American Overseas Group Limited, the Bermudian-based holding company, has reported consolidated net income available to common shareholders of $700,000, or $15.06 per diluted share, for the three months ended March 31.

This compares with consolidated net income available to common shareholders of $1 million, or $20.81 per diluted share, for the same period a year ago.

As part of its ongoing capital management efforts, the company said it will continue to redirect excess capital within the group to debt reduction unless other compelling opportunities present themselves.

Book value per weighted share at March 31 was $850.78, a decline from the book value per weighted share of $1,055.01 at March 31, 2021.

For the three months ended March 31, the company had an operating income of $700,000, or $15.30 per diluted share, compared with operating income of $900,000, or $19.99 per diluted share, for the year ended March 31, 2021.

Net earned property and casualty premiums increased $100,000 from $5 million a year ago to $5.1 million.

Fee income remained constant at $3.3 million while gross written premiums increased $4.2 million, moving from $103.9 million to $108.1 million.

Quarterly direct written premiums were positively impacted by rate increases in current business.

Loss and loss adjustment expenses as a percentage of earned premium increased from 54.6 per cent to 64.2 per cent as loss costs continued to increase in 2022 owing to both frequency and severity.

Operating and acquisition expenses increased $400,000 from $4.3 million to $4.7 million primarily driven by a one-time favourable accrual adjustment to consulting contracts in Q1 2021 of $200,000, and a year-over-year increase in acquisition, taxes, licences and fees associated with programme business written in Louisiana of $100,000.