LCP announces record breaking financial results
The release of LCP’s results for its last financial year has seen it announce record breaking revenues. The actuarial consultancy enjoyed income of more than £189 million in the year leading to July 2023.
LCP is a firm of financial, actuarial and business consultants, specialising in the areas of pensions, investment, insurance and business analytics. The firm’s pensions and benefits wing works with businesses to provide actionable and bespoke advice, navigating complex regulations, and giving trustees the right tools to get the best outcome. A year of developing its proposition has led to a set of major financial gains for the consultancy.
In April 2022, LCP acquired Delta EE, for example, with its first year of operation seeing the joint business building on a shared mission and culture to build a thriving combined business, with a clear aim to be the leading global consultancy driving the energy transition. Elsewhere, LCP’s health analytics team have reimagined the economic incentives of the health system, working to reduce healthcare inequality and improve patient outcomes.
In the firm’s de-risking wing, the team has led insurance-based transactions for £12 billion of people’s pensions, securing these members’ retirement outcomes. Meanwhile LCP launched a new strategic approach for defined benefit pensions clients – expertise that helped it build a case to seek changes in the pensions regulatory environment, and help the £1.5 trillion of UK DB pension funds to be used more effectively for society. Some of the firm’s work is now being consulted on by the government.
And like many other consulting firms, LCP is finding the arena of AI tools extremely fruitful too. The firm’s AI reserving tool, InsurSight, has analysed over £100 billion of reserves to help insurers make critical decisions. As such, LCP enjoyed revenue growth of 27.4% on last year, including acquired revenue, following on from 5% reported in the summer of 2022.
As LCP sought to meet its record demand in the last year, it has significantly expanded its headcount, too. The firm saw 276 new joiners arrive, lifting it to the milestone of 1,000 people. Meanwhile, 16 people were rewarded for the firm’s performance by being elevated to partner.
Looking ahead, LCP hopes it can continue on this track in the next 12 months. LCP enjoyed a satisfaction score of 8.6 and a NPS (Net Promoter Score) of +64 among customers. This means that it hopes to kick on from its group record income of £189.8 million in some style.
Aaron Punwani, LCP CEO, commented, “I am proud of the way our people handled and navigated this challenging year, and the way they embrace and develop new opportunities. This is going to be especially important as we enter the new and rapidly evolving world of AI and as the urgency of action on climate change becomes more apparent. I am privileged to lead a firm of people that takes a long-term view and sees the future as something to embrace and shape rather than be afraid of. I am excited to see where our journey takes us as we progress with our ambitious plans.”
