Half Yearly Report

6 September 2013

Gable Holdings Inc.

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

Unaudited Half Year Results for the six month period ended 30 June 2013

Gable (AIM: GAH), the European non-life insurance company, announces excellent results for the six month period ended 30 June 2013.

Summary of Results

Business in the Half Year

§ Strong organic growth - written premiums up 77%

§ Profit before tax increased 25% to £4.0m

§ Launch of first products into Italian market providing bid and performance bonds and launch of Commercial Combined product

§ Net loss ratio of 35%

§ Combined Operating Ratio of 56%

Current Trading and Outlook

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

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

§ Two further new country launches in Europe planned for the current year.

William Dewsall, Chief Executive, Gable Holdings Inc, commented: "The business has performed strongly during the first half and we have continued to build on the momentum in terms of both organic growth in written premiums and the launch into new markets and products.

"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.

"The Board is confident that Gable has a platform to deliver a very strong year of growth in 2013."

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, Denmark, France, Germany, Italy, 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, 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 2013

Gable's results for the six months ended 30 June 2013 showed strong growth over the same period in 2012 with a 77% increase in gross written premium to £27.3 million (H1 2012: £15.4million).

The Company maintained a very efficient combined operating ratio of 56%. The reported result for the period shows a 25% increase in profit before tax to £4.0 million (H1 2012: £3.2 million) and basic earnings per share of 2.96p (H1 2012: 2.61p). At the end of the period net assets were £18.2 million (H1 2012: £12.5 million) and cash balances and equivalents were £11.7 million (H1 2012: £10.1 million).

The Group's strategy remained focused on delivering growth both in its existing countries of operation and progressively launch into new markets in Europe and this strategy continues to show through with the growth in Gross Written Premiums and profitability.

Good progress continues to be made in the UK, France and Norway and we have made a good start with new products in Denmark. In addition, we have achieved good initial traction in Germany despite a very competitive market. We have also made an excellent start in Italy with great support for our products and anticipate continued strong growth through the remainder of the year.

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 month period ended 30 June 2013 is set out in the table below:

The Group has continued to produce strong growth in 2013 from initiatives commenced during 2012 and early 2013 and continues to look at introducing additional new business classes during the current year. 

As a result of the continued strong growth during the first half and the expectation that this will continue for the remainder of 2013 and into 2014, it is anticipated that the Group will explore commercially attractive options to increase available solvency capital.

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 property portfolio and ATE type 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.

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.

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 2013 both in the UK and Gable's current European markets. In addition, the management team is in advanced stages of launching into two new European markets during the second half, Netherlands and Belgium. The Board is therefore confident that Gable has a platform to deliver a very strong year of growth in 2013 in line with management expectations.

William Dewsall

Chief Executive

6 September 2013

GABLE HOLDINGS INC

Group Income Statement

For the six months ended 30 June 2013

All operations are continuing.

GABLE HOLDINGS INC

Group Statement of Financial Position

At 30 June 2013

GABLE HOLDINGS INC

Group Statement of Cash Flows

For the six months ended 30 June 2013

GABLE HOLDINGS INC

Notes to the Interim Consolidated Financial Statements

For the six months ended 30 June 2013

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 2013.

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 2012 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 2013, 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 of £3,352,000 (six months ended 30 June 2012: £2,959,000, full year ended 31 December 2012: £4,891,000) divided by the weighted average number of shares in issue during the period of 113,322,000 (six months ended 30 June 2012: 113,322,000, full year ended 31 December 2012: 113,322,000). The weighted average number of shares for the calculation of fully diluted earnings per share is 121,997,273 based on the basic weighted average number of shares in issue plus 8,675,273 dilutive shares calculated using the treasury stock method (full year ended 31 December 2012: 6,215,776 dilutive shares).

The net asset value per share is calculated by dividing the shareholders' funds of £18,231,000 (30 June 2012: £12,476,000, 31 December 2012: £14,776,000) by the number of shares in issue at the end of the period - 113,322,000 (30 June 2012: 113,322,000, 31 December 2012: 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 2013 does not constitute statutory accounts as defined in the Companies Act 2006. The figures for the period ended 31 December 2012 have been extracted from the 2012 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.