Results of Operations for the Year Ended December 31, 2024 - American Overseas Group Limited Announces Net Income Of $9.4 Million For the Year Ended December 31, 2024

Rhea-AI Summary

American Overseas Group reported strong financial results for 2024, with consolidated net income of $9.4 million ($200.09 per diluted share), up from $5.3 million in 2023. The company's book value per weighted share increased to $976.60 from $772.67.

Key financial highlights:

• Net earned property and casualty premiums grew to $51.6 million, up $22.2 million year-over-year
• Fee income rose to $22.1 million from $16.5 million
• Gross written premiums increased by $248.1 million to $914.7 million
• Loss and adjustment expenses ratio improved to 64.0% from 69.2%

The company's growth was driven by new program expansion, rate increases, and organic growth in existing programs. Operating expenses saw a modest increase to $12.9 million. The company maintains its focus on debt reduction and capital management, unless other compelling opportunities arise.

Positive

• Net income increased 77% to $9.4M in 2024 vs $5.3M in 2023
• Book value per share grew to $976.60 from $772.67, up 26.4%
• Net earned property/casualty premiums rose 75.5% to $51.6M from $29.4M
• Fee income increased 33.4% to $22.1M from $16.5M
• Gross written premiums grew 37.2% to $914.7M from $666.6M
• Loss ratio improved to 64.0% from 69.2% year-over-year
• Quarter-to-quarter loss ratio improved to 75.5% from 85.4%

Negative

• Operating expenses increased 6.6% to $12.9M from $12.1M
• Cash and cash equivalents decreased to $46.6M from $56.9M
• Interest expense rose 3.4% to $2.3M from $2.2M

HAMILTON, Bermuda, April 28, 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 $9.4 million, or $200.09 per diluted share, for the year ended December 31, 2024. This compares to consolidated net income available to common shareholders of $5.3 million, or $113.56 per diluted share, for the year ended December 31, 2023. Book value per weighted share at December 31, 2024 was $976.60, an increase from the book value per weighted share of $772.67 at December 31, 2023.

For the three months ended December 31, 2024, net earned property and casualty premiums increased $5.1 million from $9.2 million a year ago to $14.3 million. For the year ended December 31, 2024, net earned property and casualty premiums increased $22.2 million from $29.4 million to $51.6 million.

Quarter to Date fee income increased $1.3 million from $4.7 million to $6.0 million and gross written premiums increased $30.8 million, moving from $195.6 million to $226.4 million. Quarter to Date Loss and loss adjustment expenses as a percentage of earned premium decreased from 85.4% to 75.5%.

For the year ended December 31, 2024, fee income increased $5.6 million from $16.5 million a year ago to $22.1 million and gross written premiums increased $248.1 million, moving from $666.6 million to $914.7 million. For both the quarter and the year, direct written premiums were positively impacted by continued expansion of new programs, rate increases, and organic growth in existing programs. Year to Date Loss and loss adjustment expenses as a percentage of earned premium decreased from 69.2% to 64.0%.

For the three months ended December 31, 2024, operating expenses increased $0.4 million from $3.8 million to $4.2 million. For the year ended December 31, 2024, operating expenses increased $0.8 million from $12.1 million to $12.9 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 December 31, 2024 and December 31, 2023
(dollars in thousands)
	December 31, 2024				December 31, 2023
Assets
Investments:
Fixed-maturity securities held as available for sale, at fair value	$	143,633			$	132,600
Cash and cash equivalents		46,600				56,854
Restricted cash		4,861				964
Accrued investment income		1,029				972
Premiums receivable		211,771				174,350
Deferred insurance premiums		267,765				219,828
Reinsurance balances receivable, net		413,541				349,480
Deferred policy acquisition costs		10,215				9,152
Intangible assets		4,800				4,800
Goodwill		33,050				33,050
Other assets		3,972				3,719
Total Assets	$	1,141,237			$	985,769
Liabilities and Equity
Liabilities:
Loss and loss expense reserve	$	421,018			$	332,657
Deferred commission income		7,154				6,878
Unearned premiums		281,176				230,301
Ceded premium payable		209,033				183,969
Payable to general agents		276				10,885
Funds withheld		126,839				136,471
Accounts payable and accrued liabilities		26,256				25,724
Notes payable		20,771				20,771
Non-owned interest in VIE		300				300
Interest payable		578				578
Deferred tax liability		1,956				648
Total Liabilities		1,095,357				949,182
Shareholders' Equity:
Common shares		4,698				4,698
Additional paid-in capital		189,179				189,179
Accumulated other comprehensive (loss)		(3,561	)			(3,454	)
Retained deficit		(144,436	)			(153,836	)
Total Shareholders' Equity		45,880				36,587
Total Liabilities and Equity	$	1,141,237			$	985,769

See Notes to December 31, 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 December 31,								Twelve months ended December 31,
		2024				2023				2024				2023
Revenues
Net premiums earned	$	14,344			$	9,248			$	51,610			$	29,351
Fee income		5,985				4,693				22,078				16,540
Net investment income		483				273				1,401				829
Net realized gains on investments		-				(53	)			47				2,809
Other income		29				23				87				87
Total revenues		20,841				14,184				75,223				49,616
Expenses
Losses and loss adjustment expenses		10,827				7,899				33,035				20,315
Acquisition expenses		3,630				2,560				14,812				8,939
Operating expenses		4,234				3,790				12,910				12,142
Interest expense		578				585				2,313				2,237
Total expenses		19,269				14,834				63,070				43,633
Pre-tax net profit (loss)	$	1,572			$	(650	)		$	12,153			$	5,983
Income tax (expense)		(461	)			(648	)			(2,753	)			(648	)
Net profit (loss) available to common shareholders		1,111				(1,298	)			9,400				5,335
Net profit (loss) per common share:
Basic	$	23.65			$	(27.63	)		$	200.09			$	113.56
Diluted		23.65				(27.63	)			200.09				113.56
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 December 31, 2024 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com  

FAQ

What was AOREF's net income for full year 2024?

American Overseas Group (AOREF) reported a net income of $9.4 million or $200.09 per diluted share for the year ended December 31, 2024, up from $5.3 million in 2023.

How much did AOREF's book value per share increase in 2024?

AOREF's book value per weighted share increased to $976.60 as of December 31, 2024, up from $772.67 at the end of 2023, representing a significant improvement in shareholder value.

What was AOREF's premium growth in Q4 2024?

AOREF's gross written premiums increased by $30.8 million in Q4 2024, rising from $195.6 million to $226.4 million, driven by new programs, rate increases, and organic growth.

How did AOREF's loss ratio improve in 2024?

AOREF's loss and loss adjustment expenses as a percentage of earned premium improved from 69.2% to 64.0% for the full year 2024, indicating better underwriting performance.

What was AOREF's total revenue growth for 2024?

AOREF's net earned property and casualty premiums increased by $22.2 million to $51.6 million in 2024, while fee income grew by $5.6 million to $22.1 million.