Direct Line hands IT contract to Capgemini

Insurance group Direct Line has awarded French technology services company Capgemini a five-year contract to provide and run its new IT infrastructure.

The contract involves migrating Direct Line’s business and corporate applications to an independent IT platform after the insurer was spun off by state-backed Royal Bank of Scotland.

Capgemini said the migration itself, which begins this month, would cost about £100 million and is expected to be completed by the end of next year.

Direct Line chief executive Paul Geddes said: “Over the last few years we have been transforming the business and we are beginning to see the results. The planned work on our IT infrastructure is a key piece in this jigsaw, as Direct Line Group finalises its separation from RBS Group.”

RBS sold a 30 per cent stake in Direct Line – Britain’s biggest motor insurer – to stock market investors in October, the first stage of a disposal demanded by European regulators for state aid the bank received in the 2008 crisis.