6th Sep 2013 07:59
LONDON (Alliance News) - Gable Holdings Inc. Friday reported very strong first-half results on the back of good premium growth in its existing markets of operation, while its expansion in continental Europe was another positive factor.
The non-life insurer said its pretax profit rose to GBP4.0 million for the six months to June 30, compared with GBP3.2 million for the corresponding period the year prior. It reinforced its profit with strong business growth, writing 77% more in gross written premiums, at GBP27.3 million, in the first-half than it had at this time last year.
Gable said it benefits from its low cost online underwriting platform, while its expansion to new European markets and growth in existing countries of operation, such as UK, France, Norway and Denmark, have seen it prosper.
"We are currently planning our first product launches into two additional European countries, Netherlands and Belgium, and look forward to updating shareholders in the near future. We also expect to see further significant growth from our recent launches in Italy, Denmark and Germany in the second half of 2013," Chief Executive William Dewsall said in a statement. "The board is confident that Gable has a platform to deliver a very strong year of growth in 2013."
Gable said it is planning to expand to the Netherlands and to Belgium later this year, building from the launch of its first insurance products in Italy earlier this year.
The company, which underwrites a variety of business lines, including fire and natural forces, is planning on expanding in Europe and expects to look for solvency capital at a good cost so that it can continue its growth.
Gable has a combined operating ratio of 56%, up 51% from the same time last year. The combined operating ratio is taken in insurance as a measure insurance performance, losses and expenses divided the earned premiums. A figure below 100% represents a profit on underwriting.
Gable is yet to declare a dividend, insisting that retaining profits in the business is better value for shareholders at present, but said it intends to declare an inaugural dividend as soon as it deems possible.
Gable shares were Friday quoted at 64.90 pence per share, down 1.60 pence or 2.4%.
By Samuel Agini; [email protected]; @samuelagini
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