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Insurance & Investor Services

Comprises our businesses delivering financial services propositions to the business and consumer markets – insurance, shareholder, financial and trust administration and treasury services businesses. Key services to the corporate market are share registration, fund administration and insurance policy and claims administration. We also deliver financial consulting and advisory services to local authorities and housing associations. For consumers, we provide broker services for motor, household and pet insurance products, as well as trust administration services.

Insurance services

  2009
£m
2008
£m
Turnover 246.8 246.2
Underlying operating profit 28.4 31.1
Underlying operating margin 11.5% 12.6%
Capex 2.4 8.0

Investor services

  2009
£m
2008
£m
Turnover 174.5 173.9
Underlying operating profit 35.1 39.6
Underlying operating margin 20.1% 22.8%
Capex 12.8 18.3

Many of these businesses are operating in challenging environments, however their focus on providing efficient, quality advisory, administration and customer services, has enabled the majority of them to continue trading steadily.

2009 performance

Our insurance businesses have made steady progress in a challenging year for the insurance industry. Our bespoke services are positioned well with Capita Commercial Insurance Services now operating as a London market service provider working for 7 out of the top 10 Lloyd’s of London managing agents.

Capita Insurance Distribution: In the year we integrated BDML, Lancaster Insurance Services and Hero Insurance Services. The business is now ranked 5th in the Insurance Age 2009 poll of Top 50 Brokers ranked by brokerage income. In particular, we are now administering 35 Pet Schemes for Affinity Partners insuring approximately 300,000 dogs and cats in the UK. During the year we were awarded contracts with Igo4, Castle Cover, Aviva and Assurant.

Marsh: Our comprehensive transformation programme is delivering enhanced service to Marsh and its clients alongside reductions in operational transaction costs. We have further developed our onshore/offshore blended service delivery model, creating a centre of excellence for insurance outsourcing services based in Marsh’s existing Norwich premises and successfully transferred outsourced services in Pune, India from a previous provider.

Shareholder services: We secured 20 new contracts, a record number, from other suppliers – including contracts with Stagecoach Group plc, Northern Foods Plc and most notably Standard Life Plc which has in excess of 1.5 million shareholders.

Capita Financial Group: The business was affected by the drop in valuation of funds under administration, the introduction of a new, market leading IT platform and the increased cost of regulation. The resolution of the suspension of the Arch cru funds is requiring considerable management attention and resources. With improved processes and the completion of the IT migration this year, the business is better placed for further growth. See How we performed.

Acquisitions: The acquisitions of FMS (Netherlands) B.V., Capmark and Fidei Fiduciaire S.a.r.l have increased the capabilities and expertise of our Fiduciary and Trust Services businesses and are already delivering positive results for the Group.

Disposals: At the end of the year we disposed of some of our loss adjusting and associated advisory services.

2010 priorities

  • Refocus our sales activities to grow further our position in the insurance outsourcing market and expand our services to the broker market
  • Continue enhancing our offshore capability in order to offer clients a flexible onshore/offshore service solution
  • Use our scale and reputation for compliant delivery to provide clients with an effective way of addressing the tighter regulation that we are seeing across the financial services market
  • Continue controlled growth in multi-jurisdictions for delivery of trust and asset management services via organic growth and acquisitions
  • Build on 2009 successes in investor services to secure additional large scale share plan and registration clients, in particular FTSE 100 organisations
  • Recommence sales lead generation in our CFG business and complete migration of all businesses onto the FAR platform.