This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

American Overseas Group Limited Announces First Quarter 2013 Net Loss Available To Common Shareholders Of $14.0 Million And Operating Income Of $4.2 Million

"In the first quarter of 2013 we continued to pursue our plan to write new business in the short-tail, non-catastrophe property/casualty reinsurance markets. We believe this new business fits well with the long-tail run-off of the remaining financial guaranty portfolio. We intend to build our property/casualty book prudently as our subsidiary American Overseas Reinsurance Company Limited ("AORE") emerges from run-off."

Summary of Operating Results

The Company reported a net loss of $14.0 million for the quarter ended March 31, 2013.

Earned premiums in the first quarter 2013 of $6.8 million were 127% higher than the $3.0 million of earned premiums in the first quarter 2012. After eliminating property/casualty earned premiums of $3.2 million and accelerated premiums from refundings of $1.3 million, core financial guaranty earned premiums in the first quarter of 2013 were $2.3 million. This was consistent with the core financial guaranty earned premiums of $2.3 million for the comparable period of 2012 after eliminating the accelerated premiums from refundings of $0.7 million. There were no property/casualty earned premiums in the first quarter of 2012.

Net change in fair value of credit derivatives totaled a loss of $17.8 million in the first quarter of 2013, compared to a $5.8 million loss in the first quarter of 2012. Net change in fair value of credit derivatives for the first quarters of 2013 and 2012 were comprised of $0.4 million and $0.6 million of realized gains, respectively, and $18.3 million and $6.3 million of unrealized losses, respectively, on derivatives. The net unrealized loss in the first quarter 2013 was primarily attributable to (i) a decrease in the adjustment for the Company's own non-performance risk of $31.9 million, and (ii) a decrease in gross unrealized losses on credit derivative policies of $13.6 million. The decrease in gross unrealized losses on credit derivative policies was primarily due to improvements in pricing across the majority of the Company's portfolio. In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification 820 - "Fair Value Measurements and Disclosures" ("ASC 820"), the Company calculates an adjustment for its own non-performance risk. The effect of ASC 820 on the Company's derivative liabilities on its balance sheet was a reduction of approximately $37.9 million at March 31, 2013.

2 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,221.45 +88.75 0.49%
S&P 500 2,112.38 +7.88 0.37%
NASDAQ 4,996.80 +33.2730 0.67%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs