Capita Insurance Services said it is in advance discussions to provide run-off services for Hill House Hammond.
Capita said it would focus on working with Hill House Hammond to maintain service levels during the run-off period. Policy administration and claims management will be handled through a central administration centre in Bristol, said the company.
Under the deal, Hill House Hammond staff will transfer to Capita via TUPE (transfer of Undertakings Protection Employment) by 30 September 2004, at the latest, said Capita.
It said staff joining the company would be offered career choices with Capita both during and after the run-off period.
Capita business development director Lee Gladwell said the Hill House Hammond deal was a very important outsourcing contract for the company.
Hill House Hammond managing director Ken Applegate, said: “By partnering with Capita we are able to secure a successful run-off as well as present new opportunities for the transferring staff.