Aptia has accelerated its move into full-service pensions consulting with the acquisition of Atkin Pensions, an independent specialist firm of consulting actuaries and administrators, in December last year.
The deal represents a strategic broadening of the business beyond administration, strengthening its actuarial and advisory capabilities amid heightened demand for integrated solutions.
Aptia, which spun out of Mercer, serves around 1,200 clients, many of whom historically purchased bundled actuarial, investment and administration services. As those services became increasingly unbundled across the market, trustees often found themselves coordinating multiple providers, a model Aptia now intends to streamline.
After a period in which actuarial, investment and administration services were separated, Aptia moved in 2025 to rebuild its consulting capability, beginning with Atkin’s purchase.
Stuart Heatley, who recently joined as consulting leader to head the firm’s newly launched consulting and actuarial division, describes the Atkin acquisition as the first step in a three-to-five-year growth plan.
Heatley says the model combines senior expertise with a single technology platform spanning administration, actuarial and investment, enabling real-time valuations and significantly faster provider transitions.
He says: “We’re careful to bring in senior professionals with established reputations, ensuring service quality remains high. But we’re also technology-driven. Our administration, actuarial and investment services operate from a single data platform, enabling real-time online valuations.
“Trustees no longer need to wait up to three years for a valuation; they can access live data instantly. The platform also means schemes can transition both actuary and administrator in under three months, something that remains extremely challenging elsewhere in the market.”
Aptia says one of the immediate priorities following the deal has been managing the cultural shift that comes when a smaller firm becomes part of a larger group.
Heatley notes: “Our focus has been on reassuring the Atkin team; they have a great model, strong client relationships and an excellent reputation. The challenge has been gently identifying how we can support Atkin to access more clients and expand their impact.”
Market structure and target schemes
Heatley argues that Atkin has been particularly strong among smaller schemes, where trustees often prefer a single supplier with a scheme actuary closely involved in delivery.
He says: “There are roughly 3,400 UK pension schemes with less than £100m in assets, that’s where we see significant opportunity.”
Aptia is building a tiered structure to reflect differing scheme needs: a micro-scheme solution; a bundled, full-service model led by a scheme actuary; and a practice-led approach for larger funds requiring more sophisticated investment, actuarial and administration expertise.
He adds that trustee appetite for bundled propositions is increasing, particularly among schemes seeking greater coordination and efficiency as they approach endgame decisions.
Risk transfer
Risk transfer continues to dominate the defined benefit landscape. In 2022 alone, around 350 schemes completed buyouts, representing transactions worth around £40bn.
He says: “Large schemes have largely addressed their needs, so the opportunity now lies with smaller schemes that are well-funded and looking to enter the risk transfer market.”
Aptia is building a dedicated team to support clients through the full process, from data preparation and GMP equalisation to executing buy-in or buyout transactions.
“The primary goal for trustees is always to secure member benefits in the best way possible. Risk transfer is in vogue because funding positions make it viable. Larger schemes have led that shift, and smaller schemes are increasingly following.”
Run-on strategies remain an option, though less common in the current climate. Heatley notes that for schemes choosing to continue, consolidation into larger vehicles can offer improved buying power and access to more sophisticated investment strategies.
But for smaller schemes weighing up risk transfer, insurer appetite remains robust. He says: “Insurers are very interested in smaller transactions, which is good news for schemes considering that route.”
Bulk annuity cycle revisited
The bulk purchase annuity market experienced rapid growth between 2006 and 2008 before consolidating.
Heatley says: “Today, new entrants are returning and there’s strong interest from insurers in UK DB assets. The number of very large transactions may taper as those schemes complete buyouts, but there is a significant opportunity among smaller schemes now in a position to transact.”
According to Heatley, improved funding levels across much of the market have created an unusually constructive environment.
Heatley describes it as a positive phase not only for trustees and members, but also for advisory firms positioning themselves to support schemes through complex endgame decisions.
He says: “Schemes are in a strong position and member benefits are increasingly being secured. It’s a constructive environment, for trustees, for members, and for firms building consulting capabilities to support them.”