Bermudian-based insurance holding company American Overseas Group Ltd has reported a net loss of $3.2 million and an operating loss of $600,000 for the year ended December 31.

The results were announced on Friday in a regulatory filing with the Bermuda Stock Exchange. AOG Ltd is incorporated in Bermuda and is a tax resident of the United Kingdom.

The consolidated net loss available to common shareholders of $3.2 million, or $69.12 per diluted share, compares to a consolidated net loss of $10.6 million, or $233.62 per diluted share, for the year ended December 31, 2017.

The year-over-year improvement in results was driven by improved results associated with the company’s reinsurance of Puerto Rico-related credits in its financial guaranty segment, as well as improved underwriting results in the property and casualty segment, the company said.

Book value per share at the end of 2018 was $1,212.83, a decline from $1,308.58 year-on-year.

The company’s operating loss of $600,000, or $11.97 per diluted share, compared to an operating loss of $20.8 million, or $456.94 per diluted share, at the end of 2017.

Operating income for the property and casualty segment was $2.9 million, up from $1.1 million the previous year.

The legacy financial guaranty portfolio of American Overseas Reinsurance Company Ltd continues to run-off satisfactorily, the company reported. The financial guaranty operating loss of $4.5 million in 2018 is significantly lower than the operating loss of $21.2 million in 2017 primarily due to reduced unfavourable development on outstanding losses.

Operating expenses of $13.4 million in 2018 were comparable to 2017’s $13.8 million.

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.

AOG Ltd’s operating subsidiaries provide specialty property/casualty insurance, reinsurance and insurance management services.

• For more information, see www.aoreltd.com