Capita throws specialist insurance companies in latest fire sale move

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Capita abandons insurance companies specializing in outsourcing giant’s latest fire sale deal

  • CCIS and CMA sold to Marco Capital Holdings for an undisclosed amount
  • Sales mark seventh release announced by Capita in past 12 months
  • Capita seeks to raise £ 700million to strengthen balance sheet and streamline

Capita has agreed to sell two insurance businesses specializing in the outsourcing giant’s latest step in its rationalization plans.

Capita Commercial Insurance Services and Capita Managing Agency will be sold to Marco Capital Holdings for an undisclosed amount, with CCIS and CMA staff and management team moving along with the companies. The transaction is subject to regulatory approval.

The struggling entrepreneur, who runs a range of services from London congestion charges to collecting BBC license fees, has embarked on a wave of eliminations in a bid to increase his coffers during the past year, while pursuing its recovery plan.

Capita shares were down 1.3 percent to 47.06 pence early in trading, but remain up 22.1 percent year-to-date.

CCIS, which provides outsourced business processes for the insurance industry, generated revenue and pre-tax profit of £ 26million in the fiscal year ended December 31, 2020.

CMA, which provides regulatory approval and oversight of living and liquidating syndicates in the Lloyd’s insurance market, generated revenue and pre-tax profit of £ 5million during the same period.

Capita has sold non-core businesses, with the aim of raising £ 700million, as part of efforts to strengthen its balance sheet and focus on its two main divisions; Capita Civil Service and Capita Experience.

The company has more than 50,000 employees and works in dozens of industries.

Last month he agreed to sell his software solutions division for around £ 62million, while in June Capita landed a 51% stake in Axelos for £ 380million.

It also sold Education Software Solutions, its Employee Benefits business, Capita Life & Pensions Services and Atlas Master Trust.

Capita shares were down 1.3 percent to 47.06 pence early in trading, but remain up 22.1 percent year-to-date.

Jon Lewis, CEO and Architect of Capita’s New Corporate Vision, said: “This is the seventh release we have announced in the past 12 months. I am really happy with this progress.

“Today is another step towards a more focused and sustainable business in the long term.

“Further progress on disposals will be announced where appropriate. “



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