Final Results

29 June 2010

Gable Holdings Inc

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

Final Results for the year ended 31 December 2009

Gable Holdings Inc (AIM: GAH), the provider of insurance products to commercial businesses across Europe, announces strong audited consolidated results for the year ended 31 December 2009.

Financial Highlights

·; Gross written premium of £10.4 million (2008: £5.9 million) - up 76%

·; Net earned premium of £7.0 million (2008: £4.2 million) - up 67%

·; Increase in net insurance margin to 28% (2008: 23%) - up 22%

·; Profit before tax of £1.54 million (2008: £0.91 million) - up 69%

·; Net assets at the year end were £11.1 million (2008: £9.7 million) - up 14%

·; Basic and diluted EPS of 1.26p (2008: 0.74p) - up 70%

·; Historic UK construction premium accounted for 40% of premium (2008: 80%), European expansion and diversification of market and risk has developed significantly in 2009 and continues into 2010

Business Highlights

§ New products launched in 2009:

- Dommages Ouvrages was launched with a new French broker in Q3

- Supported by an automatic facultative protection programme with Hannover Re

- After the Event Insurance in respect of commercial litigation disputes was launched in the UK in Q4

- Tenant deposit scheme launched in Norway in Q4, first premium written in January 2010

§ Restructuring of relationship with HUAL in the UK, post year end

William Dewsall, Chief Executive, Gable Holdings Inc, commented: "The board is delighted with our progress in developing our strategy in both the UK and Continental Europe, which is delivering excellent growth in difficult conditions. 2009 has seen the Group take significant steps in delivering on its European expansion strategy. The new lines of business introduced in the year are performing well and we have seen particularly strong growth in our French portfolio which we began to write in early 2008.

"We continue to introduce new lines of business, where the anticipated margin provides a healthy return on solvency capital, whilst developing a lower overall risk profile to the insurance written. 2009 delivered an excellent performance and the expectations and opportunities for 2010 and beyond are exciting. "

Chairman's Statement

I am pleased to report a strong set of results for 2009, a year in which Gable has delivered a significant increase in gross written premiums and profitability. The opportunities pursued by the Group over the past 18 months and those available to us for the foreseeable future will ensure that the Group will continue to build on the strong foundations put in place since we commenced writing business in 2006. We have concentrated on sound underwriting practice, profitability and prudent risk management.

The 2009 year has seen a number of new product launches and there are further launches planned for 2010. In launching new products, Gable seeks to ensure that products offered meet the long-term requirements of the market and, as such, Gable and its agents are keen to build premium on a realistic, manageable and enduring basis.

The performance for 2009 has been excellent and the outlook for 2010 and beyond is one of great optimism.

Lance Ranger

Chairman

29 June 2010

Chief Executive's review

The Board of Gable Holdings Inc is pleased to present its audited consolidated results for the year ended 31 December 2009.

Business Review

The 2009 financial year has seen the Group achieve strong progress in delivering on its strategy to become a significant European insurer. The Group now has established products in the following territories:

The financial highlights show that the premium written in 2009 was £10.4 million (2008: £5.9 million), 49% of which was written in the UK and 51% in other European markets. In premium terms the UK construction result has shown continuity in business written and it has retained its level of profitability. Our business in France, launched in the first quarter of 2008 offering insurance products to Artisan contractors, has increased in premium terms by 300%. This increase in business written has been achieved without any dilution of our margin.

In respect of products launched in the year:

§ Dommages Ouvrages was launched with a new French broker in Q3, supported by an automatic facultative protection programme from Hannover Re.

§ After the Event Insurance in respect of commercial litigation disputes was launched in the UK in Q4.

§ Tenant deposit scheme launched in Norway in Q4, first premium written in January 2010

The initial results for these products have been very encouraging, although as they were launched in the second half of the year, they will have a significantly greater effect on the business written in 2010.

Results

A summary of the results for the year ended 31 December 2009 are set out in the table below:

The reported result for the year shows profit before taxation of £1.54 million (2008: £0.91 million) and basic and diluted eps of 1.26p (2008: 0.74p). At the end of the period net assets were £11.1 million (2008: £9.7 million) and cash balances were £4.3 million (2008: £4.3 million).

The Board considers solvency and its management, utilisation and risk, as of primary importance in managing the Group's financial performance. The exercise to meet the requirements of Solvency II, which is due to be implemented under European Regulation on 1 November 2012, is underway and whilst the level of solvency required to undertake business once Solvency II is implemented is still to be confirmed, the Group is reviewing all of its systems and procedures to meet Solvency II's risk management criteria. As at 31 December 2009, the reported solvency capital was 201% (2008: 315%).

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

It was the Directors' objective to declare an inaugural dividend in respect of the 2009 financial year. However, given the Group's continued and dramatic expansion, it is believed that, for the foreseeable future, the retention of profit to build the Group's overall capital base to be utilised in iting profitable business is of more importance.

Related Party Transaction with Hogarth Underwriting Agencies Limited

On 29 June 2010, the Company entered into a transaction with Hogarth Underwriting Agencies Limited ("HUAL"), whereby it bought out the future financial benefits receivable by HUAL from its underwriting and claims handling agreement with GIAG, the Company's wholly owned insurance company.

This transaction is a related party transaction, for the purpose of AIM Rule 13 of the AIM Rules for Companies. Full details of this transaction are set out in the Notes to the Consolidated Financial Statements below.

Current Trading and Outlook

The board is delighted with our progress in developing our strategy in both the UK and Europe, which is showing excellent growth in difficult conditions. Gable continues to look at new territories and products, and our bespoke underwriting is proving highly successful with our brokers and clients giving us considerable market advantage.

We are confident that our structure will provide a strong foundation for our future income and profitability. In 2010 we have agreed new property risk programmes in France and Spain with our current brokers, which we anticipate will provide considerable additional premium levels.

In 2009 the Group saw strong growth in both income and profit, despite market conditions. Gable has been very well received in its new markets and territories underpinning our decision to move into new areas, which has proven to be an excellent platform for the future of our business as we continue to deliver ongoing growth and profitability.

William Dewsall

Chief Executive

29 June 2010

Consolidated Income Statement

For the year ended 31 December 2009

All operations are continuing.

Consolidated Statement of Financial Position

At 31 December 2009

Consolidated Statement of Cash Flows

For the year ended 31 December 2009

Notes to the Consolidated Financial Statements

For the year ended 31 December 2009

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 International Financial Reporting Standards. 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 made in the preparing the financial statements and the basis of preparation is appropriate.

2. Profit and net asset value per share

The calculation of the basic profit per share is based on the net profit of £1,419,000 (2008: £827,000) divided by the weighted average number of shares in issue during the year of 112,200,000 (2008 : 112,200,000).

The net asset value per share is calculated by dividing the shareholders' funds of £11,102,000 (2008: £9,706,000) by the number of shares in issue at the end of the period - 112,200,000 (2008: 112,200,000).

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

4. Post balance sheet event

On 29 June 2010, the Company entered into a transaction with Hogarth Underwriting Agencies Limited ("HUAL"), whereby it bought out the future financial benefits receivable by HUAL from its underwriting and claims handling agreement with Gable Insurance AG ("GIAG"), the Company's wholly owned insurance company. HUAL has previously acted as GIAG's agent for UK construction insurance business in the UK and has also been instrumental in introducing new European business to the Group. Under the arrangements between the Group and HUAL, the Group has provided funding to HUAL. This funding in part relates to advance payment of commission and in part funding of costs it has incurred in developing these new lines of business for GIAG and, in return would receive commission based on the business generated by these lines of business. It had been determined by the Board that it was in the best interests of the Group to restructure these arrangements and it was agreed to buy-out the future commission streams to be received by HUAL. The amount paid by GHI was £3.99 million and this has been applied by HUAL to repay all funding from the Group. As such, there has been no net cash outflow for the Group. The amount of £3.99 million has been included in trade and other receivables as at 31 December 2009, but will be capitalised in the 2010 financial statements. The asset being acquired relates to future finite cash flows to have been paid by the Group for the period 2010 to 2013. As such, the Group will undertake impairment reviews of the intangible asset at the end of each reporting period. However, it is the expectation of the directors that impairments will occur in a manner that will be akin to a straight line basis over the period 2010 to 2013. The financial effects on the Group as a result of this transaction will give rise to an increase in the costs borne by the Group, a charge for goodwill amortisation as described above but a reduction in the commission payable on premium written. HUAL has waived the fee payable to it under the existing arrangements for the 2009 financial year of £250,000.

HUAL is wholly-owned by William Dewsall, Chief Executive of the Company and, as such, any transaction with HUAL is a related party transaction, for the purpose of AIM Rule 13 of the AIM Rules for Companies (the "AIM Rules"), as Mr Dewsall is a holder of 21.13% of the existing issued ordinary share capital of Gable. The independent directors of the Company, having consulted with Arden Partners plc ("Arden Partners") the Company's nominated adviser, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned. In providing its services to the independent directors, Arden Partners has taken into account the independent directors' commercial assessments.

As part of this restructuring, GHI has incorporated a new UK service company, Gable Services (London) Limited ("GSLL") on 12 February 2010, which will be responsible for all costs, which previously have been HUAL's responsibility but which otherwise were Group costs. GSLL will, therefore, employ those persons currently employed by HUAL. Following the implementation of this transaction, HUAL will act as the FSA-regulated insurance intermediary for the Group's UK construction account for which it will receive a commission based on business introduced. GSLL will seek appropriate approval from the FSA in due course, which will obviate any further requirement on HUAL to act as an insurance intermediary on GIAG's behalf. At such time, the Company will give the requisite one month's notice to HUAL to terminate all agreements in place at that time.

5. General information

The financial information for the year ended 31 December 2009 does not constitute statutory accounts as defined in the Companies Act 2006. Copies of the Annual Report and Accounts are being posted to shareholders on 29 June 2010 and will be available from the same date to the public on the Company's website (www.gableholdings.com) or from London Gable Insurance AG, 6th Floor, 120 Fenchurch Street, London EC3M 5BA.