American Overseas Group, Ltd.: Results of Operations for the Three Months Ended September 30, 2025 - American Overseas Group Limited Announces Net Income Of $2.8 Million For the Three Months Ended September 30, 2025

HAMILTON, Bermuda, Dec. 22, 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 $2.8 million, or $60.56 per diluted share, for the three months ended September 30, 2025. This compares to consolidated net income available to common shareholders of $3.4 million, or $73.42 per diluted share, for the three months ended September 30, 2024. Book value per weighted share at September 30, 2025 was $1,209.44, an increase from the book value per weighted share of $969.27 at September 30, 2024.

For the three months ended September 30, 2025, net earned property and casualty premiums decreased $1.5 million from $13.7 million a year ago to $12.2 million.

Quarter to Date fee income increased $0.2 million from $5.0 million to $5.2 million and gross written premiums increased $12.8 million, moving from $232.6 million to $245.4 million. Quarter to Date Loss and loss adjustment expenses as a percentage of earned premium decreased from 57.4% to 56.4%.

For the three months ended September 30, 2025, operating expenses increased $0.6 million from $2.5 million to $3.1 million due to a $0.6 million return of funding collateral in the prior year quarter.

As part of its ongoing capital management efforts, the Company will continue to redirect excess capital within the group to debt reduction. In the 3^rd quarter of 2025 the Company reduced the outstanding principal balances in its 12% and 9% Senior Secured Notes by $3.0 million and $0.7 million respectively for a total debt reduction of $3.7 million, reducing total outstanding debt from $20.8 million to $17.1 million as of September 30, 2025. Additionally, The Company reduced the outstanding principal balance of its 12% Senior Secured Notes by $1.3 million in 4^th quarter of 2025, reducing total outstanding debt to a balance of $15.8 million. The Company expects to take additional steps towards leverage reduction unless other compelling opportunities arise.

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 in the United States. 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 September 30, 2025 and December 31, 2024
(dollars in thousands)
								September 30, 2025					December 31, 2024
Assets
		Investments:
			Fixed-maturity securities held as available for sale, at fair value					-	154,810				-	143,633
			Equity investments held as available for sale, at fair value						1,036					-
		Cash and cash equivalents							47,865					46,600
		Restricted cash							3,406					4,861
		Accrued investment income							1,223					1,029
		Premiums receivable							221,841					211,771
		Deferred insurance premiums							309,526					267,765
		Reinsurance balances receivable, net							446,578					413,541
		Deferred policy acquisition costs							10,161					10,215
		Intangible assets							4,800					4,800
		Goodwill							33,050					33,050
		Other assets							7,599					3,972
			Total Assets					-	1,241,895				-	1,141,237
Liabilities and Equity
	Liabilities:
		Loss and loss expense reserve						-	432,543				-	421,018
		Deferred commission income							7,140					7,154
		Unearned premiums							321,574					281,176
		Ceded premium payable							240,930					209,033
		Payable to general agents							425					276
		Funds withheld							135,275					126,839
		Accounts payable and accrued liabilities							25,956					26,256
		Notes payable							17,083					20,771
		Non-owned interest in VIE							300					300
		Interest payable							531					578
		Deferred tax liability							3,320					1,956
			Total Liabilities						1,185,077					1,095,357
	Shareholders' Equity:
		Common shares							4,698					4,698
		Additional paid-in capital							189,179					189,179
		Accumulated other comprehensive income (loss)							(2,234	-				(3,561	-
		Retained deficit							(134,825	-				(144,436	-
			Total Shareholders' Equity						56,818					45,880
			Total Liabilities and Equity					-	1,241,895				-	1,141,237
		See Notes to September 30, 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 September 30,								Nine months ended September 30,
										2025				2024				2025				2024
		Revenues
			Net premiums earned						-	12,214			-	13,716			-	38,350			-	37,266
			Fee income							5,202				5,023				17,005				16,093
			Net investment income							543				421				1,505				918
			Net realized gains on investments							(1	-			42				(7	-			47
			Other income							66				22				117				59
				Total revenues						18,024				19,224				56,970				54,383
		Expenses
			Losses and loss adjustment expenses							6,889				7,877				21,396				22,207
			Acquisition expenses							3,887				4,030				12,012				11,182
			Operating expenses							3,062				2,462				9,477				8,680
			Interest expense							532				578				1,688				1,734
				Total expenses						14,370				14,947				44,573				43,803
	Pre-tax net profit (loss)								-	3,654			-	4,277			-	12,397			-	10,580
			Income tax (expense)							(809	-			(828	-			(2,786	-			(2,293	-
	Net profit (loss) available to common shareholders									2,845				3,449				9,611				8,287
		Net profit (loss) per common share:
		Basic							-	60.56			-	73.42			-	204.58			-	176.39
		Diluted								60.56				73.42				204.58				176.39
		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 September 30, 2025 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com