XPS Pensions Group (XPS) CMD 2025 summary

Strategic priorities and growth drivers

• Focus on technology, risk transfer, and insurance consulting as key growth areas, leveraging regulatory change and industry shifts to drive business forward.

• Significant investment in proprietary technology platforms, notably Aurora for administration and Radar for advisory, to enhance client service and operational efficiency.

• Expansion into insurance consulting, including the acquisition of Polaris, to address growing demand from insurers and capitalize on the convergence of pensions and insurance markets.

• Emphasis on culture, client engagement, and maintaining a strong reputation for service quality, innovation, and award-winning diversity.

• Ongoing organic and inorganic growth, with a focus on expanding capabilities in insurance and technology rather than traditional pensions.

Technology and operational transformation

• Aurora, the new administration platform, has replaced four legacy systems, reducing annual costs by £5 million and enabling faster, lower-cost client onboarding.

• Aurora supports over 1.3 million members across 600 schemes, allows for rapid software releases, and features a low-code calculation engine for efficiency.

• Radar, the advisory platform, enables real-time scenario modeling for clients, supporting both existing and prospective client engagement and driving project work.

• AI adoption is accelerating, with 15 AI assistants deployed and automation reducing handling times for high-volume member communications by 5 days, processing over 12,000 emails and 11,000 letters monthly.

• Achieved top 1% global cybersecurity rating and maintains a top-tier BitSight rating, supporting new business wins and client trust.

Risk transfer and market opportunity

• Risk transfer team has grown from 2 to 42 members, with annual revenues rising from £1 million in 2022 to £15 million in 2025.

• Market share in risk transfer has increased from less than 1% to over 10% in five years, with a pipeline of 150 schemes and hundreds of millions in potential revenue over the next decade.

• The risk transfer process spans 3–5 years per scheme, with significant revenue opportunities at each stage: preparation, transaction, and post-transaction.

• Transaction volumes in risk transfer have grown, with £48-49bn in deals expected in 2023-2024, and 30-40 deals completed per year for major clients.

• The market remains highly competitive, with 11 insurers now active and increased bidding activity across all scheme sizes.