American Overseas Group Ltd, the Bermudian-based insurance group, reported full-year consolidated net income of $10.8 million for 2025, up from $9.4 million a year earlier.

In the fourth quarter, the company also managed to cut its outstanding debt by nearly a quarter, from $20.8 million to $15.8 million.

“As part of its ongoing capital management efforts, the Company will continue to redirect excess capital within the group to debt reduction,” American Overseas said in its earnings statement.

Through its US operating insurance companies and service company, AOG focuses solely on underwriting and servicing personal automobile property and casualty policies in the US.

Book value per weighted share at December 31, 2025 was $1,241.71, an increase from the book value per weighted share of $976.60 at December 31, 2024.

For the fourth-quarter of 2025, net earned property and casualty premiums decreased $2.6 million from $14.3 million a year ago to $11.7 million. For the full year 2025, net earned property and casualty premiums decreased $1.6 million from $51.6 million to $50 million.

The company said full-year fee income rose from $22.1 million in 2024 to $23.1 million in 2025, while gross written premiums increased $71.6 million, moving from $914.7 million to $986.3 million.

For both the quarter and the year, direct written premiums were positively impacted by continued expansion of new programmes, rate increases, and organic growth in existing programmes, AOG stated.

For the fourth quarter of 2025, operating expenses increased $0.1 million to $4.3 million, and for the full year, from $12.9 million to $13.8 million.

Giving further detail on its debt reduction efforts, AOG said it reduced the outstanding principal balance of its 12 per cent senior secured notes by $1.3 million during the fourth quarter.

During 2025, the company reduced the outstanding principal of its 12 per cent and 9 per cent senior secured notes by $4.3 million and $0.7 million respectively.

In the first quarter of 2026, the company further reduced the outstanding principal balance of its 12 per cent senior secured notes by $3.4 million, reducing total outstanding debt to $12.4 million.

“The Company expects to take additional steps towards leverage reduction unless other compelling opportunities arise,” AOG added.