The deal will run over 12 years and involves both closed and open book policies.
The partnership sees Capita delivering customer services, IT services, policy servicing, claims and new business processing for approximately 4.5m policyholders and future new business in the Phoenix Life Assurance, Scottish Mutual, Scottish Provident and Phoenix Life funds.
It will include the phased introduction of additional operating platforms, supported by other bespoke technologies to enhance selected legacy systems.
Resolution will transfer approximately 2,000 staff from its Glasgow and Wythall offices to Capita under the TUPE regulations with efect from August 1, 2007.
Capita chief executive Paul Pindar says: “Capita is delighted to engage in this strategic alliance with Resolution plc. With both companies having strong positions and growth strategies in the life and pensions market, our aim is to build a mutually beneficial partnership to support the future growth of both Resolution and Capita.”
Resolution group chief executive Mike Biggs says: “We chose Capita because we believe that they can best deliver a business transformation programme designed to increase the quality and dependability of our services to customers. In addition they have experience of the particular needs of regulated financial products providers.”