Gable

Buoyed by strong demand for its services, non-life insurance group Gable (GAH) has reported a very strong set of interim figures.

In the six months to June, gross written premiums increased 41% to £12.2m as pre-tax profits soared 52% to £2m. Speaking to Growth Company Investor, founder and chief executive William Dewsall said, 'Our product range is good and we are not exposed to any major catastrophe risk business.'

Gable has enjoyed a good underwriting performance and is also keeping a tight rein on costs. In the UK its construction-related activities are doing well, while Gable is also winning new mandates for its after-the-event (ATE) product.

Mainland Europe remains a key market. In Norway the tenant deposit scheme is established and gaining traction, whereas in France its property-related insurance products launched last year are increasing market share. Dewsall is close to signing up new partners in Germany and Italy – steps that will broaden its exposure overseas.

The time frame and implementation of the capital adequacy requirements encompassed by Solvency II remain uncertain, but Gable is devoting considerable effort to ensuring that it stays compliant. Current trading is strong, with its highly scaleable platform able to support at least three times the volume it is currently undertaking.

Broker Panmure Gordon expects full-year profits of £3.67m and EPS of 3.75p; it also places a 36p target on the shares. We urged readers to buy Gable at 15.5p in April, a view that remains unchanged. Add.