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

info@aoreltd.com


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

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