We combine people, relationships and technology to deliver compelling propositions and services for large-scale partners which generate sustainable growth for the Group and its shareholders.
8 reasons to invest
Strong customer and revenue growth
Driven principally by our Indian business but also benefiting from increasing scale in Turkey and the UK. Customer numbers have grown from 4.3m at the end of 2016 to 11.7m in 2020.
Our partners are major global companies
We work with major companies globally for whom we create products that brings them ancillary revenue streams, profit and customer loyalty; as well as delivering highly-valued services to their customers.
Profits will increase further, particularly in India
On the back of further successful products like LivCare, growth in Globiva and building economies of scale in our other territories. Operational efficiencies and cost savings have been realised through consolidation of our European businesses.
Increasing cash generation from growth markets and well managed back-books
Strong net cash position at the end of 2020 of £21.9m is augmented by profitable growing businesses in India and Turkey along with reliable cash generation from the legacy UK and EU back-books.
Our effective tax rate will reduce through 2021/2
The effective tax rate will begin to normalise as profitable markets continue to progress, losses diminish in territories where we have been investing for growth in recent years and central costs continue to be closely controlled. Historically no tax benefit has been available to CPP in relation to the start-up losses incurred by our investment for growth projects.
The Group’s capital allocation strategy balances the financial health of the business, the ongoing requirement for investment into the business and returns to shareholders
The Group has not paid a dividend since 2011. The last 5 years has been characterized by a substantial restructuring, repositioning and transformation of the Group in order to return the business to growth. With a healthy balance sheet and lower levels of investment spend now being required, the Board views the resumption of dividends as both timely and appropriate as well as reflecting the wider ambition of the Group going forward.
We focus on four strategic drivers to grow our business and achieve our ambition of becoming the ‘go to’ provider of ancillary product services among large scale financial services companies.
Relentless focus on business partner needs
Key achievements for 2020
- Widened the product portfolio offering with existing partners, the most notable of these was In India with the LivCare product generating impressive sales through Bajaj
- Extension of key business partner contracts in high growth including with SBI Card and Axis Bank in India and DenizBank in Turkey
- Extension of product categories in Turkey with the launch of CyberCare through AXA Sigorta and Ray Sigorta
- Widened the coverage of our Card Protection product in India, Turkey and Spain
- Expanded our partner offering in the UK to include claims handling services for the RAC
- Our partner base increased by 10% year-on-year securing new deals with major brands including Vakifbank, Akbank and Türkiye Sigorta in Turkey and RAC and Gallagher in the UK
- Retain and grow our existing partnerships through multi-product and multi-channel strategies
- Focus on robust governance and assurance frameworks
- Further partner diversification to balance group portfolio
A different approach to culture
Key achievements in 2020
- Global Conversations with colleagues to understand the wider impact of the pandemic, giving us a platform to define new adaptable and productive working practices.
- Invested in our local leadership teams to focus on culture and behaviours to drive performance.
- Launch of our ‘Learn More Be More’ initiative – a space created for our people to explore and utilise to help them be the best version of themselves.
- Develop the ‘CPP Next Generation’ initiative, re-establishing how we do business and how we work as a company to face the future.
- Launch new peer support programme ‘Home support’ to understand the positive impact colleagues can have to be there for their peers to discuss professional or personal issues.
- Continue to promote diversity, inclusion and wellbeing initiatives
Developing our value-driving markets
Key achievements in 2020
- Maintained service to all customers, across our markets, throughout lockdown whilst transferring customer service colleagues to home working
- Closure of our small Southeast Asia office to focus resource on profit generating markets
- Focused resource into our UK new business which has firmly established itself as an innovative UK MGA
- The integration of Business & Domestic Insurance (B&D) in the UK is now complete
- Renewal performance across key markets has maintained in line with expectations
- Own more of the value chain in key markets to increase margin and differentiation
- Reprioritise sales channels in Spain away from expensive telemarketing to generate profitable returns
- Focus on serving existing customers from a lower cost base in our Mexican market where new business activity has been less successful
- Increase integration between new and legacy businesses in the UK to deliver greater synergies and efficiencies
- We see significant growth opportunities in the mobile phone insurance market in Bangladesh and the rural market in India
- Maintain renewal performance and improve the customer journey
Create advantages through technology and innovation
Key achievements in 2020
- Deployed a new digital claims journey in India reducing claims handling times and driving improvements in the customer experience and internal efficiencies
- Switched to a cloud-based telephony servicing platform in the UK
- Launch of new, fully digital cyber and travel products in the Turkish market opening new product and channel opportunities
- Increase our participation in growing categories and channels through investing in product development.
- Increase usage of digital channels for in-life servicing and claims handling to drive further product engagement and increase retention
- Further development of technology platforms for local markets
- Launch of new technology platform in India further modernising our service delivery and connectivity with partners.
- We will bring the Blink operations under central management to further leverage our expertise in distribution and drive growth in the parametric product set.