A Statement from our Board

Section 172 Statement

The directors confirm that during 2023 and to the date of this Report, they have acted to promote the success of the Company for the benefit of its members as a whole and considered the matters as set out in section 172(1)(a) to (f) of the Companies Act 2006.This section provides an overview of how the directors have had regard to those matters when performing their duties.

As the Company is part of the Lloyd & Whyte Group (which is part of the Benefact Group), where matters impact other entities within the Group, the approach to stakeholder engagement is led by Lloyd & Whyte Group Limited or Benefact Group plc, depending upon the nature of the engagement, and therefore further details have been disclosed within Lloyd & Whyte Group Limited’s Annual Report and Accounts and Benefact Group plc’s Annual Report and Accounts.

Our Approach to the Long Term Success of the Company

The Board of directors recognise that the long-term success of the Company, and therefore our ability to continue to help people, charities and good causes is dependent on having regard to the interests of its stakeholders at its heart. In order to achieve our strategic ambitions, the Board understands how important it is to listen and respond to the needs of our stakeholders.

As part of a global financial services family of companies driven by the ambition of transforming lives and communities, we are continually striving to do the right thing at all times. However there are occasions where the needs of different stakeholder groups may not always be aligned.  On these occasions, the Board attempts to balance the conflicting interests and impacts of our stakeholders in their decision-making.

Stakeholder Engagement in Decision Making

The Board adopts a range of approaches to engage with stakeholders and recognises that the importance of a stakeholder group may differ depending on the matter to be considered. Given the nature of the business, the Board sometimes engages directly with stakeholders and also understands that it may be more appropriate for engagement to be undertaken at an operational or Group level.

Certain stakeholder matters are led at Benefact Group level, especially where the matters are of Group-wide significance or have the potential to affect the reputation of the Benefact Group. The Board considers a variety of information to understand the impact of the Company’s operations and the interests and views of our key stakeholders. A one-year rolling plan of business for discussion is agreed annually to ensure that the Board is focused on the right issues at the right time and sufficient time is allowed for appropriate consideration and debate. Information is provided to directors in papers in advance of each meeting. In addition, people from the business are invited to attend meetings to provide insight into key matters and developments. At each Board meeting, the directors discuss strategic and business matters, financial, operational and governance issues and other relevant issues that arise.  Because of this, the Board has an appreciation of engagement with stakeholders and other relevant matters, which enables the directors to comply with their legal duties.

Stakeholders in action

Below is an example of a principal decision taken by the Board during the year and how it has had regard to the interests of, and impact on, a selection of its stakeholders.

Principal Decision of the Board

Consumer Duty

Following the implementation of the FCA’s Consumer Duty (the Duty) on 31 July 2023, the Board oversaw and monitored the Company’s compliance with the Duty’s requirements during the year via regular reports received from management. The Company’s Consumer Duty Champion also meets with management to challenge how it is embedding the Duty’s requirements and focusing on consumer outcomes.

Our Strategy in Action

Our key stakeholders are defined within our Governance Framework, and includes employees, customers, shareholders, the community and environment and regulators. Below are examples of various methods of communication that the Board has had with each stakeholder group throughout the year, and any relevant outcomes:

Our key stakeholders	Methods of engagement and outcomes
Employees The Board recognises that employees are the Company’s biggest asset given their specialist skills and knowledge and propensity to go above and beyond.	The Board receives regular updates on a range of Company matters. This includes employee resource updates as part of the Report. Employees have the opportunity to engage in two staff surveys during the year. The Board considered the results of these during the year and agreed action plans as necessary to address any shortfalls in company offering or support.
Customers The Board considers the impact of any actions or decisions on the Company’s customers (both direct and indirect customers) before proceeding with the same.	The Board considers that customers should be at the heart of everything we do, treating them fairly and ethically and ensuring any actions or decisions demonstrate our passion for customers and make us first choice for customers both today and in the future.
Shareholders South Essex Insurance Holdings Limited owns the entire issued Ordinary Share Capital of the Company, which in turn is owned by Lloyd & Whyte Group.	As a group Company, the directors are very aware of the importance of demonstrating its value to the Group, which includes ensuring financial performance, long term return on capital and a culture of transparency and propensity to “do the right thing” is set from the top. At each routine board meeting, the directors consider whether there are any matters to be escalated to the Group level.    Regular dialogue takes place on the Group’s expectations of the Company and the strategy for the development of the business.  This ensures that the views of the shareholder are effectively communicated to the Board as a whole.
Community and Environment Decisions and policies affecting the community and environment are set at Group level. An explanation of the Group’s policy and strategy in relation to the community and environment is set out in Lloyd & Whyte Group Limited’s Annual Report and Accounts.	As a member of a responsible and sustainability conscious financial services group, the directors understand the importance of climate change and the role it must play in managing the risks and opportunities that result from it. Consequently, at the Board’s request, the directors receive regular climate change related updates from Management.
Regulators The Board recognises the importance of open and honest dialogue with Regulators and is committed to complying with applicable legislation and regulation. The Board receives regular reports detailing the Company’s regulatory interactions.	As a member of a regulated entity within a responsible financial service group, the Board understands the need to keep up to date with any communications received by the Regulators. Further the directors know that this duty transcends the board room. Consequently, the directors receive regular and timely targeted communications from Compliance on any pertinent regulatory matters.