American Overseas Group Limited reported consolidated net income of $38.4 million, or $1,797.58 per diluted share, for the year ended December 31, 2014.
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This compares to a consolidated net loss of $0.3 million, or $16.39 per diluted share, for the year ended December 31, 2013. The 2013 financial statements of AOG have been restated to reflect the fact that AOG and Orpheus Group Ltd. came under common voting control on June 26, 2013, and to include the results of Orpheus Group Ltd. from that date.
The results for 2014 were impacted by fair value adjustments of $22.8 million and unrealized gains in credit derivatives of $18.2 million. Book value per share at December 31, 2014 was $1,327.28.
For the year ended December 31, 2014, the Company had an operating loss of $3.2 million, or $150.13 per diluted share, compared to operating income of $3.1 million, or $147.52 per diluted share for the year ended December 31, 2013 as restated.
Gross property and casualty premiums written, which are the primary driver of the Company's fee income, were $418.3 million for 2014 compared to $224.9 million for 2013.
Fees earned by the Company's management companies were $13.6 million for 2014 compared to $7 million for 2013 before intercompany consolidation eliminations with their regulated affiliates. EBITDA margins earned on these fees were 34% for 2014 and 2013.
Net earned property and casualty premiums were $36.5 million for 2014 compared to $35.1 million for 2013. The drop in net premiums earned is the direct result of the termination of a large assumed reinsurance treaty in May of 2014 in accordance with the Company's decision to deemphasize the retention of underwriting risk.
The legacy financial guaranty portfolio of American Overseas Reinsurance Company Limited continues to run-off satisfactorily. Insured par outstanding (net of escrowed transactions) declined to $6.2 billion at December 31, 2014 from $7.6 billion at December 31, 2013, a 18.4% decline. ■