Gender Pay Gap Report 2020 Pay Gap Report 2020 02

About RSA

Achieving best-in-class performance requires an inclusive environment in which people feel supported to contribute, regardless of their gender, ethnicity or background. By enabling of thought and ensuring representation of women in 12,380 5,102 our senior management teams, we RSA headcount across our UK & Employees in our main UK are fundamentally stronger as a International, Canada and Scandinavia operating company, Royal & Sun Alliance businesses, as at 31st December 2020 Insurance plc, as at 5th April 2020 business. I’m proud of the progress we’ve made over the last few years and our continued Gender split of Royal & Sun Alliance Insurance plc employees (as at 5th April 2020) focus on practical actions to reduce our Gender Pay Gap.

Women Men 55% 45% Stephen Hester Group Chief Executive Gender Pay Gap Report 2020 03

Pay and Bonus Gap Pay Quartiles

The information presented below relates to employees of Royal & Sun Alliance Insurance The following charts illustrate the percentage of men and women at Royal & Sun Alliance plc and is calculated in line with the government regulations. Insurance plc within four equally sized pay quartiles as at 5th April 2020.

Median Mean Lower Lower Middle Upper Middle Upper 2020 2019 2018 2017 2020 2019 2018 2017

Gender Pay Gap 37.0% 34.2% 38.5% Based on hourly 47.8% 52.2% 61.5% rates of pay as at 27.3% 29.0% 29.7% 29.7% 29.7% 31.7% 33.6% 33.0% 63.0% 65.8% 5th April

Bonus Pay Gap Prior Year Data for Comparison Based on 42.8% 39.3% 15.0% 41.1% 58.9% 75.1% 69.1% 63.2% 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 bonuses paid in 63.6% 65.3% 63.3% 66.5% 66.2% 65.9% 51.3% 52.2% 53.2% 38.3% 37.5% 36.8% the 12 months 36.4% 34.7% 36.7% 33.5% 33.8% 34.1% 48.7% 47.8% 46.8% 61.7% 62.5% 63.2% up to 5th April Men Women Please see overleaf for an explanation of the comparison between 2020 and previous years. The gender pay gap is a measure of the difference between the average earnings for men and women. This is not the same as equal pay. We undertake regular equal pay audits, In addition to Royal & Sun Alliance Insurance plc, RSA Group has a number of other operating in line with ACAS and Equality and Commission (EHRC) guidance. We are entities in Great Britain, employing a further 10 employees. These employees are not included confident that men and women at Royal & Sun Alliance Insurance plc are paid equally under Government regulations on Gender Pay Gap disclosure. If we include all RSA companies for the same or similar work across the business and we are satisfied that there are no with employees based in England, Scotland and Wales, our Mean Pay Gap is 31.1%, our underlying equal pay issues. Pay Gap is 27.4%, our Mean Bonus Gap is 64.4% and our Median Bonus Gap is 43.0%.

Proportion of employees receiving bonus pay 95.6% 95.0% A slightly higher proportion of women than men received bonus pay in the 12 month period up of women received of men received to 5th April 2020 at Royal & Sun Alliance Insurance plc. Employees at all levels of seniority are a bonus a bonus eligible for bonus pay, subject to being employed by RSA during the relevant performance period and achievement of stretching performance targets. These percentages are slightly higher than the 2019 figures (93.5% of women; 92.7% of men). Gender Pay Gap Report 2020 04

Understanding the Why do we Royal & Sun Alliance Insurance plc (as at 5th April 2020) pay and bonus gap have a pay Management Team Managers, Customer comparison between Group senior technical operations, gap at Royal & specialists technical & business 2020 and previous years: & Sun Alliance support • Mean and median pay gaps have improved year-on-year. This can be explained by proportionately more women being in the upper pay Insurance plc? quartile and fewer women in the lower pay quartile than in 2019.

Our analysis shows that our gender 1,282 • Mean bonus gap has improved significantly (over 16%) compared pay gaps are predominantly driven to 2019 – driven by a smaller number of Performance Share Plans by the shape of our , in vesting and a significant reduction in the average value of these particular: Performance Share Plans, alongside a reduction in discretionary 834 bonuses (such as hiring bonuses) made to male employees through the year. • Our workforce is predominantly 187 female (55%) although there • Median bonus gap has increased slightly compared to 2019. This is are fewer women in our senior due to larger Annual Bonus plan pay-outs to UK and GCC employees. management roles (see table, The Management Group population, who are eligible for larger 31%). However, this has steadily bonuses, contains a high number of men. increased year-on-year from 25% in 2017 (2019: 29%). There are • As per previous years, a higher proportion of women than men received a bonus. Reported bonus pay also includes recognition more women than men in our awards. Both proportions increased in this reporting period due to junior roles, such as customer 84 605 operations, technical and business the launch of a new employee recognition scheme which meant that support. the number of recognition awards increased. • This is reflected in our pay quartile data, where 38.5% of employees within the highest paid quartile are female. Again, this has steadily increased year-on-year from 36.8% in 2017 (2019: 38.3%)

Men 2,110 Women Gender Pay Gap Report 2020 05

What actions are we taking to reduce the Gender Pay Gap at RSA?

At RSA, our vision is to create an inclusive This is demonstrated by the steady annual RSA has been committed to meeting the held events across each of our locations workplace where everyone can bring increase in female representation in our recommendations of the Hampton Alexander in support of the ‘Each for Equal’ theme their best selves to work. We do this by Management Group from 25% in 2017 to review by achieving the 33% target for including a panel discussion in London building diversity across all levels of our 31% this year. This will erode the Gender women on boards and in leadership teams which showcased women across the organisation and creating an inclusive Pay Gap in time. Additionally, there has been of FTSE350 companies by 2020. Group- female pipeline, highlighting that collectively culture which attracts, encourages and greater robustness and rigour in applying a wide gender data provided to the Hampton each one of us can help create a gender is strengthened by diverse perspectives, gender lens to our remuneration decisions Alexander Review for the last year of the equal world by challenging , establishing the best foundation to serve and people processes. There is a much review in November 2020 shows that the broadening perceptions, celebrating women’s our customers. greater awareness at RSA of the impact of proportion of women in our leadership team achievements and actively including men in pay decisions on the gender pay gap and was 36.4% and on our Group Board was the solution. Colleagues across the company This is our fourth Gender Pay Gap report. reward decisions are scrutinised in this light. 40% (as at 31st October 2020). We have also pledged their support for Despite the removal of statutory reporting In addition to gender, we have broadened demonstrated an increase in the proportion of via a company-wide campaign. obligations in 2020, RSA elected to our diversity focus and have made positive women in senior leadership roles in each year report voluntarily because we support the progress in relation to ethnicity, and of reporting for the review. In support of our commitment to gender transparency that Gender Pay Gap reporting broader inclusion. balance, we also recognised International provides. In the last twelve months, we have Our Diversity and Inclusion Council provides Men’s Day in November. In support of made continued progress in relation to the RSA originally signed HM Treasury’s ‘Women governance for RSA’s D&I activity. Progress the theme, ‘Better health for men and Diversity and Inclusion (D&I) agenda. Whilst in Finance Charter’ in 2017, through which against our gender diversity targets is boys’, we held a virtual fireside chat with it is acknowledged that there are no credible the Group committed to achieving 33% reviewed on a quarterly basis by the Group physiotherapist and author Jonathan Hoban ‘quick fixes’ to the Gender Pay Gap, the year- representation of women in the Management Council and additional analysis is undertaken who raised awareness of issues including on-year improvements demonstrate that we Group globally by 2020. We exceeded this to understand the actions which underpin any burnout, mental health and the impact have put in place the right actions to address target and as at 31st December 2019 had changes to each region’s representation data. of the pandemic on resilience. A video of our Gender Pay Gap. achieved 34.6% of women in our senior the talk was shared with all employees to management population. In order to drive In March, RSA celebrated International encourage conversations on important In common with other insurance companies, further progress, this year we have set Women’s Day in all our regions globally to topics such as mental health and wellbeing. RSA’s Gender Pay Gap is predominantly specific targets for each geographical region recognise and celebrate the achievements We are continuously looking at ways to driven by the shape of our workforce – we (ranging from 34% to 48% by 2022), taking of women and to support the call to action better engage men in our gender diversity have more men than women in senior into account the differing levels of female for gender equality. We were summit discussions and as allies for gender balance. management roles, and a greater number of representation in each region at the start of partners for the Women Ahead Gender women than men at junior levels. However, 2020 and opportunities for and Balance Summit in London, and invited we have applied focus and energy to promotion into management roles. Effective colleagues from Canada, Scandinavia and increasing the number of women in senior 31st December 2020, the proportion of across the UK to attend the event in person. management positions and are consistently women in our Management Group had Videos of all the speakers from the summit making progress with these initiatives. further improved to 35.3%. were shared with all our employees. We Gender Pay Gap Report 2020 06

Developing and promoting Addressing diverse talent Addressing bias forms an important part of our group-wide D&I strategy, with a focus on We are continuing to provide development inclusive leadership and addressing opportunities to support the progression unconscious bias in our people processes. of women in our business into senior management roles: In 2020, we undertook an in-depth impact assessment of our organisational design • Our “Accelerate” talent programme processes on our D&I priorities. This involved provides leadership skills development applying a diversity lens to redundancy for those who show high potential to selection processes and detailed analysis progress into the Management Group in the We now have 309 employees undertaking of the impact of the organisational design Recruitment of future. We ensure 50/50 gender balance an , fully funded via our processes on the overall gender profile of amongst attendees in the programme. diverse talent Apprenticeship Levy commitment. We the organisation. There was no material Additionally, we have held focus groups offer 35 Apprenticeship qualifications negative impact on gender through any of When recruiting for senior roles in our UK with all Accelerate programme alumni to covering a range of academic levels from our organisational design actions taken in business, we set a target for a minimum understand any potential gender differences Level 3 through to a masters Level 7. the last year. proportion of shortlisted candidates to in their experience of the programme or Our programmes cover a broad range of be female. For 2020, the target was set perceived barriers to progression. topics including: Insurance, Leadership We have embedded unconscious bias at 50%, up from 40% in 2019. There is training, branded internally as “Building and , Finance and Actuary, • We have developed an in-house mentoring always an appropriate follow-up process Inclusive Cultures training” across our Project Management & Change, Customer programme for women at the level in place for those roles where the shortlist organisation with 78% of people leaders Service, Cyber and Digital, Risk & immediately below Management Group. does not meet the gender target. having attended so far. We are also Compliance, Procurement, HR and Legal. 22 women have been paired with members developing an e-learning module on We have worked in partnership with the 51% of our apprentices are female and of our senior leadership team for a 9-month unconscious bias for all employees which will recruitment agencies we use to ensure they are aged between 18 and 62. programme. This includes provision of be launched in the second quarter of 2021. they are clear on our expectations with mentoring support, leadership development We also offer College Leaver programmes regards to D&I. We have communicated and networking opportunities. in five of our UK locations – Chelmsford, In support of ensuring diversity and inclusion at our commitment to supporting flexible all levels within our organisation, we have also Halifax, Peterborough, Liverpool and • We continue to support the Gender working requests through our adverts developed guidance for leaders to be used in . These Inclusion Network (GIN) through to ensure all potential candidates are real time within our people processes, such as provide a real alternative to a university sponsorship and colleague involvement. aware of our willingness to discuss any performance management, reminding leaders for college leavers of all GIN is an industry-wide group focusing requirements for flexibility in when, where of the that can arise and providing and we ensure there is a 50/50 gender on driving gender balance and providing and how our employees work. suggestions on how to mitigate them. balance through to our assessment networking opportunities. We have removed gendered language centres. They provide entry-level talent programmes for a variety of career options We are undertaking ‘deep dive’ reviews across from our job advertisements to address each functional area of the business, analysing any inadvertent bias. We are also working in insurance including accounting, software testing and data analytics. all available diversity data and agreeing with external organisations to help grow actions with the relevant leadership teams the long-term female talent pipeline Our finance Graduates based in Liverpool to improve diversity and embed an inclusive for certain roles, such as Women in and London also join a masters level culture. These deep dives include analysis of Technology. Apprenticeship to become qualified promotions, recruitment, exits, demographics chartered accountants. and succession planning, as well as qualitative feedback from focus groups. Gender Pay Gap Report 2020 07

Support for Working Parents Our working parents and carers faced many challenges in trying to balance work and caring responsibilities during 2020. We have been supporting our colleagues during the pandemic, enabling them to work flexibly and ensuring they have the support they need. We set up ‘Family Forums’ where colleagues could connect and share experiences with each other and facilitated webinars on topics such as ‘Managing Guilt’ and ‘Remote Working Best Practice for Working Families.’

We are also delighted to have launched a new Employee Resource Group, RSA Families, sponsored by a member of our UK Executive Team, Louisa Leonard, UK Chief Creating an inclusive workplace Operating Officer. The aim of RSA Families is to ‘champion and promote a culture within RSA where working parents and Improving our gender balance at all levels of the organisation is just one aspect of how we are creating an carers have the support they need so that they can flourish, inclusive workplace for all at RSA. In 2020, we continued to support our colleagues with the new and unique develop and nurture their working lives, realising their full challenges that presented themselves. potential, so that they can bring their best selves to home • In response to the Black Lives • Our RSA Building Pride ERG, • We continued our focus on disability life and work life each day’. Matter movement we have taken overcame the unique challenges inclusion, being proud signatories time to understand how race that remote working presented, of the Valuable 500. We are Gender Employee Resource Group inequality affects our colleagues by creating a Virtual Pride March delighted to have recently joined personally and how we can video, involving colleagues from the Business Disability Forum and Our UK gender-based employee resource group is called work together to take action. We around the UK and many members to have created the RSA Ability RSA Balance. The mission of the group is to ‘Drive and created anti- guidance for of our UK Executive Team, including Wellbeing profile which uses sustain gender balance at all levels of the organisation, to all employees and set up RSA Building Pride’s Executive Sponsor positive language around disability, better represent and serve our customers and make RSA REACH (Race, Ethnicity and Cultural William McDonnell, Group Chief fosters conversations and aims to a fulfilling place to work’. Heritage), a new employee resource Risk Officer. support employees and leaders to group (ERG), sponsored by David agree any adjustments to improve We have appointed a new executive sponsor for the group, • RSA continued to support the Germain, Group & UK CIO. We’ve an employee’s physical or mental Mandy Hunt, Chief Underwriting Officer for UK&I Commercial Dive In Festival, as a local festival run listening groups across our wellbeing. We also acknowledged Lines and have set new priorities for the group to: sponsor and co-hosted one of the UK sites to understand the lived International Day of Persons with most attended events in the UK 1. Empower women in RSA to achieve their personal and experiences of our Black, Asian and on 3rd December with ‘Prioritising mental health: before, professional ambitions. other ethnic minority colleagues a focus on highlighting hidden during and after Covid-19’. 2. Tackle and stereotyping, which act as blockers and will be using this feedback as disabilities and running lunch & learn to improving gender balance at RSA. input into our 2021 action plan. We • We celebrated ‘Inclusion Week’ in sessions to raise awareness about also signed the BITC Race at Work September, with a focus on ‘making hearing loss, which was supported 3. Make RSA a place known for supporting gender balance in the marketplace. Charter and have made changes inclusion an everyday activity’ with by the hearing loss charity, RNID. to our HR system to be able to practical activities for colleagues In line with these objectives, RSA Balance have been running record ethnicity data, so we can to do within their teams, as well as personal development sessions which address key topics understand how diverse we truly are running a WebEx session to mark such as ‘The Surprising Habits of Original Thinkers’ and from an ethnicity perspective and the start of Black History Month at ‘Own Your Strengths’ that help RSA colleagues achieve their make meaningful improvements. the start of October. full potential. Gender Pay Gap Report 2020 08

We recognise that the gender pay gap is a long-term issue and Declaration actions will take time to have an I confirm that the information and data provided is impact on the figures we report. accurate and in line with mandatory requirements. We are confident in the steps we are taking and in the monitoring we have in place to track their effectiveness and identify opportunities for Stephen Hester additional actions. Group Chief Executive