American Overseas Group Ltd has reported consolidated net income of $1 million, or $20.81 per diluted share, for the three months ended March 31.

This compares to net loss of $800,000, or $17.97 per share, for the same period a year ago.

The Bermudian-based holding company said the improved income was driven by property and casualty growth in both existing and new programmes.

Book value per weighted share at the end of March was $1,055.01, down from $1,062.22 at the end of December.

The company had operating income of $900,000, compared to an operating loss of $1.2 million, for the same three months in 2020.

The financial guaranty segment ended in April of 2020 due to a commutation of the remaining portfolio of financial guaranty reinsurance business it had assumed from Assured Guaranty Municipal Corp. The aggregate outstanding par value of the reinsurance portfolio commuted was $345 million.

Net earned property and casualty premiums increased $1.2 million to $5 million, driven by an increase in existing and new programmes.

Loss and loss adjustment expenses as a percentage of earned premium declined slightly from 55.4 per cent to 54.6 per cent.

Fee income increased from $3.1 million to $3.3 million due to increase in gross written premiums year over year of $5.5 million, to $103.9 million.

Operating expenses decreased $1.4 million or 35.9 per cent, mainly due to savings in the financial guaranty segment and improved operational efficiencies.

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.