Prudential International and St James's Place are outsourcing life and pension admin services to Capita.
The 260 Prudential staff who run St James's Place admin will transfer to Capita as part of the deal but it is unclear how many of them will keep their jobs although Prudential spokesman Darragh Leeson denies that jobs will go.
Life and pension administrator Capita says the deal will be worth around £110m to the company over 10 years, based on projected growth over this period and £18m-worth of policies being generated next year.
FTSE 250-listed Capita is buying the assets of Prudential Europe Management Services for an undisclosed amount.
The end-to-end policy admin services provided by PEMS will transfer to Capita, including new business admin, in-force policy admin, finance and actuarial services.
Prudential UK and Europe chief executive Mark Wood welcomes the deal, saying that Capita has been selected to manage the Prudential International portfolio due to its experience in through processing.
Capita director of communications Shona Nichols says: “This opportunity is all about growth and the skills, knowledge and experience that our people can bring. Of course, as in any restructure, there will be some roles that do not fit into the long term. If some jobs are replicated, these may be lost.
“Our objective is to grow the business and we expect that this will happen but in the future we cannot guarantee every single job.”