European non-life insurer Gable Holdings has stopped writing for new business as it undertakes a strategic review despite posting solid growth last year.
The company said it has already started implementing a strategic restructuring plan and that its broker network has been instructed to cease writing new business immediately.
“The Board has taken the decision that it would not be prudent to continue writing new business within Gable when we are aware that with effect from 1 October 2016, we will be introducing this business to our new carriers,” the insurer said in a statement.
In May, Gable announced that it will implement a strategic review of its business and operations, which includes investigating various potential options for the company.
The business model developed under the strategic restructuring plan is intended to provide support from multinational insurance carriers for Gable's historical written premium base in the UK and Europe.
It is also designed to retain sufficient capital to enable Gable to operate as a niche and profitable business under Solvency II.
“We are adapting our business model to meet the challenges of the new regulatory environment brought about by the introduction of Solvency II,” said Gable chairman Jost Pilgrim.
“This will require a considerable reorganisation of our business and we are actively working with potential partners to bring about a Solvency II compliant solution,” Pilgrim added.
Gable, which reported gross written premiums of over £91.1m in 2015, admitted that there is a “significant uncertainty” regarding the implementation of its restructuring plan.
“There is no guarantee that, following its implementation, the group will retain sufficient capital to enable it to support the proposed retained business,” the company said.
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