Resolution is to outsource much of its admin and back office to Capita in a 580m deal.
Capita will provide customer services, IT services, policy servicing and claims and new business processing for around 4.5 million policyholders and future new business in the Phoenix Life, Scottish Mutual, Scottish Provident funds.
Around 2,000 staff will be transferred to Capita on August 1 and a substantial amount of back-office work will be sent offshore. Capita says all customer service and roles requiring direct consumer contact will continue to be delivered from UK operations and customer data will stay in the UK.
Capita chief executive Paul Pindar says: “We are delighted to engage in this strategic alliance with Resolution. With both companies having strong positions and growth strategies in the life and pension market, our aim is to build a mutually beneficial partnership to support the future growth of Resolution and Capita.”