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Capita Group PLC (CPI)

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Tuesday 03 March, 2009

Capita Group PLC


3 March 2009


The Capita Group plc ("Capita") today announces the acquisition of Hero
Insurance Services Limited ("Hero") from insurance and investment group LV=
(formerly known as Liverpool Victoria) for a consideration of approximately £15
million on a cash free, debt free basis. The acquisition will add greater
capacity and valuable new expertise to Capita's insurance intermediary and
administration business.

Hero is a personal lines broker offering insurance for cars, motorbikes, homes
and commercial vehicles through brands including AQuote, 1stQuote, Motorcycles
United and Telebikes. Its pro forma operating profit for the 12 months ended 31
December 2008 is £2.3 million on turnover of £23.9 million.

Paul Pindar, Chief Executive of the Capita Group Plc, said: "The acquisition of
Hero Insurance Services will add both new, specialist products and important
cost synergies to Capita's personal insurance intermediary and administration
business. Hero operates in a number of areas of the market that differ from,
but complement, those in which our existing business, BDML, operates. Its
distribution channels include direct sales via both `phone and internet and a
number of key aggregators. Its acquisition will provide new economies of scale
and the opportunity to offer more ancillary products to existing customers. It
will also allow us to provide a more comprehensive service offering a greater
range of product lines. I look forward to welcoming all Hero staff who join the
Capita Group."

Jackie Basham, a Director of Operations at Hero, said: "Joining forces with
Capita represents a great opportunity for our insurance industry clients, our
customers and our staff. We are fully committed to maintaining the focus that
we have on specialist expertise and service excellence. Being part of Capita
will allow us to further enhance the value we offer in these areas."

Hero employs around 300 staff, principally in Essex, Hampshire and Suffolk.

                                   - ends -                                    

For further information please contact:

Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director
Tel: 020 7799 1525

Media enquiries:

Caroline Mooney
Capita press office
Tel: 0207 654 2152 or 0870 2400 488 (out of hours)

Media enquires about LV=:

Emma Holyer
Media Relations Manager
Tel: 0208 256 6714 / 07894 158605

Notes to editors:

The Capita Group Plc is the UK's leading provider of BPO and 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 more than
32,000 employees at more than 300 offices across the UK, Ireland and India,
Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of
the FTSE100 with revenues for 2007 of £2,073 million.

Further information on The Capita Group Plc can be found at: http://


LV= is a trademark of Liverpool Victoria Friendly Society Limited (LVFS) and LV
= is a trading style of the Liverpool Victoria group of companies. The new LV=
brand identity was launched in March 2007. LV= is the UK's largest friendly
society. As a mutual organisation, LV= exists wholly for the benefit of its
members. Its philosophy is to put its members first and ensure they benefit
from everything the company does. LV= employs more than 3,400 people, serves
more than 3.6 million customers and members, and manages around £7 billion on
their behalf.