Half Yearly Report

28 September 2012

Gable Holdings Inc.

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

Unaudited Interim Results for the six months ended 30 June 2012

Gable (AIM: GAH), the European non-life insurance company, announces excellent results for the six months ended 30 June 2012.

Summary of Results

Business in the Half Year

§ Growth in written premiums has continued across all product classes in the UK and Europe, with particular growth in Gable's French Property Liability Product and its After the Event ('ATE') insurance programmes.

§ Record first half insurance profit up 34% and profit before tax increased by 60%.

Outlook

§ In September, Gable launched its first product into the German market where it has commenced writing a programme of business for its tenant deposit guarantee product.

§ Gable producing continued growth across all classes of business both in the UK and in its European markets.

William Dewsall, Chief Executive, Gable Holdings Inc, commented: "The first half has been another excellent trading period for the Group and we have continued to grow profitably and build on our platform of products both in the UK and Europe where we have seen particularly strong growth.

"We expect to see a consistent pattern of growth in the second half, with good income visibility from our pecuniary loss ATE product which matures in this period and our new tenant deposit product starting in Germany. We look forward to a very strong year in 2013 as we see the benefits from our UK, French and Norwegian business and from our first full year of operation in the German market. We continue to look at writing new business in additional countries where the territory's business meets our model."

Enquiries:

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, France, Germany, Norway and Spain. 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. 

Gable Holdings Inc is quoted on the London Stock Exchange's AIM market (ticker: GAH.L, GAH.LN). For further information please visit www.gableholdings.com.

Interim Statement 2012

Gable's results for the six months ended 30 June 2012 showed strong growth over the same period in 2011 with a 26% increase in gross written premium to £15.4 million (H1 2011: £12.2million).

In addition, Gable's strict management of insurance costs has enabled the Company to deliver a very efficient combined operating ratio of 51%, which compares to 56% for the same period last year and is pleasing, particularly in light of the period of continued growth. Operating profit, before goodwill impairment increased by 42% at £3.7 million and the reported result for the period shows a 60% increase in profit before tax to £3.2 million (H1 2011: £2.0 million) and basic and diluted earnings per share of 2.61p (H1 2011: 1.59p). At the end of the period net assets were £17.8 million (H1 2011: £15.4 million) and cash balances and equivalents were £10.8 million (H1 2011: £7.7 million).

The Group's strategy to focus on growth both in its existing countries of operation and progressively launch into new markets in Europe continues to reap the rewards of continued growth in Gross Written Premiums and profitability, lest we forget that we focus on writing profitable business, not simply to grow top line revenue. 

We remain forthright in our strategy to continue to broaden our existing product portfolio and the number of countries of operation, evidenced most recently with the launch of our first product in the German market with our tenant deposit guarantee product which has been very successful in Norway. The German market for this product is much larger than the Norwegian market and we believe that there are very solid prospects for growth in this territory.

In the UK Gable has continued to see good levels of organic growth across all classes, with steady growth in our UK business, buoyed by additional programmes in our ATE product. Further growth came from the French market, particularly in our Property Liability product.

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 very difficult climate as we are 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 months ended 30 June 2012 are set out in the table below:

Continued Growth in Products and Markets

Gable's business continues to broaden both in product range and geography within Europe, with the recent introduction of the tenant deposit guarantee product in the German market.

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

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

Solvency Management, Utilisation and Risk

The areas of solvency management, utilisation and risk management are of primary importance in managing the Group's financial performance. Under the current proposals for Solvency II insurance capital, the Board does not currently believe that additional capital will need to be raised to meet the current anticipated requirements of Solvency II and the Board's expectation of growth over the current and forthcoming financial years.

Irrespective of Solvency II, Gable will continue to adopt a prudent approach to its solvency capital management. It has always been the Company's policy to hold its deposits in cash across 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 ("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.

Dividend Policy

For the present the Board remains of the view that the retention of profit within the business is in the long term interests of shareholders and therefore, whilst the Board retains the objective to declare an inaugural dividend at the earliest opportunity, at this stage no dividend is declared.

Appointment of Auditor

We are pleased to report that Ernst & Young LLP has been appointed as auditor to the Company and will be working with our management team on the audit of the 2012 annual financial statements. The Board would like to extend its gratitude, in particular to Carmine Papa, Partner, and to all the staff at Littlejohn LLP for their invaluable advice and assistance as auditor to the Company over the last 5 years.

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 the UK and Europe for their excellent work.

Current Trading and Outlook

Growth in the business has continued strongly into the second half of 2012 and looking at both the UK and European markets, the Board is confident that Gable has a platform to deliver a very strong year of growth in 2013.

The combination of organic growth, combined with the new product launches which are benefitting our performance in the current year, we are particularly encouraged by the buoyant markets in which we operate and the increasingly positive reception that the Gable brand now receives in each market of operation.

Gable has considerable scope to roll out its products into additional European countries, replicating the success we have already seen in France and Norway. In Germany, we have now started writing our first lines of business and we are currently assessing the Italian market where we believe there are a number of potential opportunities for the future.

The Board remains very optimistic about the prospects for the Group in the current and future financial years.

William Dewsall

Chief Executive

28 September 2012

GABLE HOLDINGS INC

Consolidated Income Statement

For the six months ended 30 June 2012

All operations are continuing.

GABLE HOLDINGS INC

Consolidated Statement of Financial Position

At 30 June 2012

GABLE HOLDINGS INC

Consolidated Statement of Cash Flows

For the six months ended 30 June 2012

GABLE HOLDINGS INC

Notes to the Interim Consolidated Financial Statements

For the six months ended 30 June 2012

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 2012.

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 2011 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 2012, derived its business from the United Kingdom, 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 £2,959,000 (six months ended 30 June 2011: £1,803,000, full year ended 31 December 2011: £3,406,000) divided by the weighted average number of shares in issue during the period of 113,322,000 (six months ended 30 June 2011: 113,322,000, full year ended 31 December 2011: 113,322,000).

The net asset value per share is calculated by dividing the shareholders' funds of £17,793,000 (30 June 2011: £15,435,000, 31 December 2011: £17,215,000) by the number of shares in issue at the end of the period - 113,322,000 (30 June 2011: 113,322,000, 31 December 2011: 113,322,000).

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. General information

The information for the period ended 30 June 2012 does not constitute statutory accounts as defined in the Companies Act 2006. The figures for the period ended 31 December 2011 have been extracted from the 2011 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.