American Overseas enjoys rise in profits
American Overseas Group, the Bermuda holding company that writes non-standard auto reinsurance through American Overseas Reinsurance Company, enjoyed an increase in its 2013 profits thanks to positive movements in reserves related to its financial guarantee business.
The company made a net profit of $10.9 million, or $3.96 per diluted share. This compares to a net loss of $22.9 million, or $8.58 per diluted share, for the year of 2012.
Its property/casualty premiums earned for the year ended were $16.8 million compared with $6 million for the year of 2012.
It said its results were primarily impacted by the positive movement on its reserves related to the financial guarantee business, with the property/casualty business recording an approximately breakeven result. Book value per share at December 31, 2013 was $27.54, an increase of 5 percent from year-end 2012 when book value per share was $26.15.
Its operating income for the year of 2013 was $8.9 million, or $3.25 per diluted share, compared with an operating loss of $6.9 million, or $2.57 per diluted share, for the year of 2012.
The company noted that as a cost saving measure, it will be reporting its financial results semi-annually rather than quarterly. This is effective for reporting on periods beginning January 1, 2014.
