QCA Code Principle 3

The Board is committed to ensuring the Company’s business remains sustainable, for the community, environment and others affected by the Company’s activities and considers participation in quality syndicates, whose key characteristics are conservative reserving and a focus on profit rather than growth, is important in ensuring the Company’s long-term success and sustainability. Whilst the managing agents have direct responsibility for managing the syndicates and the impact of their businesses on the environment and the community, the managing agents’ performance in this respect is periodically reported to and reviewed by the Board. Employees are also encouraged to have regard to the impact on the environment in the conduct of their business affairs.

In addition, for a managing agent to operate at Lloyd’s there are ‘statements of business conduct’ (‘Lloyd’s Minimum Standards’) with which the managing agent must comply. Lloyd’s Minimum Standards encompass matters such as claims management, exposure management, governance, investment management, reserving and conduct (including the requirement to treat customers fairly). The managing agents and senior managers within them are also subject to regulation by the Financial Conduct Authority (‘FCA’) and the Prudential Regulatory Authority (‘PRA’) and must comply with their stringent and regular reporting requirements.

On 23 March 2023 the Board approved an Environmental, Social and Governance (ESG) Policy Statement. Helios offers investors exposure to a diversified portfolio of syndicates at Lloyd’s of London. As a consequence Helios is inexorably aligned to the approach Lloyd’s takes with regard to the society as a whole in addition to those adopted by the various Managing Agencies.

As we construct our portfolio each year, considerable emphasis is given to understanding individual syndicate actions with regard to ESG. This includes an understanding of the risks contemplated as well as the ESG initiatives adopted within the respective businesses and their management teams.

We support the ESG strategy of Lloyd’s, who have outlined their ambition to integrate sustainability into all of Lloyd’s business activities. Lloyd’s have stated that embedding ESG across the market and Corporation is a top priority and is interwoven with their purpose of creating a braver world.

Helios fully supports Lloyd’s approach and oversight of the market. More information can be found at https://www.lloyds.com/about-lloyds/responsible-business/esgreport2021

The Executive Directors are in regular contact with the managing agents to review performance of the portfolio and discuss the market, competition, emerging issues and opportunities. Periodically, managing agents are invited to attend Board meetings to provide market updates. Information provided by the managing agents is considered when making decisions about improvements to the Company’s products or business, or about developing new products or exploring new opportunities.

Interests of the Company’s employees are also key. Engaged, enabled and empowered employees who contribute to the best of their potential are fundamental to the long-term success of the business. We have six employees, including the Chief Operating Officer and the Finance Director and we actively seek to understand their values and what motivates employees and to take this into account in the way we operate. We have a flexible remote working model which has proved effective and worked well for our employees, whilst enabling the Company to adapt over the past three years. In all instances, two-way communication is actively sought and encouraged. Oversight of performance is maintained through an annual performance and development review process conducted by the Nomination and Remuneration Committee and we seek to offer appropriate levels of remuneration and incentives, drawing on comparator benchmark surveys as appropriate. The Company’s operations are reliant on key staff. The Directors believe that its policies, remuneration and benefit packages are appropriate to recruit and retain such staff.

Helios also believes that diversity and inclusion initiatives are essential for fostering an environment where everyone feels valued, respected and empowered. This is a key metric for our success. While Helios’ workforce is small and growing, we aim to organically promote and provide equitable opportunities for growth and success to not only employees but also external partners, where possible. In addition Helios is a signatory to the UN Principles For Responsible Investment (www.unpri.org) and we strive to adopt the 6 key principles for responsible investment.

Community engagement activities and philanthropic endeavours form a key area of focus for Helios. A new charity policy was developed in 2023 and we have sponsored several projects that ranged from supporting local communities to collaborating projects aimed at addressing societal and local issues.