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
HAMILTON, Bermuda, Sept. 30, 2025 (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 $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 3rd 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 www.aoreltd.com.
American Overseas Group Limited
info@aoreltd.com
| 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 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, | |||||||||||||||||
| 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 www.aoreltd.com | ||||||||||||||||||
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