XPS Pensions Group (XPS) CMD 2025 summary

Strategic growth drivers and market context

• Regulatory changes and industry shifts are fueling demand for pension and insurance consulting services, with significant opportunities arising from risk transfer, technology adoption, and new business models.

• The business is leveraging proprietary technology platforms, Aurora for administration and Radar for advisory, to drive efficiency, client engagement, and competitive differentiation.

• Recent acquisition of Polaris expands insurance consulting capabilities, enabling flexible, scalable project delivery and access to a broader client base, now serving 14 UK insurance clients and generating over £20m in annual revenue.

• The risk transfer market is experiencing rapid growth, with the firm increasing its market share from less than 1% to over 10% in five years, and revenues in this area rising from £1m in 2022 to £15m in 2025.

• The business aims to be the leading one-stop provider for UK pensions and insurance services, targeting trustees, employers, and insurers.

Technology and operational transformation

• Aurora, the in-house administration platform, has replaced four legacy systems, reducing annual costs by £5m and enabling faster, lower-cost client onboarding and frequent software updates.

• Radar, the advisory platform, allows real-time scenario modeling for clients, supporting complex funding and investment decisions, and is a key driver of project work and client referrals.

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

• Cybersecurity is a strategic focus, with the business achieving a top 1% global BitSight rating, enhancing client trust and supporting new business wins.

• Technology investments are expected to drive higher margins through efficiency and fixed-fee contracts, with limited deflationary impact on pricing due to differentiated service and slow competitor adoption.

Risk transfer and insurance consulting expansion

• The risk transfer process spans preparation, transaction, and post-transaction phases, each generating significant revenue opportunities, with a typical £500m scheme yielding £2.5m–£3m in fees.

• The firm is winning a growing share of non-core clients, with one-third of pipeline risk transfer projects from outside its traditional base.

• Insurance consulting, bolstered by the Polaris acquisition, leverages a flexible contractor pool of 700, enabling rapid scaling for regulatory-driven projects and offering outcome-based pricing.

• The business is targeting deeper client penetration and expansion into new insurance sectors, supported by a larger sales force and a technology-led value proposition.

• Competitive pressures in the insurance market are seen as growth drivers, with new entrants requiring extensive consulting and administration support.