19th May 2014 08:16
LONDON (Alliance News) - Gable Holdings Inc Monday said pretax profit increased by more than a quarter in 2013, buoyed by the non-life insurer's efforts to grow its distribution network and expand its product range.
In a statement, the European non-life insurance company said it made a GBP7.2 million pretax profit in 2013, compared with GBP5.7 million in 2012. Revenue increased to GBP42.2 million from GBP30.9 million, as gross written premiums moved to GBP58.9 million from GBP36.0 million. Gross claims incurred increased to GBP18.0 million from GBP13.6 million.
Gable's efforts to grow have taken it from the UK to continental Europe and Scandinavia, while it has also been building on its product range by broadening the classes of business it writes.
Chief Executive William Dewsall said the driver behind Gable's performance was particularly strong performance from the UK in both construction and commercial combined business. The CEO said France also continues to perform well, particularly in its property sector, alongside very robust growth in both Norway and Denmark, while Italy has been exceeding initial expectations.
"On every measure these are our strongest results to date. Gable's new business levels are growing with significant momentum in the current year and, as a result, we expect to exceed our initial estimates this year by some margin. The awareness of Gable's brand goes from strength to strength with demand for existing and new products at an all time high. Our growing profitability and financial resources provide a very strong platform to benefit from the growing number of opportunities available in existing and new markets, and we plan to open in further markets in the EU during the course of the current year," Dewsall said in a statement.
"We are also implementing plans for further major new product launches in new niche motor classes in both Italy and the UK where we have already selected distribution partners with significant demand for our bespoke products which are currently in development for launch during the second half of 2014," the CEO said.
"As to growth, we fully expect to see another record year in 2014 with our pipeline of new business providing very good visibility and further significant momentum for the business as it travels into 2015," Dewsall said.
Gable didn't pay a dividend because it said it wants to retain earnings in order to provide capital for its growth plans, but said it will continue to review the policy.
Gable shares were Monday quoted at 82.75 pence, up 5.8%.
By Samuel Agini; [email protected]; @samuelagini
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