Gender Pay Gap Report for UK Entities - Arch Insurance
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Gender Pay Gap Report for UK Entities
©2021 Arch Insurance Group Inc. All rights reserved.DocuSign Envelope ID: 0A13C6A2-DC7C-4C3D-969A-1BE4829ECA69
Introduction
This report sets out the gender pay gap among our UK workforce for the 2020/2021 reporting year and
describes the steps we are taking to address our gender pay gap and to foster greater diversity within our
organisation.
The figures in this report are based on a headcount of 683 employees as at 5 April 2020, consisting of 404 male
employees and 279 female employees across Arch Europe Insurance Services (AEIS) and Barbican Holdings (UK)
Limited (Barbican). Arch Capital Group acquired Barbican in late 2019 and AEIS and Barbican ran independently
before integrating in March 2021.
Our gender pay gap is indicative of the gender distribution of our workforce which, in line with the (re)insurance
industry, has traditionally seen more men in senior positions who, as a result, earn higher salaries and bonuses.
The reverse is true for more junior roles, which are predominantly occupied by female employees. As a result,
the average pay for male employees in our workforce is higher than the average pay for female employees.
We are dedicated to closing our gender pay gap and, since 2019, we have embarked-on and maintained
initiatives (outlined at the end of this report) to promote and entrench diversity in our workforce and reducing
the pay disparity between our male and female employees.
Gender Pay Gap Reporting and Equal Pay
It is important to understand that gender pay gap is distinct from equal pay. Whilst both relate to the difference
in pay that men and women may receive in the workplace, they are two distinct concepts as set out below:
Equal Pay is the legal right for men and women in the same employment to receive equal pay for performing
equivalent work.
Gender Pay Gap is the difference between the average pay for all male employees and the average pay for all
female employees within an organisation regardless of their job role or seniority. Gender pay gap is expressed
as a percentage.
Arch UK Gender Pay and Bonus Gap
The gender pay gap figures listed in this report are calculated based on annual salaries of employees of AEIS
and Barbican as at 5 April 2020 and bonuses paid during the 12 months prior to 5 April 2020 (i.e., 6 April 2019
to 5 April 2020).
This is the first time we have reported consolidated gender pay gap figures for AEIS and Barbican. It is difficult
to make a meaningful comparison with previous figures (when the two businesses reported separately).
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However, this report forms a baseline from which we will compare future data and track our progress as we
work towards closing the gender pay gap.
The figures in the table below show:
Our mean gender pay gap —the percentage difference between the average pay of all male employees
compared to the average pay of all female employees in our UK workforce.
Our median gender pay gap —the percentage difference between the median (middle point) of all male
employee salaries compared to the median (middle point) of all female employee salaries in UK our
workforce.
Our mean bonus pay gap – the percentage difference in the average bonus received by all male employees
compared to the average bonus received by all female employees in our UK workforce.
Our median bonus gap —the percentage difference in median (middle point) bonus received by male
employees compared to the median (middle point) bonus received by female employees in our UK
workforce.
Pay Quartiles
When reviewing our gender pay gap in the UK, we split our employees’ earnings into four equally sized groups,
or pay quartiles, and calculate the proportion of men and women in each quartile. The chart below shows the
proportion of male and female employees in each of our pay quartiles. As the chart illustrates, we have
proportionally more men than women in our top three pay quartiles which is the primary reason for our gender
pay gap.
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The lower, lower middle and upper middle quartiles each contain 171 employees and the upper quartile
contains 170 employees.
Gender Distribution by Pay Quartiles
as at 5 April 2020
MALE FEMALE
UPPER 74.12% 25.88%
UPPER MIDDLE 65.50% 34.50%
LOWER MIDDLE 52.05% 47.95%
LOWER 45.03% 54.97%
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Closing the Gap in 2021
We are addressing our gender pay gap by strengthening our strategies across a range of areas, including the
following:
Diversity and Inclusion (D&I) initiatives
- We launched the Women and Allies employee resource group in 2020. The network is an employee-
led, business-focused group which supports D&I strategy and objectives.
- We launched the Fostering Inclusive Leadership programme in 2021, a Yale University course available
to all managers, which equips participants with the skills to be inclusive leaders and to minimise
unconscious bias.
- Arch sponsored the 2021 Dive In Festival, an international festival for diversity and inclusion in
insurance.
Policy improvements
- We have reduced the length of service requirement for employees to be entitled to enhanced
maternity pay and shared parental leave from two years’ service to one years’ service.
- Arch engaged a third-party specialist to support an independent job levelling exercise for all roles in
the business. The project was completed in Q3 2021 and continues to support our ongoing focus on
pay equity.
- The aforementioned Women & Allies employee resource group is due to table additional suggestions
for policy changes in Q4, 2021 – to be reviewed by our Management Committee.
Strategic partnerships to create exposure and development opportunities
- We have partnered with the ISC Group, a business community that provides personal, professional and
business development for women in insurance. ISC Group offer tailored memberships for women at
every level of their careers, including opportunities for networking, mentoring and coaching.
- Arch sponsored the 2020 Everywoman in Insurance programme, an annual event of insurance leaders
committed to increasing the number of women in senior level insurance positions.
Focused recruitment and promotional efforts have led to female appointments to key senior positions
- Arch Group has conducted a data-driven exercise to model and anticipate the impact of recruitment
within each business segment. This will provide our Management Team with an ability to predict
impactful strategies to enhance diversity and compensation balance.
- We have engaged specialist recruitment firms to ensure that diverse candidates are included in our
candidate pools.
- We made the following key senior appointments during 2020-2021:
o Kendra Felisky Independent Non-Executive Director and Chair of Risk Committee
o Kirsten Valder, Chief Administrative Officer
o Silvia Martinez, Senior Vice President, General Counsel
o promoted Krista Bonneau to Senior Vice President, Ceded Reinsurance
o promoted Barbara Rizzi to Head of Claims – Third Party
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Succession planning
- We extended the scope of our annual succession planning exercise in 2021, with direction to our
Management Team to broaden their consideration to include diverse talent. This effort resulted in the
identification of female and diverse talent and where potential successors were identified, now includes
their training and development needs, with action plans in place to bridge those needs. The board and
senior management feel that this is an effective means of bringing talent to the forefront and subsequently,
proactively fostering those careers, where those career-paths may have received less attention.
Statutory Disclosures
In late 2019, Arch Capital Group acquired Barbican and thereby significantly increased our UK workforce. AEIS and
Barbican ran independently before integrating in March 2021. As at 5 April 2020, both AEIS and Barbican separately
employed more than the legal threshold of 250 staff for gender pay gap reporting. Other than as listed below, this
report consolidates gender pay gap information for the two employing entities.
The table below details the non-consolidated information that we are required by law to report for AEIS and
Barbican.
% males % females
Median GPG Mean GPG Mean Bonus Median Bonus receiving a receiving a
GPG GPG bonus bonus
AEIS 29.10% 28.10% 68.30% 51.40% 80.40% 80.40%
Barbican 44.10% 36.40% 61.50% 40.00% 81.20% 88.80%
Lowest quartile Lowest middle quartile Upper middle quartile Upper quartile
Males Females Males Females Males Females Males Females
AEIS 44.30% 55.70% 51.30% 48.70% 67.00% 33.00% 73.20% 26.80%
Barbican 50.00% 50.00% 44.60% 55.40% 64.30% 35.7% 80.40% 19.60%
We confirm that the data contained within this report is accurate and meets the requirements of the Gender Pay
Gap reporting regulations.
Hugh Sturgess, President & Chief Executive Officer
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Kirsten Valder, Chief Administrative Officer
Marcella McLean, Chief Human Resources Officer
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