Governance principles are essential for all companies, no matter how big or small. They provide a framework to manage a business responsibly.
The framework requires structures and processes designed to ensure a company’s accountability; transparency; compliance with the law; stability, investment and responsiveness to its stakeholders. However, the best governance principles can only be realised by the participation of the employees and business partners, and the company’s ability to empower them to perform their roles effectively.
A business has to take into account the needs and demands of its many stakeholders and Chesnara is no exception. Our main goal is to make sure the business runs effectively for the long-term benefit of our customers, shareholders, employees, regulators, outsourcing partners and local communities. To help our stakeholders navigate the governance framework, we use four key areas: Business Management, Data, Values and Standards, and Managing Money.
Underlying our governance principles is an ethos of Environment, Social and Governance (ESG). It’s a commitment to continue using a holistic lens for day-to-day management and in the development of our long-term plans. Not just in terms of how we run the company or our successes, but also the impact this may have on staff, communities and the environment. Look out for the icons to help identify those areas where one or more of these drivers is in action.
ENVIRONMENT
SOCIAL
GOVERNANCE
Motivated to deliver value for the
benefit of all our stakeholders, our business ethos cultivates robust and
consistent governance. Risk-taking and risk management form the foundation of
our business model.
We work closely with our regulators and devolve autonomy to our
business units. This not only ensures the delivery of our strategic plans, but
also our readiness for future developments.
3
lines of defence model with a single set of risk and governance principles
AT CHESNARA, WE ALWAYS MANAGE OUR BUSINESS IN A RESPONSIBLE WAY AND HAVE A STRONG SENSE OF ACTING IN A FAIR MANNER, GIVING FULL REGARD TO THE RELATIVE INTERESTS OF ALL STAKEHOLDERS.
One primary area of risk relates to information security. Failure to protect all sensitive and personal data could arise from the failure of internal processes and standards. Such a breakdown would expose the company to potential malicious and targeted cyber attacks, designed to exploit vulnerabilities. For our business, this potential threat also extends to our third-party service providers.
Our focus is on ensuring that our internal processes and standards are current and sufficiently robust to limit any exposure and potential impact from IT and/or data security failures. To actively protect the interests of all our stakeholders, our processes are designed to help identify and deal with any potential breach as early as possible.
KEEPING DATA SECURE IS AN ONGOING AND GROWING CONCERN FOR ALL COMPANIES. ROBUST AND UP-TO-DATE PROCESSES AND STANDARDS ARE NECESSARY TO QUICKLY IDENTIFY AND DEAL WITH ANY POTENTIAL BREACHES.
We aim to make a complicated industry as simple and transparent as possible. At the heart of our business is a robust governance framework, designed to minimise the risks involved in the day-to-day running of the business. We recognise that risk can never be eliminated, but by having the right balance of values, standards and controls, we can limit our exposure to it.
Our values and standards are shaped by our drive to deliver first-rate and fair outcomes to a range of key stakeholders, including our business units, policyholders, regulators, employees and investors.
0
Our tolerance rate to bribery and corruption
5
Committees to keep management in check
CHESNARA ADOPTS THE 'THREE LINES OF DEFENCE' MODEL ACROSS THE GROUP, TAKING INTO ACCOUNT SIZE, NATURE AND COMPLEXITY, WITH A SINGLE SET OF RISK AND GOVERNANCE PRINCIPLES APPLIED CONSISTENTLY ACROSS THE BUSINESS.
We believe financial stability is key to treating customers fairly. Effective capital management underpins all of our cultural and strategic objectives across the group and both divisional and business unit levels.
As a public company, it’s crucial for us to be considered an attractive investment. Most of our investors are institutional and hold our shares in their income funds and so our aim is to deliver an attractive and sustainable dividend. Although that’s not the whole story. A ‘low maintenance’ investment, offering clarity and consistent performance, is in itself an attractive proposition for many investors. And one that strives to generate an increasingly meaningful level of new business profitability by constantly improving our commerciality.
14
successive years of dividend growth
3%
dividend growth for 20 consecutive years
201%
group solvency ratio
IT IS ESSENTIAL TO HAVE A WELL DESIGNED AND EFFECTIVE GOVERNANCE FRAMEWORK TO ENSURE THAT STAKEHOLDERS' INVESTMENTS ARE SAFEGUARDED.