Business
Results of Operations for the Six Months Ended June 30, 2016 - American Overseas Group Limited Announces Net Loss Of $12.1 Million and Operating Loss of $5.5 Million For The Six Months Ended June 30, 2016
Results of Operations for the Six Months Ended June 30, 2016 - American Overseas Group Limited Announces Net Loss Of $12.1 Million and Operating Loss of $5.5 Million For The Six Months Ended June 30, 2016.
About this update from American Overseas Group Limited
[{"type":"text","content":"\nHAMILTON, Bermuda, Sept. 26, 2016 (GLOBE NEWSWIRE) -- American Overseas Group Limited (BSX: AOREF.BH) (Pink Sheets:AOREF) (“AOG” or the “Company”) today reported consolidated net loss available to common shareholders of $12.1 million, or $273.96 per diluted share, for the six months ended June 30, 2016.  This compares to consolidated net income available to common shareholders of $7.0 million, or $165.62 per diluted share, for the six months ended June 30, 2015.\nThe results for the six months ended June 30, 2016 were impacted by unrealized losses on credit derivatives of $4.6 million, compared to an unrealized gain on credit derivatives of $15.3 million for the six months ended June 30, 2015.  Book value per share at June 30, 2016 was $1,437.27, a decline from the book value per share of $1,650.27 at December 31, 2015. For the six months ended June 30, 2016, the Company had an operating loss of $5.5 million, or $124.84 per diluted share, compared to an operating loss of $9.4 million, or $220.97 per diluted share for six months ended June 30, 2015.  Operating income for the property and casualty segment in 2016 was $2.7 million, compared to the $1.0 million operating income in 2015 for this segment.  The financial guaranty segment had operating losses of $6.5 million for the first six months of 2016, largely driven by losses from the Company’s reinsurance of Puerto Rico-related credits.  This compares to financial guaranty operating losses of $8.0 million in the first six months of 2015.  Interest expense on debt of $1.8 million was $1.4 million lower for the first six months of 2016 as compared to the first six months of 2015, due to debt reduction.Gross property and casualty premiums written, which are the primary driver of the Company’s fee income, were $223.1 million for 2016 compared to $195.3 million for 2015.  Fees earned by the Company’s management companies were $7.6 million for 2016 compared to $6.8 million for 2015 before intercompany consolidation eliminations with their regulated affiliates.  Net earned property and casualty premiums were $1.9 million for 2016 compared to $4.1 million for 2015.  The drop in net premiums earned is the result of the Company’s decision to deemphasize the retention of underwriting risk an...