HAMILTON, Bermuda, Dec. 29, 2022 (GLOBE NEWSWIRE) -- American Overseas Group Limited (BSX: AORE.BH) (Pink Sheets: AOREF.PK) (“AOG” or the “Company”) today reported consolidated net loss available to common shareholders of $0.4 million, or $9.40 per diluted share, for the three months ended September 30, 2022. This compares to consolidated net loss available to common shareholders of $1.8 million, or $37.38 per diluted share, for the three months ended September 30, 2021. Book value per weighted share at September 30, 2022 was $780.66, a decline from the book value per weighted share of $959.06 at September 30, 2021. For the three months ended September 30, 2022, the Company had an operating loss of $0.4 million, or $9.40 per diluted share, compared to operating loss of $1.8 million, or $37.68 per diluted share for the three months ended September 30, 2021. For the three months ended September 30, 2022, net earned property and casualty premiums decreased $0.5 million from $5.4 million a year ago to $4.9 million. Fee income increased $0.1 million from $2.6 million to $2.7 million with gross written premiums increasing $9.8 million, moving from $100.4 million to $110.2 million. Quarterly direct written premiums were positively impacted by rate increases in current business. Loss and loss adjustment expenses as a percentage of earned premium decreased slightly from 71.2% to 70.4%. For the three months ended September 30, 2022, operating expenses decreased $0.9 million from $3.7 million to $2.8 million due largely to $0.6 million of expenses incurred in 2021 associated with taxes, licenses and fees related to business written in the prior year. As part of its ongoing capital management efforts, the Company will continue to redirect excess capital within the group to debt reduction unless other compelling opportunities present themselves. 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. Explanation of Non-GAAP Financial Measures The Company believes that the following non-GAAP financial measure included in this press release serve to supplement GAAP information and is meaningful to investors. Operating income (loss): The Company believes operating income (loss) is a useful measure because it measures income from operations, unaffected by non-operating items such as realized investment gains or losses. Operating income (loss) is typically used by research analysts and rating agencies in their analysis of the Company. 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 LimitedConsolidated Balance Sheets (unaudited)As at September 30, 2022 and December 31, 2021(dollars in thousands)         September 30, 2022 December 31, 2021Assets       Investments:   Fixed-maturity securities held as available for sale, at fair value$104,670  $102,678 Equity investments held as available for sale, at fair value 2,470   3,781 Cash and cash equivalents 22,653   31,908 Restricted cash 2,666   4,440 Accrued investment income 587   553 Premiums receivable 90,016   76,626 Deferred insurance premiums 126,176   108,904 Reinsurance balances receivable, net 219,843   223,982 Deferred policy acquisition costs 4,264   4,588 Intangible assets 4,800   4,800 Goodwill 33,050   33,050 Other assets 5,223   3,166 Total Assets$616,418  $598,476         Liabilities and Equity       Liabilities:   Loss and loss expense reserve$218,103  $215,642 Deferred commission income 2,917   3,210 Unearned premiums 131,238   113,423 Ceded premium payable 89,204   82,059 Payable to general agents 7,095   7,121 Funds withheld 100,894   104,257 Accounts payable and accrued liabilities 13,020   12,420 Notes payable 16,521   16,521 Non-owned interest in VIE 300   300 Interest payable 451   451 Total Liabilities 579,743   555,404     Shareholders' Equity:   Common shares 4,698   4,698 Additional paid-in capital 189,179   189,179 Accumulated other comprehensive (loss) income (4,642)  1,124 Retained deficit (158,013)  (157,982)Total Shareholders' Equity 31,222   37,019 Non-controlling interest of preferred shares of subsidiaries 5,453   6,053 Total Equity 36,675   43,072         Total Liabilities and Equity$616,418  $598,476         See Notes to September 30, 2022 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com     American Overseas Group LimitedConsolidated Statements of Operations(unaudited)(dollars in thousands, except share and per share amounts)                 Three months ended September 30,    Nine Months ended September 30, 2022 2021 2022 2021Revenues               Net premiums earned$4,844  $5,397  $15,025  $15,935 Fee income 2,683   2,644   8,687   8,667         Net investment income 109   46   141   208 Net realized gains on investments -   14   237   50 Other income 21   28   916   105                 Total revenues 7,657   8,130   25,006   24,965         Expenses       Losses and loss adjustment expenses 3,410   3,841   10,315   10,232 Acquisition expenses 1,418   1,931   4,770   5,506 Operating expenses 2,821   3,663   8,600   11,038 Other expense -   -   -   - Interest expense 451   451   1,352   1,352         Total expenses 8,100   9,886   25,037   28,128                 Net (loss) available to common shareholders$ (443) $ (1,756) $ (31) $ (3,163)Income tax (expense) -   -   -   (26)        Net (loss) before dividends (443)  (1,756)  (31)  (3,189)Dividends on preference shares of subsidiary -   -   -   (585)                Net (loss) available to common shareholders$ (443) $ (1,756) $ (31) $ (3,774)                Net (loss) per common share:       Basic$(9.42) $(37.38) $(0.65) $(80.34)Diluted (9.42)  (37.38)  (0.65)  (80.34)        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, 2022 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com         AMERICAN OVERSEAS GROUP LTD. NET INCOME AND OPERATING INCOME BY SEGMENT         (dollars in thousands) Three months ended September 30, 2022 Net Income Available to Common ShareholdersNet Realized (Gain)/Loss on Sales of InvestmentsOperating Income (Loss)Property and casualty:       Net premiums earned$4,844   4,844 Losses and loss adjustment expenses (3,410)  (3,410)Acquisition expenses (1,418)  (1,418)Property/Casualty Underwriting Income 16   16     Fee income 2,683   2,683 Other income, net of other expense -   - Operating expenses (2,626)  (2,626)Income tax -   - Property and casualty 73  -  73     Corporate and Investing       Net investment income 109   109 Net realized gain/(loss) -  -  - Operating expenses (195)  (195)Interest expense (451)  (451)Other income, net of other expense 22   22 Corporate and investing (515) -  (515)    Group total$(442)$-  (442)     AMERICAN OVERSEAS GROUP LTD. NET INCOME AND OPERATING INCOME BY SEGMENT         (dollars in thousands) Three months ended September 30, 2021 Net Income Available to Common ShareholdersNet Realized (Gain)/Loss on Sales of InvestmentsOperating (Loss)Property and casualty:       Net premiums earned$5,397  $5,397 Losses and loss adjustment expenses (3,841)  (3,841)Acquisition expenses (1,931)  (1,931)Property/Casualty Underwriting Income (375)  (375)    Fee income 2,644   2,644 Operating expenses (3,307)  (3,307)Income tax -   - Property and casualty (1,038) -  (1,038)    Corporate and Investing       Net investment income 46   46 Net realized gain/(loss) 14  (14) - Operating expenses (356)  (356)Interest expense (451)  (451)Other income, net of other expense 29   29 Corporate and investing (718) (14) (732)    Group total$(1,756)$(14)$(1,770)     AMERICAN OVERSEAS GROUP LTD. NET INCOME AND OPERATING INCOME BY SEGMENT         (dollars in thousands) Nine months ended September 30, 2022 Net Income Available to Common ShareholdersNet Realized (Gain)/Loss on Sales of InvestmentsOperating (Loss)IncomeProperty and casualty:       Net premiums earned$15,025  $15,025 Losses and loss adjustment expenses (10,315)  (10,315)Acquisition expenses (4,770)  (4,770)Property/Casualty Underwriting Income (60)  (60)    Fee income 8,687   8,687 Other income, net of other expense 804   804 Operating expenses (7,857)  (7,857)Income tax -   - Property and casualty 1,574  -  1,574     Corporate and Investing       Net investment income 141   141 Net realized gain/(loss) 237  (237) - Operating expenses (743)  (743)Interest expense (1,352)  (1,352)Other income, net of other expense 112   112 Corporate and investing (1,605) (237) (1,842)    Group total$(31)$(237)$(268)     AMERICAN OVERSEAS GROUP LTD. NET INCOME AND OPERATING INCOME BY SEGMENT         (dollars in thousands) Nine months ended September 30, 2021 Net Income Available to Common ShareholdersNet Realized (Gain)/Loss on Sales of InvestmentsOperating (Loss)IncomeProperty and casualty:       Net premiums earned$15,935  $15,935 Losses and loss adjustment expenses (10,232)  (10,232)Acquisition expenses (5,506)  (5,506)Property/Casualty Underwriting Income 197   197     Fee income 8,667   8,667 Operating expenses (10,052)  (10,052)Income tax (26)  (26)Property and casualty (1,214) -  (1,214)    Corporate and Investing       Net investment income 208   208 Net realized gain/(loss) 50  (50) - Operating expenses (986)  (986)Interest expense (1,352)  (1,352)Other income, net of other expense 105   105 Corporate and investing (1,975) (50) (2,025)    Group total$(3,189)$(50)$(3,239)