Results Of Operations For The Three Months Ended June 30, 2025 - American Overseas Group Limited Announces Net Income Of $2.5 Million For The Three Months Ended June 30, 2025

2025-09-30 04:16:41

(MENAFN- GlobeNewsWire - Nasdaq) HAMILTON, Bermuda, Sept. 30, 2025 (GLOBE NEWSWIRE) -- American Overseas Group Limited (BSX: AORE) (Pink Sheets: (“AOG” or the“Company”) today reported consolidated net income available to common shareholders of $2.5 million, or $53.51 per diluted share, for the three months ended June 30, 2025. This compares to consolidated net income available to common shareholders of $2.3 million, or $49.81 per diluted share, for the three months ended June 30, 2024. Book value per weighted share at June 30, 2025 was $1,139.67, an increase from the book value per weighted share of $873.62 at June 30, 2024.

For the three months ended June 30, 2025, net earned property and casualty premiums increased $0.1 million from $12.7 million a year ago to $12.8 million.

Quarter to Date fee income increased $0.3 million from $5.1 million to $5.4 million and gross written premiums increased $25.7 million, moving from $235.2 million to $260.9 million. Quarter to Date Loss and loss adjustment expenses as a percentage of earned premium decreased from 61.8% to 58.3%.

For the three months ended June 30, 2025, operating expenses increased $0.2 million from $3.1 million to $3.3 million.

As part of its ongoing capital management efforts, the Company will continue to redirect excess capital within the group to debt reduction. Pursuant to this strategy, in the 3^rd quarter of 2025 the Company will reduce the outstanding principal balances in its 12% and 9% Senior Secured Notes by $3.0 million and $0.7 million respectively for a total debt reduction of $3.7 million, reducing total outstanding debt from $20.8 million to $17.1 million. The Company expects to take additional steps towards leverage reduction unless other compelling opportunities arise.

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 in the United States. More information can be found at .

American Overseas Group Limited

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American Overseas Group Limited
Consolidated Balance Sheets
(unaudited)
As at June 30, 2025 and December 31, 2024
(dollars in thousands)


				June 30, 2025		December 31, 2024
Assets

		Investments:
			Fixed-maturity securities held as available for sale, at fair value	$	153,525			$	143,633
			Equity investments held as available for sale, at fair value		1,008				-
		Cash and cash equivalents		54,855				46,600
		Restricted cash		1,302				4,861
		Accrued investment income		1,101				1,029
		Premiums receivable		226,659				211,771
		Deferred insurance premiums		307,663				267,765
		Reinsurance balances receivable, net		460,545				413,541
		Deferred policy acquisition costs		10,756				10,215
		Intangible assets		4,800				4,800
		Goodwill		33,050				33,050
		Other assets		5,272				3,972
			Total Assets	$	1,260,536			$	1,141,237


Liabilities and Equity

	Liabilities:
		Loss and loss expense reserve	$	431,559			$	421,018
		Deferred commission income		7,652				7,154
		Unearned premiums		320,014				281,176
		Ceded premium payable		264,213				209,033
		Payable to general agents		313				276
		Funds withheld		130,143				126,839
		Accounts payable and accrued liabilities		28,570				26,256
		Notes payable		20,771				20,771
		Non-owned interest in VIE		300				300
		Interest payable		578				578
		Deferred tax liability		2,882				1,956
			Total Liabilities		1,206,995				1,095,357

	Shareholders' Equity:
		Common shares		4,698				4,698
		Additional paid-in capital		189,179				189,179
		Accumulated other comprehensive income (loss)		(2,667	)			(3,561	)
		Retained deficit		(137,669	)			(144,436	)
			Total Shareholders' Equity		53,541				45,880


			Total Liabilities and Equity	$	1,260,536			$	1,141,237


		See Notes to June 30, 2025 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,
				2025		2024		2025		2024
	Revenues

		Net premiums earned	$	12,783			$	12,680			$	26,136			$	23,550
		Fee income		5,386				5,126				11,802				11,070
		Net investment income		472				270				962				497
		Net realized gains on investments		(6	)			4				(6	)			4
		Other income		38				20				53				37


			Total revenues		18,673				18,100				38,947				35,158

	Expenses
		Losses and loss adjustment expenses		7,455				7,835				14,506				14,330
		Acquisition expenses		4,052				3,567				8,125				7,152
		Operating expenses		3,294				3,052				6,415				6,219
		Interest expense		578				578				1,157				1,156

			Total expenses		15,379				15,032				30,203				28,857


Pre-tax net profit (loss)	$	3,294			$	3,068			$	8,744			$	6,301
		Income tax (expense)		(780	)			(728	)			(1,977	)			(1,465	)

Net profit (loss) available to common shareholders		2,514				2,340				6,767				4,836


	Net profit (loss) per common share:
	Basic	$	53.51			$	49.81			$	144.04			$	102.94
	Diluted		53.51				49.81				144.04				102.94

	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, 2025 Consolidated Financial Statements available on American Overseas Group Ltd. Website at

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