GAH.L Regulatory News (GAH)

12 February 2015

Gable Holdings Inc.

("Gable" or the "Company")

Trading Update - Guidance for Full Year 2014

Strong start to 2015 Trading

Gable Holdings Inc. (GAH.L), the European non-life insurance company, announces that it expects 2014 to show continued strong growth in Gross Written Premiums at levels some 35 per cent above those reported in 2013. In addition, the outlook is for this growth in Gross Written Premiums to continue through 2015 and 2016. The Board expects to release Gable's results for the year ended 31 December 2014 during May 2015. 

2014 Financial Year

As announced at the half year stage, Gable's results were hit by an individually large fire claim in France, 80 per cent of which was recovered against reinsurance policies, the impact of which has also been felt in the second half through the cost of reinstating the reinsurance cover. During the year, the French market also suffered from an increase in attritional losses and Gable has acted to mitigate the impact of this by re-examining its risk exposure to the French market, amending policy terms and conditions and tightening the range of risks written together with strengthening pricing policies where appropriate to manage these factors and protect the Company in future years. Nevertheless, this claims experience in 2014 together with the impact of the weakening Euro means that the second half profit is unlikely to exceed that recorded for the first half of the year.

Outlook

January 2015 has started extremely well with an estimated Gross Written Premium of £15 million including £9 million of new commercial SME business introduced to Gable via its broker network. The Company's focus continues to be on profitable niche business with the objective of generating a strong underwriting profit at CORs of under 90 per cent. Gable has also commenced the process of putting part of its cash resources, which exceed £42 million, to work through a measured investment programme with a specialist advisor.

The Board expects to continue to deliver profitable growth for the foreseeable future and the Board will continue to manage the business in a prudent and professional manner. Gable's Solvency II preparations are well advanced and the Company remains committed to building capital reserves to prudent levels.

Commenting, William Dewsall, Chief Executive, said: "2014 saw an increase in claims activity which has impacted our profitability but I remain pleased that we will still report a creditable result. I believe that our risk management protocols provided the Company with the essential protections which mitigated a large proportion of the downside, whilst allowing us to provide a swift and efficient service to our insured customers. January 2015 was the strongest single month of new premiums in the Company's history and I fully expect this growth to continue throughout the year. We will build upon the strengths the business has accumulated in both balance sheet terms and as a reliable brand in a growing number of product categories and countries in Europe."

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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, Denmark, France, Germany, Italy, the Netherlands, Norway, Spain and Sweden. 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.

Gable Holdings Inc. is quoted on the London Stock Exchange's AIM market (ticker: GAH.L GAH.LN). For further information please visit www.gableholdings.com.