Results of Operations for the Three Months Ended March 31, 2024 - American Overseas Group Limited Announces Net Income Of $2.5 Million For the Three Months Ended March 31, 2024
June 28, 2024 at 04:05 pm
Share
HAMILTON, Bermuda, June 28, 2024 (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 $53.13 per diluted share, for the three months ended March 31, 2024. This compares to consolidated net income available to common shareholders of $1.4 million, or $30.44 per diluted share, for the three months ended March 31, 2023. Book value per weighted share at March 31, 2024 was $824.41, an increase from the book value per weighted share of $798.21 at March 31, 2023.
For the three months ended March 31, 2024, net earned property and casualty premiums increased $5.3 million from $5.6 million a year ago to $10.9 million.
Quarter to Date fee income increased $2.1 million from $3.8 million to $5.9 million and gross written premiums increased $86.5 million, moving from $133.9 million to $220.4 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 64.0% to 59.8%.
For the three months ended March 31, 2024, operating expenses increased $0.4 million from $2.8 million to $3.2 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 March 31, 2024 and December 31, 2023
(dollars in thousands)
March 31, 2024
December 31, 2023
Assets
Investments:
Fixed-maturity securities held as available for sale, at fair value
$
132,050
$
132,600
Cash and cash equivalents
57,438
56,854
Restricted cash
3,560
964
Accrued investment income
1,153
972
Premiums receivable
205,520
174,350
Deferred insurance premiums
246,268
219,828
Reinsurance balances receivable, net
359,466
348,930
Deferred policy acquisition costs
10,782
9,152
Intangible assets
4,800
4,800
Goodwill
33,050
33,050
Other assets
4,948
3,720
Total Assets
$
1,059,035
$
985,220
Liabilities and Equity
Liabilities:
Loss and loss expense reserve
$
342,913
$
332,573
Deferred commission income
8,153
6,878
Unearned premiums
259,233
230,123
Ceded premium payable
210,453
183,969
Payable to general agents
12,941
10,885
Funds withheld
142,657
136,471
Accounts payable and accrued liabilities
21,072
25,725
Notes payable
20,771
20,771
Non-owned interest in VIE
300
300
Interest payable
578
578
Deferred tax liability
1,234
648
Total Liabilities
1,020,305
948,921
Shareholders' Equity:
Common shares
4,698
4,698
Additional paid-in capital
189,179
189,179
Accumulated other comprehensive (loss)
(3,519
)
(3,454
)
Retained deficit
(151,628
)
(154,124
)
Total Shareholders' Equity
38,730
36,299
Total Liabilities and Equity
$
1,059,035
$
985,220
See Notes to March 31, 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 March 31,
2024
2023
Revenues
Net premiums earned
$
10,870
$
5,588
Fee income
5,944
3,825
Net investment income
227
162
Net realized gains on investments
-
412
Other income
17
28
Total revenues
17,058
10,015
Expenses
Losses and loss adjustment expenses
6,496
3,574
Acquisition expenses
3,585
1,759
Operating expenses
3,167
2,756
Interest expense
577
496
Total expenses
13,825
8,585
Pre-tax net profit
$
3,233
$
1,430
Income tax (expense)
(737
)
-
Net profit available to common shareholders
2,496
1,430
Net profit per common share:
Basic
$
53.13
$
30.44
Diluted
53.13
30.44
Weighted-average number of common shares outstanding:
Basic
46,979
46,979
Diluted
46,979
46,979
See Notes to March 31, 2024 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 March 31, 2024 - American Overseas Group Limited Announces Net Income Of $2.5 Million For the Three Months Ended March 31, 2024