CPP Group, a multinational provider of personal protection and insurance products and services, has today provided a trading update for the six months ended June 30, 2021. In a Press release, the group noted that its performance during the period had been largely resilient despite the interruptions of the COVID crisis and that the group’s trading was in line with the board’s expectations.
India entering a national lockdown in Q2 2021 was a blow for CPP as this its largest market and led to a sharp reduction in new business activity in April and May 2021. However, the group noted it had seen a “robust recovery in trading” over the last few weeks and the lockdown easing announced by the Indian authorities should see its trading performance in this market continue to improve in H2 2021. CPP also highlighted that Globiva, its Indian business process management company, had seen minimal impact on its revenues during this period.
In other markets, COVID-19 continues to be a source of uncertainty for consumers and business partners, CPP said, but its renewals from the back-books remain steady. It stated that the performance of these back-book businesses in the UK and Europe continue to generate “reliable, though declining, cash flow” for the group.
Meanwhile, CPP noted that the sale of its German card protection business in May was part of its emphasis on cost control and the most efficient use of capital. In turn, this led to CPP restructuring the internal operations of unprofitable business units to improve its financial performance, as seen by its actions taken in Mexico and Malaysia, and its alterations to Blink, the group’s parametric insurance provider.
It also noted that while it had weathered the most recent turbulence from COVID, it remained sensible to take a guarded view of the outlook for the remainder of the year, given the dynamic nature of the trading background. The group’s board noted it anticipates being able to provide further guidance when its interim results are announced on August 24.
Commenting on the results, Jason Walsh, CEO of CPP, said the business had performed well given the impact of the COVID situation and that its balance sheet and cash position remained solid.
“Good progress has been made with the strategic review of the group’s businesses instigated earlier in the year,” he said. “I would like to express my thanks to our people for their dedication during the first half of the year under very difficult circumstances.”
