Gah looks great18 Aug 2016 11:59
15 July 2016
This announcement contains inside information
Gable Holdings Inc.
("Gable" "the Company" or "the Group")
Final Results for the year ended 31 December 2015
Gable (AIM: GAH), the European non-life insurance company ("Gable", "the Group" or "the Company"), announces its results for the year ended 31 December 2015 and an update on the strategic review of the Group's business model.
Re-alignment of Gable's business model to meet Solvency II requirements
- Strategic review of the Group's existing business and operations:
· Evaluating a broad range of strategic options for the Company;
· Assessed impact and costs of meeting historical Solvency I targets;
· Evaluating different business models for Solvency II ("SII") regulatory capital compliance;
· Objective to achieve accelerated SII compliance; and
· Engaging with potential partners to evaluate their capabilities across a range of possible solutions.
- Whilst the strategic review is an ongoing process, the Board is initially implementing a Strategic Restructuring Plan for Gable that will enable it to:
· Implement a new business model with supporting commercial arrangements in order to deliver a profitable future business under the SII regulatory environment;
· Continue to support its existing policyholders through leveraging off the strength and capabilities of larger insurance partners; and
· Write niche lines of business (on a significantly smaller scale) which will be fully SII compliant, with the balance being transferred to SII compliant multi-national insurance carriers.
Current Trading and Outlook
- Momentum of new business opportunities has continued into 2016 driving GWP;
- Profitable trading in the first quarter of 2016;
- Continued good cash generation, current cash and investment balances of £74.5m as at 30 June 2016; and
- Passporting into Europe is unaffected by the UK's exit from the EU due to Gable's Liechtenstein location.
Business Overview 2015
- £100m of business written in the year;
- Reported Gross Written Premiums of over £91.1m, representing a 14% increase over the prior year;
- Retention rates and new referrals continued to drive strong growth in GWP across all markets;
- Pre-tax loss for the group of £24.3 million which includes the following previously announced non-recurring adjustments:
· £7.5 million provision to eliminate the remaining balance of the pre-2012 historical reserving gap;
· Increased £7.9 million provision (from £6.0 million) to fully write off the debtor relating to an after the event ("ATE") insurance policy;
· Provisions for claims arising from the significant floods experienced in the UK and Europe in December 2015,