Fri. Nov 15th, 2019

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American Overseas Group Limited (BSX: AOREF.BH)

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Results of Operations for the Six Months finished June 30, 2k19 – American Overseas Group Limited declares Net Loss Of $3.80M and Operating Loss of $7.80M For the Six Months finished June 30, 2k19

American Overseas Group Limited (BSX:  AOREF.BH) (Pink Sheets:  AOREF.PK) (“AOG” or the “Company”) recently stated merged net loss available to common shareholders of $3.80M, or $82.180 for each diluted share, for the six months June 30, 2k19.  This compares to merged net loss available to common shareholders of $2.40M, or $51.30 for each diluted share, for the six months finished June 30, 2k18.

The results for the six months was driven by losses in the Company’s financial guaranty segment related to commuted policies and Puerto Rico related credits.  Book value for each share at June 30, 2k19 was $1,186.27, a decline from the book value for each share of $1,212.83 at December 31, 2k18.

For the six months finished June 30, 2k19, the Company had an operating loss of $7.80M, or $169.26 for each diluted share, contrast to an operating loss of $1.50M, or $32.40 for each diluted share for the six months finished June 30, 2k18.  Operating income for the property and casualty segment in 2k19 was $1.70M, contrast to the $1.40M operating income in 2k18 for this segment.  The financial guaranty segment had operating losses of $9.80M for 2k19, contrast to operating losses of $2.60M for 2k18.

Net earned property and casualty premiums raised $2.50M from $1.40M in 2k18 to $3.90M in 2k19, driven by the addition of new agency relationships.  Loss and loss adjustment costs as a percentage of earned premiums improved from 67.20 percent to 25.10 percent driven by both current and previous accident year results.  Fee income raised from $6.00M to $6.10M, while operating costs for property and casualty reduced from $4.70M to $4.50M.  Overall operating income improved 29.10 percent from $1.40M to $1.70M within property and casualty.

The legacy financial guaranty portfolio of American Overseas Reinsurance Company Limited (“AORE”) continues to run-off within expectations.  The financial guaranty operating loss of $9.80M in 2k19 is driven by net losses associated with the commutation of $1.065B of outstanding par during the 2nd-quarter of 2k19, in addition to unfavourable development on outstanding losses.  As of June 30, 2k19, outstanding par within the financial guaranty segment is $372.00M contrast to $1.949B at June 30, 2k18.

Overall operating costs declined $0.30M to $6.70M in 2k19 contrast to $7.00M in 2k18.

 

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