Prudential is to outsource its Dublin-based life assurance administration operation to Capita in a ten-year deal valued at £110 million.
Under the agreement, Capita is purchasing the share capital and assets of Prudential's Dublin-based services company, Prudential Europe Management Services Ltd (PEMS), for an undisclosed amount.
The deal calls for the transfer to Capita of 260 staff and the end-to-end policy administration services provided by PEMS including the management of operations, such as new business administration, in force policy administration, finance and actuarial services. Capita will also assume responsibility for service delivery to the Dublin based life assurance business of St. James's Place International.
The contract is significant in that it is one of the first 'open book' outsourcing deals in the life assurance industry. Most other equivalent deals have centred around business lines that are being run down.
Rod Aldridge, executive chairman of Capita says: "For both Prudential International and St. James's Place International we will be processing new business alongside existing business, expanding the administration operation rather than managing closed books in run off."