Bermudian-based American Overseas Group Ltd has reported a sharp rise in profits for the first six months of 2025, with stronger premium income and higher investment returns boosting results.

The company posted net income of $6.8 million for the half-year ended June 30, up from $4.8 million during the same period in 2024 — a gain of more than 40 per cent.

For the second quarter alone, profits reached $2.5 million, compared with $2.3 million a year earlier.

Earnings per share rose to $144.04 for the first half, up from $102.95. Shareholders’ equity also strengthened, climbing to $53.5 million from $45.9 million at the end of 2024.

The holding company, which writes non-standard auto insurance in the United States through its subsidiaries, saw net premiums earned rise to $26.1 million in the first half, compared with $23.5 million last year.

Investment income almost doubled to $962,000, helped by higher interest rates.

At the same time, AOG continues to rely heavily on reinsurance.

It reported $431.6 million in gross loss reserves, with more than $411 million recoverable from reinsurers. The group held $251 million in collateral from reinsurers at the end of June to back these exposures.

Liquidity remains a focus. Although AOG reported $210.7 million in cash and investments, about $171.5 million of that is tied up in trust accounts, leaving only $39.2 million available to fund operations.

The company also carries long-term debt, including $21 million in senior notes paying fixed rates of 9 and 12 per cent, with maturities stretching to 2040.

AOG, incorporated in Bermuda but tax resident in the United Kingdom, is not subject to Bermuda’s new corporate income tax regime introduced this year.

Instead, it pays British corporation tax at 25 per cent on worldwide profits.

The company said it believes it has “sufficient capital resources and liquidity to meet its obligations” and continues to generate “substantial cash flows” from its fee-based model in the property and casualty segment.