Oxbridge Re Holdings Limited Reports Improved 2020 Results
Oxbridge Re Holdings Limited (NASDAQ:OXBR) announced its financial results for the year ending December 31, 2020. The company achieved a net income of $181,000 in Q4 2020, compared to $61,000 in Q4 2019. Full-year net loss decreased to $50,000 from $305,000 in 2019, driven by increased net premiums earned and lower G&A expenses. Premium income rose to $893,000 for 2020, while total expenses slightly declined. The company reported a 0% loss ratio and a combined ratio of 126.1% for the year. Optimistic projections include a 24% return on investment for sidecar investors.
- Net income for Q4 2020 increased to $181,000 from $61,000 in Q4 2019.
- Full-year net loss improved to $50,000 from $305,000 in 2019.
- Net premiums earned rose to $893,000 in 2020 from $617,000 in the prior year.
- 24% projected return on investment for SPV/sidecar investors.
- Combined ratio for 2020 was 126.1%, indicating underwriting loss.
- Expense ratios increased to 126.1% for 2020 compared to 183.3% in 2019.
GRAND CAYMAN, CAYMAN ISLANDS / ACCESSWIRE / March 30, 2021 / Oxbridge Re Holdings Limited (NASDAQ:OXBR), a provider of reinsurance solutions primarily to property and casualty insurers, reported its results for the three months and year ended December 31, 2020.
2020 HIGHLIGHTS:
- Improved results due to higher net premiums earned and net realized gains on investments
- Significant gain in net income in fourth quarter
- Premium income rises on normalized recognition
- No losses incurred
- G&A expenses decline due to cost savings initiatives
- Projected
24% plus return on investment to our SPV / sidecar investors in Series 2020-1 participating notes
Fiscal 2020 was another good year despite the pandemic and it being the most active hurricane season on record. Our business has remained resilient and to a great extend unaffected. Looking ahead, we are optimistic about the long-term prospects of our core reinsurance business and strong projected returns for our SPV / sidecar investors. We continue to prudently evaluate new opportunities to generate growth while mitigating and diversifying our risk profile," said Oxbridge Re Holdings President and Chief Executive Officer Jay Madhu.
Financial Performance
For the three months ended December 31, 2020 the Company generated net income of
Net premiums earned for the three months ended December 31, 2020 increased marginally to
Total expenses, including policy acquisition costs and underwriting expenses and general and administrative expenses were
compared with only seven months in the prior year due to the previous acceleration of such costs upon suffering limit losses on reinsurance contracts. General and administrative costs were marginally lower in 2020 compared to the prior year due to cost savings initiatives implemented by the Company.
At December 31, 2020, cash and cash equivalents, and restricted cash and cash equivalents, totaled
Financial Ratios
Loss ratio, which measures underwriting profitability, is the ratio of losses and loss adjustment expenses incurred to net premiums earned. For the three months and year ended December 31, 2020 and December 31, 2019 the loss ratios were
Acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs and other underwriting expenses with net premiums earned. The acquisition cost ratios for the three months and year ended December 31, 2020 were
Expense ratio, which measures operating performance, compares policy acquisition costs, other underwriting expenses and general and administrative expenses with net premiums earned. The expense ratios for the three months and year ended December 31, 2020 were
Combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and the expense ratio. If the combined ratio is at or above
Conference Call
Management will host a conference call later today to discuss these financial results, followed by a Q&A session. President and Chief Executive Officer Jay Madhu and Chief Financial Officer Wrendon Timothy will host the call starting at 4:30 p.m. Eastern time. The live presentation can be accessed by dialing the number below or by clicking the webcast link available on the Investor Information section of the company's website at www.oxbridgere.com.
Date: March 30, 2021
Time: 4:30 p.m. Eastern time
Listen-only toll-free number: 888-506-0062
Listen-only international number: 973-528-0011
Please call the conference telephone number 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Issuer Direct at 919-481-4000 or webcast@issuerdirect.com.
A replay of the call will be available by telephone after 4:30 p.m. Eastern time on the same day of the call and via the Investor Information section of Oxbridge's website at www.oxbridgere.com until (date), 2021.
Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Conference ID: 40285
About Oxbridge Re Holdings Limited
Oxbridge Re (www.oxbridgere.com) is a Cayman Islands exempted company that was organized in April 2013 to provide reinsurance business solutions primarily to property and casualty insurers in the Gulf Coast region of the
United States. Through Oxbridge Re's licensed reinsurance subsidiaries, Oxbridge Reinsurance Limited and Oxbridge RE NS, it writes fully collateralized policies to cover property losses from specified catastrophes. Oxbridge Re specializes in underwriting medium frequency, high severity risks, where it believes sufficient data exists to analyze effectively the risk/return profile of reinsurance contracts. The company's ordinary shares and warrants trade on the NASDAQ Capital Market under the symbols "OXBR" and "OXBRW," respectively. The company's ordinary shares are included in the Russell Microcap Index.
Forward-Looking Statements
This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan," "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the Company's filings with the SEC. The occurrence of any of these risks and uncertainties could have a material adverse effect on the Company's business, financial condition and results of operations. Any forward-looking statements made in this press release speak only as of the date of this press release and, except as required by law, the Company undertakes no obligation to update any forward-looking statement contained in this press release, even if the Company's expectations or any related events, conditions or circumstances change.
On March 11, 2020, the World Health Organization characterized the outbreak of COVID-19 as a global pandemic. The pandemic has had and is expected to continue to have a significant effect on the reinsurance industry. The industry is currently being impacted by a number of factors including: uncertainties with respect to current and future losses, reduction in interest rates, equity market volatility and ongoing business and financial market impacts of an economic downturn. The insurance industry is likely to experience material losses resulting from COVID-19, which will reduce available capital and we expect will help to sustain the upward pricing trend for reinsurers that we were seeing across many lines of business before COVID-19. However, the ultimate impact on current business in force as well as risks and potential opportunities on future business remains highly uncertain.
OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
(expressed in thousands of U.S. Dollars, except per share and share amounts)
| At December 31, | ||||||||
| 2020 | 2019 | |||||||
Assets | ||||||||
Equity securities, at fair value (cost : | 787 | 692 | ||||||
Cash and cash equivalents | 5,562 | 5,962 | ||||||
Restricted cash and cash equivalents | 1,914 | 2,054 | ||||||
Accrued interest and dividend receivable | 1 | 12 | ||||||
Premiums receivable | 464 | 506 | ||||||
Deferred policy acquisition costs | 45 | 48 | ||||||
Operating lease right-of-use assets | 222 | 133 | ||||||
Prepayment and other assets | 75 | 79 | ||||||
Property and equipment, net | 13 | 9 | ||||||
Total assets | $ | 9,083 | 9,495 | |||||
Liabilities and Shareholders' Equity | ||||||||
Liabilities: | ||||||||
Notes payable | 216 | 600 | ||||||
Unearned premiums reserve | 411 | 440 | ||||||
Operating lease liabilities | 222 | 133 | ||||||
Accounts payable and other liabilities | 209 | 279 | ||||||
Total liabilities | 1,058 | 1,452 | ||||||
Shareholders' equity: | ||||||||
Ordinary share capital, (par value | 6 | 6 | ||||||
Additional paid-in capital | 32,294 | 32,262 | ||||||
Accumulated Deficit | (24,275 | ) | (24,225 | ) | ||||
Total shareholders' equity | 8,025 | 8,043 | ||||||
Total liabilities and shareholders' equity | $ | 9,083 | 9,495 | |||||
OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Statements of Operations
(expressed in thousands of U.S. Dollars, except per share and share amounts)
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue | ||||||||||||||||
Assumed premiums | $ | - | (59 | ) | 864 | 1,057 | ||||||||||
Change in unearned premiums reserve | 247 | 304 | 29 | (440 | ) | |||||||||||
Net premiums earned | 247 | 245 | 893 | 617 | ||||||||||||
Net investment and other income | 13 | 48 | 102 | 230 | ||||||||||||
Net realized investment gain | 49 | - | 374 | 3 | ||||||||||||
Change in fair value of equity securities | 187 | 5 | (155 | ) | 25 | |||||||||||
Net gain on commutation | - | 106 | - | 106 | ||||||||||||
Total revenue | 496 | 404 | 1,214 | 981 | ||||||||||||
Expenses | ||||||||||||||||
Policy acquisition costs and underwriting expenses | 27 | 23 | 98 | 64 | ||||||||||||
General and administrative expenses | 262 | 259 | 1,028 | 1,067 | ||||||||||||
Total expenses | 289 | 282 | 1,126 | 1,131 | ||||||||||||
Income/(Loss) before underwriting income attributable to noteholders | 207 | 122 | 88 | (150 | ) | |||||||||||
Underwriting income attributable to noteholders | (26 | ) | (61 | ) | (138 | ) | (155 | ) | ||||||||
Net income/(loss) | $ | 181 | 61 | (50 | ) | (305 | ) | |||||||||
Earnings/(Loss) per share | ||||||||||||||||
Basic and Diluted | $ | 0.03 | 0.01 | (0.01 | ) | (0.05 | ) | |||||||||
Weighted-average shares outstanding | ||||||||||||||||
Basic and Diluted | 5,733,587 | 5,733,587 | 5,733,587 | 5,733,587 | ||||||||||||
Performance ratios to net premiums earned: | ||||||||||||||||
Loss ratio | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||
Acquisition cost ratio | 10.9 | % | 9.4 | % | 11.0 | % | 10.4 | % | ||||||||
Expense ratio | 117.0 | % | 115.1 | % | 126.1 | % | 183.3 | % | ||||||||
Combined ratio | 117.0 | % | 115.1 | % | 126.1 | % | 183.3 | % | ||||||||
Company Contact:
Oxbridge Re Holdings Limited
Jay Madhu, CEO
345-749-7570
jmadhu@oxbridgere.com
Media contact:
Suzie Boland
RFB Communications Group
813-259-0345
sboland@rfbcommunications.com
SOURCE: Oxbridge Re Holdings Limited
View source version on accesswire.com:
https://www.accesswire.com/638093/Oxbridge-Re-Holdings-Limited-Reports-Improved-2020-Results
FAQ
What were Oxbridge Re Holdings Limited's financial results for 2020?
How did net premiums earned change in 2020 for OXBR?
What was the combined ratio for Oxbridge Re in 2020?
What is the projected return on investment for OXBR's SPV/sidecar investors?
