Key Takeaways
- • Willis Towers Watson led the UK actuarial and pension consulting market in 2017 with revenues of £408 million, £26 million ahead of second-placed Mercer, according to Consultancy.uk's ranking.
- • The ten largest UK actuarial and pension consultancies generated combined revenue of almost £2 billion in 2017, with the Big Three (Willis Towers Watson, Mercer and Aon Hewitt) accounting for more than half of the segment's roughly £1.9 billion revenue pool.
- • Aon Hewitt reported revenues of £328 million, boosted by the acquisitions of Portus Consulting and Henderson Insurance during the year.
- • The Big Three face a competition probe from the Competition and Markets Authority (CMA), though the review has not visibly affected their revenue performance.
- • Rising pension liabilities driven by an ageing population and automation risks, including a warning that the state pension fund could be depleted as early as 2032, are expected to sustain demand for actuarial advisory services.
Summary
The ten largest actuarial and pension consulting firms in the UK generated combined revenue of almost £2 billion last year, according to Consultancy.uk. Willis Towers Watson, Mercer and Aon Hewitt remained the largest nationwide consultancies despite mounting regulatory pressure. Together the trio holds a combined market share of more than £1.1 billion within a trustee actuarial and administration services market that commands revenues of almost £1.9 billion and is expected to pass £2 billion in the near future.
Willis Towers Watson is the largest firm, with 2017 revenues of £408 million. Its CFO, Roger Millay, retired last year. Mercer ranked second with revenues £26 million lower, and recently appointed Jo Holden as UK investment head. Aon Hewitt drew £328 million in revenue, supported by the acquisitions of Portus Consulting and Henderson Insurance during the year.
Capita Employee Benefits, comprising Capita Employee Benefits Limited and Capita Employee Benefits (Consulting), ranked fourth with £139 million despite a difficult year for the broader Capita group. Xafinity, including its recently merged Punter Southall businesses, and JLT Benefit Solutions tied for fifth with £110 million each. Lane Clark Peacock followed with £88 million, ahead of Hymans Robertson, which posted £75 million, employs 665 staff including 79 partners, and was launched in 1921. Barnett Waddingham, with 633 employees, reported £67 million, and Punter Southall rounded out the top ten with £58 million.
Beyond the top ten, Xafinity (excluding its newest merger) recorded £52 million, narrowly ahead of Buck Consultants. Buck Consultants regained its independence as of spring 2018 and is expected to use private equity investment to grow. First Actuarial reported £18 million in revenue for 2017.
The ranking excludes PwC, Deloitte, KPMG and EY, as the Big Four do not disclose sufficient segmental information. It also omits Redington, which employs around 240 staff, and smaller regional firms. Against this backdrop, the publication notes that the UK's pension assets total roughly £2.8 trillion (approximately $3.1 trillion), around 5% of global funds, while the Government Actuary Department has suggested that a 5% rise in National Insurance Contributions may be needed to avoid a pensions deficit.
Willis Towers Watson is the largest firm, with 2017 revenues of £408 million. Its CFO, Roger Millay, retired last year. Mercer ranked second with revenues £26 million lower, and recently appointed Jo Holden as UK investment head. Aon Hewitt drew £328 million in revenue, supported by the acquisitions of Portus Consulting and Henderson Insurance during the year.
Capita Employee Benefits, comprising Capita Employee Benefits Limited and Capita Employee Benefits (Consulting), ranked fourth with £139 million despite a difficult year for the broader Capita group. Xafinity, including its recently merged Punter Southall businesses, and JLT Benefit Solutions tied for fifth with £110 million each. Lane Clark Peacock followed with £88 million, ahead of Hymans Robertson, which posted £75 million, employs 665 staff including 79 partners, and was launched in 1921. Barnett Waddingham, with 633 employees, reported £67 million, and Punter Southall rounded out the top ten with £58 million.
Beyond the top ten, Xafinity (excluding its newest merger) recorded £52 million, narrowly ahead of Buck Consultants. Buck Consultants regained its independence as of spring 2018 and is expected to use private equity investment to grow. First Actuarial reported £18 million in revenue for 2017.
The ranking excludes PwC, Deloitte, KPMG and EY, as the Big Four do not disclose sufficient segmental information. It also omits Redington, which employs around 240 staff, and smaller regional firms. Against this backdrop, the publication notes that the UK's pension assets total roughly £2.8 trillion (approximately $3.1 trillion), around 5% of global funds, while the Government Actuary Department has suggested that a 5% rise in National Insurance Contributions may be needed to avoid a pensions deficit.
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