Results of Operations for the Three Months Ended March 31, 2023 - American Overseas Group Limited Announces Net Income Of $1.4 Million For the Three Months March 31, 2023

HAMILTON, Bermuda, June 30, 2023 (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 $1.4 million, or $30.44 per diluted share, for the three months ended March 31, 2023. This compares to consolidated net income available to common shareholders of $0.7 million, or $15.06 per diluted share, for the three months ended March 31, 2022. Book value per weighted share at March 31, 2023 was $798.21, a decline from the book value per weighted share of $850.78 at March 31, 2022.

For the three months ended March 31, 2023, net earned property and casualty premiums increased $0.5 million from $5.1 million a year ago to $5.6 million.

Quarter to Date fee income increased $0.5 million from $3.3 million to $3.8 million and gross written premiums increased $25.8 million, moving from $108.1 million to $133.9 million.    Quarter to Date direct written premiums were positively impacted by continued expansion of new programs, rate increases, and overall economic recovery. Quarter to Date Loss and loss adjustment expenses as a percentage of earned premium remained constant at 64.0%.

For the three months ended March 31, 2023, operating expenses decreased $0.2 million from $3.0 million to $2.8 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

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American Overseas Group Limited
Consolidated Balance Sheets
(unaudited)
As at March 31, 2023 and December 31, 2022
						(dollars in thousands)
								March 31, 2023					December 31, 2022
Assets
		Investments:
			Fixed-maturity securities held as available for sale, at fair value					$	125,823				$	97,646
			Equity investments held as available for sale, at fair value						-					2,708
		Cash and cash equivalents							20,884					32,212
		Restricted cash							3,965					3,968
		Accrued investment income							774					455
		Premiums receivable							114,782					94,704
		Deferred insurance premiums							149,651					132,602
		Reinsurance balances receivable, net							255,430					248,234
		Deferred policy acquisition costs							4,855					4,029
		Intangible assets							4,800					4,800
		Goodwill							33,050					33,050
		Other assets							4,940					3,978
			Total Assets					$	718,954				$	658,386
Liabilities and Equity
	Liabilities:
		Loss and loss expense reserve						$	256,497				$	253,886
		Deferred commission income							3,374					2,661
		Unearned premiums							155,846					137,929
		Ceded premium payable							108,022					88,117
		Payable to general agents							7,553					5,469
		Funds withheld							115,637					99,409
		Accounts payable and accrued liabilities							15,709					16,499
		Notes payable							18,021					18,021
		Non-owned interest in VIE							300					300
		Interest payable							496					464
			Total Liabilities						681,455					622,755
	Shareholders' Equity:
		Common shares							4,698					4,698
		Additional paid-in capital							189,179					189,179
		Accumulated other comprehensive (loss) income							(3,802	)				(4,240	)
		Retained deficit							(158,029	)				(159,459	)
			Total Shareholders' Equity						32,046					30,178
		Non-controlling interest of preferred shares of subsidiaries							5,453					5,453
		Total Equity							37,499					35,631
			Total Liabilities and Equity					$	718,954				$	658,386
		See Notes to March 31, 2023 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,
											2023			2022
		Revenues
			Net premiums earned							$	5,588		$	5,088
			Fee income								3,825			3,295
			Net investment income (expense)								162			(69	)
			Net realized gains (losses) on investments								412			(11	)
			Other income								28			841
				Total revenues							10,015			9,144
		Expenses
			Losses and loss adjustment expenses								3,574			3,266
			Acquisition expenses								1,759			1,698
			Operating expenses								2,756			3,021
			Interest expense								496			451
				Total expenses							8,585			8,436
	Pre-tax net profit / (loss)									$	1,430		$	708
			Income tax (expense)								-			-
	Net profit / (loss) before dividends										1,430			708
			Dividends on preference shares of subsidiary								-			-
	Net profit / (loss) available to common shareholders									$	1,430		$	708
		Net profit / (loss) per common share:
		Basic								$	30.44		$	15.06
		Diluted									30.44			15.06
		Weighted-average number of common shares outstanding:
		Basic									46,979			46,979
		Diluted									46,979			46,979
	See Notes to March 31, 2023 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com