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HAMILTON, Bermuda, July 2, 2013 (GLOBE NEWSWIRE) -- American Overseas Group Limited (BSX:AORE) (Pink Sheets:AORE) ("AOG" or the "Company") today reported first quarter net loss available to common shareholders of $14.0 million, or $5.13 per diluted share. This compares to net loss available to common shareholders of $4.5 million, or $1.69 per diluted share, for the first quarter 2012.
During the first quarter of 2013, operating income, a non GAAP financial measure, was $4.2 million, or $1.53 per diluted share, compared to operating income of $0.2 million, or $0.08 per diluted share, during the first quarter of 2012.
The Company's net loss is calculated in conformity with U.S. generally accepted accounting principles ("GAAP"). The Company also provides information regarding its operating income, a non-GAAP financial measure, because the Company's management and Board of Directors, as well as many research analysts and investors, also evaluate financial performance on the basis of operating income, which excludes non-operating items such as realized investment gains or losses, unrealized gains or losses on credit derivatives and foreign currency gains or losses. Please refer to "Explanation of Non-GAAP Financial Measures" below for a description of operating income and for a reconciliation of operating income to net loss.
Commenting on the financial results, the Company's Chief Executive Officer, David Steel, noted that, "Our 2013 first quarter net loss was primarily the result of a $18.3 million unrealized loss within the net change in fair value of credit derivatives during the period. As noted in the past, we view operating income, which excludes unrealized gains and losses on derivatives, as a better measure of quarterly performance. Our 2013 operating income of $4.2 million was primarily driven by public finance refunding activity and by favorable loss development in our financial guaranty book related to our US residential mortgage-backed securities ("RMBS") reinsurance contracts".