At CPP Group our regional businesses work with our corporate centre to understand both business partner and customer needs, creating products and services to meet their requirements. This includes leveraging best practice and innovation from across the Group so that we are able to offer more to our partners so that they can mean more to their customers.
The geographical mix of our business offers a balance of fast growth markets and more mature markets and also helps to offset any volatility in the local/regional economies.
Our traditional businesses
The UK and EU hub businesses are focused on delivering strong renewal income through servicing our legacy Card and Identity Protection businesses. These traditional businesses are high-margin and cash generative with strong retention rates. Through the creation of an EU hub based in Madrid we are ideally placed to effectively respond to the eventualities of Brexit, which we do not anticipate having a significant impact on the day-to-day operations of the Group.
Our high growth businesses
These businesses are rapidly growing their revenues supported by key large scale partnerships that have enabled us to penetrate new channels with new products in 2019. India witnessed significant growth with 43% year-on year-revenue growth in 2018 and now has 6 million customers (an increase of 4.7 million since 2016). Our Turkish operation provides the Group with strong partnerships in the insurance and banking sectors, as well as ownership of the value chain (outsourcing capabilities, acquisition and servicing) to enhance margins.
Our emerging businesses
CPP Group China focuses predominantly on the financial services sector. The Group has invested in a new IT platform to conform with Chinese data residency requirements and this step, together with strengthening the local team, makes success in this market a key target for the Group. CPP Mexico continues to develop propositions for the financial services and the retail sector.
See below for our investments and acquisitions.
Our investments and acquisitions
CPP Group Bangladesh and South East Asia
Bangladesh and South East Asia provide the Group with large potential markets to access.
We are focused on building growth in 2019 as we roll out Card Protection and Phone Insurance at volume in Bangladesh. We aim to unlock the potential that the growing middle classes in Asia represent through the creation of a regional hub in South East Asia in 2019 and have already established an office in Singapore, alongside servicing capability in Malaysia.
CPP Group UK
In 2018 we saw the creation of a new UK business separate from our UK back book. This business has developed a dynamic suite of technology-led Key Cover and cyber products and has signed new partner contracts in the first half of 2019.
In 2017 CPP Group acquired Blink Innovation. Blink, based in Ireland, is an InsurTech business which has developed a pioneering parametric insurance platform and is driving innovation within the global travel insurance sector. Blink have launched in both Canada and Turkey with over 250k customers having access to their innovative Travel Disruption technology. The partnerships with Manulife and Blue Cross Cansurrance in Canada demonstrate the global reach of this technology solution.
In 2018 CPP Group acquired a 61% stake in one of India’s fastest growing Business Process Management companies which has demonstrated significant growth since its inception in late 2017. Globiva already boasts 1,400 colleagues across three sites in India and gives the CPP Group an in-house option for the rationalisation of back office cost structures as well as growing revenue contribution from their core business through partnerships with global brands such as Ola, Tui and American Express.
In 2018 CPP Group invested in a 20% stake in the cyber risk start up KYND, further strengthening its innovative product catalogue and digital capabilities across the Group. KYND uses proprietary cyber risk management technology to enable businesses to easily monitor and understand the cyber risks they face, take action when necessary and be alerted to future risks as they arise.