Troubled insurer Royal & Sun Alliance is to outsource the processing and administration of its closed UK Life operation.
All 1,700 existing R&SA UK Life employees will be transferred to Unisys while maintaining existing operations in Horsham and Liverpool.
From May 1, Unisys Insurance Services will manage the 2.4 million life and pensions policies that remained active after UK Life was closed to new business last September.
The UK Life operation will retain a small team to manage both the Unisys and other existing outsourced contracts, oversee the financial and regulatory responsibilities of the unit and provide legislative and regulatory reporting to the group.
Peter Hanby, managing director of UK Life, 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."
R&SA said it expected to achieve "significant cost savings" as a result.
The beleaguered group closed UK Life amid increasing margin and regulatory pressures and investment volatility, cutting 1,200 jobs.
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