Tesco Underwriting Gender Pay Report We re committed to creating a truly inclusive workplace where everyone s welcome.

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1 Tesco Underwriting Gender Pay Report We re committed to creating a truly inclusive workplace where everyone s welcome.

2 At Tesco Underwriting we value the different characteristics that each colleague brings to work every day and we re committed to creating a diverse and inclusive workplace that reflects the customers we serve. Steve Kingshott Chief Executive, Tesco Underwriting We reported our gender pay gap data for the first time in March 2018, which represented our gender pay position in April Since then we ve had a significant focus on diversity and inclusion within Tesco Underwriting. We ve delivered a range of activities that have helped us understand and celebrate the diversity within the business and in our recent Your Opinion Counts employee survey, 86% of colleagues told us that TU values diversity and I can be myself at work. We are already a diverse place to work, but recognise like many other organisations that we can do more, especially when it comes to gender balance. The pay gap referenced in this report reflects the gender balance within our organisation as at April It measures the difference between the average earnings of all male and female employees, irrespective of their role, length of service or seniority. Our 2018 gender pay reporting shows a deterioration in the mean gender pay gap from 36.2% to 38.7% and our median gender pay gap which has increased from 10.1% to 15.1%. We are confident from the analysis that we have done, that our gender pay gap is not an equal pay issue and we know that men and women are paid equally for doing equivalent jobs. The main driver of our gender pay gap is the higher proportion of men in more senior roles that we have; as is the case across the financial services sector. In April 2018 we became a signatory to the Treasury s Women in Finance Charter. As part of our commitment to the Charter we set a target to have 40% of senior roles filled by women, and we have made positive progress against this target since April We recognise that change will take time, and we re confident that our action plan will help us to make real progress. We will continue to focus on attracting and retaining talented women and sustaining an inclusive culture within Tesco Underwriting. The Tesco Underwriting management team is fully supportive of our focus on greater gender parity over the next 12 months. We re clear on the journey we need to take, and are committed to seeing improvements on the reported gaps in Thank you, 1

3 Our data In this report we are sharing our gender pay gap data for the 12 months to April We ve used the pay data for around 350 Tesco Underwriting colleagues to calculate our gender pay gap. Understanding gender pay The gender pay gap measures the difference between men and women s average pay within an organisation regardless of their role or work level. This is different to equal pay which compares the pay of men and women who perform the same role or roles of equal value. Gender pay gap The figures opposite show our gender pay gap as a percentage in both median and mean pay for 2017 and The mean is the average figure taking into account the hourly pay for all men and all women. The mean gender pay gap is the difference between the average hourly pay for all women and the average hourly pay for all men. The median is the figure that falls in the middle of a range when all hourly pay is stacked from lowest to highest. The median gender pay gap is the difference between the middle figure for all women s hourly pay and the middle figure for all men s hourly pay. For both measures, the closer we are to zero, the closer we are to gender parity. Our median (middle) 15.1% 2018 Our mean (average) 38.7% 10.1% % 2

4 Pay quartiles These figures show the gender balance within each of our pay quartiles for 2017 and Pay quartiles measure how many men and women are represented in each quarter of the business when all men and women s hourly pay is stacked from highest in Quartile 1 to lowest in Quartile Highest Q2 Q3 Lowest Men 62.5% 48.3% 51.1% 33.7% Women 37.5% 51.7% 48.9% 66.3% Men 60.2% 41.9% 48.4% 38.7% Women 39.8% 58.1% 51.6% 61.3% 3

5 Gender bonus gap The figures show the percentage of men and women who received a bonus payment as well as the percentage difference in bonus amount for the year ending 31 December At Tesco Underwriting it s important that all colleagues are rewarded for the success of our business. The 2018 data shows that our gender pay gap is driven by the same factors as for We have a higher percentage of men in senior roles; and a higher proportion of women in less well paid roles Percentage of men and women who received a bonus Bonus gap 2017 Men 83% Women 77.5% Median 20.9% Mean 65.9% Percentage of men and women who received a bonus Men 91.6% Women 91.9% Bonus gap Median 17.6% Mean 60.8% I confirm that our data has been calculated according to the requirements of The Equality Act 2010 (Gender Pay Gap Information) Regulations Steve Kingshott, Chief Executive, Tesco Underwriting. 4

6 Our actions Meaningful change takes time and we know it will take time to close our gender pay gap altogether, which is why we ve focused our efforts in two core areas that will help us to make real progress support and attract talented women and to sustain an inclusive culture. We ve made good progress in both of these areas, and are fully committed to delivering meaningful change. This will enable us to achieve a better gender balance at all levels and to create a diverse and truly inclusive workplace that reflects the customers we serve. Support and attract talented women Continue our progress towards our Women in Finance target of achieving 40% of women in senior roles in We have identified and developed a pipeline of talented women, through our Women in Insurance (WIN) in-house talent development programme. We will continue to deliver WIN and look for further opportunities to attract and retain talented women. We have delivered Unconscious Bias training to all our managers, and will embed and further refine our recruitment practices to ensure we are truly inclusive All those who participate in the Women in Insurance programme have been provided with a mentor to support their career progression and development. In addition, we will look to use the WIN alumni to raise awareness and mentor others to enable a wider group to release their potential. Sustain an inclusive culture Our executive sponsor, Dave Thompson champions our diversity and inclusion strategy at all levels of the business We have refreshed our Diversity & Inclusion training and will roll out Unconscious Bias training to all colleagues in Our colleagues help us recognise and celebrate the diversity & inclusiveness within Tesco Underwriting through an annual calendar of events, and we will continue to promote the inclusion networks available to our colleagues within TU and through our partners. We regularly review our policies and practices to ensure that the colleague experience is inclusive from beginning to end. In 2019, we will have an increased focus on flexible working, understanding and removing barriers to gender balance to benefit both women and men. 5

7 Appendix: Understanding how we calculate our gender pay and bonus gap Calculating the gender pay gap The gender pay gap measures the difference in total hourly pay between all women in a business and all men in a business. There are two ways we must report this, as a median percentage and as a mean percentage. Median The median is the figure that falls in the middle of a range when all hourly pay is stacked from lowest to highest. The median gender pay gap is the difference between the middle figure for all women s hourly pay and the middle figure for all men s hourly pay. Mean The mean is the average figure when you consider the hourly pay for all men and all women. The mean gender pay gap is the difference between the average hourly pay for all women and the average hourly pay for all men. Calculating our pay quartiles The pay quartiles measure how many men and women are represented in each quarter of the business when all men and women s hourly pay is stacked from highest in Quartile 1 to lowest in Quartile 4. Calculating the gender bonus gap The gender bonus gap measures the difference in total bonus payments between all women in a business and all men in a business. There are two ways we must report this, as a median percentage and a mean percentage. We also must report the proportion of men and women who received a bonus payment. Proportion of colleagues to receive a bonus The proportion of women who received a bonus is shown as a percentage of all women in the business and the proportion of men who received a bonus is shown as a percentage of all men in the business. Median The median is the figure that falls in the middle of a range when all bonus payments are stacked from lowest to highest. The median gender bonus gap is the difference between the middle figure for all women s bonus payments and the middle figure for all men s bonus payments. Mean The mean is the average figure when you consider the bonus payments for all men and all women. The mean gender bonus gap is the difference between the average bonus payment for all women and the average bonus payment for all men. It s important to note that colleagues who work part-time receive their bonus on a pro-rata basis, but we are required to report our gender bonus gap calculation without adjusting these to the full time equivalent payment. More information on these calculations can be found on the government website. 6

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