Results of Operations for the Three Months Ended June 30, 2024 - American Overseas Group Limited Announces Net Income Of $2.3 Million For the Three Months Ended June 30, 2024.

Results of Operations for the Three Months Ended June 30, 2024 – American Overseas Group Limited Announces Net Income Of $2.3 Million For the Three Months Ended June 30, 2024.

HAMILTON, Bermuda, Sept. 30, 2024 (GLOBE NEWSWIRE) — American Overseas Group Limited AORE (Pink Sheets: AOREF.PK) (“AOG” or the “Company”) today reported 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. This compares to 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. Book value per weighted share at June 30, 2024 was $873.62, an increase from the book value per weighted share of $817.82 at June 30, 2023.

For the three months ended June 30, 2024, net earned property and casualty premiums increased $6.2 million from $6.5 million a year ago to $12.7 million.

Quarter to Date fee income increased $1.3 million from $3.8 million to $5.1 million and gross written premiums increased $70.9 million, moving from $164.3 million to $235.2 million. Direct written premiums were positively impacted by continued expansion of new programs, rate increases, and organic growth in existing programs. Quarter to Date Loss and loss adjustment expenses as a percentage of earned premium decreased from 65.4% to 61.8%.

For the three months ended June 30, 2024, operating expenses increased $0.3 million from $2.8 million to $3.1 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 June 30, 2024 and December 31, 2023
(dollars in thousands)


	June 30, 2024			December 31, 2023
Assets

Investments:
Fixed-maturity securities held as available for sale, at fair value	$	131,989		$	132,600
Cash and cash equivalents		47,302			56,854
Restricted cash		6,410			964
Accrued investment income		1,014			972
Premiums receivable		223,823			174,350
Deferred insurance premiums		264,207			219,828
Reinsurance balances receivable, net		375,672			348,930
Deferred policy acquisition costs		10,726			9,152
Intangible assets		4,800			4,800
Goodwill		33,050			33,050
Other assets		5,034			3,720
Total Assets	$	1,104,027		$	985,220


Liabilities and Equity

Liabilities:
Loss and loss expense reserve	$	360,322		$	332,573
Deferred commission income		7,741			6,878
Unearned premiums		277,996			230,123
Ceded premium payable		229,749			183,969
Payable to general agents		11,198			10,885
Funds withheld		129,570			136,471
Accounts payable and accrued liabilities		23,123			25,725
Notes payable		20,771			20,771
Non-owned interest in VIE		300			300
Interest payable		578			578
Deferred tax liability		1,637			648
Total Liabilities		1,062,985			948,921

Shareholders’ Equity:
Common shares		4,698			4,698
Additional paid-in capital		189,179			189,179
Accumulated other comprehensive (loss)		(3,547	)		(3,454	)
Retained deficit		(149,288	)		(154,124	)
Total Shareholders’ Equity		41,042			36,299


Total Liabilities and Equity	$	1,104,027		$	985,220


See Notes to June 30, 2024 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 June 30,					Six Months ended June 30,
		2024			2023		2024			2023
Revenues

Net premiums earned	$	12,680		$	6,529	$	23,550		$	12,117
Fee income		5,126			3,832		11,070			7,656

Net investment income		270			178		497			340
Net realized gains on investments		4			25		4			437
Other income		20			11		37			39


Total revenues		18,100			10,575		35,158			20,589

Expenses
Losses and loss adjustment expenses		7,835			4,268		14,330			7,842
Acquisition expenses		3,567			1,993		7,152			3,752
Operating expenses		3,052			2,820		6,219			5,576
Interest expense		578			571		1,156			1,067

Total expenses		15,032			9,652		28,857			18,237


Pre-tax net profit	$	3,068		$	923	$	6,301		$	2,352
Income tax (expense)		(728	)		–		(1,465	)		–

Net profit available to common shareholders		2,340			923		4,836			2,352

Net profit per common share:
Basic	$	49.81		$	19.65	$	102.94		$	50.07
Diluted		49.81			19.65		102.94			50.07

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, 2024 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com