Marlborough Stirling wins £80 million outsourcing deal with Sun Life

Marlborough Stirling wins £80 million outsourcing deal with Sun Life

Sun Life Assurance Company of Canada (UK) has signed a five-year business process outsourcing contract with Marlborough Stirling, valued at £80 million.

Under the deal, the company's closed book of UK individual life and pension policies will be migrated to Marlborough Stirling's Lamda administration system in March 2002. The portfolio consisted of over 800,000 policies as at 31 December 2001. Migration is expected to be completed in 2003.

Peter Hanby, Sun Life Assurance Company of Canada (UK) Limited's chief executive officer, says completion of the migration from legacy systems onto the Lamda platform will result in significant efficiency gains and cost savings.

In addition, it is intended that a further £15 million of revenue will arise under a shorter term agreement for Marlborough Stirling to manage additional administrative activities.

Graham Coxell, Marlborough Stirling's chief executive, says: "The deal represents the largest contract ever secured by Marlborough Stirling and gives us an exciting start to 2002."

As part of the agreement, 550 employees will transfer from Sun Life Financial of Canada to Marlborough Stirling in Basingstoke, and a further 170 employees to support the additional shorter term administrative activities.

Marlborough Stirling is also acquiring the entire issued share capital of Sun Life of Canada (UK) Group Services Limited for an expected initial consideration of approximately £1.3 million and deferred consideration of up to £7.2 million payable in instalments over a number of years. The company's net assets and net cash at completion are expected to be £5.3 million and £7.3 million respectively. The acquisition is subject to completion arrangements expected to be satisfied by March 2002.

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