AN insurance company has sold its stake in a home emergency assistance firm as it concentrates on rebuilding its reputation.

CPP, based in York, is recovering after being fined £10.5m by the Financial Conduct Authority for mis-selling insurance products.

Ahead of a redress scheme, which will see CPP pay out about £65.8m compensation, bosses say it has sold its 49 per cent stake in Home3Assistance.

CPP's share of the business has been sold to its joint venture partner Mapfre Abraxas Software for £275,000.

As part of its exit of the joint venture arrangement, CPP agreed to invest a further £1m to absorb its share of losses in Home3, which will be reported as part of discontinued operations in the group's income statement for the year ending 31 December 2014.

CPP, which employs about 550 workers at its York headquarters, will make the net cash payment of £725,000 to Mapfre over a two-year period.

Brent Escott, CPP Group chief executive, said: “The sale of our shareholding in Home3 represents further progress in repositioning the business model to provide longer term stability for the group.”