Capita selected by AXA as preferred strategic p...
22 January 2009
CAPITA SELECTED BY AXA AS PREFERRED STRATEGIC PARTNER FOR LIFE AND PENSIONS
ADMINISTRATION
The Capita Group Plc ("Capita") announces that it has been selected as
preferred bidder to become the strategic outsourcing partner of AXA Sun Life
("AXA"), to administer 3.2 million mature life and pensions policies. The
contract is anticipated to be worth approximately £500 million over 15 years.
Under the proposals Capita would provide customer servicing, policy
administration, claims activity and related IT support to a proportion of AXA
Sun Life's business - with AXA continuing to administer business it currently
markets actively through intermediaries. Subject to a collective consultation
process, approximately 1,300 AXA staff working in the UK, in Basingstoke,
Bristol and Coventry, would transfer to Capita under the Transfer of
Undertakings (Protection of Employment) Regulations (TUPE). AXA would retain
some of its own operations, and staff, in those locations.
As a key element of the deal, Capita would acquire business and assets from AXA
in India, involving the transfer of around 600 staff. Although TUPE does not
apply in India, these employees would transfer in the spirit of the
legislation, ensuring protection of their existing terms and conditions.
Paul Pindar, Chief Executive of the Capita Group Plc, commented: "AXA has
stressed the importance of our track record in effective customer service in
selecting Capita as preferred bidder, while cost savings are also an important
aspect. For AXA employees who may transfer, Capita has a thriving life and
pensions business including our work for the Children's Mutual, Resolution,
Prudential, Abbey Life, Zurich and Co-operative Financial Services and we
believe that this deal offers positive opportunities for many of them. Our
integrated operating infrastructure will not only deliver further cost and
quality benefits alongside enhanced customer service, but will also provide a
flexible platform for AXA's business. We look forward to fine tuning the
partnership with AXA over the next few months and welcoming all staff who join
Capita."
AXA Sun Life chief executive Paul Evans said: "We have carried out over a year
of extensive analysis of the options available to provide the best levels of
service to our customers. Capita is the market leader in the life and pension
outsourcing market, and has a proven track record of excellent service and IT
delivery from which our customers will benefit.
"I am confident that this proposed partnership will provide real benefits for
our customers and our business while offering better opportunities for our
employees as the scale of the mature portfolio declines over the coming years.
The proposed partnership will additionally allow us to focus our resources on
implementing our strategy to become the preferred company in each of our
markets."
Including this agreement Capita Life & Pensions will be responsible for
administering approximately 26 million policies in total.
-ends-
For further information:
The Capita Group Plc
Tel: 020 7799 1525
Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director
Media enquiries
Capita press office
Caroline Mooney
Tel: 0207 654 2152 or 0870 2400 488 (out of hours)
Peter Webb
AXA Life, Press Office
Tel: +44 (0)117 989 3615
Stephen Hoffman Womersley
AXA UK, Press Office
Tel: + 44 (0)207 920 5014
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://www.capita.co.uk
AXA UK is a part of the AXA Group. AXA Group is a worldwide leader in Financial
Protection. AXA's operations are diverse geographically, with major operations
in Europe, North America and the Asia/Pacific area. IFRS revenues amounted to €
94 billion for the full year 2007. The AXA ordinary share is listed on
Compartment A of Euronext Paris under the ticker symbol CS (ISIN FR0000120628 -
Bloomberg: CS FP - Reuters: AXAF.PA). The American Depository Share is also
listed on the NYSE under the ticker symbol AXA. Our previous company
performance is not a guide to how we may perform in the future.
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