Gable Holdings Inc Temporary Suspension - Update re: Strategic Review (9299C)

TIDMGAH

RNS Number : 9299C

Gable Holdings Inc

01 July 2016

1 July 2016

Gable Holdings Inc.

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

Re. suspension of trading on AIM

Update on filing of 2015 Annual Report

Potential related party transaction

and

Strategic review

Gable Holdings Inc. has requested the suspension of trading in its shares on AIM pending the publication of its audited annual report and accounts for the year ended 31 December 2015 (the "2015 Annual Report") in accordance with AIM Rule 19.

The Company provides an update on its 2015 Annual Report and on developments since its announcements on 25 May and 1 June 2016.

Background

On 25 May 2016 Gable announced the following:

-- that the Company was making a GBP6 million provision against an ATE insurance policy receivable which would significantly impact the Company's results for the year ended 31 December 2015;

-- a potential related party transaction (as updated by the announcement of 1 June 2016) relating to an in principle agreement for the provision to the Company of a GBP10 million guarantee backed by William Dewsall, Chief Executive of Gable, which would form part of Gable's regulatory capital; and

-- A full strategic review of the Company's business and structure in the context of the transitional provisions of Solvency II ("SII"), which is likely to result in a fundamental restructuring of Gable.

Update on 2015 Annual Report

The Board announces that the 2015 annual accounts for Gable Insurance AG ("GIAG") (the Group's operating insurance subsidiary) have been filed locally in Liechtenstein. The Company has also prepared the associated 2015 GIAG regulatory return in accordance with Solvency I regulatory requirements. This remains subject to the completion of certain arrangements, as described further below, that it is intended will provide the necessary support for these filings.

Following completion of these steps, the Company will finalise its 2015 Annual Report and expects to be able to publish it in early July.

In consideration of the strategic restructuring, the Board has decided to write off the balance of the ATE insurance policy receivable amounting to GBP1.9 million (moving from GBP6.0 to GBP7.9 million) and the goodwill of GBP4.25 million relating to the acquisition by Gable of GIAG following an impairment review.

Solvency I arrangements and potential related party transaction

As previously announced on 25 May 2016, the Company was looking at the provision of additional regulatory capital amounting to GBP10 million.

The Company announces that it is at the advanced stages with regards to a combination of arrangements to provide that Solvency I regulatory capital. These continue to factor in a capital contribution from William Dewsall, the CEO of Gable, albeit on a significantly reduced basis from the previously announced guarantee, as the Board has determined there are in addition alternative, third party structures, which include additional retrospective reinsurance facilities.

The proposed capital contribution from William Dewsall will, once entered into, constitute a related party transaction pursuant to AIM Rule 13.

Further details of these arrangements will be made as necessary at the appropriate time, no later than the publication of the Company's 2015 Annual Report and 2015 full year results announcement.

Strategic review

Under the strategic review of the Group's business and operations, the Board is currently evaluating different business models for future SII compliance. SII has changed the regulatory landscape dramatically which has necessitated the strategic review and a significant restructuring of the Group's operations. Its objective is to achieve accelerated SII compliance, well ahead of the transitional arrangements deadline as applicable. The strategic review is considering a broad range of options for the Company and the Board has engaged with a number of potential partners to evaluate their capabilities across a range of possible solutions.

An update on the progress of the strategic review will be made when the Company publishes its 2015 Annual Report.

Commenting, William Dewsall, Chief Executive said:

"I am pleased to confirm that we have agreements in principle with rated insurance carriers and will be underwriting with their support commencing from Q3 this year. Gable are working with various parties to provide Solvency II solutions for all lines of our business both in the UK and Europe. We will advise our counterparties of the full details of these agreements once finalised."

Enquiries:

 
 Gable Holdings Inc.                  Tel: +44(0) 20 
  William Dewsall, Chief Executive         7337 7460 
  Michael Hirschfield, Group 
  Finance Director 
  John Bick, Investor Relations 
 Zeus Capital Limited                 Tel: +44(0) 20 
  Nicholas How, Andrew Jones               3829 5000 
  - Corporate Finance 
  Adam Pollock - Corporate Broking 
 Haggie Partners LLP                 Tel : +44(0) 20 
  Peter Rigby                              7562 4444 
 

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, Spain and Sweden. Gable benefits from a low-cost online underwriting platform and the Company has continued to develop 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. 

This information is provided by RNS

The company news service from the London Stock Exchange

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July 01, 2016 02:31 ET (06:31 GMT)