DGAP-Adhoc

Enterprise Holdings Limited: Enterprise Holdings will expand operations of existing Managing General Agent (MGA) to reduce capital requirement and increase margins - Petitioning to wind up its insurance company Enterprise Insurance Company PLC

Enterprise Holdings Limited / Key word(s): Strategic Company Decision

25.07.2016 18:44

Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Enterprise Holdings will expand operations of existing Managing General
Agent (MGA) to reduce capital requirement and increase margins
Petitioning to wind up its insurance company Enterprise Insurance Company
PLC

The Gibraltar Financial Services Commission (the Commission) has intervened
in the operations of Enterprise Insurance Company PLC (EIC or Company), a
100% owned subsidiary of Enterprise Holdings Limited. EIC has been under
close supervision from the Commission and recently the Company provided the
Commission with the indicative outcome of the requested independent review
which showed a severe deterioration in the Company's position. EIC
therefore has requested that the Commission takes steps to control the
activities of the Company including issuing winding-up proceedings.

Andrew Flowers, Chief Executive Officer of the Enterprise Holdings Limited,
comments: "Winding up the existing business of Enterprise Insurance Company
PLC is the best solution available to us to protect our policyholders. We
plan to begin discussions with the insurance market to determine how we
might amend the remit of the already established Managing General Agent
(MGA) owned by the Group, Andeva Underwriting Agency Limited (Andeva), to
secure capacity from an alternative re-insurer. This would allow the
expansion of Andeva's offering to a broader range of products which in turn
should generate premium volumes to similar levels historically enjoyed by
EIC but without any cost of capital and a significantly reduced overhead.
The Group continues its plans to diversify into the leisure sector. The
first gastronomy venue, The Oxford Blue, is entering the final stages of
refurbishment and is planned to open during September 2016. This will be
followed by the launch of a second early in November, both of which are
expected to make significant contributions to the Group profits in their
first year of trading."

Update on Special Accounts
Bond 2015/20: According to the terms and conditions of the bond, starting
May 2015 every month the issuer credits 10 percent of the yearly interest
payment to this separate bank account. These monies are for the payment of
the yearly interests to investors. The current credit balance is 735,000