- Equiniti will provide new business processing, policy and payment administration for Retirement Advantage supporting annuity and drawdown products
- Strategic partnership covers the outsourcing of customer services, technology and change activity and the underlying systems to Equiniti
- Agreement valued at more than £40m over 10 years
- Retirement Advantage will retain the executive, finance, actuarial, product development, investment management, marketing, risk and compliance functions
Equiniti Group plc, the specialist technology outsourcer, through its Paymaster business, today announces that it has completed a life and pensions outsourcing contract with Worthing-based life insurer Retirement Advantage. The transaction, worth more than £40m over 10 years, covers the transfer of customer services, technology and change activity and the underlying systems from Retirement Advantage to Equiniti. The transfer is expected to be completed in the fourth quarter of 2016.
Equiniti Paymaster will take over the handling of the growing new business processing and the administration of all Retirement Advantage’s products, The Retirement Account, Guaranteed Annuity and Flexible Income Annuity. It is anticipated that approximately 100 Retirement Advantage employees will transfer to Equiniti’s Worthing office, approximately three miles from RA’s current headquarters.
This deal reinforces Equiniti’s commitment to the Life and Pensions industry, with specific focus on the decumulation phase of retirement. Post Pensions Reform, this market is set to grow and offers the consumer a broader range of products. This transaction is an illustration of the trend toward insurers seeking innovative, regulatory compliant, cost effective solutions, which provide high quality customer outcomes for policyholders and can be deployed into the market quickly.
Guy Wakeley, Chief Executive of Equiniti, said: “We are delighted to announce this innovative partnership with Retirement Advantage. This type of transaction plays to Equiniti’s core strengths, requiring technology and operational expertise in a highly regulated sector. By outsourcing its new business processing to Equiniti -which we believe is an industry first- Retirement Advantage is effectively trusting us with their core operations. This is a significant collaboration for Equiniti, not only because of the commercial value it represents, but one that will serve to enhance Equiniti’s position in the at-retirement open market sector and our capabilities in life and pensions.”
Chris Evans, Group Chief Executive, Retirement Advantage, commented: “This deal is important for our people and our business. It secures jobs, significantly reduces our fixed costs and protects our reputation for providing excellent customer service. We now have the opportunity to create scale while continuing to focus on providing innovative and good value products for the at-retirement market.”
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Notes to Editors
Equiniti is a specialist outsourcer delivering technology-enabled solutions to large enterprises. It processes £90bn in payments every year, handles 88 million documents and pays 20 per cent of pensioners in the UK.
We are acknowledged leaders in many of our markets and keep things running smoothly for some of the UK's best-known brands and public sector organisations.
Equiniti Paymaster is a leading provider of administration and payment services to major public and private occupational pension schemes and to the Life & Pensions sector and traces its origins back to the formation of the Paymaster General in 1836.
About Retirement Advantage
Previously known as MGM Advantage and Stonehaven, Retirement Advantage can trace its roots back to 1852. In 2015, the company changed its name to Retirement Advantage, merging the equity release and retirement income divisions.
The company specialises in retirement, with award-winning expertise developing products which can help people make the most of their retirement savings and/or the value in their property.
Products include The Retirement Account, which blends a drawdown pot, cash account and guaranteed annuity in one product under drawdown rules, the Guaranteed Annuity, providing the best possible guaranteed lifetime income for individual circumstances; the Flexible Income Annuity, which offers the opportunity for retirement income to grow; and equity release products, which allow homeowners the opportunity to release cash from their home without having to move or give up ownership.
Our Equity release products are lifetime mortgages. To understand the features and risks ask for a personalised illustration.
Inflation will reduce how much your income is worth over the years. The value of Investment linked Annuities can fluctuate. Income could go down as well as up. Taking income or withdrawals in excess of growth may result in the fund running out quicker than expected. Taxation rules and regulations may change in the future.
Retirement Advantage is financially strong, as rated by AKG (an independent company that specialises in providing ratings for the financial services industry).
Retirement Advantage is the retail brand for a group of companies which manages assets of £1.9bn.