The article by Kevin Paterson and Aileen Croft (MM, October 3) raised some useful issues relating to the life and pension outsourcing market.
The item mentioned the recent deal between Lincoln and Capita. Lincoln's book of business very much falls into one of two outsourcing categories – “existing business wanting to reduce unit costs or free management time to focus on business growth”.
You might guess from this that Lincoln's is not a closed book, unlike the proposition described by the authors.
Capita Life & Pensions Services was created on Lincoln's initiative to build on the company's retention and administrative skills. It is a partnership that benefits both Lincoln and Capita. It allows Capita to develop new outsourcing opportunities in the life and pension industry and Lincoln to develop new markets and product propositions – while continuing to offer life, pension and unit trust products.
Introduction of new pension and unit trust products over past months, as well as third-party arrangements with such organisations as MBNA, is not the behaviour of a company with a closed book.
Lincoln is a much-changed organisation from its pre-2000 direct salesforce model. A low cost base and high business efficiency has built new growth opportunities. A closed book it most certainly is not.
Ian H Crowder
Head of Communication, Lincoln Financial Group,