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Lincoln outsources admin

Lincoln Financial is outsourcing the administration of its life and pension book to third-party specialist Capita.

The £160m deal will see Capita, which offers admin services to firms across various industries, take control of Lincoln&#39s book from the beginning of this month.

Capita has launched a new division, Capita Life & Pensions, which will target other providers with its admin offering.

The move will not affect Lincoln Unit Trust Managers.

Lincoln accepts business on its life and pension book through its personal pension and menu-based protection products although head of communications Ian Crowder concedes that not much new business has been written recently. It has around 900,000 policies and is worth £4.9bn.

The deal is for 10 years, with Lincoln paying Capita £16m a year over that period.

Capita will take on 500 back-office and IT people from Lincoln to run the business. Lincoln will receives a £5m payout as an immediate share of the profits that Capita will earn from the deal.

Capita Life & Pensions managing director William Dye says: “By combining Capita&#39s core skills in back-office admin with Lincoln&#39s industry expertise, we have an exciting opportunity for developing a new business area with considerable opportunity for future growth.”

Crowder says: “This deal will immediately bring economies to Lincoln because it costs us more than what we are paying Capita to service the book ourselves. Lincoln will also benefit from an immediate £5m payment which ensures the stability of the company.”

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