American Overseas Group Limited Announces Q2 2012 Results (Excerpt)

Hamilton, Bermuda – 28 September, 2012 - American Overseas Group Limited (the “Company” or "AOG"; BSX Ticker: AORE.BH; Pink Sheets: AORE.PK) reported second quarter 2012 net loss available to common shareholders of $2.5 million, or $0.93 per diluted share. This compares to net loss available to common shareholders of $1.5 million, or $0.58 per diluted share, for the second quarter 2011. Net loss available to common shareholders for the first six months of 2012 was $6.9 million, or $2.61 per diluted share, compared to net income of $4.5 million, or $1.70 per diluted share, for the first six months of 2011.

During the second quarter of 2012, operating income, a non GAAP financial measure, was $1.5 million, or $0.57 per diluted share, compared to an operating loss of $2.5 million, or $0.95 per diluted share, during the second quarter of 2011. Operating income for the first six months of 2012 was $1.7 million, or $0.66 per diluted share, compared to operating income of $2.3 million, or $0.88 per diluted share, for the first six months of 2011.

The Company’s net income (loss) is calculated in conformity with U.S. generally accepted accounting principles (“GAAP”). The Company also provides information regarding its operating income, a non-GAAP financial measure, because the Company’s management and Board of Directors, as well as many research analysts and investors, also evaluate financial performance on the basis of operating income, which excludes non-operating items such as realized investment gains or losses, unrealized gains or losses on credit derivatives and foreign currency gains or losses. Please refer to “Explanation of Non-GAAP Financial Measures” below for a description of operating income and for a reconciliation of operating income to net income.

Commenting on the financial results, the Company’s Chief Executive Officer, David Steel, noted that, “Our 2012 second quarter net loss was largely the result of a $2.4 million net change in fair value of credit derivatives during the period and loss development on our financial guaranty reinsurance exposures. As noted in the past, we view operating income, which among other items excludes unrealized gains and losses on derivatives, as a better measure of quarterly performance. Our 2012 second quarter operating income of $1.5 million was largely driven by earned premiums net of our loss development primarily related to our US RMBS exposures. For the first six months of 2012, operating income was $1.7 million.”

Information About the Company

American Overseas Group Limited is a Bermuda-based holding company. Its operating subsidiary, American Overseas Reinsurance Company Ltd., has historically provided financial guaranty reinsurance for U.S. and international public finance and structured finance transactions. More information can be found at www.aoreltd.com.

The Company will post the full text of this release as well as its second quarter 2012 financial results to its website at www.aoreltd.com under "Investor Information". If you are a shareholder of American Overseas Group Limited and wish to receive a hard copy of the financial statements by mail, please contact:

American Overseas Group Limited

Schroders House, 1st Floor

131 Front Street

Hamilton, HM 12

Bermuda

Attention: David Steel

Telephone: 441-296-6501

Email: info@aoreltd.com