American Overseas Group Ltd reported net income of $2.8 million for the three months ended September 30, down from $3.4 million a year earlier, as the Bermudian-based insurer continued to pay down debt and reported mixed underwriting results.

The company, listed on the Bermuda Stock Exchange and the United States over-the-counter market, said earnings available to common shareholders were $60.56 per diluted share, compared with $73.42 per share in the third quarter of 2024.

Book value per weighted share rose sharply to $1,209.44 at the end of September, up from $969.27 a year earlier.

Net earned property and casualty premiums for the quarter declined by $1.5 million to $12.2 million, compared with $13.7 million in the prior-year period. However, fee income increased modestly to $5.2 million from $5.0 million, while gross written premiums rose by $12.8 million to $245.4 million.

Loss and loss adjustment expenses improved slightly as a percentage of earned premiums, falling to 56.4 per cent from 57.4 per cent a year earlier.

Operating expenses increased by $600,000 to $3.1 million. The company said the year-on-year increase reflected the return of $600,000 in funding collateral during the prior-year quarter.

As part of its capital management strategy, American Overseas Group Ltd said it continued to use its excess capital towards paying down its debt. During the third quarter, the company reduced outstanding principal on its 12 per cent and 9 per cent senior secured notes by a combined $3.7 million, lowering its total debt from $20.8 million to $17.1 million.

A further $1.3 million repayment was made in the fourth quarter, reducing total outstanding debt to $15.8 million. The company said it expects to continue reducing leverage unless other opportunities arise.