XPS Pensions Group acquires APR assets to expand UK insurance consulting

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XPS acquires APR assets

Highlights

XPS Pensions Group acquires APR's UK actuarial consulting assets for an initial £3.3 million cash, £3.0 million deferred, plus up to £10.0 million contingent by 2027.
APR, with revenue of £10.7 million for the year ended 31 March 2026, serves over 45 insurers, bringing 70 client-facing employees and specialist general insurance expertise to XPS.
XPS expects the transaction to be earnings enhancing in the first full year and to exceed cost of capital by year three, doubling its addressable market to over £6 billion.

Deal terms and strategic rationale

As reported by London Stock Exchange Regulatory News Service, XPS says the acquisition adds APR's established UK actuarial consulting operations serving insurers and financial sector clients, helping the group widen its presence in adjacent financial services markets.

APR, founded in 2006, has worked with more than 45 insurers and financial sector clients over the past three years, including most of the UK's top 10 insurers. XPS says APR brings over 70 client-facing employees, a strong training culture and specialist expertise in the UK's general insurance consulting market, which it estimates at about £1.5 billion annually.

XPS is paying £3.3 million in cash on completion, with a further non-contingent £3.0 million due by 31 March 2027. An additional contingent cash consideration of up to £10.0 million is payable in years two and three if stretching business performance criteria are met, with the transaction funded from existing cash and available debt facilities.

In the year ended 31 March 2026, APR generated revenue of £10.7 million, which XPS says implies a transaction multiple of less than 1x revenue. The group also expects cross-selling opportunities and broader deployment of APR staff across its pipeline of work as it expands its consulting capabilities.

Earnings outlook and market impact

XPS says the acquisition is expected to be earnings enhancing in the first full year of ownership, with return on invested capital exceeding the group's cost of capital by the third full year. The company says the deal strengthens its ability to serve both life and general insurance clients, extending its advisory range across a wider set of complex projects.

Co-CEO Paul Cuff says the transaction helps XPS continue a rapid expansion of its addressable market, which he says has doubled to more than £6 billion in less than two years through acquisitions and senior hiring. Roger Austin, APR's founding partner, says the combination offers cultural fit and strategic growth opportunities while allowing the combined business to deliver a more comprehensive service to the insurance sector.

Our earlier article covered the surge in UK annuity demand among wealthier retirees as upcoming inheritance tax changes bring unused pension pots into scope from April 2027. It noted that stronger annuity rates and the ability to create regular surplus income for tax-efficient gifting are prompting over-75s to convert pension savings into annuities and rethink drawdown strategies ahead of the rule change.

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