Festina Finance has officially launched its Life and Pension Platform in the UK, bringing a full suite of cloud-native administration capabilities to the Defined Benefit (DB), Defined Contribution (DC), Collective DC (CDC), and life insurance sectors.
Building on its established operations in Denmark and the Netherlands, the company is expanding into the UK with a platform poised to support more than 8 million members and manage over £700 billion in assets. Current clients include major institutions such as PensionDanmark and APG, the largest pension provider in Europe.
The platform is purpose-built for high-volume pension administration, designed to simplify complex operations through a modular architecture, configurable features, and seamless integration options. Developed with Gartner’s pace-layered application strategy, the system allows for phased implementation, enabling clients to integrate it alongside existing legacy systems without requiring a full overhaul.
A key feature of the platform is its no-code configuration capability. This empowers users to modify scheme rules, fees, and plan structures—including CDC, DC, and DB arrangements—without the need for software development or external support, accelerating delivery and reducing operational friction.
Strategic Timing Amid UK DB Market Growth
Festina Finance’s UK expansion comes at a time of heightened activity in the defined benefit (DB) pension de-risking market, which is projected to reach £70 billion in 2025, according to WTW. Of this, approximately £50 billion is expected to be driven by bulk annuity transactions, with the remaining £20 billion comprising longevity swaps.
The projections follow a year in which the market nearly reached £60 billion in total volume, driven by improved funding positions and an increasing number of schemes prepared to transact.
In 2023, bulk purchase annuity volumes surged to £50 billion, representing a substantial year-on-year rise. This growth was largely attributed to favourable market conditions and a concerted push by pension schemes to capitalise on attractive pricing and improved funding levels.
The rising demand for de-risking solutions has attracted new entrants to the insurance market, particularly providers targeting smaller schemes—typically those with assets below £100 million. These new players are offering simplified, template-based transaction models aimed at making the market more accessible to a wider range of schemes.
Regulatory developments are also shaping the de-risking landscape. The anticipated rollout of Solvency UK by the end of 2024 is expected to influence pricing and capital requirements across both bulk annuity and longevity swap transactions.
Additionally, increased scrutiny from the Prudential Regulation Authority is likely to affect how providers structure deals and manage risk, particularly in relation to capital adequacy and risk-sharing mechanisms.
