American Overseas Group Ltd reported third-quarter 2012 net income of $5.8 million, or $2.20 per diluted share.This compares to net income available to common shareholders of $26.9 million, or $10.17 per diluted share, for the third quarter of 2011.AOG, which was once known as Ram Re, also recorded a loss of $1.1 million for the nine month period ended September 30, 2012, compared to net income of $31.4 million, or $11.86 per diluted share, for the same nine month period a year earlier.Commenting on the financial results, CEO David Steel said: “Our 2012 third-quarter net income was largely the result of a $4.8 million net change in fair value of credit derivatives during the period. As noted in the past, we view operating income, which excludes among other items unrealised gains and losses on derivatives, as a better measure of quarterly performance.“Our 2012 third-quarter operating income of $0.9 million was largely driven by earned premiums net of our loss development primarily related to our US RMBS exposures. For the first nine months of 2012, operating income was $2.7 million.”Earned premiums in the third quarter 2012 of $3.8 million were seven percent lower than the $4.1 million earned in the third quarter 2011. After eliminating accelerated premiums from refundings of $1.1 million from total earned premiums, earned premiums in the third quarter 2012 were $2.7 million; this was the same as the comparable 2011 period, which included accelerated premiums from refundings of $1.4 million.Earned premiums for the nine month period of $12.2 million were one percent higher than the $12.1 million of earned premiums for the nine month period ended September 30, 2011. After eliminating accelerated premiums from refundings of $4.9 million, earned premiums for the first nine months of 2012 were $7.3 million; this was 22% lower than the comparable period in 2011, which included accelerated premiums from refundings of $2.8 million. The decrease in earned premiums in the first nine months of 2012 as compared to the respective 2011 period was primarily due to commutations and run off of the reinsured portfolio.Though American Overseas Group Ltd is a Bermuda-based holding company, its operating subsidiary, American Overseas Reinsurance Company completed its re-domestication from Bermuda to Barbados earlier this month.