A result of a shift in strategy to focus specifically on the P&C business, London-based Royal & SunAlliance UK last month signed a 10-year business process outsourcing deal with Unisys Insurance Services Limited (UISL, Blue Bell, PA), which will take over the processing and administration of the 2.4 million life and pension policies of R&SA UK life operation. The deal's value is estimated to be in excess of $450 million.

The carrier decided to close its life operations this past August, reports Paul Atkinson, UK communications director, R&SA. At that time it began a search for an outsourcing provider that could handle administration and processing of the existing life policies. "It's a great deal from the financia point of view because R&SA is paying a fixed cost per policy," says Atkins. "Over time the number of policies will come down in direct proportion."

As part of the deal, as of May 1, approximately 1,700 R&SA employees will transfer to UISL. At the same time, 150 R&SA employees will remain with the carrier to oversee the insurer's relationship with Unisys, Atkins says.