Cheltenham-based outsourcing group Capita plc has announced the sale of its speciality insurance businesses to Marco Capital Holdings (UK) Limited for an undisclosed sum.

The sale, subject to regulatory approvals, comprises of two businesses - Capita Commercial Insurance Services Limited (CCIS) and Capita Managing Agency Limited (CMA).

CCIS provides outsourced business processes for the insurance industry across areas including underwriting support, claims and client finance.

CMA provides regulatory approval and oversight to live and run-off syndicates in the Lloyd's insurance market.

Revenue and profit before tax for the speciality insurance businesses for the year ended December 31, 2020 were £26m and £5m respectively. These figures include a contract that is included in the sale and which is due to end in 2022. The revenue and profit before tax of the speciality insurance business excluding this contract were £20m and £3m respectively.

Capita said senior management team and employees of CCIS and CMA will remain with the businesses as they transfer to Marco's ownership.

Deloitte FIG Corporate Finance acted as the exclusive financial adviser to Capita.

Capita previously announced its intention to sell a number of non-core businesses - including these two - to strengthen the balance sheet and focus on its two core divisions, Capita Public Service and Capita Experience.

In the past 12 months the business has announced exits from: Education Software Solutions; our Employee Benefits business; Capita Life & Pensions Services (Ireland); Axelos; Atlas Master Trust; and Secure Solutions and Services.

Jon Lewis, Capita's chief executive officer, said: "This is the seventh exit we have announced in the past 12 months. I am really pleased with this progress. Today is another step towards a more focused and sustainable business for the long term. Further progress on disposals will be announced as and when appropriate."

Capita also said it continues to target £700m of non-core disposals proceeds by June 2022.