Vendor Analysis
published on Feb 15, 2024
Report Overview:
This NelsonHall vendor assessment analyzes Aptia's offerings and capabilities in next generation benefits administration, covering health & welfare and pension administration.
Who is this Report for:
NelsonHall’s Benefits Administration profile on Aptia is a comprehensive assessment of Aptia’s offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of Benefits Administration Services and identifying vendor suitability for security services RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the Benefits Administration Services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Aptia’s Benefits Administration Service offerings and capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphasis, and new developments
- Analysis of the company’s strengths, weaknesses, and outlook
- Revenue estimates
- Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s offerings and key service components
- Analysis of the company’s delivery organization including the location of delivery centers.
Key Findings & Highlights:
Aptia is a provider of employee benefits and pensions administration services, with offices in the U.S. and U.K., supported by shared services in India and Portugal. It manages programs covering 7m+ people and serving ~1.1k clients. Aptia was formed in 2024 by the acquisition of the U.S. health and benefits administration and U.K. pension administration segments of Mercer, a business of Marsh McLennan (NYSE: MMC), by Bain Capital Insurance.
The acquisition merged one of the largest health and benefits administration platforms in the U.S. and the largest pensions administrator in the U.K., enabling the company to launch with significant scale, resources, deep technical expertise, proven solutions, and key insurer relationships. The current platform leverages proprietary technology and Mercer Marketplace 365+, the most recent generation of the platform prior to transitioning to Aptia. The transaction included 3.5k+ employees across the U.S., U.K., India, and Portugal that provide specialist solutions focused on the skills and technology required to manage the health and wealth administration for client employees, members, and policyholders.
Aptia has ~1k employees supporting benefits administration services, of which ~75% are based in service centers. Aptia uses a combination of onshore and offshore support for its benefits administration services; resources that provide client-facing support are all onshore.
Overall, Aptia is targeting health and benefits administration clients with needs that extend across retirees and active employees, servicing group as well as individual plans. By share of clients, Aptia’s business distribution is estimated as follows:
- Large market (>10,000 employees): 11%
- Mid-market (500 – 10,000 employees): 64%
- Small market (<500 employees): 25%.
Its retiree business targets organizations with ~500 to 2k retirees, although it has some clients with ~15k client retirees. Aptia primarily serves benefits administration clients in the private sector, with <1% of its revenues from the public sector.
This profile focuses specifically on Aptia’s Benefits Administration services.