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
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
| 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 | |||||||||||||||||
