For the three months ended December 31, 2025, net earned property and casualty premiums decreased $2.6 million from $14.3 million a year ago to $11.7 million. For the year ended December 31, 2025, net earned property and casualty premiums decreased $1.6 million from $51.6 million to $50.0 million.
Quarter to Date fee income increased $0.1 million from $6.0 million to $6.1 million and gross written premiums increased $3.9 million, moving from $226.4 million to $230.3 million. Quarter to Date Loss and loss adjustment expenses as a percentage of earned premium decreased from 75.5% to 64.0%.
For the year ended December 31, 2025, fee income increased $1.0 million from $22.1 million a year ago to $23.1 million and gross written premiums increased $71.6 million, moving from $914.7 million to $986.3 million. For both the quarter and the year, direct written premiums were positively impacted by continued expansion of new programs, rate increases, and organic growth in existing programs. Year to Date Loss and loss adjustment expenses as a percentage of earned premium decreased from 64.0% to 57.7%.
For the three months ended December 31, 2025, operating expenses increased $0.1 million from $4.2 million to $4.3 million. For the year ended December 31, 2025, operating expenses increased $0.9 million from $12.9 million to $13.8 million.
As part of its ongoing capital management efforts, the Company will continue to redirect excess capital within the group to debt reduction. In the 4th quarter of 2025, the Company reduced the outstanding principal balance of its 12% Senior Secured Notes by $1.3 million and year to date the Company reduced the outstanding principal of its 12% and 9% Senior Secured Notes by $4.3 million and $0.7 million respectively, reducing total outstanding debt from $20.8 million to $15.8 million as of December 31, 2025. Additionally, The Company reduced the outstanding principal balance of its 12% Senior Secured Notes by $3.4 million in the 1st quarter of 2026, reducing total outstanding debt to a balance of $12.4 million. The Company expects to take additional steps towards leverage reduction unless other compelling opportunities arise.
Forward-Looking Statements
This release contains statements that may be considered "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, the Company's expectations respecting the volatility of its insured portfolio, losses, loss reserves and loss development, the adequacy and availability of its liquidity and capital resources, its current run off strategy, its strategy for writing other reinsurance businesses and its expense reduction measures. These statements are based on current expectations and the current views of the economic and operating environment and are not guarantees of future performance. A number of risks and uncertainties, including economic competitive conditions, could cause actual results to differ materially from those projected in forward-looking statements. The Company's actual results could differ materially from those expressed or implied in the forward-looking statements.
Information About the Company
American Overseas Group Limited is an insurance holding company incorporated in Bermuda and a tax resident of the United Kingdom. Its operating subsidiaries provide specialty property/casualty insurance, reinsurance and insurance management services. More information can be found at www.aoreltd.com.
American Overseas Group Limited
[email protected]
American Overseas Group Limited
Consolidated Balance Sheets
(unaudited)
As at December 31, 2025 and December 31, 2024
(dollars in thousands)
December 31, 2025
December 31, 2024
Assets
Investments:
Fixed-maturity securities held as available for sale, at fair value
$
161,312
$
143,633
Equity investments held as available for sale, at fair value
1,041
-
Cash and cash equivalents
45,140
46,600
Restricted cash
843
4,861
Accrued investment income
1,135
1,029
Premiums receivable
211,993
211,771
Deferred insurance premiums
299,720
267,765
Reinsurance balances receivable, net
481,444
413,541
Deferred policy acquisition costs
9,420
10,215
Intangible assets
4,800
4,800
Goodwill
33,050
33,050
Other assets
5,373
3,972
Total Assets
$
1,255,271
$
1,141,237
Liabilities and Equity
Liabilities:
Loss and loss expense reserve
$
465,401
$
421,018
Deferred commission income
6,481
7,154
Unearned premiums
311,073
281,176
Ceded premium payable
233,727
209,033
Payable to general agents
459
276
Funds withheld
133,343
126,839
Accounts payable and accrued liabilities
26,472
26,256
Notes payable
15,833
20,771
Non-owned ...
