Prudential to outsource administration services

Prudential UK is to outsource policy administration and claims activity to Capita, saving the pensions provider £60m by the end of 2010.

Under the terms of the 15-year agreement, Capita will also provide customer servicing, new business processing and related IT support to Prudential UK.

†It also means that 1,750 UK employees and 1,250 staff based in Mumbai will be transferred to Capita.

Under the terms of the 15-year agreement, Capita will also provide customer servicing, new business processing and related IT support to Prudential UK.

Nick Prettejohn, chief executive of 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 efficient 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.”