10th Jul 2008 16:47
10 July 2008
AVIVA REALISES VALUE FROM OFFSHORING OPERATIONS
Aviva sells offshoring operations to WNS for £115 million
Enters eight year agreement for supply of offshore services by WNS
Reaffirms commitment to offshoring
Competitive deal with protection against inflation and foreign exchange rates
Aviva plc ("Aviva") announces that it has sold its offshore operations, known as Aviva Global Services ("AGS") to WNS. As part of this agreement, Aviva has also entered into a master services contract with WNS, who will provide offshoring services to Aviva's UK, Irish and Canadian businesses for the next eight years and four months. Aviva will receive total cash consideration of £115 million.
By combining the sale with a long-term master services agreement, Aviva will be able to realise the value of the offshoring operations it has been developing since 2003, while continuing to benefit from the expertise that it has developed in that time and ensuring protection against future inflation and adverse changes in foreign exchange rates.
Cathryn Riley, chair of AGS and chief operating officer of Norwich Union Life, said: "We're proud of the significant offshoring capability that we've built over the past five years and we remain firmly committed to offshoring. After an extensive review, we've chosen one of our current suppliers to be our long-term partner, allowing us to build on the strength of our existing relationship to increase the flexibility and cost-certainty within our operation. WNS are a great partner; they understand our business and have demonstrated their commitment to helping us develop our customer experience and shared services model, which will make an important contribution to the delivery of our 'One Aviva, twice the value' vision."
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Enquiries:
Media
Danielle Anthony, senior manager group media relations +44 (0) 7800 694052
Liz Kennett, senior media relations manager, Norwich Union +44 (0)1603 688263
Anuja Agarwal, head of communications, Aviva Global Services +91 982 209 1002
James Murgatroyd/Matthew Newton, Finsbury +44 (0)20 7251 3801
Analysts
Charles Barrows, investor relations director +44 (0)20 7662 8115
Jessie Burrows, head of investor relations +44 (0)20 7662 2111
Susie Yeoh, investor relations manager +44 (0)20 7662 2117
Notes to editors:
About Aviva
Aviva Global Services provides a range of services, including policy administration, claims handling and premium collection.
Aviva is the leading provider of life and pension products in Europe (including the UK) with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2006.
Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £49.2 billion and funds under management of £364 billion at 31 December 2007.
The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.
For broadcast-standard video, please visit www.thenewsmarket.com/aviva.
About WNS
WNS is a leading global business process outsourcing company. Deep industry and business process knowledge, a partnership approach, comprehensive service offering and a proven track record enables WNS to deliver business value to some of the leading companies in the world. WNS is passionate about building a market-leading company valued by our clients, employees, business partners, investors and communities. For more information, visit www.wnsgs.com.
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