Gallagher continues growth drive with First Actuarial purchase

The US-based company – which trades in the UK as Gallagher – purchased fellow UK consultancy Redington last year, and last month ceased using the Redington brand.

Gallagher did not disclose many details of the transaction, but said in a statement that First Actuarial’s team would “remain in their current locations”. First Actuarial is currently led by managing partner David Joy. The team will report to David Piltz, head of Gallagher’s UK Benefits and HR Consulting Division.

“First Actuarial is a highly regarded firm that expands our pension service capabilities in the UK and complements our employee benefits consulting operations,” said J Patrick Gallagher, Jr, chairman and chief executive officer of Gallagher. “I am very pleased to welcome David and his associates to our growing, global team.”

The deal is the latest in a series of acquisitions as the pensions industry continues to consolidate. Insurance broker and advisory firm Howden acquired Barnett Waddingham in March, in a move that the two companies said would create “one of the largest pensions and employee benefits consultancies in the UK”.

Last month, administration provider Aptia acquired consultancy firm Atkin Pensions as part of a move to broaden its service offering. This was followed by Independent Governance Group, the professional trustee giant, acquiring KGC Associates, a specialist governance consultancy boutique.

At the same time, consultancy groups have also been increasing the additional services they offer to pension schemes. Several provide ‘streamlined’ processes for small defined benefit pension schemes targeting the bulk annuity market, while others – such as Barnett Waddingham and Hymans Robertson – have added technology-driven governance monitoring systems this year.

Last year, LCP took over the provision of executive, governance and risk management services for the £11.8bn National Grid UK Pension Scheme.