Results of Operations for the Three Months Ended September 30, 2023 - American Overseas Group Limited Announces Net Income Of $4.3 Million For the Three Months September 30, 2023

Rhea-AI Summary

American Overseas Group Limited (AOG) reported a consolidated net income of $4.3 million for the three months ended September 30, 2023, compared to a net loss of $0.4 million for the same period in 2022. The book value per weighted share at September 30, 2023, was $776.61, slightly lower than the previous year. Net earned property and casualty premiums increased to $8.0 million, while fee income and gross written premiums also showed significant growth. The company remains focused on capital management and debt reduction.

HAMILTON, Bermuda, Dec. 28, 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 $4.3 million, or $91.11 per diluted share, for the three months ended September 30, 2023. This compares to consolidated net loss available to common shareholders of $0.4 million, or $9.42 per diluted share, for the three months ended September 30, 2022. Book value per weighted share at September 30, 2023 was $776.61, a slight decrease from the book value per weighted share of $780.66 at September 30, 2022.

For the three months ended September 30, 2023, net earned property and casualty premiums increased $3.2 million from $4.8 million a year ago to $8.0 million.   

Quarter to Date fee income increased $1.5 million moving from $2.7 million to $4.2 million and gross written premiums increased $62.7 million, moving from $110.2 million to $172.9 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 70.4% to 57.3%.  

For the three months ended September 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 September 30, 2023 and December 31, 2022
(dollars in thousands)
								September 30, 2023					December 31, 2022
Assets
		Investments:
			Fixed-maturity securities held as available for sale, at fair value					$	125,971				$	97,646
			Equity investments held as available for sale, at fair value						-					2,708
		Cash and cash equivalents							39,040					32,212
		Restricted cash							1,722					3,968
		Accrued investment income							881					455
		Premiums receivable							150,663					94,704
		Deferred insurance premiums							197,113					132,602
		Reinsurance balances receivable, net							261,844					248,234
		Deferred policy acquisition costs							8,605					4,029
		Intangible assets							4,800					4,800
		Goodwill							33,050					33,050
		Other assets							4,404					3,978
			Total Assets					$	828,093				$	658,386
Liabilities and Equity
	Liabilities:
		Loss and loss expense reserve						$	269,398				$	253,886
		Deferred commission income							6,322					2,661
		Unearned premiums							206,246					137,929
		Ceded premium payable							135,638					88,117
		Payable to general agents							6,862					5,469
		Funds withheld							122,540					99,409
		Accounts payable and accrued liabilities							22,696					16,499
		Notes payable							21,021					18,021
		Non-owned interest in VIE							300					300
		Interest payable							586					464
			Total Liabilities						791,609					622,755
	Shareholders' Equity:
		Common shares							4,698					4,698
		Additional paid-in capital							189,179					189,179
		Accumulated other comprehensive (loss)							(4,567	)				(4,240	)
		Retained deficit							(152,826	)				(159,459	)
			Total Shareholders' Equity						36,484					30,178
		Non-controlling interest of preferred shares of subsidiaries							-					5,453
		Total Equity							36,484					35,631
			Total Liabilities and Equity					$	828,093				$	658,386
		See Notes to September 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 September 30,							Nine Months ended September 30,
					2023				2022			2023				2022
	Revenues
		Net premiums earned			$	7,987		$	4,844			$	20,104		$	15,025
		Fee income				4,191			2,683				11,847			8,687
		Net investment income				215			109				555			141
		Net realized gains on investments				2,425			-				2,862			237
		Other income				25			21				64			916
			Total revenues			14,843			7,657				35,432			25,006
	Expenses
		Losses and loss adjustment expenses				4,574			3,410				12,416			10,315
		Acquisition expenses				2,628			1,418				6,379			4,770
		Operating expenses				2,775			2,821				8,351			8,600
		Interest expense				586			451				1,653			1,352
			Total expenses			10,563			8,100				28,799			25,037
Pre-tax net profit / (loss)					$	4,280		$	(443	)		$	6,633		$	(31	)
		Income tax (expense)				-			-				-			-
Net profit / (loss) before dividends						4,280			(443	)			6,633			(31	)
		Dividends on preference shares of subsidiary				-			-				-			-
Net profit / (loss) available to common shareholders					$	4,280		$	(443	)		$	6,633		$	(31	)
	Net profit / (loss) per common share:
	Basic				$	91.11		$	(9.42	)		$	141.19		$	(0.65	)
	Diluted					91.11			(9.42	)			141.19			(0.65	)
	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 September 30, 2023 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com

FAQ

What is the consolidated net income reported by American Overseas Group Limited for the three months ended September 30, 2023?

American Overseas Group Limited reported a consolidated net income of $4.3 million for the three months ended September 30, 2023.

What was the book value per weighted share at September 30, 2023?

The book value per weighted share at September 30, 2023, was $776.61.

How did the net earned property and casualty premiums change from the previous year?

The net earned property and casualty premiums increased to $8.0 million from $4.8 million a year ago.

What is the focus of the company's capital management efforts?

The company's capital management efforts are focused on redirecting excess capital to debt reduction unless other compelling opportunities present themselves.