The contract is worth more than £270 million over ten years.
Capita will provide customer services, policy administration, new business and claims activities and the associated technology for around 4.5 million policies across CIS's life and pensions and unit trust operations. Capita will also be providing a platform to enhance CIS's new product development.
Capita and CFS first announced this deal in November 2006 at the 'preferred business partner' stage with an estimated value, at that time, of £250 million. More than 800 staff will transfer to Capita under TUPE terms on 19 November.
Paul Pindar, Chief Executive of The Capita Group, commented: "This partnership will draw upon Capita's expertise across both the life & pensions and unit trust administration markets through both Capita Life & Pensions and Capita Financial Group. An integrated operating infrastructure will deliver cost and quality benefits alongside enhanced customer service and provide a flexible platform for CIS's current and new business. The work will continue to be delivered from a central Manchester base and builds on Capita's commitment to North West England. We look forward to welcoming all staff who transfer to Capita."
David Anderson, Chief Executive of Co-operative Financial Services (CFS), said: "I am confident that this partnership with Capita will provide our staff with increased opportunity for future development within a number of different sectors. Over the last three years, the change programme undertaken within CIS has delivered significant customer and business benefits ahead of schedule. This partnership with Capita is yet another way of transforming the way in which we do business and ensuring that our customer service continues to be world class."