Business
American Overseas Group Limited Announces Results of Operations for the Year Ended December 31, 2015
American Overseas Group Limited Announces Results of Operations for the Year Ended December 31, 2015.
About this update from American Overseas Group Limited
[{"type":"text","content":"\n\n HAMILTON, Bermuda, June 24, 2016 (GLOBE NEWSWIRE) -- American Overseas Group Limited (BSX:AOREF.BH) (Pink Sheets:AOREF.PK) (“AOG” or the “Company”) today reported consolidated net income available to common shareholders of $16.2 million, or $370.36 per diluted share, for the year ended December 31, 2015.  This compares to consolidated net income available to common shareholders of $38.4 million, or $1,797.58 per diluted share, for the year ended December 31, 2014.1\n The results for 2015 were impacted by unrealized gains in credit derivatives of $30.1 million, and include fair value adjustments of $5.5 million related to the business combination accounting from the combination of Orpheus Group Ltd. and AOG in 2013, when the entities came under common voting control.  Book value per share at December 31, 2015 was $1,650.27, an improvement from the book value per share of $1,327.28 at December 31, 2014. For the year ended December 31, 2015, the Company had an operating loss of $14.7 million, or $334.86 per diluted share, compared to an operating loss of $3.2 million, or $150.13 per diluted share for the year ended December 31, 2014.  Operating income for the property and casualty segment in 2015 was $4.9 million, compared to the $2.3 million operating loss in 2014 for this segment.  The financial guaranty segment had operating losses of $16.1 million in 2015, largely driven by losses from the Company’s reinsurance of Puerto Rico-related credits. Gross property and casualty premiums written, which are the primary driver of the Company’s fee income, were $385.0 million for 2015 compared to $418.3 million for 2014.  Fees earned by the Company’s management companies were $13.4 million for 2015 compared to $13.6 million for 2014 before intercompany consolidation eliminations with their regulated affiliates.  EBITDA margins earned on these fees were 44% for 2015 and 34% for 2014.  Net earned property and casualty premiums were $6.4 million for 2015 compared to $36.5 million for 2014.  The drop in net premiums earned is the direct result of the termination of a large assumed reinsurance treaty in May of 2014 in accordance with the Company’s decision to deemphasize the retention of underwriting risk.  This contributed to the overall improveme...