CPP Group

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CPP Group plc
Company typePublic company
IndustryLife assistance
Founded14 April 1980;44 years ago (14 April 1980) [1]
Founder Hamish Ogston
Headquarters Leeds, United Kingdom
Key people
David Morrison (Chairman)
Simon Pyper, (Chief executive officer) [2]
Revenue £143.6 million (2021) [3]
£134.8 million (2021) [3]
£27.2 million (2021) [3]
Website international.cppgroup.com

CPP Group plc is a provider of assistance and insurance products which reduce disruptions to everyday life for millions of customers across the world. [4] It is headquartered in Leeds, UK and has about 11 million customers. It is listed on the Alternative Investment Market.

Contents

History

The Company was founded by Hamish Ogston on 14 April 1980 as a provider of card protection insurance. [1] [5] It acquired its Homecare Insurance and Mobile Phone Insurance businesses in 2001, Metris Enhancement Services in 2003 and Leapfrog Group in 2009. [6]

Having listed on the London Stock Exchange in March 2010, CPP moved to AIM in February 2015. [7]

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. [8]

In March 2017, CPP acquired Blink Innovation: the only InsureTech business in the FCA's prestigious 'Project Innovate' sandbox. [9]

Acquisitions and Investments

In September 2019, CPP Group UK, part of CPP Group Plc, acquired the insurance broker, Business & Domestic Insurance Services (B&D) from Motorway Direct Plc. [10]

In September 2018 CPP Group announced an investment in the Indian Business Process Management (BPM) company, Globiva. CPP invested £2m for a 61% stake in the business. [11]

In June 2018 CPP Group announced the acquisition of Valeos, a specialist consultancy providing value-added services and products to companies in the insurance sector. Valeos was founded by CEO David Ross in Yorkshire in 2014. [12]

In March 2018 CPP Group announced a £1.2m investment to take a shareholding in the cyber risk start up KYND. KYND uses proprietary cyber risk management technology to enable businesses to monitor cyber risks. [13] In January 2022 KYND announced that it secured £3.25m of investment from Business Growth Capital (also known as the British Growth Fund). [14]

In March 2017 CPP Group acquired Blink Innovation, an insurtech start-up within the travel insurance industry. [15] In November 2020, Blink Parametric was included in the InsurTech100 list. [16]

Senior management

The chairman, Sir Richard Lapthorne, retired on 31 January 2021. He was succeeded as chairman by existing non-executive director, David Morrison. [17] On 8 February 2022, CPP Group announced that CEO Jason Walsh would step down after almost six years in the role. His successor was Simon Pyper, the former Chief Financial Officer. [18]

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. [19]

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. [20] On 25 February 2012 an announcement was made indicating that a compromise agreement had been reached. This was reported as being expected to cost CPP in the region of £10–15 million. [21] CPP shares were re-listed on 27 March 2012. [22]

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 in the areas that CPP's offices are based. [23]

As part of the investigation, the FSA has stated that the referral partners including the high street banks will also be investigated and that the number of consumers affected by this mis-selling scandal could be significantly higher. [24]

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 [25]

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References

  1. 1 2 "Card Protection Plan Limited". Companies House. Retrieved 24 December 2019.
  2. ↑ "CPP Group announced CFO Simon Pyper as next CEO". Talent 4 Boards. Retrieved 13 July 2022.
  3. 1 2 3 "Annual Report 2021" (PDF). CPP Group. Retrieved 30 May 2021.
  4. ↑ "CPP Group Final Results 2021". London Stock Exchange. 29 March 2022. Retrieved 30 May 2022.
  5. ↑ "CPP Group goes for float to pay down debts". Evening Standard. 18 February 2010. Retrieved 20 November 2018.
  6. ↑ "MKM to sell its UK business". Business Desk. 22 October 2009. Retrieved 22 November 2017.
  7. ↑ "CPP looks to move forward following new listing". York Press. 12 February 2015. Retrieved 22 November 2017.
  8. ↑ "CPP "surprised" by replacement director request". 21 March 2016.
  9. ↑ "CPP acquires Blink with eye to future". 19 March 2017. Retrieved 22 November 2017.
  10. ↑ "CPP group confirm deal to takeover insurance broker". www.yorkshirepost.co.uk. Retrieved 12 December 2019.
  11. ↑ "CPP Group Pays GBP2 Million For 61% Stake In Indian Firm Globiva". MorningstarUK. 13 September 2018. Retrieved 12 December 2019.
  12. ↑ Media, Insider. "CPP Group acquires insurance sector consultancy". Insider Media Ltd. Retrieved 12 December 2019.
  13. ↑ "CPP makes £1.2 million investment in cyber risk startup KYND". Finextra Research. 12 March 2018. Retrieved 12 December 2019.
  14. ↑ "KYND secures £3.25m investment from BGF". Business Leader. 12 January 2022. Retrieved 30 May 2022.
  15. ↑ Bacani, Louie. "CPP Group buys digital insurer Blink Innovation". Insurance Business. Retrieved 13 December 2019.
  16. ↑ "Blink Parametric Makes The InsurTech 100". Insurance Edge. 5 November 2020. Retrieved 30 May 2022.
  17. ↑ "CPP Group Chairman To Step Down". insider Media Limited. 1 December 2020. Retrieved 30 May 2022.
  18. ↑ "CPP Group CEO To Step Down". TheBusinessDesk. 8 February 2020. Retrieved 30 May 2022.
  19. ↑ "FSA investigation hits CPP". Insider Media. 23 August 2011.
  20. ↑ CPP shares suspended as FSA calls for new review, The Daily Telegraph, 20 February 2012
  21. ↑ Credit card insurer CPP faces £15m bill for review, BBC, 25 February 2012
  22. ↑ CPP plummets on restoration of listing Archived 4 August 2012 at archive.today Hargreaves Lansdown, 27 March 2012
  23. ↑ FSA inquiry puts 1,000 CPP jobs at risk in York, BBC, 22 February 2012
  24. ↑ High Street Banks Also Face Investigation For Mis-Selling CPP Archived 4 March 2016 at the Wayback Machine News Observer, 30 January 2013
  25. ↑ CPP card and identity protection compensation scheme closure FCA News, 27 March 2015
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