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 (BSX: AORE.BH) (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
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
