Results of Operations for the Three Months Ended March 31, 2023 - American Overseas Group Limited Announces Net Income Of $1.4 Million For the Three Months March 31, 2023
June 30, 2023 at 04:06 pm EDT
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HAMILTON, Bermuda, June 30, 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 $1.4 million, or $30.44 per diluted share, for the three months ended March 31, 2023. This compares to consolidated net income available to common shareholders of $0.7 million, or $15.06 per diluted share, for the three months ended March 31, 2022. Book value per weighted share at March 31, 2023 was $798.21, a decline from the book value per weighted share of $850.78 at March 31, 2022.
For the three months ended March 31, 2023, net earned property and casualty premiums increased $0.5 million from $5.1 million a year ago to $5.6 million.
Quarter to Date fee income increased $0.5 million from $3.3 million to $3.8 million and gross written premiums increased $25.8 million, moving from $108.1 million to $133.9 million. Quarter to Date direct written premiums were positively impacted by continued expansion of new programs, rate increases, and overall economic recovery. Quarter to Date Loss and loss adjustment expenses as a percentage of earned premium remained constant at 64.0%.
For the three months ended March 31, 2023, operating expenses decreased $0.2 million from $3.0 million to $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 March 31, 2023 and December 31, 2022
(dollars in thousands)
March 31, 2023
December 31, 2022
Assets
Investments:
Fixed-maturity securities held as available for sale, at fair value
$
125,823
$
97,646
Equity investments held as available for sale, at fair value
-
2,708
Cash and cash equivalents
20,884
32,212
Restricted cash
3,965
3,968
Accrued investment income
774
455
Premiums receivable
114,782
94,704
Deferred insurance premiums
149,651
132,602
Reinsurance balances receivable, net
255,430
248,234
Deferred policy acquisition costs
4,855
4,029
Intangible assets
4,800
4,800
Goodwill
33,050
33,050
Other assets
4,940
3,978
Total Assets
$
718,954
$
658,386
Liabilities and Equity
Liabilities:
Loss and loss expense reserve
$
256,497
$
253,886
Deferred commission income
3,374
2,661
Unearned premiums
155,846
137,929
Ceded premium payable
108,022
88,117
Payable to general agents
7,553
5,469
Funds withheld
115,637
99,409
Accounts payable and accrued liabilities
15,709
16,499
Notes payable
18,021
18,021
Non-owned interest in VIE
300
300
Interest payable
496
464
Total Liabilities
681,455
622,755
Shareholders' Equity:
Common shares
4,698
4,698
Additional paid-in capital
189,179
189,179
Accumulated other comprehensive (loss) income
(3,802
)
(4,240
)
Retained deficit
(158,029
)
(159,459
)
Total Shareholders' Equity
32,046
30,178
Non-controlling interest of preferred shares of subsidiaries
5,453
5,453
Total Equity
37,499
35,631
Total Liabilities and Equity
$
718,954
$
658,386
See Notes to March 31, 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 March 31,
2023
2022
Revenues
Net premiums earned
$
5,588
$
5,088
Fee income
3,825
3,295
Net investment income (expense)
162
(69
)
Net realized gains (losses) on investments
412
(11
)
Other income
28
841
Total revenues
10,015
9,144
Expenses
Losses and loss adjustment expenses
3,574
3,266
Acquisition expenses
1,759
1,698
Operating expenses
2,756
3,021
Interest expense
496
451
Total expenses
8,585
8,436
Pre-tax net profit / (loss)
$
1,430
$
708
Income tax (expense)
-
-
Net profit / (loss) before dividends
1,430
708
Dividends on preference shares of subsidiary
-
-
Net profit / (loss) available to common shareholders
$
1,430
$
708
Net profit / (loss) per common share:
Basic
$
30.44
$
15.06
Diluted
30.44
15.06
Weighted-average number of common shares outstanding:
Basic
46,979
46,979
Diluted
46,979
46,979
See Notes to March 31, 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 March 31, 2023 - American Overseas Group Limited Announces Net Income Of $1.4 Million For the Three Months March 31, 2023