Serco's pension breakthrough

Serco, the outsourcer that runs the Boris Bikes scheme and the Docklands Light Railway in London, has signed its first deal to run back-office work in the pensions industry, with a £170m, 10-year tie-up with Aegon.

The contract "marks Serco's entry into this segment of the financial services market", the outsourcer said. It will take on some of Aegon's customer services, underwrite new customer business and run claims management as well as looking after some of the Dutch firm's zombie pension funds and life assurance policies that are no longer sold.

Serco's chief executive Christopher Hyman said: "This represents a further significant contract award and strategic development for our growing global outsourcing business."