CPP’s performance ‘meets expectations’

CPP, which sells protection for credit cards, wallets and mobile phones to customers of banks and building societies, also predicted that its full year group revenue would record a “modest” fall.

Earlier this year, the FSA said CPP may have overstated the risks of identity theft to customers and not properly explained how its products worked.

CPP agreed in February with the FSA to make a number of changes to its renewals process and review its past business. CPP employs 1,969 people globally, including about 1,000 staff in York.

In a statement issued today, prior to entering its closed period for the half year ended June 30 2012, the company said: “Group operating performance continues to be in line with current market expectations while navigating the short-term challenges in the UK.

“In line with the performance trends reported in our interim management statement on May 16 2012, and as expected, we anticipate modest year on year group revenue decline for the period.

“This is as a result of revenue decline in northern Europe, principally from the UK, where reduced card protection and identity protection sales have been partially mitigated by the continued growth of mobile phone insurance and a decline in Southern Europe, where challenging economic conditions continue to impact.

“North America and Asia Pacific revenue growth has been strong. The group will report a net funds position in its half year results.

“International operations have continued to make further good progress and a number of new business partners have been confirmed in the period. This demonstrates the continued relevance and consumer appeal of our products and services and longer-term opportunities for the group.”

The group has agreed to conduct a past business review (PBR) under FSA supervision of direct sales of its card protection and identity protection products made since 2005, and to offer redress to customers where appropriate.

The statement added: “The group remains in discussions with the FSA regarding the operational details of the PBR. As noted in the group’s annual report, it is possible that other claims or matters may arise against the group in connection with the FSA’s investigations, which could take a number of forms and therefore have a financial effect that cannot presently be estimated.

“As a result, the contingent liability identified in the group annual report remains. A further update will be provided in the half year results announcement. We continue to proactively shape our culture and operating model alongside developing product and service propositions that will drive our long-term future success.”