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Life & Pensions Services

Comprises all our life and pensions outsourced administration operations, including open and closed books of individual life and pensions policies and occupational pension schemes. Our operations in India are also managed within this division as they play a key role in securing and delivering life and pensions contracts.

  2009
£m
2008
£m
Turnover 520.7 454.0
Underlying operating profit 62.1 53.9
Underlying operating margin 11.9% 11.9%
Capex 28.8 34.9

We are the leading life and pensions outsourcing provider with a resource of 9,000 people across our operations. As our business continues to grow, we are introducing further efficiencies, developing our blended onshore/offshore delivery and introducing common IT platforms (such as Elixir and HartLink), frameworks and methodologies in order to provide further scale benefits and excellent customer service to our clients. The market is highly active and continues to offer strong new contract opportunities.

2009 performance

AXA: Contract signed in May to administer 3.2 million policies comprising both a closed traditional book and growing portfolio of direct business. Since the service started in June with the transfer of 1,150 employees in the UK, and the transfer of a further 550 people in India in September, we have delivered a step change in service levels.

Abbey Life: We commenced delivery of this contract in March with the successful transfer of operations and 370 employees in Bournemouth.

Prudential: We continue to make excellent progress and are on track to complete our contact centre and back office transformation programmes in 2010. Our delivery of a consistently high quality of service for Prudential is now being recognised through major industry awards.See Prudential case study.

Zurich: We have continued to sustain and indeed improve upon high levels of customer service that have helped the Zurich and Sterling brands gain the highest ‘Five Star’ industry ratings from the adviser community in each of the 4 years that the service has been outsourced to Capita. In addition, we have further developed new retention initiatives within the Client Option Teams which has ensured that both brands retain their valuable client bases.

Pearl: Service quality is at its highest levels. As part of the introduction of integrated onshore/offshore operations we have moved c. 250 roles to India and plan to transfer further work there in 2010.

Co-operative Financial Services: We successfully completed our first platform migration in 2009 and the second in the first quarter of 2010, achieving this step change while improving operational efficiency and reaching service levels not previously attained.

Capita Hartshead: Maintained our leadership in pension-scheme administration and actuarial and pensions consulting. Further enhanced our actuarial and pensions consultancy offering with the acquisition and smooth integration of Gissings.

Offshore: Capita India has continued to expand and is now our largest multi client operation – servicing 17 different clients from 5 sites. The fifth office of over 32,000 sqft was opened in Bangalore in September. We continue to expand the service capability in India, including additional knowledge based processes and the introduction of property consultancy services in the year.

2010 priorities

  • Continue progress towards our utility model and the transformation of service delivery by:
    • Consolidating sites and rationalising operations
    • Creating centres of service excellence to serve multiple clients
    • Migrating IT systems to our strategic platforms
    • Transferring selected operations to our sites in India
  • Focus on developing our relationships further with existing clients and continue to win work from new clients
  • Seek niche acquisitions to develop further our portfolio of services
  • Continue building the knowledge-based processes capability within Capita India.