Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).


For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.


We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.


In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.


We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.


We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.


The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.


Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.


Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.


If you want more information or have any questions or comments relating to our privacy policy please email [email protected] in the first instance.

 Information  X 
Enter a valid email address

Prudential PLC (PRU)

  Print      Mail a friend       Annual reports

Wednesday 28 November, 2007

Prudential PLC

Outsourcing Partnership

Prudential PLC
28 November 2007

For immediate release: 8.30am on 28 November 2007

     Prudential UK announces outsourcing partnership to support delivery 
                            of target cost savings

•   Prudential UK selects Capita to provide outsourced administration services

•   Agreement will deliver £60 million per annum of savings to Prudential
    UK by the end of 2010. Prudential UK on track to deliver total per-annum 
    cost savings of £195 million by the end of 2010

•   Proposal for approximately 1,750 UK employees and 1,250 Mumbai-based
    employees to transfer to Capita

•   Capita has a proven track record of customer and adviser service and IT
    delivery and support

Prudential UK ('Prudential') has today entered into a major partnership
agreement with Capita Group Plc ('Capita') to outsource a large proportion of
its in-force and new business policy administration. Under the terms of the
proposed agreement, Capita will provide customer servicing, policy
administration, new business processing, claims activity and related IT support
to Prudential UK.

Nick Prettejohn, Chief Executive, Prudential UK, said: 'The agreement with
Capita is another significant milestone in our programme to deliver continued
superior performance and profitability in our UK business. We have set out very
clear priorities for the business and 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 to realise the attractive opportunities in the
market for retirement savings and income.

'After detailed analysis of a number of potential options, it was clear that
Capita best enables us to deliver continued high levels of customer service
while providing ongoing certainty over costs. They are a partner with a proven
record of high standards of service for customers and advisers, IT delivery and
support while also offering the best overall employment solution for our staff.'

Cost savings target and partnership with Capita

The proposed 15-year agreement with Capita will enable Prudential to:

•   Achieve its overall cost saving target of £195 million per annum by the
    end of 2010;

•   Reduce unit costs per-policy by 32 per cent by 2011; and

•   Provide a significant reduction in long-term expense risk by providing
    certainty on per-policy costs as the number of policies in the Mature Life 
    and Pensions back-book decreases over the coming years (see Notes to 

The agreement provides for Capita to acquire business and assets from
Prudential, for a consideration of £25 million, including part of the business
of PPMS, Prudential's offshore operation based in Mumbai.

At its 2007 Interim Results, Prudential confirmed that actions were in place to
deliver £115 million of the £195 million savings by the end of 2007. The
agreement with Capita will lead to savings of £60 million per annum by the end
of 2010.  The remaining £20 million per annum of cost savings, of which
approximately £11 million has already been delivered, will be generated from
across the rest of the UK business by the end of 2010.

The total one-off investment costs of achieving the £195 million of savings will
be £176 million, after deducting the proceeds from the sale of part of PPMS. Of
these one-off costs, £57 million were incurred in 2006.

This investment will deliver enhanced service for customers and advisers through
a substantial simplification of policy administration processes and migration of
in-force and new business policies from 15 of Prudential's legacy systems to two
Capita platforms. The total value of the agreement with Capita, including
investment spend, is expected to be approximately £722 million over the lifetime
of the contract.

The savings, net of investment costs, are expected to result in a £60 million
benefit to embedded value over the period to 2011.


Under the terms of the proposed agreement, approximately 1,750 (1,000 in
Stirling and 750 in Reading) of Prudential's staff working in the UK in Customer
Services, Customer Operations, Information Technology and other related support
functions will transfer to Capita under Transfer of Undertakings (Protection of
Employment) Regulations (TUPE) in April 2008. This will follow a collective
consultation process.

In addition, approximately 1,250 out of PPMS's 1,800 staff in Mumbai will also
transfer to Capita.  Capita has committed that all employees affected will be
offered roles on their existing terms and conditions of employment. PPMS will
remain a captive offshore service centre and will continue to deliver a number
of important activities for the UK business. Prudential intends to grow PPMS as
a shared services operation for the Prudential Group as a whole.

Paul Pindar, Chief Executive of Capita, added: 'Capita is delighted to engage in
this strategic alliance with Prudential UK. Our aim is to build a mutually
beneficial partnership to support the further growth of both Prudential and
Capita in the life and pensions industry. We look forward to working with
Prudential to deliver high quality outsourced support and welcoming all
transferring staff to the Capita Group's thriving life and pensions business.

'We are committed to expansion in both the UK life and pensions market and our
Indian operations to meet increasing demand. The operations and employees
transferring to Capita under this agreement will allow us to take a significant
step forward with these ambitions. The Stirling operation will be developed into
a Centre of Excellence for life and pensions administration. The Reading
operation will initially continue to be delivered from its current site while we
investigate the feasibility of combining it with our operations in Cheltenham or
Swindon, or from an alternative site in Reading. And in Mumbai, which will also
be developed into a Centre of Excellence, the combination of our increased scale
and capability will provide a market leading off-shoring base from which to
support our plans across the broad range of our service offerings.'

Capita already delivers a range of life and pension sales and administration
services for Prudential UK's business. Prudential and Capita signed an
outsourcing agreement in 2006 under which Capita delivers support for
Prudential's UK life and pensions operations from Belfast. Capita has also been
successfully providing a full range of life and pensions administration services
for Prudential's international cross border life assurance portfolio of new and
existing business in Dublin since 2003.

                                    - ENDS -


MEDIA                                          ANALYSTS / INVESTORS

Prudential Group
Jon Bunn                   020 7548 3559       James Matthews      020 7548 3561
William Baldwin-Charles    020 7548 3719

Prudential UK
Steve Colton               020 7150 3136
Darragh Leeson             020 7150 2600

Shona Nichols              020 7799 1525       Shona Nichols       020 7799 1525
Caroline Mooney            020 7654 2152


Wire Services Conference Call

There will be a conference call today for wire services at 9.00am hosted by Nick
Prettejohn, Chief Executive, Prudential UK. Dial in number: +44 (0)208 609 0793.
Passcode: 155439#

Prudential UK

Prudential is a leading life and pensions provider to approximately 7 million
customers in the United Kingdom. It employs approximately 4,100 staff in the UK
and 1,800 in Mumbai

Prudential UK has offices located in London, Reading, Dublin, Stirling and

Products: Bulk and Individual Annuities, Corporate Pensions, With-Profits and
Unit-Linked Bonds, Savings and Investments, Lifetime Mortgages, Healthcare and

Distribution Channels: Direct-to-customers/PruDirect (telephone, internet and
mail), Financial Advisers, Business to Business (consulting actuaries and
benefit advisers), and Partnerships (affinities and banks).

Mature Life and Pensions ('ML&P') is the term used to describe the collection of
products Prudential holds for its existing life and pensions customers. The
business comprises the vast majority (approximately 7 million policies) of
Prudential UK's in-force policies. It consists of group pensions, individual
pensions, investment bonds and life and endowment policies (annuities, lifetime
mortgages, protection, healthcare and general insurance are not included within
the book of business). Most of these products are still open to new business,
for instance through top-ups, but the main role of the ML&P operation is to look
after this existing business and deliver the best possible value from it for
shareholders and policyholders. Prudential expects that this business will
continue to be a significant source of new business, particularly through
internal annuity vestings and in the corporate pensions arena.

The Mature Life and Pensions back-book represents around two-thirds of
Prudential UK's total cost base. A key priority for Prudential is to continue to
deliver embedded value through the ML&P business and as the back-book runs down
over the course of the next few years (over 40 per cent of the in-force policies
mature in the next five years), this creates an inherent pressure on unit costs.
As large proportions of the costs are currently fixed, this means that unit
costs would continue to rise beyond the levels allowed for when the policies
were originally sold. Prudential, therefore, highlighted an aggressive target to
reduce per-policy unit processing costs in line with the reducing numbers of
in-force policies.

Capita Group
The Capita Group Plc is the UK's leading provider of integrated professional
support service solutions. The Group's service capabilities encompass business
process outsourcing, (BPO), customer services, administration and support, human
resources, ICT, property consultancy, finance & treasury and consultancy
delivered to both public sector and private organisations.

Capita provides core administrative support to a number of UK and overseas life
and pensions companies, including MetLife, the Children's Mutual, Lincoln
Financial Group, Resolution, Zurich and Co-operative Financial Services.
Including this agreement, Capita Life & Pensions will be responsible for
administering approximately 23 million policies.

With 28,500 employees at more than 250 offices across the UK, Channel Islands,
Ireland and India, Capita is quoted on the London Stock Exchange (CPI.L), and is
a constituent of the FTSE100 with revenues for 2006 of £1,739 million.

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

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

a d v e r t i s e m e n t