ANNUAL REPORT AND ACCOUNTS 2020

Insurance
that is personal,
inclusive and
a force for good

Annual Report 2020

Our vision is to create a world where insurance is personal, inclusive and a force for good.

To deliver this we need to build an insurance company of the future with technology and data at its core, adapting to an ever-changing world to deliver more for customers at speed.

As we navigated the challenges that 2020 presented, we focused on supporting our customers, the wellbeing of our people, contributing to society and stepping up our plans to tackle climate change.

Plus we are embracing sustainable practices because we believe they create a better corporate culture, more reliable products and greater long-term sustainability for our shareholders.

Navigating an
extraordinary
year

Penny James, Chief Executive Officer

Navigating an extraordinary year

We have demonstrated financial resilience by delivering another good set of results, whilst supporting our customers, people and local communities during this extraordinary period.

Penny James Chief Executive Officer

2020
highlights

Including our Covid-19 response highlights

2020 highlights

Notes

1. See glossary on pages 224 to 226 for definitions and Appendix A – Alternative performance measures on pages 227 to 230 for reconciliation to financial statement line items.

2. A reduction in the ratio represents an improvement as a proportion of net earned premium, while an increase in the ratio represents a deterioration. See glossary on page 224 for definitions.

3. Estimates based on the Group’s Solvency II partial internal model.

4. The 2019 comparatives for dividends and capital returns and the solvency capital ratio have been adjusted to remove the cancelled 2019 final dividend and £120 million of share buyback. (The reported numbers were solvency capital ratio of 165% and capital returns of £447.0 million). See page 18 for further details.

5. See page 28 for the dividend policy.

Our
timeline of
transformation

An overview of our 2020 highlights

Our timeline of transformation

  • January
  • March
  • May
  • August
  • October
  • December

A force
for good

Building a sustainable future

A force for good

At the heart of our strategy is our vision to create a world where insurance is personal, inclusive and a force for good.

Our success as a business is predicted on the success of the ecosystem in which we operate so supporting our customers, our people, suppliers and communities where we serve. We are embracing sustainable practices because we believe they create a better corporate culture, more reliable products and greater long-term sustainability for our shareholders.

We are aiming for a triple win:

  • A win for the customer, by sharing real value with them;
  • A win for our people and our shareholders , who are invested in our success,; and
  • A win for society and the planet, because our long-term success is intrinsically linked to the success of the community and the environment around us.

A purpose based
culture

Danuta Gray, Chair of the Board

A purpose based culture

In 2020, our resilience and agility enabled us to support our customers and communities, distribute surplus capital and progress building the capability designed to deliver our sustainable strategy.

Danuta Gray Chair of the Board