American Overseas Group loss making continues

Bermuda-based insurance holding company American Overseas Group has suffered another loss making half year, driven by losses on credit derivatives.

With a $1.1 million net loss for the six months ended June 30, 2014, the company saw an improvement, compared with a net loss of $2.1 million for the same period of the prior year.

The insurer’s property/casualty premiums earned for the first half of 2014 were $8.6 million compared with $7.7 million for the first six months of 2013.

It said that the results for the first six months of 2014 were impacted by net unrealised losses on credit derivatives of $2.4 million.

During the first six months of 2014, its operating income was $1.6 million, a considerable deterioration compared with operating income of $6.2 million in the same period a year earlier.

Its net premiums earned also fell to $12.4 million in the first half of 2014, compared with $13.5 million in the first half of 2013.