Results of Operations for the Three Months Ended June 30, 2026 - American Overseas Group Limited Announces Net Income Of $1.6 Million For the Three Months Ended June 30, 2026

HAMILTON, Bermuda, Sept. 30, 2026 (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 $1.6 million, or $33.60 per diluted share, for the three months ended June 30, 2026. This compares to consolidated net income available to common shareholders of $2.5 million, or $53.51 per diluted share, for the three months ended June 30, 2025. Book value per weighted share at June 30, 2026 was $1,338.04, an increase from the book value per weighted share of $1,139.67 at June 30, 2025.

For the three months ended June 30, 2026, net earned property and casualty premiums decreased $1.3 million from $12.8 million a year ago to $11.5 million.   

Quarter to Date fee income decreased $0.4 million from $5.4 million to $5.0 million and gross written premiums decreased $10.0 million, moving from $260.9 million to $250.9 million. Quarter to Date Loss and loss adjustment expenses as a percentage of earned premium increased from 58.3% to 63.3%.  

For the three months ended June 30, 2026, operating expenses increased $0.2 million from $3.3 million to $3.5 million.

As part of its ongoing capital management efforts, the Company will continue to redirect excess capital within the group to debt reduction. The Company reduced the outstanding principal balance of its 12% Senior Secured Notes by $6.5 million in the first half of 2026, reducing the balance of its 12% Notes to $4.1 million as of June 30, 2026, and reducing total outstanding debt to a balance of $9.4 million as of June 30, 2026. Additionally, the Company retired the remaining outstanding principal balance of its 12% Senior Secured Notes in the 3rd quarter of 2026, reducing total outstanding debt to a balance of $5.3 million, which is comprised of its 9% Series A Senior Secured Notes. The Company expects to take additional steps towards leverage reduction, followed by returned value to shareholders unless more 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. 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 of June 30, 2026 and December 31, 2025
(dollars in thousands)
								June 30, 2026					December 31, 2025
Assets
		Investments:
			Fixed-maturity securities held as available for sale, at fair value					$	153,356				$	161,312
			Equity investments held as available for sale, at fair value						1,053					1,041
		Cash and cash equivalents							54,331					45,140
		Restricted cash							1,691					843
		Accrued investment income							1,163					1,135
		Premiums receivable							212,973					211,993
		Deferred insurance premiums							320,614					299,720
		Reinsurance balances receivable, net							491,282					481,444
		Deferred policy acquisition costs							9,056					9,420
		Intangible assets							4,800					4,800
		Goodwill							33,050					33,050
		Other assets							6,545					5,373
			Total Assets					$	1,289,914				$	1,255,271
Liabilities and Equity
	Liabilities:
		Loss and loss expense reserve						$	475,640				$	465,401
		Deferred commission income							6,083					6,481
		Unearned premiums							332,231					311,073
		Ceded premium payable							235,087					233,727
		Payable to general agents							309					459
		Funds withheld							133,397					133,343
		Accounts payable and accrued liabilities							30,462					26,472
		Notes payable							9,360					15,833
		Non-owned interest in VIE							300					300
		Interest payable							119					435
		Deferred tax liability							4,066					3,413
			Total Liabilities						1,227,054					1,196,937
	Shareholders' Equity:
		Common shares							4,698					4,698
		Additional paid-in capital							189,206					189,179
		Accumulated other comprehensive income (loss)							(2,292	)				(1,932	)
		Retained deficit							(128,752	)				(133,611	)
			Total Shareholders' Equity						62,860					58,334
			Total Liabilities and Equity					$	1,289,914				$	1,255,271
		See Notes to June 30, 2026 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 June 30,								Six months ended June 30,
										2026				2025				2026				2025
		Revenues
			Net premiums earned						$	11,533			$	12,783			$	23,263			$	26,136
			Fee income							4,985				5,386				11,596				11,802
			Net investment income							544				472				1,014				962
			Net realized gains on investments							-				(6	)			(75	)			(6	)
			Other income							17				38				21				53
				Total revenues						17,079				18,673				35,819				38,947
		Expenses
			Losses and loss adjustment expenses							7,298				7,455				13,777				14,506
			Acquisition expenses							3,831				4,052				7,689				8,125
			Operating expenses							3,519				3,294				7,284				6,415
			Interest expense							333				578				768				1,157
				Total expenses						14,981				15,379				29,518				30,203
	Pre-tax net profit (loss)								$	2,098			$	3,294			$	6,301			$	8,744
			Income tax (expense)							(520	)			(780	)			(1,442	)			(1,977	)
	Net profit (loss) available to common shareholders									1,578				2,514				4,859				6,767
		Net profit (loss) per common share:
		Basic							$	33.60			$	53.51			$	103.41			$	144.04
		Diluted								33.60				53.51				103.41				144.04
		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 June 30, 2026 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com