Gable realigns business model after solid growth but losses
Gable, a European non-life insurance company, enjoyed solid growth last year but also made heavy losses and has revealed more about a strategic review designed to return the business to profitability and meet Solvency II requirements.
Gable reported gross written premiums of over £91.1m in the year ending December 31 2015, a 14 percent increase over the same period last year.
However, the company experienced pre-tax losses of £24.3 million, which includes non-recurring adjustments of £7.5 million provision to eliminate the remaining balance of the pre-2012 historical reserving gap.
The losses include another adjustment of an increased £7.9 million provision (from £6 million) to fully write off the debtor relating to an after the event (ATE) insurance policy.
In its strategic review, Gable said it has re-aligned its business model to meet Solvency II requirements.
It also said it is implementing a business model that will support commercial arrangements in order to deliver a profitable future business under the new regulatory environment.
Gable also aims to write niche lines of business which will be fully Solvency II compliant, with the balance being transferred to Solvency II compliant multi-national insurance carriers.
William Dewsall, chief executive, said: “Over the ten years since start up in 2005, we have grown a significant business in terms of written premiums, commercial reach and capability, underwriting across a core of customers and strategic niche classes of business in nine European countries and building a strong brand of trust with SMEs.
“Following the announcement of a strategic review of Gable’s business, I can confirm that, after consultation with our regulator, the FMA, we are taking steps to implement a solution which will operate under the new Solvency II regime.
“The regulatory landscape since we started the business has changed dramatically which has necessitated the strategic review and we are now proceeding with discussions with a range of parties which will require a significant restructuring of the Group’s business and scale of underwriting operations in order to provide a solution to ensure compliance with Solvency II across all lines of business.”
