Oxbridge Re Holdings Limited Reports Second Quarter 2023 Results
GRAND CAYMAN, Cayman Islands, Aug. 14, 2023 (GLOBE NEWSWIRE) -- Oxbridge Re Holdings Limited (NASDAQ: OXBR), (the “Company”), a provider of reinsurance solutions primarily to property and casualty insurers, reported its results for the three and six months ended June 30, 2023.
“Our stable performance continued in the second quarter of 2023 with, again, no losses incurred,” commented Oxbridge Re Holdings Chairman and Chief Executive Officer Jay Madhu.
“During the second quarter we were pleased to complete the private placement of approximately
“SurancePlus is now a brand-new, well-capitalized business and growth opportunity for our shareholders, created without any new debt and no equity dilution. We are very proud of this accomplishment and look for this exciting new entity to diversify and accelerate our growth prospects in the years ahead.”
“We were also pleased that, subsequent to the second quarter, Oxbridge Acquisition Corp. (NASDAQ: OXAC), the special purpose acquisition company in which we have a significant investment, completed its business combination agreement with Jet.AI Inc., a software and aviation company. The company develops software leveraging artificial intelligence and offers fractional aircraft ownership, jet card, aircraft brokerage and charter through its fleet of private aircraft and those of its operating partner. The software segment of the company features the B2C CharterGPT app and the B2B Jet.AI Operator platform. The CharterGPT app uses natural language processing and machine learning to improve the private jet booking experience. The Jet.AI operator platform offers a suite of stand-alone software products to enable FAA Part 135 charter providers to add revenue, maximize efficiency and reduce carbon footprint. The Aviation segment features jet aircraft fractions, jet cards, on-fleet charter, management, and buyer’s brokerage.’’ (See Subsequent Event below.)
“Looking ahead, with a strong balance sheet, no debt, and with our recent transactions a well-diversified business, we remain highly confident in our future ability to deliver shareholder value,” Jay Madhu concluded.
Financial Performance
For the three months ended June 30, 2023, the Company generated a net loss of
Net premiums earned for the three months ended June 30, 2023 were
There were no losses incurred for the three and six months ended June 30, 2023 or 2022.
Total expenses were
At June 30, 2023, cash and cash equivalents, and restricted cash and cash equivalents were
Financial Ratios
Loss Ratio. The loss ratio, which measures underwriting profitability, is the ratio of losses and loss adjustment expenses incurred to net premiums earned. The loss ratio was
Acquisition Cost Ratio. The acquisition cost ratio, which measures operational efficiency and compares policy acquisition costs with net premiums earned, remained consistent at
Expense Ratio. The expense ratio, which measures operating performance, compares policy acquisition costs and general and administrative expenses with net premiums earned. The expense ratio increased to
Combined ratio. The combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and the expense ratio. The combined ratio increased to
SurancePlus Offering
On June 27, 2023, SurancePlus Inc. completed its private placement (the “Private Placement”) of Series DeltaCat Re Preferred Shares represented by DeltaCat Re Tokens (the “Securities”). On June 27, 2023, SurancePlus entered into subscription agreements with accredited investors and non-U.S. persons in the Private Placement with respect to 229,766 of the Securities at a purchase price of
Subsequent Event
On August 7, 2023, OXAC held an extraordinary general meeting at which the business combination with Jet Token, Inc. was approved by OXAC shareholders. In conjunction with the business combination, OXAC was redomesticated as a Delaware entity, and changed its name to Jet.AI Inc. The business combination was closed on August 10, 2023, and on August 11, 2023, OXAC common stock and warrants began trading on the Nasdaq Global Market under the new ticker symbols JTAI and JTAIW.
Conference Call
Management will host a conference call later today to discuss these financial results, followed by a question and-answer 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: August 14, 2023
Time: 4.30 p.m. Eastern time
Toll-free number: 800 343-4136
International number: +1 203 518-9843
Passcode (required): OXBRIDGE
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 InComm Conferencing at 201 493-6280 or 877 804-2066
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 August 28th, 2023.
Toll-free replay number: 877-660-6853
International replay number: +1-201-612-7415
Conference ID: 13740555
About Oxbridge Re Holdings Limited
Oxbridge Re Holdings Limited (www.oxbridgere.com) (NASDAQ: OXBR, OXBRW) (“Oxbridge Re”) is a Cayman Islands exempted company. Its primary subsidiaries are SurancePlus, Oxbridge Reinsurance Limited & Oxbridge Re NS. SurancePlus; is a Web3-focused subsidiary that currently leverages blockchain technology to democratize access to high-return reinsurance contracts via digital securities. Oxbridge Reinsurance Limited; is a licensed reinsurance subsidiary that provides reinsurance business solutions primarily to property and casualty insurers in the Gulf Coast region of the United States; Oxbridge Re NS; a licensed reinsurance SPV/side car that provides third-party investors with access to reinsurance contracts with returns uncorrelated to the financial markets. In addition, Oxbridge Re is also the founding and lead investor of Oxbridge Acquisition Corp. (NASDAQ: OXAC), a special purpose acquisition company (“SPAC”).
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. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission (“SEC”) on 30th March, 2023. 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.
Company Contact:
Oxbridge Re Holdings Limited
Jay Madhu, CEO
345-749-7570
jmadhu@oxbridgere.com
OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
(expressed in thousands of U.S. Dollars, except per share and share amounts)
At June 30, 2023 | At December 31,2022 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Investments: | ||||||||
Equity securities, at fair value (cost: | $ | 723 | 642 | |||||
Cash and cash equivalents | 3,117 | 1,207 | ||||||
Restricted cash and cash equivalents | 372 | 2,721 | ||||||
Accrued interest and dividend receivable | 7 | - | ||||||
Premiums receivable | 1,954 | 282 | ||||||
Other Investments | 11,928 | 11,423 | ||||||
Due from Related Party | 99 | 45 | ||||||
Deferred policy acquisition costs | 221 | - | ||||||
Operating lease right-of-use assets | 60 | 44 | ||||||
Prepayment and other assets | 85 | 114 | ||||||
Prepaid Offering Costs | 135 | 133 | ||||||
Property and equipment, net | 7 | 5 | ||||||
Total assets | $ | 18,708 | 16,616 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Unearned Premium | 2,013 | - | ||||||
Other Liabilities - Delta Cat Re Token Holders | 1,059 | - | ||||||
Notes payable to noteholders | 118 | 216 | ||||||
Losses payable | - | 1,073 | ||||||
Operating lease liabilities | 60 | 44 | ||||||
Accounts payable and other liabilities | 303 | 294 | ||||||
Total liabilities | 3,553 | 1,627 | ||||||
Shareholders’ equity: | ||||||||
Ordinary share capital, (par value | 6 | 6 | ||||||
Additional paid-in capital | 32,591 | 32,482 | ||||||
Accumulated Deficit | (17,442 | ) | (17,499 | ) | ||||
Total shareholders’ equity | 15,155 | 14,989 | ||||||
Total liabilities and shareholders’ equity | $ | 18,708 | 16,616 |
OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(expressed in thousands of U.S. Dollars, except per share amounts)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | ||||||||||||||||
Assumed premiums | $ | 2,196 | 669 | 2,196 | 705 | |||||||||||
Premiums ceded | - | (24 | ) | - | (60 | ) | ||||||||||
Change in unearned premiums reserve | (2,013 | ) | (451 | ) | (2,013 | ) | (241 | ) | ||||||||
Net premiums earned | 183 | 194 | 183 | 404 | ||||||||||||
SurancePlus management fee income | 300 | - | 300 | - | ||||||||||||
Net investment and other income | 79 | 41 | 168 | 75 | ||||||||||||
Net realized investment gain | - | 19 | - | 27 | ||||||||||||
Unrealized gain on other investments | 124 | 571 | 505 | 341 | ||||||||||||
Change in fair value of equity securities | 5 | (322 | ) | 81 | (342 | ) | ||||||||||
Total revenue | 691 | 503 | 1,237 | 505 | ||||||||||||
Expenses | ||||||||||||||||
Policy acquisition costs and underwriting expenses | 20 | 21 | 20 | 44 | ||||||||||||
General and administrative expenses | 677 | 389 | 1,081 | 728 | ||||||||||||
Total expenses | 697 | 410 | 1,101 | 772 | ||||||||||||
(Loss) income before income attributable to noteholders and tokenholders | (6 | ) | 93 | 136 | (267 | ) | ||||||||||
Income attributable to noteholders and tokenholders | (79 | ) | (16 | ) | (79 | ) | (43 | ) | ||||||||
Net (loss) income | $ | (85 | ) | 77 | 57 | (310 | ) | |||||||||
(Loss) earnings per share | ||||||||||||||||
Basic and Diluted | $ | (0.01 | ) | 0.01 | 0.01 | (0.05 | ) | |||||||||
Weighted-average shares outstanding | ||||||||||||||||
Basic and Diluted | 5,870,234 | 5,781,586 | 5,863,973 | 5,766,382 | ||||||||||||
Performance ratios to net premiums earned: | ||||||||||||||||
Loss ratio | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||
Acquisition cost ratio | 10.9 | % | 10.8 | % | 10.9 | % | 10.9 | % | ||||||||
Expense ratio | 380.9 | % | 211.3 | % | 601.6 | % | 191.1 | % | ||||||||
Combined ratio | 380.9 | % | 211.3 | % | 601.6 | % | 191.1 | % |