GAH.L Regulatory News (GAH)

18 May 2011

Gable Holdings Inc

("Gable", "the Company" or "the Group")

Final Results for the year ended 31 December 2010

Gable (AIM: GAH), the European non-life insurance company, announces excellent consolidated final results for the year ended 31 December 2010.

Financial Highlights

Business Highlights

§ Premium written in 2010 comprised of 56% UK (2009: 49%) and 44% (2009: 51%) in other European markets

§ Growth has been achieved across all products in 2010, particularly increased premiums in UK portfolio and the French Artisan programme 

§ First full year of underwriting our commercial after the event ("ATE") product, which is performing well ahead of initial expectations

§ Launched a new product in April 2010 - a French property liability scheme

William Dewsall, Chief Executive, Gable Holdings Inc, commented: "These exceptional results reflect the continued success of our European growth strategy. Furthermore, the growth achieved in premium written is organic across the Group's whole product range. We have seen recovery in premium written in the UK market and continued growth in our French products. Our commercial ATE product, launched in 2009, has performed well and is expected to develop further in the current year.

"The Board is delighted with the growth being achieved in the current financial year and continues to review opportunities to launch new products complementary to our existing range and geographic presence."

About Gable Holdings Inc

Gable is a European non-life insurance company underwriting a comprehensive range of specialist policies for the commercial sectors in the UK, France, Norway and Spain. Gable benefits from a low-cost online underwriting platform and the Company has continued to successfully grow its business geographically whilst simultaneously exploiting a range of niche insurance segments which exist across the EU, which is delivered through the EU passporting mechanism.

Gable Holdings Inc is quoted on the London Stock Exchange's AIM market. For further information please visit www.gableholdings.com.

Chairman's Statement

The results for 2010 are testament to the Group's strategy to focus on growth as a European insurance company. We continue to seek to strengthen our existing products in terms of premium written, without compromising on the levels of profitably that we expect to achieve from each.

We continue to review opportunities for new products and new markets, taking advantage of our European-wide licensing, under the European passporting legislation.

We have, during the last financial year and as a continuing exercise until its formal implementation, expended an increased resource on the proposed Solvency II legislation. At this time, we believe that no additional capital will be required to meet the proposed requirements of Solvency II in light of the forecast growth in our business. We are also embarking on a complete review of the business to ensure that we have suitable procedures and controls in place to adhere to the risk management and reporting requirements of Solvency II.

The Board remains very optimistic about the prospects for the Group in the current and future financial years.

Lance Ranger

Chairman

17 May 2011

Chief Executive's Review

The Board of Gable Holdings Inc is pleased to present its consolidated results for the year ended 31 December 2010.

The reported result for the year shows profit before taxation of £2.71 million (2009: £1.54 million) and basic and diluted eps of 2.31p (2009: 1.26p). At the end of the period, net assets were £13.9 million (2009: £11.1 million) and cash balances were £6.4 million (2009: £4.3 million).

Results

A summary of the results for the year ended 31 December 2010 are set out in the table below:

The premium written in 2010 was comprised of 56% UK (2009: 49%) and 44% (2009: 51%) in other European markets. In premium terms, growth has been achieved in all products in 2010, particularly increased premiums in UK portfolio and our French Artisan programme and a full year of underwriting our commercial ATE product. This increase in business written has been achieved without any compromise to our insurance margin.

We launched a new product in 2010, a French property liability scheme, on which we commenced underwriting in April.

Business Review

The table below shows how our product base has diversified since we started writing business in 2006. We have diversified our business both in product range and geographic representation, but also in the risk profile of the products we offer, balancing liability products with short tail property portfolios.

*a French insurance policy for building defects in a new build or renovated French property

Solvency management, utilisation and risk have always been of primary importance in managing the Group's financial performance. With the advent of Solvency II this remains the case and an increased resource is being utilised to ensure compliance with the proposed provisions of Solvency II, both in terms of capital and also risk management and reporting. Under the current proposals for Solvency II insurance capital, the Board does not currently believe that additional capital will need to be raised to meet these proposed requirements and the Board's expectation of growth over the current and forthcoming financial years. At 31 December 2010, solvency capital was 171% (2009: 201%)

Gable has continued to adopt a prudent approach to its solvency capital management, holding its deposits in cash and, in view of the diversification of the Group's income into a number of currencies, matching its potential insurance liabilities (insurance losses) to the currency in which the income is derived.

In managing Gable Insurance AG's ("GIAG") risk exposure, Gable continues to monitor its on-going reinsurance requirements. GIAG continues to purchase reinsurance for its UK construction account and now has an automatic facultative protection programme with Hannover Re and with other major reinsurers for certain Dommages Ouvrages risks in France. As the business develops the requirements for reinsurance will also intensify. This is a necessary cost for risk management.

The Directors retain the objective to declare an inaugural dividend at the earliest opportunity, commensurate with the Group's capital requirements. Given the Group's continued and significant expansion and the uncertainty over the final Solvency II requirements, it is believed that the retention of profit to build the Group's overall capital base is of more importance.

Current Trading and Outlook

Growth has continued strongly into the first quarter and looking at both the UK and European markets, the Board is confident of another year of strong growth for 2011.

The combination of strong organic growth, combined with the new product launches which are now positively impacting our results we are particularly encouraged by the buoyant market in which we operate.

There is scope to roll out our products in other European countries and we are particularly encouraged by the potential we see in France, Germany and Italy.

William Dewsall

Chief Executive

17 May 2011

Consolidated Income Statement

For the year ended 31 December 2010

All operations are continuing.

Consolidated Statement of Financial Position

At 31 December 2010

Consolidated Statement of Cash Flows

For the year ended 31 December 2010

Notes to the Consolidated Financial Statements

For the year ended 31 December 2010

1. Basis of preparation

The Company was incorporated as a Corporation in the Cayman Islands which does not prescribe the adoption of any particular accounting framework. The Board has previously resolved that the Group would follow International Financial Reporting Standards ("IFRS") in its Group financial statements and apply the Companies Act 2006 when preparing its annual financial statements.

These financial statements have been prepared under the historical cost convention and in accordance with the requirements of IFRS. The financial statements being sent to shareholders contain explanations of the significant uncertainties which relate to the preparation of these financial statements. Notwithstanding this, the directors believe that appropriate assumptions have been made in the preparing the financial statements and that the basis of preparation is appropriate.

2. Earning and net asset value per share

The calculation of the basic and diluted earnings per share is based on the net profit of £2,619,000 (2009: £1,419,000) divided by the weighted average number of shares in issue during the year of 113,309,704 (2009: 112,200,000).

The net asset value per share is calculated by dividing the shareholders' funds of £13,895,000 (2009: £11,102,000) by the number of shares in issue at the end of the period of 113,322,000 (2009: 112,200,000).

3. Reconciliation of loss for the period before taxation to net cash flows from operating activities

4. Goodwill

On 29 June 2010 and as reported in the 2009 financial statements, Gable restructured its arrangements with Hogarth Underwriting Agencies Limited, the result of which was the creation of goodwill of £3.991 million. Following an impairment review of this asset for the purposes of these financial statements and taking account that the underlying financial benefits to Gable from the restructuring arrangements will principally accrue in the financial years 2010 to 2013, an impairment charge of the goodwill created of £600,000 has been recognised in the current year financial statements

5. General information

The financial information for the year ended 31 December 2010 does not constitute statutory accounts as defined in the Companies Act 2006. Copies of the Annual Report and Accounts will be posted to shareholders and be available to the public on the Company's website (www.gableholdings.com) or from the contact office of Gable in the UK, 6th Floor, 34 Lime Street, London EC3M 7AT.