Construction insurer posts pre-tax loss of £0.24m due to 'cautious reserving'

Gable Holdings, the AIM-listed European insurance company, has announced its unaudited results for the year ended 31 December 2006.

Gross written premium for the year were £6.2m giving a net profit before additional actuarial reserves of £2.7m.

It reported an earned premium of £3.6m and net profit before additional actuarial reserve of £0.7m.

It recorded a loss before tax for the year of £0.24m, owing to a “very cautious view on its reserving policy”.

Gable Insurance started writing its first business in late January 2006 offering products to the construction industry in Great Britain and Ireland.

It said it had “strong level of support from a network comprising over 80 brokers (double the number reported at the half year stage) which continues to grow”.

William Dewsall, chief executive of Gable Holdings said: "Despite competitive market conditions, Gable Insurance has performed very well in 2006 writing profitable business in line with our strategy.

“The reported numbers should also be considered in the context of the very cautious view taken with regard to our reserving policy for Gable's first underwriting account period.

“In the current year the level of new business being offered to Gable Insurance remains high and it continues to write business in accordance with its stated objective of profitable underwriting, with reference to prudent risk management."