GBGI.L Share News (GBGI)

LONDON (Alliance News) - Shares fell in GBGI Ltd on Monday as it chose to reorganise its Angola business following currency devaluation, which is expected to reduce gross written premiums by USD20.0 million for 2018.

Shares in the international benefits insurance provider fell 10% to 128.70 pence on Monday.

GBGI will move from a primary risk taker in Angola, and continue as an excess of loss reinsurer to its local partner, to which it will transfer its risk book and operations. The partner will pay GBGI USD17.5 million over the three years, starting from April.

The reorganisation is due to the devaluation of the Angolan kwanza, and the company's view on being unable to transfer funds into the dollar in a timely manner.

For its business as a whole, GBGI said it saw continued commercial momentum, in line with management expectations, in the second half of 2017, recording gross written premiums for 2017 of USD195.0 million, up from USD165.0 million the year before.

Through GBGI's strategic partnership with AXA SA, GBGI made its first foray into the Latin American market, and the GBGI Assist business has fully integrated its QHM acquisition, which will lead to the group recording USD5.5 million of GBGI Assist fees in 2017.

"We believe we made great strides in transitioning into a public company listed on AIM in London during 2017. Although we are disappointed with the developments in Angola, we do believe it is a unique situation within our portfolio and our core business remains strong and continues to grow," said Chief Executive Officer Bob Dubrish.

"Looking forward, we are focusing our balance sheet resources on areas that we believe will reduce our overall risk profile and generate enhanced risk adjusted returns for our shareholders. We continue to see strong demand in the marketplace for our products and services and we are well set to continue on our positive growth trajectory," Dubrish added.