Half Yearly Report

16 September 2010

GABLE HOLDINGS INC

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

Unaudited Interim Results for the six months ended 30 June 2010

Gable Holdings Inc (AIM: GAH), the European insurance company, announces its unaudited interim results for the six months ended 30 June 2010.

Summary of the Period

·; Gross written premium of £8.63 million, up 115% on H1 09

·; Profit before tax of £1.33 million, up 68% on H1 09

·; Premium written from business outside of the UK equates to 55% of premium written compared to 38% in the same period last year

·; The earnings per share has increased from 0.70p to 1.10p, an increase of 57%

Comment and Outlook

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

"The first half of 2010 has been a period of consolidating and continuation of the business growth of previous years. All products are performing in their respective markets at or above expectations and we look forward to the second half of the year with much optimisim."

Enquiries: www.gableholdings.com

Gable Holdings Inc.

Unaudited Interim results for the six months ended 30 June 2010

The Board of Gable Holdings Inc. is pleased to present its unaudited results for the six months ended 30 June 2010.

Results

The results for the six months ended 30 June 2010 show gross written premium of £8.63 million (H1 09: £4.0 million). This excellent growth in written premium has been the result of:

·; Continued growth in France, where the Gable brand continues to strengthen;

·; The new After The Event ("ATE") product for the UK market;

·; The Norwegian product launched in the latter part of 2009; and

·; Recovery in our historic UK construction account.

The split of business written is approximately 45 per cent in the UK and 55 per cent in European markets.

The increase in premium written in UK construction is very encouraging in that Gable has increased the volume of risks written and has also seen a strengthening in premium rates. Our product range in France continues to perform exceptionally well, ahead of our expectations. The Gable brand has been well received and we continue to work with our representatives in this market in developing new products for the SME market. For example, a new property product was introduced in Q2, the results for which will begin to be realised in the second half of the year.

Gable appointed a new Spanish broker in March 2010, offering an SME liability product and the early signs for this product, in terms of premium are encouraging. In the UK, the ATE product launched in Q3 2009 is building well and the expanding investor interest in ATE funding offers the opportunity for expanding this product on an accelerated basis. The Norwegian tenant deposit guarantee scheme has made a solid start and Gable is developing opportunities for this product in other European markets.

The reported result for the period shows a profit of £1.25 million (H1 09: £0.78 million) and basic and diluted eps of 1.10p (H1 09: 0.70p). At the end of the period net assets were £12.2 million (H1 09: £10.7 million) and cash balances were £5.1 million (H1 09: £5.0 million).

Gable Insurance AG ("GIAG") has continued to monitor its portfolio of products and exposures during the period, its UK construction reinsurance programme was renewed on 1 July 2010 and Hannover Re continues to offer an automatic facultative protection programme for certain French risks. Further reinsurance programmes will be purchased as and when required.

GIAG has commenced its programme for Solvency II compliance, due to be instigated in the latter part of 2012. Gable is incredibly supportive of the new Solvency II regime, believing that the new regulations in respect of risk management and increased reporting requirements will uniform solvency in the insurance sector and provide Gable with increased levels of competitiveness.

Current Trading and Outlook

The strong performance experienced in the first half of the year has continued into the second half of the year. In particular UK construction premium is well ahead of performance last year and the French business goes from strength to strength. All products offered by Gable are performing at or ahead of expectation and the outlook is one of great optimism.

The Group will continue its development of new products in the second half of the year, albeit with profitability the main driver rather than premium income, with expansion in to further European markets under consideration.

William Dewsall

Chief Executive

16 September 2010

GABLE HOLDINGS INC.

Consolidated Income Statement

For the six months ended 30 June 2010

Earnings per share 4 1.10p 0.70p 1.26p

All operations are continuing.

GABLE HOLDINGS INC.

Consolidated Statement of Financial Position

At 30 June 2010

Net asset value per ordinary share 4 10.8p 9.52p 9.89p

GABLE HOLDINGS INC.

Consolidated Statement of Cash Flows

For the six months ended 30 June 2010

GABLE HOLDINGS INC.

Notes to the Interim Consolidated Financial Statements

For the six months ended 30 June 2010

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 Reporting Standards, 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 2010.

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 2009 and, as such, those accounting policies have been applied to these interim statements.

3. Segmental information

The Group's business is the provision of construction insurance products and it has, in the six months to 30 June 2010, derived its business from Great Britain, Ireland, France, Spain and Norway.

4. Earnings and net asset value per share

The calculation of earnings per share is based on the net profit of £1,247,000 (six months ended 30 June 2009: £780,000, year ended 31 December 2009: £1,419,000) divided by the weighted average number of shares in issue during the period of 113,297,000 (six months ended 30 June 2009: 112,200,000, year ended 31 December 2009: 112,200,000).

The net asset value per share is calculated by dividing the shareholders' funds of £12,189,000 (30 June 2009: £10,681,000, 31 December 2009: £11,102,000) by the number of shares in issue at the end of the period - 113,322,000 (30 June 2009: 112,200,000, 31 December 2009: 112,200,000).

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. Restructuring arrangements

On 29 June 2010, the Group 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 the Group. This transaction has resulted in an intangible asset of £3.99 million for the Company. The asset being acquired relates to the finite future cash flows to have been paid for the period 2010 to 2013. At the end of the period an impairment review of this asset has been undertaken and the resulting impairment, given the asset's finite life, has been amortised.

10. General information

The information for the period ended 30 June 2010 does not constitute statutory accounts as defined in the Companies Act 2006. The figures for the period ended 31 December 2009 have been extracted from the 2009 statutory 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.