Capita Hooks Buyer For Elderly Insurer Fish

Capita (LSE: CPI.L - news) , the FTSE-100 outsourcing group, is attempting to net millions of pounds from the sale of a specialist insurer for disabled and elderly people.

Sky News understands that the company has hired advisers from the accountancy firm Deloitte to identify potential buyers for Fish Administration, which it acquired in 2012 for £21m.

The reasons for Capita's decision to offload the business, which said acquiring it would "add greater capacity and valuable new expertise", were unclear on Tuesday.

The tie-up with Capita was hailed by Fish Administration executives as providing "a great opportunity for our insurance industry clients, our customers and our staff".

Last year, the company changed the management of its specialist insurance businesses, which also include National Dental Plan.

Fish Administration was previously owned by Inflexion, a private equity firm.

Capita has demonstrated strong growth in the last two years, buoyed by cost-cutting in the public and private sectors.

Andy Parker, who took over from Paul Pindar as its chief executive last year, has said he wants to expand its private sector business even as it has largely remained free from the toxic recent publicity which has engulfed rivals G4S (LSE: GFS.L - news) and Serco.

A Capita spokeswoman declined to comment "on market rumour and speculation".