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.

Rhea-AI Summary

American Overseas Group (BSX: AORE.BH) (Pink Sheets: AOREF.PK) reported consolidated net income of $2.3 million, or $49.81 per diluted share, for Q2 2024. This marks an increase from $0.9 million, or $19.65 per diluted share, in Q2 2023. The company's book value per weighted share rose to $873.62 as of June 30, 2024, up from $817.82 a year earlier.

Key financial highlights for Q2 2024 include:

• Net earned property and casualty premiums increased by $6.2 million to $12.7 million
• Fee income rose by $1.3 million to $5.1 million
• Gross written premiums grew by $70.9 million to $235.2 million
• Loss and loss adjustment expenses as a percentage of earned premium decreased from 65.4% to 61.8%
• Operating expenses increased by $0.3 million to $3.1 million

The company attributes its growth to expansion of new programs, rate increases, and organic growth in existing programs.

Positive

• Consolidated net income increased from $0.9 million to $2.3 million year-over-year
• Book value per weighted share rose from $817.82 to $873.62
• Net earned property and casualty premiums grew by $6.2 million to $12.7 million
• Fee income increased by $1.3 million to $5.1 million
• Gross written premiums surged by $70.9 million to $235.2 million
• Loss and loss adjustment expenses as a percentage of earned premium decreased from 65.4% to 61.8%

Negative

• Operating expenses increased by $0.3 million to $3.1 million

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

info@aoreltd.com

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				20,771
Non-owned interest in VIE		300				300
Interest payable		578				578
Deferred tax liability		1,637				648
Total Liabilities		1,062,985				948,921
Shareholders' Equity:
Common shares		4,698				4,698
Additional paid-in capital		189,179				189,179
Accumulated other comprehensive (loss)		(3,547	)			(3,454	)
Retained deficit		(149,288	)			(154,124	)
Total Shareholders' Equity		41,042				36,299
Total Liabilities and Equity	$	1,104,027			$	985,220
See Notes to June 30, 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 June 30,								Six Months ended June 30,
		2024				2023				2024				2023
Revenues
Net premiums earned	$	12,680			$	6,529			$	23,550			$	12,117
Fee income		5,126				3,832				11,070				7,656
Net investment income		270				178				497				340
Net realized gains on investments		4				25				4				437
Other income		20				11				37				39
Total revenues		18,100				10,575				35,158				20,589
Expenses
Losses and loss adjustment expenses		7,835				4,268				14,330				7,842
Acquisition expenses		3,567				1,993				7,152				3,752
Operating expenses		3,052				2,820				6,219				5,576
Interest expense		578				571				1,156				1,067
Total expenses		15,032				9,652				28,857				18,237
Pre-tax net profit	$	3,068			$	923			$	6,301			$	2,352
Income tax (expense)		(728	)			-				(1,465	)			-
Net profit available to common shareholders		2,340				923				4,836				2,352
Net profit per common share:
Basic	$	49.81			$	19.65			$	102.94			$	50.07
Diluted		49.81				19.65				102.94				50.07
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, 2024 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com

FAQ

What was American Overseas Group's (AOREF) net income for Q2 2024?

American Overseas Group reported a consolidated net income of $2.3 million for the three months ended June 30, 2024.

How much did AOREF's gross written premiums increase in Q2 2024?

AOREF's gross written premiums increased by $70.9 million, from $164.3 million in Q2 2023 to $235.2 million in Q2 2024.

What was the book value per weighted share for AOREF as of June 30, 2024?

The book value per weighted share for American Overseas Group (AOREF) was $873.62 as of June 30, 2024.

How did AOREF's loss and loss adjustment expenses as a percentage of earned premium change in Q2 2024?

AOREF's loss and loss adjustment expenses as a percentage of earned premium decreased from 65.4% in Q2 2023 to 61.8% in Q2 2024.