Latest provision takes total to £55.8m
Credit card insurer CPP has set aside a further £1.8m to compensate customers who were mis-sold policies.
The company said in an interim management statement yesterday that the latest provision increases the total amount set aside for mis-selling compensation to £55.8m.
The company also revealed in the statement that revenues for the four months to 30 October had fallen 38%, primarily because of trading performance in the UK.
It said that its UK renewal rate had fallen by a further 0.6% to 70.7%. It added: “The UK renewal rate may continue to decline in the short term.”
Live policy numbers as of 30 October 2013 were 7.6 million – 0.3 million lower than at June 30.
CPP chief executive Brent Escott said: “Our immediate priority is to strengthen the Group as we enter the next phase of our development.
“We are working towards rebuilding CPP’s reputation and repositioning our business model to provide longer-term stability, continuing the improvements required to operate in a regulated environment and create a sustainable business proposition for the long term.”