CPP Group

CPP Group plc
Public company
Traded as LSE: CPP
Industry Life assistance
Founded 1980
Headquarters Leeds, United Kingdom
Key people

Jason Walsh, Chief Executive Officer

Sir Richard Lapthorne, Non-Executive Chairman
Revenue £76.8 million (2015)[1]
£23.0 million (2015)[1]
£20.8 million (2015)[1]
Website international.cppgroup.com

CPP Group plc is a global financial assistance product provider. Its Group International Support Centre is based in Leeds, UK and it also has locations is Asia, Europe and Latin America. It is listed on the Alternative Investment Market.

History

The Company was founded by Hamish Ogston in 1980 as a provider of card protection insurance.[2] It acquired its Homecare Insurance and Mobile Phone Insurance businesses in 2001, Metris Enhancement Services in 2003 and Leapfrog Group in 2009.[3]

Having listed on the London Stock Exchange in March 2010, CPP moved to AIM in February 2015.[4]

Sir Richard Douglas Lapthorne, Nicholas Ian Cooper and Mark William Hamlin joined CPP on 5 May 2016 replacing the previous board after a 'General Meeting' was requested by shareholder, Schroder Investment Management Limited. Jason Walsh was appointed Chief Executive Officer of the Group with effect from 16 May 2016 .[5]

In March 2017, CPP acquired Blink Innovation: the only InsureTech business in the FCA’s prestigious ‘Project Innovate’ sandbox.[6]

Operations

CPP primarily operates a business-to-business-to-consumer (B2B2C) business model specialising in developing and delivering high-tech assistance solutions for the customer through Business Partners and direct to consumer.[7] It operates across Europe, Latin America and Asia within the following countries:[8]

Europe:

  • UK
  • Spain
  • Portugal
  • Italy
  • Turkey
  • Germany

Latin America:

  • Mexico

Asia:

  • India
  • China
  • Hong Kong
  • Malaysia
  • Bangladesh

FSA Probe

On 29 March 2011 the company announced that the Financial Services Authority had launched an investigation into the sale of one of its products to UK customers. The Financial Services Authority's investigation centred on allegations that CPP overstated the risk of identity theft when selling insurance for that purpose. CPP suspended the sale of the product with immediate effect with the intent of creating a new package, possibly without insurance.[9][10]

On 20 February 2012 CPP announced that its shares had been suspended on the London Stock Exchange for a two-week period to allow for negotiations with the FSA to take place. CPP maintained that the proposed redress for alleged mis-selling would force the company to close and that the action being demanded by the FSA was disproportionate.[11] On 25 February 2012 an announcement was made indicating that a compromise agreement had been reached. This was reported as be being expected to cost CPP in the region of £10–15 million.[12] CPP shares were re-listed on 27 March 2012.[13]

In the following week a number of MPs voiced their concerns about the way in which the FSA's review had been carried out and the impact that closing the company would have on the staff and the local economies of the areas in which CPP's offices are based.[14]

As part of the FSA investigation, the FSA has stated that the referral partners including the high street banks will also be investigated and the number of consumers affected by this mis-selling scandal could be significantly higher.[15]

The redress scheme to compensate for the mis-selling the products took place from January 2014 until August 2014 and by 5 March 2015, the scheme administrators paid £451m of compensation to 2.37 million claimants, an average of £190 per claim [16]

References

  1. 1 2 3 "Annual Report 2015" (PDF). CPP Group. Retrieved 20 October 2016.
  2. ↑ CPP Group goes for float to pay down debts Evening Standard, 18 February 2010
  3. ↑ "MKM to sell its UK business". Business Desk. 22 October 2009. Retrieved 22 November 2017.
  4. ↑ "CPP looks to move forward following new listing". 12 February 2015. Retrieved 22 November 2017.
  5. ↑ Board of Directors
  6. ↑ "CPP acquires Blink with eye to future". 19 March 2017. Retrieved 22 November 2017.
  7. ↑ "About Us". CPP Group. Retrieved 20 October 2016. ]
  8. ↑ "International". CPP Group. Retrieved 27 June 2018.
  9. ↑ CPP shares plummet after FSA probe revealed thisismoney.co.uk, 29 March 2011
  10. ↑ FSA investigate ID theft insurance firm CPP Choose.net, 12 December 2011
  11. ↑ CPP shares suspended as FSA calls for new review, The Daily Telegraph, 20 February 2012
  12. ↑ Credit card insurer CPP faces £15m bill for review, BBC, 25 February 2012
  13. ↑ CPP plummets on restoration of listing Hargreaves Lansdown, 27 March 2012
  14. ↑ FSA inquiry puts 1,000 CPP jobs at risk in York, BBC, 22 February 2012
  15. ↑ High Street Banks Also Face Investigation For Mis-Selling CPP News Observer, 30 January 2013
  16. ↑ CPP card and identity protection compensation scheme closure FCA News, 27 March 2015
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