Insurer Gable reports 25% profit rise and 77% surge in GWP
Gable made a profit before tax of £4m in the first half of 2013, up 25% on the £3.2m it made in the same period last year.
The London-listed insurer’s gross written premium jumped 77% to £27.3m (H1 2012: £15.4m).
It reported a strong combined operating ratio of 56%, although this was six percentage points higher than the 51% it reported in the first half of 2012.
The company said it expected continued growth across all classes of business in both the UK and its current markets, and also announced its intention to launch products in two additional European countries – the Netherlands and Belgium.
Gable chief executive William Dewsall (pictured) said: “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.”
European launches
“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,” he added.
“We also expect to see further significant growth from our recent launches in Italy, Denmark and Germany in the second half of 2013.”
Share shift
Despite the good results, stockbroker Panmure Gordon lowered its recommendation on Gable’s stock to ‘hold’ from ‘buy’. This is because the shares have rallied by 59% since mid-July, bringing the company close to Panmure Gordon’s 71p-a-share price target.
Gable grew its GWP by 77% to £27.3m in the first half of 2013. The European non-life insurance company posted 25% increase in profit before tax to £4m against the first half of 2012.
Panmure Gordon analyst Barrie Cornes wrote in a research note: “The combined operating ratio at 56% remains very impressive … New product launches and new markets should see top-line growth continue at a strong rate.”
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