Results of Operations for the Three Months Ended June 30, 2023 - American Overseas Group Limited Announces Net Income Of $0.9 Million For the Three Months June 30, 2023

Rhea-AI Summary

American Overseas Group Limited reported consolidated net income of $0.9 million for Q2 2023, compared to a net loss of $0.3 million in Q2 2022. Book value per weighted share increased from $775.49 to $817.82. Net earned property and casualty premiums increased by $1.4 million. Quarter to Date fee income increased by $1.1 million. Gross written premiums increased by $47.7 million. Quarter to Date loss and loss adjustment expenses decreased from 71.4% to 65.4%. Operating expenses remained constant at $2.8 million.

Positive

• Consolidated net income increased, book value per share increased, net earned premiums increased, fee income increased, gross written premiums increased, loss and loss adjustment expenses decreased

Negative

• None.

HAMILTON, Bermuda, Sept. 29, 2023 (GLOBE NEWSWIRE) -- American Overseas Group Limited BSX: AORE.BH) (Pink Sheets: AOREF.PK) (“AOG” or the “Company”) today reported consolidated net income available to common shareholders of $0.9 million, or $19.65 per diluted share, for the three months ended June 30, 2023. This compares to consolidated net loss available to common shareholders of $0.3 million, or $6.28 per diluted share, for the three months ended June 30, 2022. Book value per weighted share at June 30, 2023 was $817.82, an increase from the book value per weighted share of $775.49 at June 30, 2022.

For the three months ended June 30, 2023, net earned property and casualty premiums increased $1.4 million from $5.1 million a year ago to $6.5 million.   

Quarter to Date fee income increased $1.1 million moving from $2.7 million to $3.8 million and gross written premiums increased $47.7 million, moving from $116.6 million to $164.3 million. Quarter to Date direct written premiums were positively impacted by continued expansion of new programs and rate increases. Quarter to Date loss and loss adjustment expenses as a percentage of earned premium decreased from 71.4% to 65.4%.  

For the three months ended June 30, 2023, operating expenses remained constant at $2.8 million.

As part of its ongoing capital management efforts, the Company will continue to redirect excess capital within the group to debt reduction unless other compelling opportunities present themselves.

Forward-Looking Statements

This release contains statements that may be considered "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, the Company's expectations respecting the volatility of its insured portfolio, losses, loss reserves and loss development, the adequacy and availability of its liquidity and capital resources, its current run off strategy, its strategy for writing other reinsurance businesses and its expense reduction measures. These statements are based on current expectations and the current views of the economic and operating environment and are not guarantees of future performance. A number of risks and uncertainties, including economic competitive conditions, could cause actual results to differ materially from those projected in forward-looking statements. The Company's actual results could differ materially from those expressed or implied in the forward-looking statements.

Information About the Company

American Overseas Group Limited is an insurance holding company incorporated in Bermuda and a tax resident of the United Kingdom. Its operating subsidiaries provide specialty property/casualty insurance, reinsurance and insurance management services. More information can be found at www.aoreltd.com.

American Overseas Group Limited

info@aoreltd.com

American Overseas Group Limited
Consolidated Balance Sheets
(unaudited)
As at June 30, 2023 and December 31, 2022
(dollars in thousands)
								June 30, 2023					December 31, 2022
Assets
		Investments:
			Fixed-maturity securities held as available for sale, at fair value					$	117,404				$	97,646
			Equity investments held as available for sale, at fair value						-					2,708
		Cash and cash equivalents							38,375					32,212
		Restricted cash							4,312					3,968
		Accrued investment income							677					455
		Premiums receivable							129,832					94,704
		Deferred insurance premiums							177,777					132,602
		Reinsurance balances receivable, net							269,813					248,234
		Deferred policy acquisition costs							6,236					4,029
		Intangible assets							4,800					4,800
		Goodwill							33,050					33,050
		Other assets							4,549					3,978
			Total Assets					$	786,825				$	658,386
Liabilities and Equity
	Liabilities:
		Loss and loss expense reserve						$	265,768				$	253,886
		Deferred commission income							4,465					2,661
		Unearned premiums							185,136					137,929
		Ceded premium payable							131,539					88,117
		Payable to general agents							6,633					5,469
		Funds withheld							114,484					99,409
		Accounts payable and accrued liabilities							18,495					16,499
		Notes payable							21,021					18,021
		Non-owned interest in VIE							300					300
		Interest payable							564					464
			Total Liabilities						748,405					622,755
	Shareholders' Equity:
		Common shares							4,698					4,698
		Additional paid-in capital							189,179					189,179
		Accumulated other comprehensive (loss)							(3,804	)				(4,240	)
		Retained deficit							(157,106	)				(159,459	)
			Total Shareholders' Equity						32,967					30,178
		Non-controlling interest of preferred shares of subsidiaries							5,453					5,453
		Total Equity							38,420					35,631
			Total Liabilities and Equity					$	786,825				$	658,386
		See Notes to June 30, 2023 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com

	American Overseas Group Limited
	Consolidated Statements of Operations
	(unaudited)
	(dollars in thousands, except share and per share amounts)
									Three months ended June 30,							Six Months ended June 30,
										2023			2022				2023			2022
		Revenues
			Net premiums earned						$	6,529		$	5,093			$	12,117		$	10,181
			Fee income							3,832			2,709				7,656			6,004
			Net investment income							178			101				340			32
			Net realized gains on investments							25			248				437			237
			Other income							11			55				39			895
				Total revenues						10,575			8,206				20,589			17,349
		Expenses
			Losses and loss adjustment expenses							4,268			3,639				7,842			6,904
			Acquisition expenses							1,993			1,653				3,752			3,351
			Operating expenses							2,820			2,758				5,576			5,779
			Interest expense							571			451				1,067			902
				Total expenses						9,652			8,501				18,237			16,936
	Pre-tax net profit / (loss)								$	923		$	(295	)		$	2,352		$	413
			Income tax (expense)							-			-				-			-
	Net profit / (loss) before dividends									923			(295	)			2,352			413
			Dividends on preference shares of subsidiary							-			-				-			-
	Net profit / (loss) available to common shareholders								$	923		$	(295	)		$	2,352		$	413
		Net profit / (loss) per common share:
		Basic							$	19.65		$	(6.28	)		$	50.07		$	8.79
		Diluted								19.65			(6.28	)			50.07			8.79
		Weighted-average number of common shares outstanding:
		Basic								46,979			46,979				46,979			46,979
		Diluted								46,979			46,979				46,979			46,979
	See Notes to June 30, 2023 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com