Arthur J. Gallagher Acquires First Actuarial in Major UK Pensions Play – What It Means for Trustees, Employers and the Market

Arthur J. Gallagher & Co. has moved to deepen its presence in the UK pensions and benefits market with the acquisition of specialist consultancy First Actuarial, in a deal announced on 2 December 2025 and widely analysed on 3 December. ^[1]

The transaction, for an undisclosed sum, adds a multi‑office UK pensions administrator and consultancy to Gallagher’s rapidly expanding European platform and comes against the backdrop of record activity in the UK pension risk transfer and bulk annuity markets.

Deal overview: Gallagher buys UK consultancy First Actuarial

According to Gallagher’s own release and M&A wires, the US‑listed broker has acquired UK‑based First Actuarial, a firm providing: ^[2]

Pension administration
Actuarial and consultancy services for defined benefit (DB) and defined contribution (DC) schemes
Employee benefits advice
Investment services for employers and pension trustees across the UK

Key structural points of the deal:

The First Actuarial team, led by partner David Joy, will remain in its current UK locations. ^[3]
The business will sit within Gallagher’s UK Benefits and HR Consulting Division, headed by David Piltz. ^[4]
Financial terms have not been disclosed in any of the public reporting. ^[5]

Gallagher’s chair and CEO J. Patrick Gallagher Jr. has characterised First Actuarial as a highly regarded firm that broadens the broker’s UK pensions capabilities and dovetails with its employee benefits consulting operations. ^[6]

Who is First Actuarial?

First Actuarial has quietly become one of the most influential mid‑tier pensions consultancies in the UK.

Publicly available information about the firm shows that:

It operates as First Actuarial LLP, a limited liability partnership registered in England and Wales and headquartered in Leeds. ^[7]
It has around 500 staff across seven UK offices, and focuses primarily on services to pension schemes. ^[8]
The partnership features around 20 partners and a large actuarial team of 150+ actuaries, advising over 600 pension schemes. ^[9]
The firm supports both DB and DC schemes, including specialist work for LGPS (Local Government Pension Scheme) employers. ^[10]
Its risk‑transfer team works with all major insurers, advising trustees on buy‑ins, buy‑outs and other de‑risking solutions. ^[11]

The firm brands itself as a challenger consultancy focused on client‑first, fair‑priced services and on “making pensions as simple as possible and only as complex as they need to be.” ^[12]

That positioning – mid‑sized, technically strong, and trustee‑focused – helps explain its appeal to Gallagher, which is looking to deepen its advisory offer for pension schemes and sponsors.

Why this acquisition now? The pensions and de‑risking backdrop

The timing of the deal is not accidental. It lands in the middle of an exceptionally busy period for UK pensions and risk transfer.

A record‑heavy bulk annuity and pension risk transfer market

Consultants and insurers expect 2025 to be another near‑record year for bulk annuity and pension risk transfer deals:

Analysis from LCP shows the UK bulk purchase annuity (BPA) market is on track for around 350 transactions in 2025, with volumes expected to exceed £40bn for the third consecutive year. ^[13]
XPS Group’s October 2025 update describes the BPA market as “buoyant” and still on course for a record number of deals, even if overall volumes end up 10–20% below recent peaks because there are fewer multi‑billion transactions. That has left more room for small and mid‑sized schemes – exactly the segment where firms like First Actuarial are strong. ^[14]
European Pensions reporting, citing Just Group, notes that activity in the UK DB risk transfer market is expected to be “much busier” in the second half of 2025 and beyond, with a strong pipeline of small, medium and large schemes preparing to transact. ^[15]

The Association of British Insurers has described the BPA market as a “quiet powerhouse” of the pensions ecosystem, enabling DB schemes to lock in member benefits and remove long‑term risk from corporate balance sheets as funding levels improve. ^[16]

This environment creates heavy demand for actuarial, administration and risk‑transfer advice – from feasibility studies and insurer selection through to member communications and transition support. That’s the heartland of First Actuarial’s business.

Regulatory change and 2026 reforms on the horizon

Beyond the transactions pipeline, regulatory and policy change is driving complexity:

Invesco’s latest Pensions Annual Investment Outlook highlights that 2026 is set to be a transformative year for UK pensions, as the Pension Schemes Bill advances and a new value‑for‑money framework for DC schemes is finalised. ^[17]
The UK government is focusing on de‑risking retirement, creating new default retirement income pathways and supporting collective DC (CDC) solutions, which will change how trustees and providers design end‑game strategies. ^[18]
There is also an active debate about how far pension funds should allocate to private markets and UK productive finance, backed by Mansion House initiatives and industry accords. ^[19]

WTW’s de‑risking market report, meanwhile, flags a “very strong pipeline” of bulk annuity and longevity transactions heading into 2025, and identifies themes such as meeting surging demand for buy‑ins, prioritising member experience, and exploring alternative risk transfer options such as superfunds. ^[20]

Taken together, this points to a sustained need for technically capable, well‑resourced consultants who can navigate complex regulation, transactions and investment questions for schemes of all sizes – precisely the skill set Gallagher is buying.

Gallagher’s growth engine: M&A and UK restructuring

The First Actuarial deal slots neatly into Gallagher’s longer‑term growth story.

20% revenue growth and an acquisition‑led model

For the third quarter of 2025, Gallagher reported: ^[21]

Total revenue of about $3.33bn, up roughly 20% year‑on‑year
Organic revenue growth of 4.8% across its combined brokerage and risk management segments
Incremental revenue from acquisitions of more than $450m
Its 19th consecutive quarter of double‑digit revenue growth

The company completed six acquisitions in Q3 alone, and management has signalled a substantial pipeline of further deals. ^[22]

Gallagher’s 2024 acquisition of AssuredPartners – valued at around $13.45bn and completed in August 2025 – was one of the largest broker M&A deals ever and dramatically expanded its footprint in the US and UK. ^[23]

First Actuarial is much smaller in financial terms, but strategically important: it gives Gallagher more depth in pension consulting, administration and risk transfer at a time when those services are in high demand.

Reshaping the UK platform

On 13 November 2025, Gallagher announced a new operating structure for its UK Retail division, creating two distinct units – Commercial and Corporate – to better serve mid‑market and larger clients after integrating AssuredPartners’ 1,000‑plus new employees and regional offices. ^[24]

Insurance Business analysis of that move highlights: ^[25]

A focus on sharper segmentation between mid‑market and large corporate clients
A push for greater operational efficiency and coordinated distribution
The role of consolidation in reshaping the UK broking landscape, as large players deepen scale and specialisation

The First Actuarial acquisition fits into this pattern: it strengthens Gallagher’s specialist pensions and employee benefits offering, while its existing broking and corporate units focus on risk and insurance for organisations of different sizes. ^[26]

What First Actuarial brings to Gallagher

From a strategic standpoint, Gallagher is buying several things at once.

1. Deep pensions and risk‑transfer expertise

First Actuarial’s practice covers the full pensions lifecycle:

Scheme funding and actuarial valuations
Day‑to‑day administration and member support
Investment strategy and implementation
Risk transfer (buy‑ins, buy‑outs and alternative solutions) working with all major insurers ^[27]

In a bulk annuity market where transaction volumes are high but capacity and pricing can be tight, a consultancy that understands insurer appetites and process nuances can be a significant competitive advantage for Gallagher’s clients.

2. A strong mid‑market and not‑for‑profit client base

First Actuarial is particularly active among:

Small and mid‑sized DB schemes, which are a big part of the deal flow highlighted in the XPS and LCP market updates ^[28]
DC schemes and LGPS admitted bodies, where employers often need tailored advice and hands‑on administration support ^[29]

This complements Gallagher’s existing reach into corporates, public sector bodies and charities via its broking and benefits businesses.

3. Multi‑office UK footprint and talent

Open data sources indicate that First Actuarial has multiple offices – including Leeds, Basingstoke, Peterborough, Tonbridge, Manchester and a newer base in central London – giving it strong regional coverage. ^[30]

The firm’s partnership model and sizeable qualified actuarial cohort (150+ actuaries) add scarce technical talent in a market where experienced pensions professionals remain in high demand. ^[31]

For Gallagher, that means not just extra revenue, but capability and capacity – the two things needed to monetise the long‑term risk transfer and pensions advisory opportunity.

How the acquisition affects trustees, employers and members

For pension scheme stakeholders, the deal has several practical implications.

For trustees and employers

Potential benefits:

Broader service offering – Trustees and sponsors may gain easier access to Gallagher’s wider global capabilities (insurance, reinsurance, benefits, data and analytics) alongside First Actuarial’s existing actuarial and admin services. ^[32]
Stronger transaction support – With Gallagher’s scale and First Actuarial’s de‑risking practice, schemes aiming for a buy‑in or buy‑out may benefit from deeper market insight and leverage with insurers. ^[33]
Technology and operations investment – Large groups typically invest heavily in tooling, cyber security and process automation, which can enhance member experience and operational resilience.

Key risks and questions:

Continuity of advice and independence – Clients will want reassurance that First Actuarial’s “challenge conventional thinking” ethos and independent voice are preserved within a larger corporate structure. ^[34]
Integration friction – Any merger can bring changes to systems, processes and governance; trustees will need clear communication on how service models, reporting lines and decision rights evolve.
Conflicts management – With Gallagher also a major broker and risk intermediary, clients will look closely at how potential conflicts are identified and managed, particularly where insurers are counterparties on de‑risking transactions.

For scheme members

For members, the impact will be more indirect but still important:

Well‑run integration should help maintain or improve administration quality, communication and digital access – areas that regulators and consumer groups increasingly scrutinise. ^[35]
As more schemes move towards bulk annuities or run‑on strategies, having a combined consultancy‑brokerage with scale and specialist expertise may help secure stronger outcomes in terms of benefit security and insurer selection. ^[36]

Sector context: pensions consolidation gathers pace

Gallagher’s move sits within a broader wave of consolidation across UK pensions and retirement services:

NatWest is in exclusive talks to sell its majority stake in workplace pension provider Cushon to WTW, underlining how banks are exiting non‑core pensions assets while global consultancies scale up. ^[37]
Asset‑management giants and alternative managers are piling into UK pension risk transfer. Brookfield’s new insurance arm is targeting several billion dollars a year of UK DB risk deals, while insurers like PIC, Just Group, M&G and Standard Life have announced large recent bulk annuity transactions. ^[38]
Competing pensions consultancies such as Isio, LCP, Barnett Waddingham and WTW are scaling their de‑risking advisory teams and reporting strong demand despite market volatility. ^[39]

In this context, the First Actuarial deal helps ensure Gallagher remains relevant and competitive in pensions and employee benefits, rather than relying solely on its core insurance brokerage franchise.

Investor angle: what does the deal signal about Gallagher?

For investors following Gallagher’s stock, the First Actuarial acquisition reinforces a few themes:

Continued appetite for bolt‑on acquisitions
After the blockbuster AssuredPartners transaction, Gallagher is clearly still pursuing smaller, targeted acquisitions that bring specific capabilities or regional strength, especially where they help monetise existing client relationships. ^[40]
Strategic emphasis on pensions and benefits
The Insurance Business analysis of the deal explicitly frames it as a way to “boost pensions arm” and expand Gallagher’s pensions and benefits footprint in the UK. ^[41]
Alignment with long‑term structural growth
UK DB de‑risking, DC consolidation and regulatory reform are multi‑year trends. The WTW, Invesco and LCP reports all point to sustained transaction and advisory demand, not a short‑lived spike. ^[42]
Pressure to integrate and deliver
With Q3 2025 revenues missing some analyst expectations despite strong top‑line growth, investors are already scrutinising the returns from Gallagher’s heavy M&A spending. ^[43]
Successfully integrating First Actuarial – while preserving its culture and client base – will be another test of Gallagher’s integration discipline.

Outlook as of 3 December 2025: what to watch next

As of 3 December 2025, the First Actuarial acquisition is newly announced and early‑stage. Based on current information, several watchpoints stand out:

Client retention and partner continuity
Whether First Actuarial’s existing partners and senior consultants stay for the long haul will be critical to protecting relationships with the 600‑plus schemes it serves. ^[44]
Integration with UK Benefits and HR Consulting
How closely First Actuarial is integrated with Gallagher’s existing UK benefits teams – and how quickly they align systems and propositions – will determine how much cross‑selling and margin uplift Gallagher can realistically achieve. ^[45]
Regulatory and market developments in 2026
The upcoming wave of UK pension reforms, plus ongoing debate about the correct balance between insurer buy‑outs and “run‑on” strategies for DB schemes, will shape demand for consultancy services and risk‑transfer expertise. ^[46]
Further M&A in pensions admin and tech
With the Cushon–WTW talks and growing interest in pensions technology and consolidation vehicles, observers should expect more deals around administration platforms, master trusts and retirement solutions – areas where a combined Gallagher–First Actuarial could either compete or partner. ^[47]

Key takeaways

Gallagher’s acquisition of First Actuarial is a targeted bet on UK pensions and employee benefits, adding around 500 staff and a highly specialised consultancy to its global platform. ^[48]
The deal lands amid record DB de‑risking activity and major UK pension reforms, both of which should support sustained demand for actuarial, admin and risk‑transfer services. ^[49]
For trustees and employers, the combination offers richer capabilities but also raises questions about independence, integration and conflicts management.
For investors, the transaction is another data point in Gallagher’s acquisition‑driven growth strategy, coming shortly after a strong but expectation‑sensitive Q3 earnings season. ^[50]

How successfully Gallagher manages culture, client relationships and execution over the next 12–24 months will determine whether First Actuarial becomes simply another deal in a long list – or a cornerstone of a significantly stronger UK pensions franchise.