Royal & Sun Alliance has signed a 10-year, £300m outsourcing contract with Unisys for its life and pensions policies.
The deal, estimated to be worth around £300m, is the largest of its kind for the UK life and pensions market, Royal & Sun Alliance claimed.
Under the terms of the deal, Unisys will undertake the processing and administration of the 2.4 million life and pensions policies of Royal & Sun Alliance's closed UK Life operation. Some 1,700 R&SA staff will transfer to Unisys when the deal comes into effect in May.
Royal & Sun Alliance said the deal would allow it to handle pension and other policies more efficiently after it closed its life operations to new business last summer. The insurance giant also claimed it would make "significant cost savings" through the deal but declined to give any figures.
Peter Hanby, managing director of Royal & Sun Alliance's UK Life operation, said: "This deal delivers highly competitive and directly variable administration costs for our Life business, at the same time as providing our customers with good quality service in the future.
"It is also good news for those employees transferring across to Unisys, who will be joining the UK's leading outsourcing specialist, while maintaining stretching career opportunities for those people remaining in our governance team."The deal highlighted the continued popularity of outsourcing across financial services as firms hand over back-office parts of their business to specialist suppliers to save costs and focus on their core business.