GRAND CAYMAN, Nov. 14, 2022 (GLOBE NEWSWIRE) — Oxbridge Re Holdings Limited (NASDAQ: OXBR), (the “Company”), a supplier of reinsurance options primarily to property and casualty insurers, reported its outcomes for the three and 9 months ended September 30, 2022.
“Our resolve to limiting our exposure to underwriting losses through reinsurance contracts this year, helped significantly in lowering the potential loss caused by the catastrophic damage from Hurricane Ian and Hurricane Nicole” commented Oxbridge Re Holdings President and Chief Executive Officer Jay Madhu. “We continue to be optimistic about our future”.
Financial Performance
Net premiums earned for the three months ended September 30, 2022 elevated to $591,000 from $370,000 in the identical prior 12 months interval. For the 9 months ended September 30, 2022, web premiums earned elevated to $995,000 from $755,000 within the prior 12 months. The will increase are as a result of acceleration of premium recognition on two of the Company’s reinsurance contracts because of a restrict loss suffered in the course of the third quarter of 2022 by Hurricane Ian, in addition to increased charges on reinsurance contracts in comparison with the prior 12 months.
For the three months ended September 30, 2022, the Company generated a web lack of $2.2 million or $0.37 per primary and diluted widespread share in contrast web revenue of $6.5 million or $1.14 per primary and diluted share within the third quarter of 2021. For the 9 months ended September 30, 2022 the Company incurred a web lack of $2.5 million or $0.43 per primary and diluted share in comparison with web revenue of $7.0 million or $1.22 per primary and diluted share within the first 9 months of the prior 12 months. The declines are because of lowered realized funding positive aspects, the destructive change within the unrealized honest worth of fairness securities and different investments for the 9 months ended September 30, 2022, in addition to the impression of Hurricane Ian in the course of the third quarter of the 12 months, compared with prior 12 months.
Total bills, together with losses and loss adjustment bills, coverage acquisition prices and normal and administrative bills, have been $1.5 million and $2.2 million for the three and 9 months ended September 30, 2022, respectively, in comparison with $479,000 and $1.1 million, respectively, for a similar durations within the prior 12 months. The will increase are due primarily to a bigger underwriting loss in the course of the present 12 months durations, improve in coverage acquisition prices because of acceleration of premium recognition and better normal and administrative bills because of inflationary expense fluctuations so far in 2022, compared with the prior durations.
At September 30, 2022, money and money equivalents, and restricted money and money equivalents have been $4.4 million in comparison with $5.4 million at December 31, 2021. Other investments decreased to $10.2 million from $11.2 million at December 31, 2021 as a result of change within the Company’s funding in Oxbridge Acquisition Corp wherein the Company has an fairness funding measured at honest worth.
Financial Ratios
Loss Ratio. The loss ratio, which measures underwriting profitability, is the ratio of losses and loss adjustment bills incurred to web premiums earned. The loss ratio elevated to 181.6% and 107.8% for the three and 9 months ended September 30, 2022, respectively, in comparison with 42.7% and 20.9% for a similar prior 12 months durations as a result of restrict losses suffered on two of the Company’s reinsurance contracts on account of Hurricane Ian, partially offset by the next denominator in web premiums earned, in contrast with the prior 12 months.
Acquisition Cost Ratio. The acquisition price ratio, which measures operational effectivity, compares coverage acquisition prices with web premiums earned, decreased marginally to 11.0% for the three months ended September 30, 2022 from 11.1% in third quarter of 2021. For the 9 months ended September 30, 2022 the acquisition ratio elevated marginally to 11.1% from 11.0% within the prior 12 months.
Expense Ratio. The expense ratio, which measures working efficiency, compares coverage acquisition prices and normal and administrative bills with web premiums earned. The expense ratio decreased to 65.7% and 116.6% for the three and 9 months ended September 30, 2022, respectively, from 86.8% and 122.9% for a similar prior 12 months durations. The decreases are because of the next denominator in web premiums earned to due premium acceleration, partially offset by elevated coverage acquisition prices and normal and administrative bills in 2022 in comparison with the prior 12 months.
Combined ratio. The mixed ratio, which is used to measure underwriting efficiency, is the sum of the loss ratio and the expense ratio. The mixed ratio elevated to 247.2% and 224.4% for the three and 9 months ended September 30, 2022, respectively, from 129.5% and 143.8% for a similar prior 12 months durations. The improve is as a result of improve within the loss ratio in the course of the third quarter of 2022 on account of a restrict loss suffered below two of the Company’s reinsurance contracts and elevated normal administrative bills in comparison with the prior 12 months.
Conference Call
Management will host a convention name later at the moment to debate these monetary outcomes, adopted by a query and reply session. President and Chief Executive Officer Jay Madhu and Chief Financial Officer Wrendon Timothy will host the decision beginning at 4:30 p.m. Eastern time. The reside presentation may be accessed by dialing the quantity beneath.
Date: November 14, 2022
Time: 4:30 p.m. Eastern time
Listen-only toll-free quantity: 888-437-3179
Listen-only worldwide quantity: +1 862-298-0702
Please name the convention phone quantity 10 minutes earlier than the beginning time. An operator will register your identify and group. If you might have any problem connecting with the convention name, please contact InComm Conferencing at 201-493-6311 or [email protected]
A replay of the decision will probably be obtainable by phone after 4:30 p.m. Eastern time on the identical day of the decision and through the Investor Information part of Oxbridge’s web site at www.oxbridgere.com till November 28, 2022.
Toll-free replay quantity: 877-660-6853
International replay quantity: +1 201-612-7415
Replay passcode: 13734445
About Oxbridge Re Holdings Limited
Oxbridge Re (www.oxbridgere.com) is a Cayman Islands exempted firm that was organized in April 2013 to supply reinsurance business options primarily to property and casualty insurers within the Gulf Coast area of the United States. Through Oxbridge Re’s licensed reinsurance subsidiaries, Oxbridge Reinsurance Limited and Oxbridge RE NS, it writes totally collateralized insurance policies to cowl property losses from specified catastrophes. Oxbridge Re makes a speciality of underwriting medium frequency, excessive severity dangers, the place it believes ample knowledge exists to investigate successfully the chance/return profile of reinsurance contracts and it makes investments that may contribute to the expansion of capital and surplus in its licensed reinsurance subsidiaries over time. The firm’s peculiar shares and warrants commerce on the NASDAQ Capital Market below the symbols “OXBR” and “OXBRW,” respectively.
Forward-Looking Statements
This press launch might include forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words comparable to “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project” and different related phrases and expressions are supposed to suggest forward-looking statements. Forward-looking statements will not be ensures of future outcomes and circumstances however quite are topic to varied dangers and uncertainties. An in depth dialogue of dangers and uncertainties that might trigger precise outcomes and occasions to vary materially from such aheadtrying statements is included within the part entitled “Risk Factors” contained in our Form 10Okay filed with the Securities and Exchange Commission (“SEC”) on (date), 2022 and the Form 10-Q filed with the SEC on (date), 2022. The incidence of any of those dangers and uncertainties might have a fabric hostile impact on the Company’s business, monetary situation and outcomes of operations. Any forward-looking statements made on this press launch communicate solely as of the date of this press launch and, besides as required by legislation, the Company undertakes no obligation to replace any forward-looking assertion contained on this press launch, even when the Company’s expectations or any associated occasions, circumstances or circumstances change.
Company Contact:
Oxbridge Re Holdings Limited
Jay Madhu, CEO
345-749-7570
[email protected]
OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
(expressed in hundreds of U.S. Dollars, besides per share and share quantities)
| At September 30, 2022 | At December 31, 2021 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Equity securities, at honest worth (price: $1,926 and $1,522) | $ | 625 | 577 | |||||
| Cash and money equivalents | 2,181 | 3,527 | ||||||
| Restricted money and money equivalents | 2,179 | 1,891 | ||||||
| Premiums receivable | 570 | 284 | ||||||
| Other Investments | 10,187 | 11,173 | ||||||
| Due from Related Party | 8 | 5 | ||||||
| Deferred coverage acquisition prices | – | 38 | ||||||
| Operating lease right-of-use property | 67 | 135 | ||||||
| Prepayment and different property | 106 | 50 | ||||||
| Property and gear, web | 6 | 9 | ||||||
| Total property | $ | 15,929 | 17,689 | |||||
| Liabilities and Shareholders’ Equity | ||||||||
| Liabilities: | ||||||||
| Losses payable | 1,073 | – | ||||||
| Notes payable to noteholders | 216 | 216 | ||||||
| Unearned premiums reserve | – | 350 | ||||||
| Operating lease liabilities | 67 | 135 | ||||||
| Accounts payable and different liabilities | 293 | 337 | ||||||
| Total liabilities | 1,649 | 1,038 | ||||||
| Shareholders’ fairness: | ||||||||
| Ordinary share capital, (par worth $0.001, 50,000,000 shares licensed; 5,781,587 and 5,749,587 shares issued and excellent) | 6 | 6 | ||||||
| Additional paid-in capital | 32,451 | 32,355 | ||||||
| Accumulated Deficit | (18,177 | ) | (15,710 | ) | ||||
| Total shareholders’ fairness | 14,280 | 16,651 | ||||||
| Total liabilities and shareholders’ fairness | $ | 15,929 | 17,689 | |||||
OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(expressed in hundreds of U.S. Dollars, besides per share quantities)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue | ||||||||||||||||
| Assumed premiums | $ | – | – | 705 | 904 | |||||||||||
| Premiums ceded | – | – | (60 | ) | – | |||||||||||
| Change in unearned premiums reserve | 591 | 370 | (241 | ) | (149 | ) | ||||||||||
| Net premiums earned | 591 | 370 | 995 | 755 | ||||||||||||
| Net funding and different revenue | 53 | 25 | 128 | 64 | ||||||||||||
| Net realized funding positive aspects | – | – | 27 | 755 | ||||||||||||
| Unrealized achieve on different funding | (1,327 | ) | 7,146 | (986 | ) | 7,146 | ||||||||||
| Change in honest worth of fairness securities | (13 | ) | (512 | ) | (355 | ) | (566 | ) | ||||||||
| Total income | (696 | ) | 7,029 | (191 | ) | 8,154 | ||||||||||
| Expenses | ||||||||||||||||
| Losses and loss adjustment bills | 1,073 | 158 | 1,073 | 158 | ||||||||||||
| Policy acquisition prices and underwriting bills | 65 | 41 | 110 | 83 | ||||||||||||
| General and administrative bills | 323 | 280 | 1,050 | 845 | ||||||||||||
| Total bills | 1,461 | 479 | 2,233 | 1,086 | ||||||||||||
| (Loss) Income earlier than revenue attributable to noteholders | (2,157 | ) | 6,550 | (2,424 | ) | 7,068 | ||||||||||
| Income attributable to noteholders | – | (24 | ) | (43 | ) | (66 | ) | |||||||||
| Net (loss) revenue | $ | (2,157 | ) | 6,526 | (2,467 | ) | 7,002 | |||||||||
| (Loss) Earnings per share | ||||||||||||||||
| Basic and Diluted | $ | (0.37 | ) | 1.14 | (0.43 | ) | 1.22 | |||||||||
| Weighted-average shares excellent | ||||||||||||||||
| Basic and Diluted | 5,781,587 | 5,733,587 | 5,771,506 | 5,733,587 | ||||||||||||
| Performance ratios to web premiums earned: | ||||||||||||||||
| Loss ratio | 181.6 | % | 42.7 | % | 107.8 | % | 20.9 | % | ||||||||
| Acquisition price ratio | 11.0 | % | 11.1 | % | 11.1 | % | 11.0 | % | ||||||||
| Expense ratio | 65.7 | % | 86.8 | % | 116.6 | % | 122.9 | % | ||||||||
| Combined ratio | 247.2 | % | 129.5 | % | 224.4 | % | 143.8 | % | ||||||||
