The biggest deals of the year in the UK pensions and employee benefits sector mostly landed in December, with WTW buying Cushon and Gallagher taking over First Actuarial. Here is a dive into the top three acquisitions of the year.
WTW acquired Cushon
WTW confirmed earlier this month that it will acquire Cushon from NatWest Group for an undisclosed sum. Cushon will operate as a separate master trust from WTW’s LifeSight master trust, with Cushon focused on mid-sized businesses and LifeSight targeting larger corporates.
In October, Corporate Adviser revealed that WTW was on the shortlist to buy Cushon after NatWest announced it was up for sale earlier in the year. The move comes amid a push for scale among DC pension providers, with government requirements stating that multi-employer DC providers must reach £25bn by 2030, or have clear plans to do so by 2035.
The acquisition includes a referral arrangement allowing NatWest’s commercial banking customers to continue accessing Cushon’s workplace pensions and savings services.
WTW president of health, wealth & career Julie Gebauer said: “Adding Cushon to our portfolio will enable us to serve all segments of the rapidly growing master trust space. Cushon has built a groundbreaking technology-led solution that is highly scalable and has enjoyed great success. This acquisition opens possibilities to help a wider range of clients and support their members improve their financial futures.”
Cushon founder and CEO Ben Pollard added: “Our proposition has created strong demand among NatWest’s corporate clients, which we will continue to serve through our ongoing partnership with NatWest. With our leading-edge market propositions, WTW’s strong capabilities, and NatWest’s enviable distribution, all the ingredients are in place to accelerate our next phase of growth.”
Gallagher acquired First Actuarial
December also saw AJ Gallagher expand its UK footprint with the acquisition of employee benefits firm First Actuarial for an undisclosed sum. First Actuarial provides pension administration, investment services, and employee benefits consultancy to employers and trustees across the UK. The First Actuarial team, led by David Joy, will remain in place and now report to David Piltz, head of Gallagher’s UK benefits and HR consulting division.
Arthur J. Gallagher & Co, a US-based global insurance brokerage and consulting firm, has been expanding significantly in the UK, having acquired investment firm Redington last year.
At the time, Gallagher chairman and CEO J Patrick Gallagher said: “First Actuarial is a highly regarded firm that expands our pension service capabilities in the UK and complements our employee benefits consulting operations.”
Howden acquired Barnett Waddingham
Earlier in the year, Howden made headlines with its acquisition of Barnett Waddingham for an undisclosed sum, creating one of the largest pensions and employee benefits consultancies in the UK. The deal added pension advice and consultancy to Howden’s capabilities and provides a platform for expansion into global markets.
The acquisition means Howden now employs 10,000 people across more than 200 UK locations, serving over two million individuals. It has also doubled its global employee benefits business in terms of employees, with revenues approaching £500m worldwide.
Howden CEO UK health & employee benefits and global practice leader Glenn Thomas said: “In the global war for talent, companies distinguish themselves with outstanding employee benefits. Barnett Waddingham’s extensive pensions expertise, together with Howden’s market-leading presence in health and employee benefits, creates a full-service proposition with one of the most extensive global footprints in the market. The combination brings together two leading businesses with an exceptional cultural fit and reflects Howden’s commitment to investing in its employee benefits advisory capabilities.”
Mercer completes acquisition of Fundhouse
In October, Mercer completed its acquisition of Fundhouse in the UK, a London-based provider of investment advisory and model portfolio services. Mercer said the deal, which was announced in June, expands its UK wealth management reach and strengthens its capabilities, while Fundhouse and its clients will gain from Mercer’s nationwide footprint and global investment research.
Fundhouse, which was founded in 2010 by Rory Maguire, has £2.1 billion in assets under management and £10 billion in assets under advisement as of 1 May 2025. Maguire will remain in charge of the investment process and join Mercer alongside the existing senior leadership team.
The move follows last year’s acquisition of Cardano, which strengthened Mercer’s position in pensions across the UK and the Netherlands. That deal brought in Cardano’s UK DC master trust, Now :pensions, expanding the range of auto-enrolment and customised DC solutions for Mercer’s clients. More than 550 Cardano staff in London, Nottingham and Rotterdam also joined Mercer as part of the transaction.