14 Mar 2005

Chester Street
Capita Insurance Services has been selected by Chester Street Insurance Holdings Limited to administer their liability claims run-off. Chester Street is in a Scheme of Arrangement and the Scheme Administrators are Dan Schwarzmann and Mark Batten of PricewaterhouseCoopers. The contract is anticipated to generate revenues to Capita of approximately £40m over a 10 year term. The contract commences in May 2005 and will involve the transfer to Capita of some 45 members of staff based in Leeds.

Capita is now the largest claims handler in the UK, administering £11bn of liabilities on behalf of clients, including the largest uncapped liability on behalf of the Government - coal industry health claims.

Norwich Union
Capita Insurance Services has successfully extended its contract to manage Norwich Union’s Clubline operation for a further three years. The contract is anticipated to generate revenues of £12m over the term of the contract. The contract will cover existing services and additional volume growth following the recently formed General Insurance partnership between Norwich Union and Barclays.

Capita will continue to run the contract from its operation in Colchester, where it currently receives nearly half a million calls and handles in the region of 140,000 claims per annum. Capita will manage all claims reception through the Clubline Claims Response Centre on a 24 hour, seven days a week basis and with a human response for every caller. The market leading response centre is able to validate claims immediately on the telephone thereby delivering a highly responsive customer service.

Dermot Joyce, Managing Director of Capita Insurance Service, said: “We are delighted to be making these two contract announcements which are testament to our expertise and our continued growth in the market. We would like to welcome all staff from Chester Street whose skills will further strengthen our capabilities as the largest liability claims handler and we look forward to building on our relationship with both NU and PwC.”