Bermuda-based re/insurance group American Overseas Group (AOG) reported a significant shift in its financial performance for the third quarter of 2023, announcing a consolidated net income of $4.3 million, or $91.11 per diluted share, for the three months ending September 30, 2023.
As per the official release, this marks a notable improvement from the same period last year, where the company experienced a consolidated net loss of $0.4 million, or $9.42 per diluted share.
However, the company observed a marginal decline in its book value per weighted share, which stood at $776.61 as of September 30, 2023, compared to $780.66 at the same date in 2022.
A significant increase was reported in the company’s net earned property and casualty premiums for the quarter, rising from $4.8 million in the previous year to $8.0 million. This increase was attributed to the continued expansion of new programs and rate hikes.
In addition to premium growth, AOG experienced a rise in its fee income, which went up by $1.5 million, climbing from $2.7 million to $4.2 million. The company’s gross written premiums saw a substantial increase of $62.7 million, moving from $110.2 million to a notable $172.9 million.
An important metric for the company, the quarter-to-date loss and loss adjustment expenses as a percentage of earned premium, showed a favorable decrease from 70.4% to 57.3%.
Despite these positive developments in revenue and premiums, AOG’s operating expenses for the quarter remained stable at $2.8 million. Looking forward, the company emphasized its commitment to prudent capital management. It plans to continue directing surplus capital within the group towards reducing debt, while remaining open to other compelling investment opportunities that may arise.
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