Aviva has sold its offshore global services business to WNS in a $1 billion (505 million), nine-year deal that will include its offshore IT operations.
The UK's largest and world's fifth largest insurer is handing its business process outsourcing (BPO) operations to the outsourcers, who will then provide back-office processing functions back to Aviva.
The transaction is comprised of a share sale and purchase agreement, backed by a master services agreement, to acquire all of the shares of the business process offshoring subsidiary, Aviva Global Services.
WNS has provided BPO services to Aviva since 2004, but this deal will see WNS will take over the global service operations, comprising over 5,800 seats in Bangalore, India and Colombo, Sri Lanka.
Under the terms of the contract, WNS will provide a number of life and general insurance processing functions to Aviva, including policy administration and settlement along with finance and accounting, customer care and other support services.
"This contract allows Aviva to continue our working relationship with a provider that understands the insurance industry," said Cathryn Riley, chief operating officer of Norwich Union Life and chairman of Aviva Global Services.
Riley added that Aviva was committed to offshoring. "By transferring our captive and third-party operations to WNS, Aviva benefits from WNS' ability to bring us new perspectives and continue our focus on customer service. Having worked with WNS since 2004, we expect a smooth transition period and look forward to a successful, long-term partnership."
