Business
Results of Operations for the Year Ended December 31, 2021 - American Overseas Group Limited Announces Net Loss Of $5.5 Million and Operating Loss of $5.0 Million For the Year Ended December 31, 2021
Results of Operations for the Year Ended December 31, 2021 - American Overseas Group Limited Announces Net Loss Of $5.5 Million and Operating Loss of $5.0 Million For the Year Ended December 31, 2021.
About this update from American Overseas Group Limited
[{"type":"text","content":"\n HAMILTON, Bermuda, April 29, 2022 (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 $5.5 million, or $117.07 per diluted share, for the year ended December 31, 2021. This compares to consolidated net loss available to common shareholders of $5.0 million, or $107.24 per diluted share, for the year ended December 31, 2020. Book value per weighted share at December 31, 2021 was $916.83, a decline from the book value per weighted share of $1,062.22 at December 31, 2020. For the year ended December 31, 2021, the Company had an operating loss of $5.0 million, or $105.79 per diluted share, compared to operating loss of $22.1 million, or $473.66 per diluted share for the year ended December 31, 2020. The financial guaranty segment ended in April of 2020 due to a commutation of the remaining portfolio of financial guaranty reinsurance business it had assumed from Assured Guaranty Municipal Corp (“AGMC”). The aggregate outstanding par value of the reinsurance portfolio commuted was $345.0 million. For the year ended December 31, 2021, net earned property and casualty premiums increased $5.0 million from $15.8 million a year ago to $20.8 million, driven by an increase in existing and new programs. Fee income increased $1.3 million from $9.9 million a year ago to $11.2 million while gross written premiums increased $55.6 million, moving from $364.9 million to $420.5 million. Direct written premiums were positively impacted by continued expansion of new programs, rate increases, and overall economic recovery. Loss and loss adjustment expenses as a percentage of earned premium increased from 56.5% to 69.1%. For the year ended December 31, 2021, operating expenses increased $1.4 million from $12.8 million to $14.2 million due to several items. The Company incurred a $1.9 million increase in taxes, licenses and fees associated with program business written in Louisiana, of which $0.9 million of that increase was related to business written in the prior year, for which the Company received credits associated from its program partner in the prior year. Additionally, the Company recognized a one-time $1.2 million charge related to items previously held as a receivable agai...