Results of Operations for the Three Months Ended June 30, 2025 - American Overseas Group Limited Announces Net Income Of $2.5 Million For the Three Months Ended June 30, 2025

Rhea-AI Summary

American Overseas Group Limited (AOREF) reported strong Q2 2025 financial results with net income of $2.5 million, or $53.51 per diluted share, compared to $2.3 million in Q2 2024. The company demonstrated solid operational performance with gross written premiums increasing by $25.7 million to $260.9 million.

Key financial metrics include a book value per share increase to $1,139.67 from $873.62 year-over-year, improved loss ratios dropping to 58.3% from 61.8%, and fee income growth of $0.3 million to $5.4 million. The company announced plans to reduce its debt by $3.7 million in Q3 2025, lowering total outstanding debt from $20.8 million to $17.1 million as part of its capital management strategy.

Positive

• Net income increased to $2.5 million, up from $2.3 million year-over-year
• Gross written premiums grew by $25.7 million to $260.9 million
• Book value per share improved significantly to $1,139.67 from $873.62
• Loss ratio improved to 58.3% from 61.8%
• Planned debt reduction of $3.7 million strengthening balance sheet

Negative

• Operating expenses increased by $0.2 million to $3.3 million
• Small net realized loss on investments of $6,000 compared to $4,000 gain last year

HAMILTON, Bermuda, Sept. 30, 2025 (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 $53.51 per diluted share, for the three months ended June 30, 2025. This compares to 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. Book value per weighted share at June 30, 2025 was $1,139.67, an increase from the book value per weighted share of $873.62 at June 30, 2024.

For the three months ended June 30, 2025, net earned property and casualty premiums increased $0.1 million from $12.7 million a year ago to $12.8 million.

Quarter to Date fee income increased $0.3 million from $5.1 million to $5.4 million and gross written premiums increased $25.7 million, moving from $235.2 million to $260.9 million. Quarter to Date Loss and loss adjustment expenses as a percentage of earned premium decreased from 61.8% to 58.3%.

For the three months ended June 30, 2025, operating expenses increased $0.2 million from $3.1 million to $3.3 million.

As part of its ongoing capital management efforts, the Company will continue to redirect excess capital within the group to debt reduction. Pursuant to this strategy, in the 3^rd quarter of 2025 the Company will reduce the outstanding principal balances in its 12% and 9% Senior Secured Notes by $3.0 million and $0.7 million respectively for a total debt reduction of $3.7 million, reducing total outstanding debt from $20.8 million to $17.1 million. The Company expects to take additional steps towards leverage reduction unless other compelling opportunities arise.

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 in the United States. 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, 2025 and December 31, 2024
(dollars in thousands)
				June 30, 2025				December 31, 2024
Assets
		Investments:
			Fixed-maturity securities held as available for sale, at fair value	$	153,525			$	143,633
			Equity investments held as available for sale, at fair value		1,008				-
		Cash and cash equivalents			54,855				46,600
		Restricted cash			1,302				4,861
		Accrued investment income			1,101				1,029
		Premiums receivable			226,659				211,771
		Deferred insurance premiums			307,663				267,765
		Reinsurance balances receivable, net			460,545				413,541
		Deferred policy acquisition costs			10,756				10,215
		Intangible assets			4,800				4,800
		Goodwill			33,050				33,050
		Other assets			5,272				3,972
			Total Assets	$	1,260,536			$	1,141,237
Liabilities and Equity
	Liabilities:
		Loss and loss expense reserve		$	431,559			$	421,018
		Deferred commission income			7,652				7,154
		Unearned premiums			320,014				281,176
		Ceded premium payable			264,213				209,033
		Payable to general agents			313				276
		Funds withheld			130,143				126,839
		Accounts payable and accrued liabilities			28,570				26,256
		Notes payable			20,771				20,771
		Non-owned interest in VIE			300				300
		Interest payable			578				578
		Deferred tax liability			2,882				1,956
			Total Liabilities		1,206,995				1,095,357
	Shareholders' Equity:
		Common shares			4,698				4,698
		Additional paid-in capital			189,179				189,179
		Accumulated other comprehensive income (loss)			(2,667	)			(3,561	)
		Retained deficit			(137,669	)			(144,436	)
			Total Shareholders' Equity		53,541				45,880
			Total Liabilities and Equity	$	1,260,536			$	1,141,237
		See Notes to June 30, 2025 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,
				2025				2024				2025				2024
	Revenues
		Net premiums earned		$	12,783			$	12,680			$	26,136			$	23,550
		Fee income			5,386				5,126				11,802				11,070
		Net investment income			472				270				962				497
		Net realized gains on investments			(6	)			4				(6	)			4
		Other income			38				20				53				37
			Total revenues		18,673				18,100				38,947				35,158
	Expenses
		Losses and loss adjustment expenses			7,455				7,835				14,506				14,330
		Acquisition expenses			4,052				3,567				8,125				7,152
		Operating expenses			3,294				3,052				6,415				6,219
		Interest expense			578				578				1,157				1,156
			Total expenses		15,379				15,032				30,203				28,857
Pre-tax net profit (loss)				$	3,294			$	3,068			$	8,744			$	6,301
		Income tax (expense)			(780	)			(728	)			(1,977	)			(1,465	)
Net profit (loss) available to common shareholders					2,514				2,340				6,767				4,836
	Net profit (loss) per common share:
	Basic			$	53.51			$	49.81			$	144.04			$	102.94
	Diluted				53.51				49.81				144.04				102.94
	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, 2025 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com

FAQ

What was AOREF's net income for Q2 2025?

American Overseas Group Limited reported net income of $2.5 million, or $53.51 per diluted share, for Q2 2025, compared to $2.3 million in Q2 2024.

How much will AOREF reduce its debt in Q3 2025?

The company plans to reduce its debt by $3.7 million in Q3 2025, lowering total outstanding debt from $20.8 million to $17.1 million through reductions in its 12% and 9% Senior Secured Notes.

What was AOREF's book value per share in Q2 2025?

AOREF's book value per weighted share increased to $1,139.67 as of June 30, 2025, up from $873.62 in the same period last year.

How did AOREF's gross written premiums perform in Q2 2025?

Gross written premiums increased by $25.7 million, rising from $235.2 million to $260.9 million year-over-year.

What was AOREF's loss ratio in Q2 2025?

The loss and loss adjustment expenses as a percentage of earned premium improved to 58.3% in Q2 2025, down from 61.8% in Q2 2024.