2 November 2021
Capita agrees to sell speciality
insurance businesses
Capita plc (Capita) today announces that it has agreed to sell
its speciality insurance businesses to Marco Capital Holdings (UK)
Limited for an undisclosed sum.
The sale comprises two businesses: Capita Commercial Insurance
Services Limited (CCIS); and Capita Managing Agency Limited
(CMA).
CCIS provides outsourced business processes for the insurance
industry across areas including underwriting support, claims and
client finance.
CMA provides regulatory approval and oversight to live and
run-off syndicates in the Lloyd’s insurance market.
The revenue and profit before tax for the speciality insurance
businesses for the year ended 31 December
2020 were £26m and £5m respectively. These figures include a
contract that is included in the sale and which is due to end in
2022. The revenue and profit before tax of the speciality insurance
business excluding this contract were £20m and £3m
respectively.
The senior management team and employees of CCIS and CMA will
remain with the businesses as they transfer to Marco’s
ownership.
The sale is subject to regulatory approvals.
Deloitte FIG Corporate Finance acted as the exclusive financial
adviser to Capita.
Capita previously announced its intention to sell a number of
non-core businesses – including these two – to strengthen the
balance sheet and focus on its two core divisions, Capita Public
Service and Capita Experience.
In the past 12 months we have announced exits from: Education
Software Solutions; our Employee Benefits business; Capita Life
& Pensions Services (Ireland);
Axelos; Atlas Master Trust; and Secure Solutions and Services.
We continue to target £700m of non-core disposals proceeds by
June 2022.
Jon
Lewis, Capita’s Chief Executive Officer, said:
“This is the seventh exit we have announced in the past 12
months. I am really pleased with this progress.
“Today is another step towards a more focused and sustainable
business for the long term.
“Further progress on disposals will be announced as and when
appropriate.”
ENDS
For more information, please contact:
Investor enquiries
Stuart Morgan
Director of Investor Relations
Tel: 07989 665484
Email: IRteam@capita.co.uk
Media enquiries
Capita external communications
Tel: 0207 654 2399
Email: media@capita.co.uk
About Capita
Capita is a consulting, transformation and digital services
business. Every day our 55,000 colleagues help millions of people,
by delivering innovative solutions to transform and simplify the
connections between government and citizens, businesses and
customers. We partner with our clients and provide the insight and
cutting-edge technologies that give time back, allowing them to
focus on what they do best, and making people’s lives easier and
simpler. We operate across three divisions – Capita Public Service,
Capita Experience and Capita Portfolio – in the UK, Europe, India
and South Africa. Capita is quoted
on the London Stock Exchange (CPI.L). Further information can be
found at: http://www.capita.com
About CCIS and CMA
Capita Commercial Insurance Services Limited (CCIS) is a
large-scale insurance specialist, providing outsourced business
process services across areas including underwriting support,
claims and client finance.
Capita Managing Agency Limited (CMA) is an independent turnkey
managing agency, providing oversight and regulatory services to
live and run-off syndicates in the Lloyd’s insurance market.
About Marco
Marco is a European P&C Legacy solutions insurance group
headquartered in Malta. The group
comprises the carriers Marco Insurance PCC Limited in Malta, a Protected Cell Company, British
Reserve Insurance Company Limited in the UK, Humboldt Re in
Guernsey and Marco Insurance Limited in Malta.
Marco offers reinsurance and finality solutions to re/insurance
carriers to optimise - balance sheet efficiency (i.e. both
capital & risk); operational management; and achieve strategic
objectives - by acquiring loss reserve portfolios (discontinued
business or long-tail) through reinsurance, portfolio transfers and
M&A (acquiring entities). Marco is Europe focused and the P&C strategy
encompasses Legacy business opportunities written worldwide by
European counterparties, otherwise risks located in Continental
Europe, the UK and Lloyd’s of London.
Marco is supported by €500m initial committed equity capital and
offers a leading proposition to carriers seeking finality and
balance sheet optimisation solutions in the European P&C arena.
Funds managed and/or advised by Oaktree Capital Management, L.P.
are Marco’s majority investors.