IBM in 10-Year, Multi-Million Pound Agreement With Royal & SunAlliance

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LONDON - 18 Apr 2007: IBM (NYSE: IBM) today announced a 10-year IT services agreement with Royal & SunAlliance (R&SA) to manage its IT infrastructure, and also provide end-to-end service integration across all of R&SA's third-party technology suppliers. The agreement extends the scope and term of the 2001 agreement between IBM and R&SA.

Jim Williams, IS director at Royal & SunAlliance, said: "This is a truly transformational deal for R&SA and our customers. It's a major commitment, and ensures that we have the right foundations in place to deliver an enhanced end-to-end service model. The deal represents a significant investment in our IT software and hardware across all areas of our UK business, and ensures that we are able to offer the best possible service for our customers."

The contract covers the operations and support of R&SA's entire IT infrastructure -- including its mainframes, mid-range servers, desktops and e-business services. IBM will provide a flexible solution expected to bring cost savings to R&SA, enabling the company to improve operational efficiency and customer service.

"This deal allows R&SA to focus on its core business, while IBM manages its entire technology infrastructure," added Andrew Spencer, Vice President, Financial Services Sector, IBM Global Technology Services. "In this truly transformational deal, both companies will collaborate closely and leverage their respective strengths in order to improve R&SA's operational efficiency and the flexibility of its systems and processes in order to allow it to innovate even more."

As part of the deal, IBM and R&SA will share joint architectural design authority. Through its Service Integration Model, IBM will be responsible for infrastructure management in the integration of services across approximately 40 third-party technology suppliers. The deal moves R&SA to a more streamlined and standardised architecture in which the application migration factory from IBM Application Management Services will be used to help transform and migrate away from the company's legacy infrastructure.

The deal was signed earlier this month.

About R&SA

Royal & SunAlliance is one of the world's leading multinational quoted insurance groups, writing 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 24,000 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 second largest commercial lines insurer, covering the insurance and risk management needs of a significant number of FTSE 100 companies. It has a full multi-distribution capability, writing business through brokers and corporate partners, direct and online. Royal & SunAlliance is also one of the UK's top three personal motor and household insurers.

Royal & SunAlliance won General Insurer of the Year, Claims Initiative of the Year and International Initiative of the Year at the 2006 British Insurance Awards.

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.

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