Half Yearly Report

11 September 2014

Gable Holdings Inc.

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

Unaudited Half Year Results for the six month period ended 30 June 2014

Gable (AIM: GAH), the European non-life insurance company, announces another period of strong growth for the six month period ended 30 June 2014.

Summary of Results

Business in the Half Year

§ Strong organic growth - written premiums up 43%

§ Underlying insurance profit growth of 26%

§ New broker accounts added in UK and Europe will increase future growth

§ Continued confidence in short and medium term growth outlook

§ Solid asset base backed by £33.0m cash balance

Current Trading and Outlook

§ Gable signs £100m GWP key trading partner agreement - largest for UK business to date:

o With iprism Underwriting Agency Limited ('iprism') to write commercial business in the UK market

o Anticipated to deliver gross written premiums in the region of £100 million over next 3 years

§ Appointment of Group Chief Actuary

§ Continued growth across all classes of business primarily in the UK and in its current European markets.

§ Further new product launches in existing markets anticipated during the second half year.

William Dewsall, Chief Executive, Gable Holdings Inc, commented:

"Gable has produced a strong performance in the first half and we will continue to benefit from our commercial platform to continue to deliver growth in the second half. We have also invested in both people and systems in order to exploit the growing opportunities Gable enjoys in multiple European territories. This provides further evidence of our intentions to grow the business as we meet strong demand for new products.

"We are delighted to announce today our agreement with iprism, representing £100m in GWP over the next 3 years in the UK commercial market - our largest such agreement in the UK to date. We have already commenced writing new business and look forward to developing a strong working partnership with the team at iprism.

"We continue to view the future with great confidence and despite the challenging environment, I believe we now have an excellent level of momentum in the business to propel growth in the medium term. We have certainly never felt more optimistic about the future in terms of the strength in depth of our management team and systems, strong financial base and growing brand presence to support our growth ambitions for the future."

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, 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, 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.

Interim Statement 2014

Gable's results for the six month period ended 30 June 2014 continued to show strong, steady growth over the same period in 2013 with a 43% increase in gross written premium to £39.0 million (H1 2013: £27.3million).

The reported profit before tax of £2.5 million for the six month period is stated after setting aside an additional risk margin of £2.4 million giving an underlying profit of £4.9m (2013: £4.0m). The comparative figures for 2013 were set prior to the Board's decision to make additional risk margin provisions and so the reported profit before tax is not directly comparable.

In addition, during the period the Company received a single individually significant property fire claim 80% of which was recovered against reinsurance policies. I am pleased to say that this claim was settled quickly to help our client recover from the event and I thank our reinsurance panel for being equally swift in their reimbursement of their element of the claim. Thankfully, such events are relatively rare and we constantly look to improve our risk analysis to mitigate potential losses.

At the end of the period net assets were £34.1 million (H1 2013: £18.2 million) and cash balances and equivalents were £33.0 million (H1 2013: £11.7 million).

The Group continues to focus on delivering growth both in its existing countries of operation and new markets in Europe and this strategy continues to show through with the growth in Gross Written Premiums and underlying profitability.

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

It should be noted that Gable continues to deliver excellent growth and profits in a highly competitive business environment. Despite these conditions, we have been able to respond extremely quickly to our clients' needs for which I would like to thank my team for their excellent support and diligence.

Results

A summary of the results for the 6 month period ended 30 June 2014 is set out in the table below:

The results for the year ended 31 December 2013 included an additional reserve set-aside of £4.2 million. The results for the six month period to 30 June 2013 announced on 6 September 2013 did not include the proportional impact of this additional provision. The impact of reflecting the proportional charge to 30 June 2013 would be to reduce the insurance profit to £4.1 million from £6.2 million and the profit before tax to £1.9 million from £4.0 million for that period. Corresponding reductions would occur in the basic earnings per share to 1.35p and diluted earnings per share to 1.26p.

The Group has continued to produce strong growth in 2014 from prior year initiatives and continues to look at introducing additional new business classes during the current year. 

As a result of anticipated future growth the Board continues to review attractive options to increase available solvency capital to maintain a strong regulatory capital base.

Products and Markets

Gable's business continues to broaden both in product range and geography within Europe as shown in the table below: 

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

The Group's risk profile of the products it offers also continues to diversify, balancing liability products with shorter tail products.

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 portfolio and has numerous automatic facilities with major reinsurers covering most classes written where appropriate. This includes the recently announced arrangements with Gen Re, part of the Berkshire Hathaway Group.

Solvency II

Whilst the financial implications of the introduction of Solvency II are some years off we have taken the prudent steps to proceed with an ongoing process under which we will be progressively introducing additional internal risk and control systems which will render Gable Solvency II compliant in advance of the proposed timetable.

Management

We are delighted to welcome Meera Rajoo CERA FIA, to our management team who joined Gable in August as Group Actuary. Meera was previously Actuarial Risk Manager at Direct Line Insurance with oversight of insurance risk management. Before that she was an actuarial consultant with Grant Thornton for 6 years until 2013, where she specialised in commercial lines insurance, working on a range of disciplines including valuation of technical provisions under the SII regime, calculating SII capital requirements using the SII standard formula, assisting clients to build appropriate internal models, validation of internal models and the validation report, and development and documentation of Systems of Governance and policy frameworks.

This appointment enhances our actuarial team and builds upon our corporate governance structure.

Dividend Policy

The Board is committed to providing a strong platform for continued growth. In order to provide the required regulatory capital for solvency purposes, the Company has retained earned profits to add to capital raised. For this reason, the Board remains of the view that the retention of profit within the business is in the current interests of shareholders and, whilst the Board retains the objective to declare an inaugural dividend at the earliest opportunity, at this stage no dividend is declared.

Our Customers, Brokers and People

I would like to thank all of our customers across all our countries of operation, to our brokers for their support during the first half year and an increasingly busy second half of the year where we are constantly increasing our broker base in all our territories, which is encouraging as it provides Gable with increasing diversity and a greater product range. Once again, our thanks to all Gable's staff in Europe and the UK for their excellent work.

Current Trading and Outlook

Growth in the business has continued in the second half of 2014 both in the UK and Gable's current European markets. We are delighted to announce today our agreement with iprism, making them our largest UK trading partner to date which is anticipated to contribute £100m in GWP over the next 3 years in the UK commercial and personal lines market. We have already commenced writing new business and look forward to developing a strong working partnership with the team at iprism.

The Board is therefore confident that over the next few years Gable will deliver a period of strong and sustainable growth as we expand our market reach.

We continue to view the future with great confidence and despite the challenging environment, I believe we now have a excellent level of momentum in the business to propel growth in the medium term. We have certainly never been better placed in terms of our management team and systems, strong financial base and growing brand presence to achieve our growth ambitions for Gable.

We continue to look at new and exciting opportunities and we look forward to updating the market in due course.

William Dewsall

Chief Executive

11 September 2014

GABLE HOLDINGS INC

Group Income Statement

For the six months ended 30 June 2014

All operations are continuing.

Note: In preparing the results for the year ended 31 December 2013, the directors included an additional reserve set-aside of £4,154,000. The results for the six month period to 30 June 2013 were prepared prior to this decision and so did not include the proportional impact of this additional provision. The impact of the proportional charge to 30 June 2013 would be to reduce the reported profit before tax to £1,927,000 for that period with corresponding reductions in the basic earnings per share to 1.35p and diluted earnings per share to 1.26p.GABLE HOLDINGS INC

Group Statement of Financial Position

At 30 June 2014

GABLE HOLDINGS INC

Group Statement of Cash Flows

For the six months ended 30 June 2014

GABLE HOLDINGS INC

Notes to the Interim Consolidated Financial Statements

For the six months ended 30 June 2014

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. These interim financial statements have been prepared under the historical cost convention and in accordance with the requirements of International Financial Reporting Standards ("IFRS") endorsed by the European Union, in so far as they apply to interim statements.

The Group financial statements consolidate the financial statements of Gable Holdings Inc and subsidiary undertakings made up to 30 June 2014.

2. Accounting policies

There have been no changes to the Group's accounting policies as set out in the Group's financial statements for the year ended 31 December 2013 and, as such, those accounting policies have been applied to these interim statements.

3. Segmental information

The Group's business is the provision of insurance products and it has, in the six months to 30 June 2014, derived its business from the United Kingdom, France, Spain, Norway, Denmark, Germany and Italy.

4. Earnings and net asset value per share

The calculation of basic and diluted earnings per share is based on the net profit after tax of £2,079,000 (six months ended 30 June 2013: £3,518,000, full year ended 31 December 2013: £6,272,000) divided by the weighted average number of shares in issue during the period of 134,718,250 (six months ended 30 June 2013: 113,322,000, full year ended 31 December 2013: 116,427,140). The weighted average number of shares for the calculation of fully diluted earnings per share is 135,319,833 based on the basic weighted average number of shares in issue plus 8,286,619 dilutive shares calculated using the treasury stock method (six months ended 30 June 2013: 121,997,273 based on the basic weighted average number of shares in issue plus 8,675,273 dilutive shares, full year ended 31 December 2013: 125,655,760 based on the basic weighted average number of shares in issue plus 9,228,620 dilutive shares).

The net asset value per share is calculated by dividing the shareholders' funds of £34,100,000 (30 June 2013: £18,231,000, 31 December 2013: £31,664,000) by the number of shares in issue at the end of the period - 135,319,833 (30 June 2013: 113,322,000, 31 December 2013: 133,404,833).

5. Insurance assets and liabilities

6. Reconciliation of movements in shareholders' funds

7. Reconciliation of profit for the period before taxation to net cash flows from operating activities

8. Reconciliation of net cash flows to movement in net funds

9. General information

The information for the period ended 30 June 2014 does not constitute statutory accounts as defined in the Companies Act 2006. The figures for the period ended 31 December 2013 have been extracted from the 2013 Financial Statements prepared under IFRS. The auditors' report on those accounts was unqualified and did not contain a statement under the provisions of the Companies Act 2006.