The Children's Mutual has picked Capita to administer its existing services portfolio and new child trust fund accounts.
It is planning to market its own CTF accounts and to provide products and admin services for other financial services organisations in partnership with Capita.
Capita is to invest £2.5m in customising technology to create bespoke admin and customer service infrastructure for the CTF accounts and will recruit 100 staff for admin. A significant number of staff will be transferring to Capita.
The deal is expected to generate £430m in revenues to Capita over 20 years, with £100m from administration of the existing portfolio and £330m from administration of the new CTF accounts.
Capita executive chairman Rod Aldridge says: “This underlines the continued success of Capita's life and pension business and follows our recent contracts with Pruden-tial International and St James's Place International.”
The Children's Mutual chief executive David White says: “This agreement will ensure high-quality, cost-effective services for new and existing policyholders.”