Information  X 
Enter a valid email address

Capita Group PLC (CPI)

  Print      Mail a friend       Annual reports

Wednesday 19 May, 2004

Capita Group PLC

Winterthur Appoints Capita

Capita Group PLC
19 May 2004


19th May 2004

                    Capita Selected as Strategic Partner by

                               Winterthur Life UK

        Agreement Positions Capita as Number One BPO Player in Open Book
                       Life & Pensions Outsourcing Market

The Capita Group Plc ('Capita') announces that it has been appointed as
strategic partner by Winterthur Life UK, to provide third party Self-Invested
Personal Pensions (1) (SIPP) plans administration services in a contract 
estimated to generate revenues of £120 million over ten years. As part of this 
strategic partnership, Capita will purchase the entire share capital of 
Winterthur Life UK's subsidiary Personal Pensions Management Ltd ('PPML') for 
an undisclosed sum.

PPML is the second largest SIPP administrator and as at 31 December 2003 had net
assets of £2.9 million. PPML delivers end-to-end SIPPs policy administration
services for over 23,000 existing SIPP plans. In addition to supporting
Winterthur, Capita will assume responsibility for the provision of SIPP
administration services for a number of other leading blue chip financial
services companies.

Mike Kellard, Chief Executive Officer of Winterthur Life UK, commented: 
'This is a very positive step for all parties. Winterthur Life UK will now be 
able to inject real drive into its stated strategy of developing clear, 
transparent and innovative pension and investment products backed with an open 
charging structure that reflects the needs of customers in the 21st century.

'Outsourcing of third party SIPP administration to Capita fits with our
company's business philosophy of outsourcing parts of its offering where other
firms can add value. We undertook a detailed evaluation process to choose an
appropriate long-term partner. We have a strong vested interest in ensuring that
the owner of PPML is of a high calibre, especially as we're placing 10,000 of
our most valued clients into their hands. Capita has clearly demonstrated that
they have the right profile and track record to successfully support us and our
customers,' concludes Kellard.

Under the agreement, once regulatory approval has been granted, all 400 PPML
employees are expected to transfer to Capita. PPML will be renamed Capita PPML
Ltd and the existing business will continue to be administered in Salisbury. A
Capita team will work alongside the existing management team to ensure a smooth
transition and commence a service enhancement and system transformation
programme to deliver a strong, sustainable and cost effective platform for
customer service excellence.

Rod Aldridge, Executive Chairman of the Capita Group Plc, commented,
'The combination of our knowledge and expertise of customer service and
administration processing with the depth of skill and experience of the PPML
employees, positions us at the forefront of delivering service excellence in
third party SIPP administration. We will continue to develop and grow this
business introducing the latest technology and processes to further improve
quality and provide a very efficient administration system.'

'Today, Capita has the highest level of expertise in administration services for
the life & pensions market across both open and closed book. This agreement
positions Capita as the largest open book administrator in the UK life &
pensions outsourcing market, following our recent contracts with The Children's
Mutual, Lincoln Financial Group, Prudential International and St James's Place
International. We intend to remain at the forefront of the life & pensions
outsourcing market. We believe the Government's proposed pensions' taxation
reforms (2) will further enhance the popularity of SIPPs and continuing 
regulation across the marketplace will drive companies towards administration 
outsourcing solutions. With an efficient administration platform and high levels
of customer service we are positioned well for continued growth in this expanding
marketplace,' he added.

The transaction is due to be completed once FSA regulatory approvals have been
granted. Following integration of PPML within Capita, it is anticipated that the
transaction will be earnings neutral in the current year.

                                     -Ends-

1 A SIPP is a self-invested personal pension plan. This is a personal pension
  plan that puts you in control, giving you greater investment flexibility. You
  can choose where, when and how (subject to Inland Revenue regulations), your
  money is invested. So you get the chance to get involved and take control.
2 On 11 June 2003, the Secretary of State for Work and Pensions announced that
  as of 6 April 2005 the Government will implement a new simplified regime for
  taxing pensions. The complexity of taxation will be eradicated by replacing
  eight different taxation systems with just one unified set of rules. As
  highlighted by the Green Paper 'Simplicity, Security and Choice: Working and
  Saving for Retirement', which is subject to consultation, this will make it
  easier for people to plan for retirement and enable them to make more confident,
  informed decisions.

For further information:

Capita Press Office 0870 2400 488

Winterthur Press Office +44 (0)1256 798099/ +44 (0)1256 798310

Louise Dolan, Financial Dynamics +44 (0)207 269 7192

The Capita Group Plc is the UK's leading provider of integrated professional
support service solutions. The Group's service capabilities encompass customer
services, financial services, human resource services, software services,
systems and strategic support and property services delivered to both public
sector and private organisations. With over 21,000 employees at more than 200
offices across the UK and Ireland, Capita is quoted on the London Stock Exchange
(CPI.L) with revenues for 2003 of £1,081 million.

In April 2003 Capita was named Company of the Year in the Royal Bank of Scotland
Sunday Times Business Awards. Capita has won Management Today's Most Admired
Support Services Company Award in 2003, for the third year running.

Further information on The Capita Group Plc can be found at: www.capita.co.uk.

PPML is a subsidiary of Winterthur Life UK, which is part of Credit Suisse
Group. The Company is based in Salisbury where it administers around a quarter
of the UK market's SIPP plans and it provides a range of services to a number of
major life offices, private client stockbrokers and investment trust providers.
PPML has seen strong growth since its inception in 1990 and now administers in
excess of 23,000 SIPPs. PPML is authorised and regulated by the Financial
Services Authority.

Winterthur Life UK Limited

* Winterthur Life UK Limited is part of Winterthur Group, which is part of
Credit Suisse Group, a leading global financial services company headquartered
in Zurich.

* Winterthur Life UK Limited is renowned for its innovative approach to
financial products. Its philosophy of transparent product propositions offers
advisers a range of retirement and investment solutions with an open charging
structure.

* Winterthur Life UK Limited is one of the UK's top ten providers of Group
Personal Pensions and Single Premium Personal Pensions via IFAs and a leading
provider of SIPPs (Self Invested Personal Pensions).

* Any opinions expressed in this media communication are made as at the date of
publication but are subject to change without notice. Past performance is not a
guide to the future. The value of shares/units and the income from them can go
down as well as up. Exchange rate fluctuations may cause the value of underlying
investments to fall as well as rise. Yields are not guaranteed and may fall or
rise.

* Winterthur Life UK Limited is authorised and regulated by the Financial
Services Authority.

 www.winterthur-ifa.co.uk

Winterthur Group is a leading Swiss insurance company with head office in
Winterthur. As an international company, the Group provides a broad range of
property and liability insurance products, as well as insurance solutions in
life and pensions that are tailored to the individual needs of private and
corporate clients. Winterthur Group has approximately 20,000 employees
worldwide. The company achieved a premium volume of CHF 33.5 billion in 2003 and
reported assets under management of CHF 144.4 billion as of March 31, 2004.

Credit Suisse Group is a leading global financial services company headquartered
in Zurich. The business unit Credit Suisse Financial Services provides private
clients and small and medium-sized companies with private banking and financial
advisory services, banking products, and pension and insurance solutions from
Winterthur. The business unit Credit Suisse First Boston, an investment bank,
serves global institutional, corporate, government and individual clients in its
role as a financial intermediary. Credit Suisse Group's registered shares (CSGN)
are listed in Switzerland, and in the form of American Depositary Shares (CSR)
in New York. The Group employs around 60,000 staff worldwide. As of March 31,
2004, it reported assets under management of CHF 1,241.3 billion.





                      This information is provided by RNS
            The company news service from the London Stock Exchange