Results of Operations for the Year Ended December 31, 2023 - American Overseas Group Limited Announces Net Income Of $5.3 Million For the Year Ended December 31, 2023
April 01, 2024 at 01:36 am IST
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HAMILTON, Bermuda, April 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 $5.3 million, or $113.56 per diluted share, for the year ended December 31, 2023. This compares to consolidated net loss available to common shareholders of $1.5 million, or $31.42 per diluted share, for the year ended December 31, 2022. Book value per weighted share at December 31, 2023 was $772.67, an increase from the book value per weighted share of $758.44 at December 31, 2022.
For the three months ended December 31, 2023, net earned property and casualty premiums increased $4.1 million from $5.1 million a year ago to $9.2 million. For the year ended December 31, 2023, net earned property and casualty premiums increased $9.3 million from $20.1 million to $29.4 million.
Quarter to Date fee income increased $1.7 million from $3.0 million to $4.7 million and gross written premiums increased $77.5 million, moving from $118.1 million to $195.6 million. Quarter to Date Loss and loss adjustment expenses as a percentage of earned premium increased from 82.2% to 85.4%.
For the year ended December 31, 2023, fee income increased $4.8 million from $11.7 million a year ago to $16.5 million and gross written premiums increased $213.5 million, moving from $453.1 million to $666.6 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 72.1% to 69.2%.
For the three months ended December 31, 2023, operating expenses increased $0.8 million from $3.0 million to $3.8 million. For the year ended December 31, 2023, operating expenses increased $0.6 million from $11.5 million to $12.1 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 December 31, 2023 and December 31, 2022
(dollars in thousands)
December 31, 2023
December 31, 2022
Assets
Investments:
Fixed-maturity securities held as available for sale, at fair value
$
132,600
$
97,646
Equity investments held as available for sale, at fair value
-
2,708
Cash and cash equivalents
56,854
32,212
Restricted cash
964
3,968
Accrued investment income
972
455
Premiums receivable
174,350
94,704
Deferred insurance premiums
219,828
132,602
Reinsurance balances receivable, net
348,930
248,234
Deferred policy acquisition costs
9,152
4,029
Intangible assets
4,800
4,800
Goodwill
33,050
33,050
Other assets
3,720
3,978
Total Assets
$
985,220
$
658,386
Liabilities and Equity
Liabilities:
Loss and loss expense reserve
$
332,573
$
253,886
Deferred commission income
6,878
2,661
Unearned premiums
230,123
137,929
Ceded premium payable
183,969
88,117
Payable to general agents
10,885
5,469
Funds withheld
136,471
99,409
Accounts payable and accrued liabilities
25,725
16,499
Notes payable
20,771
18,021
Non-owned interest in VIE
300
300
Interest payable
578
464
Deferred tax liability
648
-
Total Liabilities
948,921
622,755
Shareholders' Equity:
Common shares
4,698
4,698
Additional paid-in capital
189,179
189,179
Accumulated other comprehensive (loss)
(3,454
)
(4,240
)
Retained deficit
(154,124
)
(159,459
)
Total Shareholders' Equity
36,299
30,178
Non-controlling interest of preferred shares of subsidiaries
-
5,453
Total Equity
36,299
35,631
Total Liabilities and Equity
$
985,220
$
658,386
See Notes to December 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 December 31,
Twelve Months ended December 31,
2023
2022
2023
2022
Revenues
Net premiums earned
$
9,248
$
5,101
$
29,351
$
20,126
Fee income
4,693
3,007
16,540
11,693
Net investment income
273
122
829
263
Net realized (losses) gains on investments
(53
)
-
2,809
237
Other income
23
20
87
936
Total revenues
14,184
8,250
49,616
33,255
Expenses
Losses and loss adjustment expenses
7,899
4,191
20,315
14,506
Acquisition expenses
2,560
1,573
8,939
6,342
Operating expenses
3,790
2,940
12,142
11,540
Interest expense
585
464
2,237
1,816
Total expenses
14,834
9,168
43,633
34,204
Pre-tax net profit / (loss)
$
(650
)
$
(918
)
$
5,983
$
(949
)
Income tax (expense)
(648
)
-
(648
)
-
Net profit / (loss) before dividends
(1,298
)
(918
)
5,335
(949
)
Dividends on preference shares of subsidiary
-
(527
)
-
(527
)
Net profit / (loss) available to common shareholders
$
(1,298
)
$
(1,445
)
$
5,335
$
(1,476
)
Net profit / (loss) per common share:
Basic
$
(27.63
)
$
(30.76
)
$
113.56
$
(31.42
)
Diluted
(27.63
)
(30.76
)
113.56
(31.42
)
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, 2023 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com
American Overseas Group Limited is a writer of non-standard auto insurance through its United States subsidiaries. The Company operates through two segments: property/casualty insurance/reinsurance and corporate/other. The property/casualty segment provides insurance and reinsurance related to United States short-tail personal lines. All product lines fall within these classifications. Its business group comprises categories, including the United States-based property and casualty insurance companies that provide non-standard auto insurance through specialty managing general agents (MGAs); Barbados-based affiliated reinsurance companies that assume and reinsure a small portion of the U.S.-sourced non-standard auto business; and the Unites States based management services company. The Company provides access to the United States property and casualty insurance underwriting capacity in the specialty niche of non-standard auto insurance through MGAs for a fee.
Results of Operations for the Year Ended December 31, 2023 - American Overseas Group Limited Announces Net Income Of $5.3 Million For the Year Ended December 31, 2023
AMERICAN OVERSEAS GROUP LIMITED 
