CPP aims to lift sales with big push overseas

The York-based group, whose services include credit card insurance, identity theft protection and mobile phone cover, said overseas markets will provide an increasing proportion of sales.

CPP, founded 30 years ago by entrepreneur Hamish Ogston, floated in March to raise 150m.

The group said renewal rates on its policies are around 77 per cent – roughly the same as in previous years.

"They (renewal rates) are holding up pretty well and reflect the fact that our products are relevant at this particular time," said chief executive Eric Woolley. "Fraud tends to increase in a difficult economic environment. There's a certain balancing strength there."

CIFAS, the UK's fraud prevention service, said identity fraud surged 20 per cent in the first three months of the year.

"The fundamental market drivers of our business continue to be favourable," said CPP.

The firm now operates in 15 countries, after recently taking an "important first small step" into China, by signing a contract with Guangdong Development Bank for the wholesale supply of card protection.

Fast-growing economies, such as China and India, offer CPP a rich source of increasingly affluent consumers looking to protect their possessions and credit cards. The group takes between three and five years to build a profitable business in each new country.

Since launching in India in 2008, CPP has grown to nine business partners, including three added this year. It has now started earning renewal sales from India, an important step towards profitability.

In Mexico, CPP started selling to HSBC customers in 2009, and said sales are growing well.

Asia Pacific achieved year-on-year revenue growth despite a new credit card tax in Malaysia.

"By and large I'm happy (with CPP's international expansion)," said Mr Woolley. "Turkey, India and Mexico are all doing very nicely.

"China is a milestone of a kind. Clearly there's a blue sky view in that we see China as being extremely important to the group in the long term, but we all know that new and exciting markets carry risks and challenges."

UK sales currently make up around 65 per cent of the group's revenues, and Mr Woolley said he hopes rapid overseas growth will lead to an increasing proportion of revenues from emerging economies. In the UK, it has started providing mobile phone insurance to Royal Bank of Scotland and Nat West current account customers.

In North America, the group has started selling identity protection thanks to a new exclusive deal with Santander subsidiary Sovereign Bank.