Business
Results of Operations for the Year Ended December 31, 2019 - American Overseas Group Limited Announces Net Loss Of $3.7 Million and Operating Loss of $9.1 Million For the Year Ended December 31, 2019
Results of Operations for the Year Ended December 31, 2019 - American Overseas Group Limited Announces Net Loss Of $3.7 Million and Operating Loss of $9.1 Million For the Year Ended December 31, 2019.
About this update from American Overseas Group Limited
[{"type":"text","content":"\n HAMILTON, Bermuda, June 26, 2020 (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 $3.7 million, or $80.13 per diluted share, for the year ended December 31, 2019. This compares to consolidated net loss available to common shareholders of $3.2 million, or $69.12 per diluted share, for the year ended December 31, 2018. The results for the year were driven by losses in the Company’s financial guaranty segment related to commuted policies and Puerto Rico related credits. Book value per share at December 31, 2019 was $1,159.08, a decline from the book value per share of $1,212.83 at December 31, 2018.  For the year ended December 31, 2019, the Company had an operating loss of $9.1 million, or $196.78 per diluted share, compared to an operating loss of $0.6 million, or $11.97 per diluted share for the year ended December 31, 2018. Operating income for the property and casualty segment in 2019 was $0.9 million, compared to the $2.9 million operating income in 2018 for this segment. The financial guaranty segment had operating losses of $11.0 million for 2019, compared to financial guaranty operating losses of $4.5 million for 2018.  Net earned property and casualty premiums increased $6.4 million from $2.4 million in 2018 to $8.8 million in 2019, driven by the addition of new agency relationships. Loss and loss adjustment expenses as a percentage of earned premiums improved slightly, 44.9% to 41.9% driven by both current and prior accident year results. Operating income in the property and casualty segment decreased $2.0 million primarily due to increase in acquisition costs resulting from significant increases in written premium. The legacy financial guaranty portfolio of American Overseas Reinsurance Company Limited (“AORE”) continued to run-off satisfactorily. The financial guaranty operating loss of $11.0 million in 2019 is driven by net losses associated with the commutation of $1.065 billion of outstanding par during the second quarter of 2019, as well as unfavorable development on outstanding losses. As of December 31, 2019, outstanding par within the financial guaranty segment is $362 million compared to $1.474 billion at December 31, 2...