Capita has agreed to sell two specialist insurance businesses in the outsourcing giant’s latest step in its streamlining plans.
Capita Commercial Insurance Services and Capita Managing Agency will be sold to Marco Capital Holdings for an undisclosed fee, with CCIS and CMA staff and senior management team transferring with the businesses. The deal is subject to regulatory approval.
The struggling contractor, which runs an array of services, from the London congestion charge to collecting the BBC licence fee, has been on a disposals spree in a bid to boost its coffers over the past year, as it pushes ahead with its turnaround plan.
Capita shares were down 1.3 per cent to 47.06p in early trading, but remain 22.1 per cent up year-to-date.
CCIS, which provides outsourced business processes for the insurance industry, generated revenue and profit before tax of £26million in the year to 31 December 2020.
CMA, which provides regulatory approval and oversight to live and run-off syndicates in the Lloyd’s insurance market, generated revenue and profit before tax of £5million over the same period.
Capita has been selling non-core businesses, with the aim of raising £700million, as part of efforts to strengthen its balance sheet and focus on its two core divisions; Capita Public Service and Capita Experience.
The firm has more than 50,000 employees and works in dozens of industries.
Last month it agreed to sell its software solutions division for about £62million, while, in June, Capita offloaded a 51 per cent stake in Axelos for £380million.
It has also sold Education Software Solutions, its Employee Benefits business, Capita Life & Pensions Services, and Atlas Master Trust.
Capita shares were down 1.3 per cent to 47.06p in early trading, but remain 22.1 per cent up year-to-date.
Jon Lewis, CEO and architect of Capita’s new corporate vision, 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.’
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