Results Of Operations For The Three Months Ended September 30, 2023 - American Overseas Group Limited Announces Net Income Of $4.3 Million For The Thr...

(MENAFN- GlobeNewsWire - Nasdaq) HAMILTON, Bermuda, Dec. 28, 2023 (GLOBE NEWSWIRE) -- American Overseas Group Limited BSX: AORE) (Pink Sheets: AOREF) (“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 .

American Overseas Group Limited

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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

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

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