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CORRECTION – Results of Operations for the Six Months Ended June 30, 2018

September 24, 2018

American Overseas Group Limited Announces Net Loss Of $2.4 Million and Operating Loss of $1.5 Million For The Six Months Ended June 30, 2018

HAMILTON, Bermuda, Sept. 24, 2018 (GLOBE NEWSWIRE) --

This release corrects and replaces the previous press release issued today, September 24, 2018, at 18:14 ET by American Overseas Group Limited (BSX: AOREF.BH) (Pink Sheets: AOREF.PK). The corrections appear in the final table of the release.

American Overseas Group Limited (BSX: AOREF.BH) (Pink Sheets: AOREF.PK) (“AOG” or the “Company”) today reported consolidated net loss available to common shareholders of $2.4 million, or $51.30 per diluted share, for the six months ended June 30, 2018. This compares to consolidated net loss available to common shareholders of $8.2 million, or $182.08 per diluted share, for the six months ended June 30, 2017.

Year over year improvement in results were driven by improved results associated with the Company’s reinsurance of Puerto Rico-related credits in its financial guaranty segment. Book value per share at June 30, 2018 was $1,230.37, a decline from the book value per share of $1,308.58 at December 31, 2017.

For the six months ended June 30, 2018, the Company had an operating loss of $1.5 million, or $32.4 per diluted share, compared to an operating loss of $13.4 million, or $297.14 per diluted share for the six months ended June 30, 2017. Operating income for the property and casualty segment in 2018 was $1.4 million, compared to the $0.3 million operating income in 2017 for this segment. The financial guaranty segment had operating losses of $3.9 million for the first six months of 2018, compared to financial guaranty operating losses of $14.9 million in the first six months of 2017.

Net earned property and casualty premiums were $1.4 million for the first six months of 2018, which is 22% lower compared to $1.8 million for the same period in 2017. Loss and loss adjustment expenses were $0.9 million for the first six months of 2018, which was $1.5 million lower than the same period in 2017. Operating income in the property and casualty segment increased $1.1 million primarily due to improved underwriting margin.

The legacy financial guaranty portfolio of American Overseas Reinsurance Company Limited (“AORE”) continues to run-off satisfactorily, notwithstanding loss reserve increases mainly due to the Company’s continued exposure to Puerto Rico credits. The financial guaranty operating loss of $3.9 million in 2018 is significantly lower than the operating loss of $14.9 million in 2017 primarily due to reduced unfavorable development on outstanding losses.

Operating expenses of $7.0 million were comparable in the first six months of 2018 as compared to the first six months of 2017 of $6.9 million.

As part of its ongoing capital management efforts, the Company will continue to redirect excess capital within the group to debt reduction unless other compelling opportunities present themselves.

Forward-Looking Statements

This release contains statements that may be considered “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, the Company’s expectations respecting the volatility of its insured portfolio, losses, loss reserves and loss development, the adequacy and availability of its liquidity and capital resources, its current run off strategy, its strategy for writing other reinsurance businesses and its expense reduction measures. These statements are based on current expectations and the current views of the economic and operating environment and are not guarantees of future performance. A number of risks and uncertainties, including economic competitive conditions, could cause actual results to differ materially from those projected in forward-looking statements. The Company’s actual results could differ materially from those expressed or implied in the forward-looking statements. Among the factors that could cause actual results to differ materially are: (i) the Company’s reviewing the results of our entire portfolio of policies. Management considers credit derivative policies as a normal extension of AORE’s financial guaranty business and reinsurance in substance.

Explanation of Non-GAAP Financial Measures

The Company believes that the following non-GAAP financial measure included in this press release serve to supplement GAAP information and is meaningful to investors.

Operating income (loss): The Company believes operating income (loss) is a useful measure because it measures income from operations, unaffected by non-operating items such as realized investment gains or losses. Operating income (loss) is typically used by research analysts and rating agencies in their analysis of the Company.

Information About the Company

American Overseas Group Limited is an insurance holding company incorporated in Bermuda and a tax resident of the United Kingdom. Its operating subsidiaries provide specialty property/casualty insurance, reinsurance and insurance management services. More information can be found at www.aoreltd.com

American Overseas Group Limited info@aoreltd.com

American Overseas Group Limited Consolidated Balance Sheets (unaudited) As at June 30, 2018 and December 31, 2017 (dollars in thousands) June 30, December 2018 31, 2017 --------- - --------- - Assets Investments: Fixed-maturity securities held as available for sale, at fair value $ 131,888 $ 81,028 Equity investments held as available for sale, at fair value 6,216 6,437 Cash and cash equivalents 32,942 40,173 Restricted cash 12,056 66,535 Accrued investment income 570 256 Premiums receivable 80,240 81,264 Reinsurance balances receivable, net 346,432 340,700 Salvage and subrogation recoverable 337 1,708 Deferred policy acquisition costs 115 101 Intangible assets 4,800 4,800 Goodwill 33,050 33,050 Other assets 2,063 1,899 Total Assets $ 650,709 $ 657,951 - ------- - - ------- - Liabilities and Equity Liabilities: Loss and loss expense reserve $ 295,940 $ 304,773 Unearned premiums 110,533 105,690 Ceded premium payable 94,461 95,195 Payable to general agents 977 1,479 Funds withheld 50,721 44,985 Accounts payable and accrued liabilities 2,364 3,057 Redeemable preference shares: ($0.10 par value and $1,000 redemption value; authorized shares - 75,000; issued and outstanding shares - 38,600 and 58,600 at 6,915 10,312 June 30, 2018 and December 31, 2017, respectively) Derivative liabilities 279 342 Notes payable 16,521 16,521 Non-owned interest in VIE 300 300 Interest payable 451 451 Fair value adjustment 14,470 15,199 Deferred tax liability 33 31 Total Liabilities 593,965 598,335 Shareholders’ Equity: Common shares 4,612 4,556 Additional paid-in capital 188,440 188,331 Accumulated other comprehensive income 502 1,190 Retained deficit (142,863 ) (140,514 ) Total Shareholders’ Equity 50,691 53,563 Non-controlling interest of preferred shares of subsidiaries 6,053 6,053 Total Equity 56,744 59,616 --------- - --------- - Total Liabilities and Equity $ 650,709 $ 657,951 - ------- - - ------- -

See Notes to 2017 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com

American Overseas Group Limited Consolidated Statements of Operations (unaudited) For six months ended June 30, 2018 and 2017 (dollars in thousands, except share and per share amounts) Six months ended June 30, ----------------------- 2018 2017 -------- - --------- - Revenues Net premiums earned $ 999 $ 1,888 Fee income 5,969 5,919 Change in fair value of credit derivatives Realized (losses) gains and other settlements (0 ) 91 Unrealized gains 59 2,946 -------- - --------- - Net change in fair value of credit derivatives 59 3,037 -------- - --------- - Net investment income 1,123 886 Net realized gains (losses) on investments 1 (221 ) Fair value adjustment (274 ) 739 Other income 41 348 Total revenues 7,918 12,596 Expenses Losses and loss adjustment expenses 1,363 12,448 Acquisition expenses 174 259 Operating expenses 6,974 6,912 Other expense 74 - Interest expense 1,096 1,188 Total expenses 9,681 20,807 -------- - --------- - Net (loss) available to common shareholders $ (1,763 ) $ (8,211 ) Income tax expense (2 ) (4 ) Net (loss) before dividends (1,765 ) (8,215 ) Dividends on preference shares of subsidiary (585 ) - Net (loss) available to common shareholders $ (2,350 ) $ (8,215 ) - ------ - - ------- - Net (loss) per common share: Basic $ (51.30 ) $ (182.08 ) Diluted (51.30 ) (182.08 ) Weighted-average number of common shares outstanding: Basic 45,808 45,120 Diluted 45,808 45,120

See Notes to 2017 Consolidated Financial Statements available on American Overseas Group Ltd. Website at www.aoreltd.com

AMERICAN OVERSEAS GROUP LTD. NET INCOME AND OPERATING INCOME BY SEGMENT -------------------------------------------------------------------- - (dollars in thousands) June 30, 2018 ---------------------------------------------------------- - Net Net Net change Amor income realized in Fair tiza available loss fair value tionOperating to on sales value adjustmen of income common of of ts inta sharehold investment credit $ ngib ers s deriva les tives -------- - --------- - ----- - -------- - --- -------- - Property and casualty: Net premiums earned $ 1,408 $ 1,408 Losses and loss adjustment expenses (946 ) (946 ) Acquisition expenses (355 ) (355 ) Fee income 5,969 5,969 Operating expenses (4,722 ) (4,722 ) Amortization expense - - Income tax (2 ) (2 ) --------- - ----- - -------- - --- -------- - Property and casualty 1,352 - - - - 1,352 Financial guaranty: Net premiums earned (409 ) 2,560 2,151 Net change in fair value of credit derivatives 59 (59 ) 0 Losses and loss adjustment expenses (417 ) (1,924 ) (2,341 ) Acquisition expenses 181 (569 ) (388 ) Operating expenses (3,367 ) (3,367 ) --------- - ----- - -------- - --- -------- - Financial guaranty (3,953 ) - (59 ) 67 - (3,945 ) Corporate and Investing Net investment income 1,123 1,123 Net realized loss on sales of investments 1 (15,601 ) $ 15,600 - Fair value adjustment (274 ) 274 - Operating expenses 1,114 1,114 Interest expense (1,095 ) (1,095 ) Other expense, net of other income (33 ) (33 ) --------- - ----- - -------- - --- -------- - Corporate and investing 836 (15,601 ) - 15,874 - 1,109 Group total $ (1,765 ) $ (15,601 ) $ (59 ) $ 15,941 $ - $ (1,484 ) - ------ - - ------- - - --- - - ------ - - - - ------ -

AMERICAN OVERSEAS GROUP LTD. NET INCOME AND OPERATING INCOME BY SEGMENT ----------------------------------------------------------- (dollars in thousands) June 30, 2017 -------------------------------------------------------------------- Net Net Net realizchange income ed in Fair available loss fair value Amortization Operating to on value of adjustmen of intangibles income common sales credit ts sharehold of derivativ ers investes ments -------- - ----- -------- - -------- - -------------- --------- - Property and casualty: Net premiums earned $ 1,753 $ 1,753 Losses and loss adjustment expenses (2,493 ) (2,493 ) Acquisition expenses (199 ) (199 ) Fee income 5,919 5,919 Operating expenses (4,713 ) (4,713 ) Amortization expense - - Income tax (4 ) (4 ) -------- - ----- -------- - -------- - -------------- Property and casualty 263 - - - - 263 Financial guaranty: Net premiums earned 134 2,985 3,119 Net change in fair value of credit 3,037 (2,946 ) 91 derivatives Losses and loss adjustment expenses (9,955 ) (2,039 ) (11,994 ) Acquisition expenses (61 ) (2,675 ) (2,736 ) Operating expenses (3,361 ) (3,361 ) -------- - ----- -------- - -------- - -------------- Financial guaranty (10,206 ) - (2,946 ) (1,729 ) - (14,881 ) Corporate and Investing Net investment income 886 886 Net realized loss on sales of investments (221 ) 221 - Fair value adjustment 739 (739 ) - Operating expenses 1,164 1,164 Interest expense (1,188 ) (1,188 ) Other expense, net of other income 348 348 -------- - ----- -------- - -------- - -------------- Corporate and investing 1,728 221 - (739 ) - 1,210 Group total $ (8,215 ) $ 221 $ (2,946 ) $ (2,468 ) $ - $ (13,408 ) - ------ - - --- - ------ - - ------ - -------------- - ------- -

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