Royal & SunAlliance signs IT outsourcing deal with T-Systems in the UK
Second major outsourcing order in the UK in 2007

London, November 05, 2007

T-Systems, the business customer unit of Deutsche Telekom, has today announced a deal with Royal & SunAlliance (R&SA), one of the UK’s largest insurers, to outsource its IT operations. The deal has a value of over EUR 130 million (£92 million) and an initial term of ten years.

As part of the R&SA deal, T-Systems will take over two output management facilities in Birkenhead (Liverpool) and Easton (Bristol) and 63 employees will be transferred to the service provider.

In outsourcing its IT operations to T-Systems, R&SA can concentrate on its core competency and allow T-Systems to focus on technology improvements to the IT and printing infrastructure to continue to improve quality, scalability and deliver savings.

R&SA is the second major IT outsourcing contract sealed in the UK this year by T-Systems, who signed a ten-year IT outsourcing contract in February with UK energy giant, Centrica plc.

"The fact that we have repeated success in the most competitive IT market in Europe is proof that we are on the right track with our international growth strategy," said T-Systems Limited CEO, Jan van der Merwe.

T-Systems’ international goal is to assume ICT leadership in major western European markets by 2010. The Deutsche Telekom subsidiary is currently the largest IT services provider in Germany and a European leader. In SAP outsourcing, for example, T-Systems is the largest provider in Europe with over one million users.

"This R&SA outsourcing deal is another growth milestone for T-Systems in the UK. We will be able to provide significant savings to R&SA as a result of this deal and our IT expertise, coupled with planned upgrades of the existing facilities, means a winning solution for R&SA, the transferred staff in Bristol and Liverpool, and for us as we continue on our path to being a leading information and communications technology (ICT) services company in the UK," said Jan van der Merwe.

About Royal & SunAlliance

Royal & SunAlliance is one of the world’s leading multinational quoted insurance groups, with the capacity to write business in over 130 countries and with major operations in the UK, Scandinavia, Canada, Ireland, the Middle East and Latin America. Focusing on general insurance, it has around 21,000 employees and, in 2006, its net written premiums were £5.5bn. With an almost 300 year heritage Royal & SunAlliance is the oldest insurance company in the world still trading under its original name.

Within the UK, Royal & SunAlliance is the largest commercial lines insurer, cover-ing the insurance and risk management needs of a significant number of FTSE 100 companies. It has a full multi-distribution capability, writing business through bro-kers and corporate partners, direct and online. Royal & SunAlliance is also one of the UK’s top three personal motor and household insurers.

In December 2006 Royal & SunAlliance became the first insurer in the UK to be carbon neutral. The company has cut its carbon footprint by half since 2000 and has offset the remainder by purchasing voluntary carbon reductions through The CarbonNeutral Company.