Insurer has entered transitional measures which gives an insurer until 31 December 2017 to fully comply

William Dewsall Gable

Gable did not meet its Solvency Capital Requirement under Solvency II and now has two years to hit it.

The insurer said in a trading update today that it had entered transitional measures under Solvency II which gives an insurer until 31 December 2017 to fully comply with Solvency II capital requirements.

In December Gable announced it had entered into a quota share funding arrangements to enable it to meet the initial capital requirements under the Solvency II insurance rules governing capital.

The arrangement is a combination of quota share reinsurance and the issue of a new convertible loan note instrument under which Gable has raised around £4m.

In the trading update the insurer has said that it also expects to report a pre-tax loss of between £7m and £8m for 2015.