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

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