Insurer Gable's Solvency II preparation to hit premiums, profit

U.K.-based nonlife insurer Gable Holdings Inc.'s 2015 gross written premium and profit will be affected as the insurer has agreed to funding arrangements for its Liechtenstein subsidiary, Gable Insurance A.G., reports London South East.

The funding arrangement will help Gable Insurance meet the initial capital requirements under Solvency II rules. The arrangement includes a combination of a quota-share reinsurance arrangement and issuing new bonds. Gable Holdings plans to cede premiums to Bermuda-based Citadel Reinsurance Co. Ltd. under the deal. Gable Insurance's gross written premium is expected to fall by at least £15 million ($22 million).

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