As used in this document, references to “the Company” refer to Accelerant Holdings (“AH”) and its subsidiary companies (including variable interest entities but excluding non-controlling interests). AH is a limited liability company which, together with its subsidiary companies, is a risk exchange where capital providers are matched with those seeking protection against risk. Through its risk exchange the Company together with third-party capital providers including unaffiliated insurance companies, insure against risk of loss.
Our approach to risk management and governance arrangements in relation to taxation
The Company places significant importance on our brand and reputation and we seek to reduce the level of tax risk arising from our operations as far as is practicable by ensuring that reasonable care is applied in relation to all processes which could materially affect our compliance with tax obligations. We manage and mitigate tax risk through the implementation of controls at appropriate points in our business and tax compliance processes. The governance and controls around our tax-related risks are set by the Company’s Board of Directors and monitored by the Audit Committee of the Board. The tax strategy is implemented by the Group Tax function with oversight from the Group Chief Financial Officer, who reports to the Company’s Board of Directors (or Audit Committee) as necessary on the Company’s tax affairs.
The Group Tax function has the required levels of expertise to identify, assess and manage tax risk. Where appropriate we seek advice from suitably qualified and experienced external tax advisors. This includes situations where there is significant uncertainty or complexity regarding the tax treatment of a transaction, and where specialist knowledge is required on tax technical issues. Where aspects of the tax function are provided by specialist firms (e.g., payroll taxes) we maintain responsibility for and oversight of these services.
Our risk appetite in relation to taxation
The Company generally has a low appetite for tax risk and manages tax risks to ensure compliance with legal requirements in a manner which is reasonable and consistent with current market practice and wider business risk appetite and ensures payment of the right amount of tax. We have no appetite for tax positions based on interpretations of tax law which are aggressive or subject to significant uncertainty. Significant or material transactions are reviewed by senior internal stakeholders, Group Tax and external advisors so that tax risks are identified and accepted only if they are in line with our stated risk appetite.
The Head of Group Tax in consultation with the Group Chief Financial Officer actively and continuously identifies, monitors and manages tax risks in the light of the Company’s business and strategic objectives. The Group Chief Financial Officer and Head of Group Tax communicate with key stakeholders, including legal entity Boards, to ensure tax issues are addressed and that tax risk throughout the organisation is identified, managed and communicated.
Our attitude towards tax planning
When entering into commercial transactions, the Company may seek to take advantage of available tax incentives, reliefs and exemptions in line with tax legislation. Accelerant does not undertake tax planning unrelated to such commercial transactions. The Company maintains a Code of Conduct (the Code), which describes our ethical principles and includes policies designed to assist in preventing violations of the Code. Our approach to tax aligns with the Code.
Our approach towards dealings with tax authorities
The Company values an open and constructive relationship with tax authorities. We strive to maintain that relationship by working with tax authorities in a collaborative, transparent, and timely manner. We fully disclose any inadvertent errors in submissions made to tax authorities as soon as reasonably practicable after they are identified and respond promptly and with full disclosure to any enquiries received from tax authorities. Where appropriate, we seek certainty regarding the interpretation of tax law through dialogue with tax authorities.
The Accelerant group regards the publication of this tax strategy as complying with its duty under Schedule 19 of Finance Act, 2016 to publish its UK tax strategy in the current financial year. This tax strategy applies to all Accelerant entities which are resident in the UK as well as UK branches of non-resident entities. Ultimate responsibility for the ownership of this Strategy resides with the Boards of the Accelerant entities. This strategy applies from the date of publication until it is superseded.