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
December 28, 2023 at 04:06 pm EST
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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
American Overseas Group Limited is a writer of non-standard auto insurance through its United States subsidiaries. The Company operates through two segments: property/casualty insurance/reinsurance and corporate/other. The property/casualty segment provides insurance and reinsurance related to United States short-tail personal lines. All product lines fall within these classifications. Its business group comprises categories, including the United States-based property and casualty insurance companies that provide non-standard auto insurance through specialty managing general agents (MGAs); Barbados-based affiliated reinsurance companies that assume and reinsure a small portion of the U.S.-sourced non-standard auto business; and the Unites States based management services company. The Company provides access to the United States property and casualty insurance underwriting capacity in the specialty niche of non-standard auto insurance through MGAs for a fee.
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