American Overseas Group (AOG) has announced that it made a consolidated net loss of $12.1 million during the first half of 2016.
This was down on the consolidated net income of $7 million that the Bermuda-based insurer reported over the same period of 2015.
AOG said that the 2016 results had been impacted by unrealised losses on credit derivatives of $4.6 million.
Despite this drop in profits, AOG reported a rise in its gross property and casualty written premiums, which according to the insurer are the primary driver of its fee income from $195.3 million in the first half of 2015 to $223.1 million for the same period of 2016.
However, the company’s net earned property and casualty premiums dropped to $1.9 million for the first half of 2016, from $4.1 million for the first half of 2015. According to the company the drop in net premiums earned “is the result of the Company’s decision to de-emphasise the retention of underwriting risk and shift its focus to a fee-based business within its property and casualty segment.”
AOG also reported that its financial guaranty segment had seen operating losses of $6.5 million for the first six months of 2016, largely driven by losses from AOG's reinsurance of Puerto Rico-related credits.
AOG concluded that as a part of its ongoing capital management efforts, it will continue to redirect excess capital within the group to debt reduction unless other compelling opportunities present themselves.
American Overseas Group, Bermuda, North America, Insurance, Property, Casualty, Results