Prudential UK is to outsource its life and pensions policy administration to Capita. Both in-force a...
Prudential UK is to outsource its life and pensions policy administration to Capita. Both in-force and new policies will now be administered by the group, in a deal Prudential has calculated will save it £60m a year until 2010.
Prudential currently has 17 legacy systems used in policy administration, with teams based in Stirling, Reading and Mumbai. The deal will see the systems transferred to two Capita platforms, with 1,750 UK-based staff moving over to Capita under the Transfer of Undertakings (Protection of Employment) (Tupe) regulations. Capita will pay £25m to acquire the business, as well as assets including part of the Mumbai-based PPMS operation. This will see 1,250 of the 1,800 Mumbai-based staff join Capita.
Prudential has had outsourcing relationships with Capita since 2003, when it took on the life and pensions administration for Prudential's international cross-border business in Dublin.
Nick Prettejohn, chief executive of Prudential UK, said: "This agreement helps us to deliver our strategy by removing fixed costs from our operations and achieving significant operating efficiencies. It will allow us to concentrate on using our competitive strengths and proven capabilities"
£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards