British support services group, Capita, is the preferred bidder for a pensions outsourcing contract with French insurer, Axa. The deal could be worth up to £500 million over 15 years.

Under the deal, Capita would take over customer service and other administrative duties relating to 3.2 million life and pension policies written by Axa subsidiary Axa Sun Life.

About 1,300 of Axa's British staff would transfer to Capita, as would a further 600 employees based in India.