Results of Operations for the Three Months Ended March 31, 2025 - American Overseas Group Limited Announces Net Income Of $4.3 Million For the Three Months Ended March 31, 2025.

Rhea-AI Summary

American Overseas Group Limited (Pink Sheets: AOREF) reported strong financial results for Q1 2025, with net income of $4.3 million ($90.53 per diluted share), compared to $2.5 million ($53.13 per diluted share) in Q1 2024.

Key financial highlights include: Book value per weighted share increased to $1,084.80 from $824.41 year-over-year; net earned property and casualty premiums rose by $2.5 million to $13.4 million; fee income grew by $0.5 million to $6.4 million; and gross written premiums increased by $29.3 million to $249.7 million.

The company demonstrated improved operational efficiency with loss and loss adjustment expenses decreasing to 52.8% of earned premium (from 59.8%), and operating expenses reducing by $0.1 million to $3.1 million. The company continues to focus on debt reduction as part of its capital management strategy.

Positive

• Net income increased 70% year-over-year to $4.3 million
• Book value per weighted share grew significantly to $1,084.80 from $824.41
• Gross written premiums increased by $29.3 million to $249.7 million
• Loss and loss adjustment expenses ratio improved to 52.8% from 59.8%
• Operating expenses decreased by $0.1 million to $3.1 million
• Fee income grew by $0.5 million to $6.4 million

Negative

• Company maintains significant debt with $20.7 million in notes payable
• Retained deficit of $140.1 million on balance sheet
• Cash and cash equivalents decreased from $46.6 million to $40.5 million quarter-over-quarter

HAMILTON, Bermuda, June 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 $4.3 million, or $90.53 per diluted share, for the three months ended March 31, 2025. This compares to 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. Book value per weighted share at March 31, 2025 was $1,084.80, an increase from the book value per weighted share of $824.41 at March 31, 2024.

For the three months ended March 31, 2025, net earned property and casualty premiums increased $2.5 million from $10.9 million a year ago to $13.4 million.

Quarter to Date fee income increased $0.5 million from $5.9 million to $6.4 million and gross written premiums increased $29.3 million, moving from $220.4 million to $249.7 million. Quarter to Date Loss and loss adjustment expenses as a percentage of earned premium decreased from 59.8% to 52.8%.

For the three months ended March 31, 2025, operating expenses decreased $0.1 million from $3.2 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 March 31, 2025 and December 31, 2024
	(dollars in thousands)
	March 31, 2025				December 31, 2024
Assets
Investments:
Fixed-maturity securities held as available for sale, at fair value	$	148,301			$	143,633
Cash and cash equivalents		40,527				46,600
Restricted cash		7,780				4,861
Accrued investment income		1,133				1,029
Premiums receivable		231,667				211,771
Deferred insurance premiums		290,447				267,765
Reinsurance balances receivable, net		413,769				413,541
Deferred policy acquisition costs		11,923				10,215
Intangible assets		4,800				4,800
Goodwill		33,050				33,050
Other assets		5,351				3,972
Total Assets	$	1,188,748			$	1,141,237
Liabilities and Equity
Liabilities:
Loss and loss expense reserve	$	424,279			$	421,018
Deferred commission income		8,632				7,154
Unearned premiums		304,002				281,176
Ceded premium payable		224,910				209,033
Payable to general agents		291				276
Funds withheld		129,169				126,839
Accounts payable and accrued liabilities		22,373				26,256
Notes payable		20,771				20,771
Non-owned interest in VIE		300				300
Interest payable		578				578
Deferred tax liability		2,480				1,956
Total Liabilities		1,137,785				1,095,357
Shareholders' Equity:
Common shares		4,698				4,698
Additional paid-in capital		189,179				189,179
Accumulated other comprehensive (loss)		(2,731	)			(3,561	)
Retained deficit		(140,183	)			(144,436	)
Total Shareholders' Equity		50,963				45,880
Total Liabilities and Equity	$	1,188,748			$	1,141,237
See Notes to March 31, 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 March 31,
		2025				2024
Revenues
Net premiums earned	$	13,353			$	10,870
Fee income		6,416				5,944
Net investment income		490				227
Other income		15				17
Total revenues		20,274				17,058
Expenses
Losses and loss adjustment expenses		7,052				6,496
Acquisition expenses		4,073				3,585
Operating expenses		3,121				3,167
Interest expense		578				577
Total expenses		14,824				13,825
Pre-tax net profit (loss)	$	5,450			$	3,233
Income tax (expense)		(1,197	)			(737	)
Net profit (loss) available to common shareholders		4,253				2,496
Net profit (loss) per common share:
Basic	$	90.53			$	53.13
Diluted		90.53				53.13
Weighted-average number of common shares outstanding:
Basic		46,979				46,979
Diluted		46,979				46,979
See Notes to March 31, 2025 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com

FAQ

What was AOREF's net income for Q1 2025?

American Overseas Group Limited reported net income of $4.3 million ($90.53 per diluted share) for Q1 2025, compared to $2.5 million in Q1 2024.

How much did AOREF's gross written premiums increase in Q1 2025?

AOREF's gross written premiums increased by $29.3 million, from $220.4 million to $249.7 million.

What is AOREF's current book value per share?

As of March 31, 2025, AOREF's book value per weighted share was $1,084.80, an increase from $824.41 in the previous year.

How did AOREF's loss ratio perform in Q1 2025?

AOREF's loss and loss adjustment expenses as a percentage of earned premium improved to 52.8% from 59.8% in the previous year.

What is AOREF's current debt position?

As of March 31, 2025, AOREF had notes payable of $20.7 million and has stated it will continue to redirect excess capital to debt reduction.