Gable Holdings has just announced that it has signed a £70 million 5-year agreement with Towergate Underwriting. Gable will act as preferred insurer, providing commercial insurance products to Towergate’s UK clients from January 2013 and is projected to result in a minimum of £14m per annum gross written premiums.
Towergate is the UK’s largest Managing General Agent (MGA) and this agreement represents a major step forward for Gable. To put the expected £14m per annum premiums in context, in 2011 Gable recorded gross written premiums of £29.8m and in the first half of the current year, £15.4m. On current earnings forecasts of 7.4p in 2013 the shares are only on 5.4x. There should be substantial upgrades to these forecasts which I will update later. The share price is up nearly 20% since purchase in early October but I would expect the share price to make further progress over and above the 5% move this morning.
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Johnrosier
I manage my subscription website www.JohnsInvestmentChronicle.com in which I show my portfolio and all transactions. I blog within an hour of trading, with an explanation, and send an alert email to all my subscribers. I do not pretend to have all the answers but I hope my portfolio, and the trades, provides food for thought as well as helping those who are new to managing their own portfolios.I think what I do is unique. There are plenty of tipsters out there who will remind you of the good ones and quietly forget the duffers; I do not have that luxury as the portfolio is there for all to see. I have to confront my mistakes and deal with them. A tipster also does not show how a tip fits into the context of an overall portfolio. My portfolio of up to 30 holdings has different holding sizes based on my conviction behind the stock and its risk. I set up www.JohnsInvestmentChronicle.com in January 2012. Prior to that :In September 1984, I left university with a degree in Zoology and started work in the City of London. Over the next twenty five years most of my time was spent managing UK equity portfolios with Fleming Investment Management and Henderson Global Investors, for company and local authority pension schemes as well as the reserve fund for a well known charity. During 2009 I left full time employment and decided to take time out to consider the next stage of my career. In the meantime I have been putting my years of experience to good use investing the family savings. I have thoroughly enjoyed the freedom of investing from home and despite some tricky periods during 2011 it has been a rewarding experience. more »
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