Private finance initiative (PFI) specialist Jarvis has transferred its book of risks to Jardine Lloyd Thompson. The book is estimated to have a premium value greater than £10m.
Jarvis is lead contractor on around £4bn of PFI contracts, including many schools. Like many other contractors, it acts as a broker for subcontractors and other partners.
It is understood that Jarvis decided to outsource its risks due to forthcoming FSA intermediary legislation.
Under the rules, which come into force in January 2005, Jarvis would have to gain FSA authorisation. Carillion, the contractor formerly known as Tarmac, sold its broking arm, Markfield, to Folgate in January 2004.
Neither Jardine Lloyd Thompson nor Jarvis were available for comment.