Capita Agrees to Exit Closed Book Life & Pensions Business

04:21 AM EST, 12/12/2025 (MT Newswires) -- Capita (CPI.L) said Friday it signed a transition agreement covering its remaining two legacy evergreen closed book Life & Pensions contracts with Royal London's legacy business for an initial 22.5 million pounds sterling. The consulting, transformation, and digital services company previously entered into transition agreements for other contracts within the Life & Pensions business as part of its plan to exit the business completely. The remaining contracts are expected to be migrated over the coming years. Under the agreement, the initial payment may be settled through the issue of 5,670,909 Capita shares, which will be subject to a customary lock-up during the five-year migration period. Additionally, Capita will make three payments of 10 million pounds each in consecutive years after the completion of the migration. Capita said it forecasts a free cash outflow of 20 million pounds per annum during the migration period.