Business
Results of Operations for the Year Ended December 31, 2020 - American Overseas Group Limited Announces Net Loss Of $5.0 Million and Operating Loss of $22.4 Million For the Year Ended December 31, 2020 as it exits financial guaranty line of business
Results of Operations for the Year Ended December 31, 2020 - American Overseas Group Limited Announces Net Loss Of $5.0 Million and Operating Loss of $22.4 Million For the Year Ended December 31, 2020 as it exits financial guaranty line of business.
About this update from American Overseas Group Limited
[{"type":"text","content":"\n HAMILTON, Bermuda, June 25, 2021 (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 $5.0 million, or $106.53 per diluted share, for the year ended December 31, 2020. This compares to consolidated net loss available to common shareholders of $3.7 million, or $80.13 per diluted share, for the year ended December 31, 2019. The result for the year was heavily impacted by losses in the Company’s financial guaranty segment related to a commutation of the remaining portfolio of financial guaranty reinsurance business it had assumed from Assured Guaranty Municipal Corp (“AGMC”). Book value per share at December 31, 2020 was $1,062.22 a decline from the book value per share of $1,159.08 at December 31, 2019.   For the year ended December 31, 2020, the Company had an operating loss of $22.4 million, or $476.64 per diluted share, compared to an operating loss of $9.1 million, or $196.78 per diluted share for the year ended December 31, 2019. The financial guaranty segment produced a $22.8 million operating loss for 2020 which was $11.8 million above the prior year operating loss of $11.0 million. In April of 2020, the financial guaranty reinsurance business at AORE was eliminated as a result of the commutation with AGMC. The aggregate outstanding par value of the reinsurance portfolio commuted was $345.0 million. This commutation was the primary driver of the operating loss of $22.8 million in 2020, compared to operating losses of $11.0 million in 2019. As of December 31, 2019, outstanding par within the financial guaranty segment was $362 million.   As of December 31, 2020, AORE no longer has any financial guaranty exposure remaining. Operating income for the property and casualty segment in 2020 was $1.2 million, compared to the $0.9 million operating income in 2019 for this segment.  Despite lower written premiums in 2020 due to temporary business contractions related to COVID-19, net earned property and casualty premiums increased $7.0 million from $8.8 million in 2019 to $15.8 million in 2020, driven both by a full year of new programs in key states outside of Texas as well as increased reinsurance participation on underlying non ...