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 Mo...

(MENAFN- GlobeNewsWire - Nasdaq) 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 .

American Overseas Group Limited

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

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

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