INTERNATIONAL CENTER FOR RESEARCH AND RESOURCE DEVELOPMENT

ICRRD QUALITY INDEX RESEARCH JOURNAL

ISSN: 2773-5958, https://doi.org/10.53272/icrrd

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

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