American Overseas Group Ltd (OTC:AOREF)

Commenting on the financial results, the Company's Chief Executive Officer, David Steel, noted that, "Our 2013 first quarter net loss was primarily the result of a $18.3 million unrealized loss within the net change in fair value of credit derivatives during the period. As noted in the past, we view operating income, which excludes unrealized gains and losses on derivatives, as a better measure of quarterly performance. Our 2013 operating income of $4.2 million was primarily driven by public finance refunding activity and by favorable loss development in our financial guaranty book related to our US residential mortgage-backed securities ("RMBS") reinsurance contracts".

"In the first quarter of 2013 we continued to pursue our plan to write new business in the short-tail, non-catastrophe property/casualty reinsurance markets. We believe this new business fits well with the long-tail run-off of the remaining financial guaranty portfolio. We intend to build our property/casualty book prudently as our subsidiary American Overseas Reinsurance Company Limited ("AORE") emerges from run-off."