Capita selected by AXA as preferred strategic p...

22 January 2009 CAPITA SELECTED BY AXA AS PREFERRED STRATEGIC PARTNER FOR LIFE AND PENSIONS ADMINISTRATION The Capita Group Plc ("Capita") announces that it has been selected as preferred bidder to become the strategic outsourcing partner of AXA Sun Life ("AXA"), to administer 3.2 million mature life and pensions policies. The contract is anticipated to be worth approximately £500 million over 15 years. Under the proposals Capita would provide customer servicing, policy administration, claims activity and related IT support to a proportion of AXA Sun Life's business - with AXA continuing to administer business it currently markets actively through intermediaries. Subject to a collective consultation process, approximately 1,300 AXA staff working in the UK, in Basingstoke, Bristol and Coventry, would transfer to Capita under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE). AXA would retain some of its own operations, and staff, in those locations. As a key element of the deal, Capita would acquire business and assets from AXA in India, involving the transfer of around 600 staff. Although TUPE does not apply in India, these employees would transfer in the spirit of the legislation, ensuring protection of their existing terms and conditions. Paul Pindar, Chief Executive of the Capita Group Plc, commented: "AXA has stressed the importance of our track record in effective customer service in selecting Capita as preferred bidder, while cost savings are also an important aspect. For AXA employees who may transfer, Capita has a thriving life and pensions business including our work for the Children's Mutual, Resolution, Prudential, Abbey Life, Zurich and Co-operative Financial Services and we believe that this deal offers positive opportunities for many of them. Our integrated operating infrastructure will not only deliver further cost and quality benefits alongside enhanced customer service, but will also provide a flexible platform for AXA's business. We look forward to fine tuning the partnership with AXA over the next few months and welcoming all staff who join Capita." AXA Sun Life chief executive Paul Evans said: "We have carried out over a year of extensive analysis of the options available to provide the best levels of service to our customers. Capita is the market leader in the life and pension outsourcing market, and has a proven track record of excellent service and IT delivery from which our customers will benefit. "I am confident that this proposed partnership will provide real benefits for our customers and our business while offering better opportunities for our employees as the scale of the mature portfolio declines over the coming years. The proposed partnership will additionally allow us to focus our resources on implementing our strategy to become the preferred company in each of our markets." Including this agreement Capita Life & Pensions will be responsible for administering approximately 26 million policies in total. -ends- For further information: The Capita Group Plc Tel: 020 7799 1525 Paul Pindar, Chief Executive Shona Nichols, Corporate Communications Director Media enquiries Capita press office Caroline Mooney Tel: 0207 654 2152 or 0870 2400 488 (out of hours) Peter Webb AXA Life, Press Office Tel: +44 (0)117 989 3615 Stephen Hoffman Womersley AXA UK, Press Office Tel: + 44 (0)207 920 5014 Notes to editors: The Capita Group Plc is the UK's leading provider of BPO and integrated professional support service solutions. The Group's service capabilities encompass customer services, financial services, human resource services, software services, systems and strategic support and property services delivered to both public sector and private organisations. With more than 32,000 employees at more than 300 offices across the UK, Ireland and India, Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2007 of £2,073 million. Further information on The Capita Group Plc can be found at: http://www.capita.co.uk AXA UK is a part of the AXA Group. AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with major operations in Europe, North America and the Asia/Pacific area. IFRS revenues amounted to € 94 billion for the full year 2007. The AXA ordinary share is listed on Compartment A of Euronext Paris under the ticker symbol CS (ISIN FR0000120628 - Bloomberg: CS FP - Reuters: AXAF.PA). The American Depository Share is also listed on the NYSE under the ticker symbol AXA. Our previous company performance is not a guide to how we may perform in the future.

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