For the year ended
For the year ended
For the year ended
For the three months ended
For the three months ended
For the three months ended
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
info@aoreltd.com
Consolidated Balance Sheets | ||||||||
(unaudited) | ||||||||
As at | ||||||||
(dollars in thousands) | ||||||||
Assets | ||||||||
Investments: | ||||||||
Fixed-maturity securities held as available for sale, at fair value | $ | 102,678 | $ | 72,642 | ||||
Equity investments held as available for sale, at fair value | 3,781 | 4,143 | ||||||
Cash and cash equivalents | 31,908 | 24,254 | ||||||
Restricted cash | 4,440 | 548 | ||||||
Accrued investment income | 553 | 355 | ||||||
Premiums receivable | 76,626 | 73,073 | ||||||
Deferred insurance premiums | 108,904 | 101,843 | ||||||
Reinsurance balances receivable, net | 223,982 | 194,914 | ||||||
Deferred policy acquisition costs | 4,588 | 3,590 | ||||||
Intangible assets | 4,800 | 4,800 | ||||||
33,050 | 33,050 | |||||||
Other assets | 3,166 | 3,767 | ||||||
Total Assets | $ | 598,476 | $ | 516,979 | ||||
Liabilities and Equity | ||||||||
Liabilities: | ||||||||
Loss and loss expense reserve | $ | 215,642 | $ | 192,943 | ||||
Deferred commission income | 3,210 | 2,482 | ||||||
Unearned premiums | 113,423 | 105,678 | ||||||
Ceded premium payable | 82,059 | 71,989 | ||||||
Payable to general agents | 7,121 | 4,331 | ||||||
Funds withheld | 104,257 | 64,980 | ||||||
Accounts payable and accrued liabilities | 12,420 | 7,922 | ||||||
Notes payable | 16,521 | 16,521 | ||||||
Non-owned interest in VIE | 300 | 300 | ||||||
Interest payable | 451 | 451 | ||||||
Total Liabilities | 555,404 | 467,597 | ||||||
Shareholders' Equity: | ||||||||
Common shares | 4,698 | 4,698 | ||||||
Additional paid-in capital | 189,179 | 189,151 | ||||||
Accumulated other comprehensive income | 1,124 | 1,962 | ||||||
Retained deficit | (157,982 | ) | (152,482 | ) | ||||
Total Shareholders' Equity | 37,019 | 43,329 | ||||||
Non-controlling interest of preferred shares of subsidiaries | 6,053 | 6,053 | ||||||
Total Equity | 43,072 | 49,382 | ||||||
Total Liabilities and Equity | $ | 598,476 | $ | 516,979 | ||||
See Notes to | ||||||||
Consolidated Statements of Operations | ||||||||||||||||
(unaudited) | ||||||||||||||||
(dollars in thousands, except share and per share amounts) | ||||||||||||||||
Three months ended | Twelve Months ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues | ||||||||||||||||
Net premiums earned | $ | 4,905 | $ | 3,548 | $ | 20,840 | $ | 12,323 | ||||||||
Fee income | 2,582 | 2,050 | 11,248 | 9,946 | ||||||||||||
Net change in fair value of credit derivatives | - | - | - | 2 | ||||||||||||
Net investment income | 232 | 57 | 439 | 709 | ||||||||||||
Net realized gains on investments | 5 | 71 | 55 | 1,580 | ||||||||||||
Fair value adjustment | - | (2,227 | ) | - | (173 | ) | ||||||||||
Other income | 22 | 323 | 128 | 323 | ||||||||||||
Total revenues | 7,746 | 3,822 | 32,710 | 24,710 | ||||||||||||
Expenses | ||||||||||||||||
Losses and loss adjustment expenses | 4,161 | 2,322 | 14,392 | 10,522 | ||||||||||||
Acquisition expenses | 1,624 | 1,062 | 7,130 | 4,837 | ||||||||||||
Operating expenses | 3,200 | 3,508 | 14,238 | 12,802 | ||||||||||||
Other expense | - | (252 | ) | - | 78 | |||||||||||
Interest expense | 451 | 451 | 1,803 | 1,803 | ||||||||||||
Total expenses | 9,436 | 7,091 | 37,563 | 30,042 | ||||||||||||
Net (loss) available to common shareholders | $ | (1,690 | ) | $ | (3,269 | ) | $ | (4,853 | ) | $ | (5,332 | ) | ||||
Income tax (expense) benefit | (36 | ) | - | (62 | ) | 322 | ||||||||||
Net (loss) before dividends | (1,726 | ) | (3,269 | ) | (4,915 | ) | (5,010 | ) | ||||||||
Dividends on preference shares of subsidiary | - | - | (585 | ) | - | |||||||||||
Net (loss) available to common shareholders | $ | (1,726 | ) | $ | (3,269 | ) | $ | (5,500 | ) | $ | (5,010 | ) | ||||
Net (loss) per common share: | ||||||||||||||||
Basic | $ | (36.73 | ) | $ | (69.58 | ) | $ | (117.07 | ) | $ | (107.76 | ) | ||||
Diluted | (36.73 | ) | (69.24 | ) | (117.07 | ) | (107.24 | ) | ||||||||
Weighted-average number of common shares outstanding: | ||||||||||||||||
Basic | 46,979 | 46,979 | 46,979 | 46,490 | ||||||||||||
Diluted | 46,979 | 47,208 | 46,979 | 46,719 | ||||||||||||
See Notes to | ||||||||||||||||
NET INCOME AND OPERATING INCOME BY SEGMENT | ||||||||||||||||||
(dollars in thousands) | Three months ended | |||||||||||||||||
Net Income Available to Common Shareholders | Net Realized (Gain)/Loss on Sales of Investments | Net Change in Fair Value of Credit Derivatives | Fair Value Adjustments | Restructuring Charges | Operating Income/(Loss) | |||||||||||||
Property and casualty: | ||||||||||||||||||
Net premiums earned | $ | 4,905 | $ | 4,905 | ||||||||||||||
Losses and loss adjustment expenses | (4,161 | ) | (4,161 | ) | ||||||||||||||
Acquisition expenses | (1,624 | ) | (1,624 | ) | ||||||||||||||
Property/Casualty Underwriting Income | (880 | ) | (880 | ) | ||||||||||||||
Fee income | 2,582 | 2,582 | ||||||||||||||||
Operating expenses | (2,958 | ) | (2,958 | ) | ||||||||||||||
Income tax | (36 | ) | (36 | ) | ||||||||||||||
Property and casualty | (1,292 | ) | - | - | - | - | (1,292 | ) | ||||||||||
Financial guaranty: | ||||||||||||||||||
Net premiums earned | - | - | ||||||||||||||||
Net change in fair value of credit derivatives | - | - | ||||||||||||||||
Losses and loss adjustment expenses | - | - | ||||||||||||||||
Acquisition expenses | - | - | ||||||||||||||||
Operating expenses | - | - | ||||||||||||||||
Financial guaranty | - | - | - | - | - | - | ||||||||||||
Corporate and Investing | ||||||||||||||||||
Net investment income | 232 | 232 | ||||||||||||||||
Net realized gain/(loss) | 5 | (5 | ) | - | ||||||||||||||
Operating expenses | (242 | ) | (242 | ) | ||||||||||||||
Interest expense | (451 | ) | (451 | ) | ||||||||||||||
Other income, net of other expense | 22 | 22 | ||||||||||||||||
Corporate and investing | (434 | ) | (5 | ) | - | - | - | (439 | ) | |||||||||
Group total | $ | (1,726 | ) | $ | (5 | ) | $ | - | $ | - | $ | - | $ | (1,731 | ) | |||
NET INCOME AND OPERATING INCOME BY SEGMENT | ||||||||||||||||||
(dollars in thousands) | Three months ended | |||||||||||||||||
Net Income Available to Common Shareholders | Net Realized (Gain)/Loss on Sales of Investments | Net Change in Fair Value of Credit Derivatives | Fair Value Adjustments | Restructuring Charges | Operating Income/(Loss) | |||||||||||||
Property and casualty: | ||||||||||||||||||
Net premiums earned | $ | 3,547 | $ | 3,547 | ||||||||||||||
Losses and loss adjustment expenses | (2,323 | ) | (2,323 | ) | ||||||||||||||
Acquisition expenses | (1,062 | ) | (1,062 | ) | ||||||||||||||
Property/Casualty Underwriting Income | 162 | 162 | ||||||||||||||||
Fee income | 2,050 | 2,050 | ||||||||||||||||
Operating expenses | (1,580 | ) | (1,580 | ) | ||||||||||||||
Income tax | (0 | ) | (0 | ) | ||||||||||||||
Property and casualty | 632 | - | - | - | 632 | |||||||||||||
Financial guaranty: | ||||||||||||||||||
Net premiums earned | - | - | - | |||||||||||||||
Net change in fair value of credit derivatives | - | - | - | |||||||||||||||
Losses and loss adjustment expenses | - | - | - | |||||||||||||||
Acquisition expenses | (1 | ) | 1 | - | ||||||||||||||
Operating expenses | (1,316 | ) | - | (1,316 | ) | |||||||||||||
Financial guaranty | (1,317 | ) | - | - | 1 | - | (1,316 | ) | ||||||||||
Corporate and Investing | ||||||||||||||||||
Net investment income | 57 | 57 | ||||||||||||||||
Net realized gain/(loss) | 72 | (8,806 | ) | 8,735 | - | |||||||||||||
Fair value adjustment | (2,227 | ) | 2,227 | - | ||||||||||||||
Gain on the sale of real estate | 323 | 323 | ||||||||||||||||
Operating expenses | (611 | ) | (611 | ) | ||||||||||||||
Interest expense | (451 | ) | (451 | ) | ||||||||||||||
Other income, net of other expense | 253 | 253 | ||||||||||||||||
Corporate and investing | (2,584 | ) | (8,806 | ) | - | 10,962 | - | (429 | ) | |||||||||
Group total | $ | (3,269 | ) | $ | (8,806 | ) | $ | - | $ | 10,962 | $ | - | $ | (1,113 | ) | |||
NET INCOME AND OPERATING INCOME BY SEGMENT | ||||||||||||||||||
(dollars in thousands) | Twelve months ended | |||||||||||||||||
Net Income Available to Common Shareholders | Net Realized (Gain)/Loss on Sales of Investments | Net Change in Fair Value of Credit Derivatives | Fair Value Adjustments | Restructuring Charges | Operating Income/(Loss) | |||||||||||||
Property and casualty: | ||||||||||||||||||
Net premiums earned | $ | 20,840 | $ | 20,840 | ||||||||||||||
Losses and loss adjustment expenses | (14,392 | ) | (14,392 | ) | ||||||||||||||
Acquisition expenses | (7,130 | ) | (7,130 | ) | ||||||||||||||
Property/Casualty Underwriting Income | (682 | ) | (682 | ) | ||||||||||||||
Fee income | 11,248 | 11,248 | ||||||||||||||||
Operating expenses | (13,010 | ) | (13,010 | ) | ||||||||||||||
Income tax | (62 | ) | (62 | ) | ||||||||||||||
Property and casualty | (2,506 | ) | - | - | - | - | (2,506 | ) | ||||||||||
Financial guaranty: | ||||||||||||||||||
Net premiums earned | - | - | ||||||||||||||||
Net change in fair value of credit derivatives | - | - | ||||||||||||||||
Losses and loss adjustment expenses | - | - | ||||||||||||||||
Acquisition expenses | - | - | ||||||||||||||||
Operating expenses | - | - | ||||||||||||||||
Financial guaranty | - | - | - | - | - | - | ||||||||||||
Corporate and Investing | ||||||||||||||||||
Net investment income | 440 | 440 | ||||||||||||||||
Net realized gain/(loss) | 55 | (55 | ) | - | ||||||||||||||
Operating expenses | (1,228 | ) | (1,228 | ) | ||||||||||||||
Interest expense | (1,803 | ) | (1,803 | ) | ||||||||||||||
Other income, net of other expense | 127 | 127 | ||||||||||||||||
Corporate and investing | (2,409 | ) | (55 | ) | - | - | - | (2,464 | ) | |||||||||
Group total | $ | (4,915 | ) | $ | (55 | ) | $ | - | $ | - | $ | - | $ | (4,970 | ) | |||
AMERICAN OVERSEAS GROUP LTD. | ||||||||||||||||||
NET INCOME AND OPERATING INCOME BY SEGMENT | ||||||||||||||||||
(dollars in thousands) | Twelve months ended | |||||||||||||||||
Net Income Available to Common Shareholders | Net Realized (Gain)/Loss on Sales of Investments | Net Change in Fair Value of Credit Derivatives | Fair Value Adjustments | Restructuring Charges | Operating Income/(Loss) | |||||||||||||
Property and casualty: | ||||||||||||||||||
Net premiums earned | $ | 15,836 | $ | 15,836 | ||||||||||||||
Losses and loss adjustment expenses | (8,945 | ) | (8,945 | ) | ||||||||||||||
Acquisition expenses | (4,968 | ) | (4,968 | ) | ||||||||||||||
Property/Casualty Underwriting Income | 1,923 | 1,923 | ||||||||||||||||
Fee income | 9,946 | 9,946 | ||||||||||||||||
Operating expenses | (8,963 | ) | 362 | (8,601 | ) | |||||||||||||
Income tax | 322 | (76 | ) | 246 | ||||||||||||||
Property and casualty | 3,228 | - | - | - | 286 | 3,514 | ||||||||||||
Financial guaranty: | ||||||||||||||||||
Net premiums earned | (3,513 | ) | 3,703 | 190 | ||||||||||||||
Net change in fair value of credit derivatives | 2 | (2 | ) | - | ||||||||||||||
Losses and loss adjustment expenses | (1,577 | ) | (19,546 | ) | (21,123 | ) | ||||||||||||
Acquisition expenses | 130 | (153 | ) | (23 | ) | |||||||||||||
Operating expenses | (1,825 | ) | (1,825 | ) | ||||||||||||||
Financial guaranty | (6,783 | ) | - | (2 | ) | (15,996 | ) | - | (22,781 | ) | ||||||||
Corporate and Investing | ||||||||||||||||||
Net investment income | 709 | 709 | ||||||||||||||||
Net realized gain/(loss) | 1,580 | (29,814 | ) | 28,234 | - | |||||||||||||
Fair value adjustment | (173 | ) | 173 | - | ||||||||||||||
Gain on the sale of real estate | 323 | 323 | ||||||||||||||||
Operating expenses | (2,013 | ) | (2,013 | ) | ||||||||||||||
Interest expense | (1,803 | ) | (1,803 | ) | ||||||||||||||
Other income, net of other expense | (78 | ) | (78 | ) | ||||||||||||||
Corporate and investing | (1,455 | ) | (29,814 | ) | - | 28,407 | - | (2,862 | ) | |||||||||
Group total | $ | (5,010 | ) | $ | (29,814 | ) | $ | (2 | ) | $ | 12,411 | $ | 286 | $ | (22,129 | ) |
Source:
2022 GlobeNewswire, Inc., source