   |
| Financial Sustainability              | Maintain financial robustness by                                                 | - Solvency/Liquidity                                              |
| meeting applicable solvency and       | - Reserving                                                                      |                                                                   |
| liquidity requirements and            | - (Re)insurance                                                                  |                                                                   |
| optimising capital/investment income. | - Credit - Market Risk                                                           |                                                                   |
| Customer                              | Deliver on meeting customer                                                      | - Products and Services                                           |
| expectations through our products     | - Price and Value                                                                |                                                                   |
| and services that we offer.           | - Consumer Understanding - Customer Support                                      |                                                                   |
| Business Operations                   | Operate resilient business systems                                               | - Information Security                                            |
| and processes, protecting data and    | - Information/Data Management                                                    |                                                                   |
| managing people.                      | - IT Environment - Operational Resilience and                                    |                                                                   |
|                                       | - Business Continuity - Suppliers, Outsourcing and                               |                                                                   |
|                                       | - Delegated Authorities - People inc. Workplace Safety                           |                                                                   |
| Regulation and                        | Comply with all applicable laws,                                                 | - Regulatory                                                      |
| Compliance                            | regulations and standards.                                                       | - Data Protection - Financial Crime - Legal - Financial Reporting |
|                                       | - and Forecasting                                                                |                                                                   |