Blueprint
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
Oxbridge Re Holdings Limited Reports First Quarter 2018
Results
GRAND CAYMAN, Cayman Islands (May 15, 2018) -- Oxbridge Re
Holdings Limited (OXBR),
a provider of reinsurance solutions primarily to property and
casualty insurers in the Gulf Coast region of the United States,
reported financial results for the first quarter ended March 31,
2018.
First Quarter 2018 Results
Net
loss totaled $211,000 or $(0.04) per basic and diluted common
share, compared with net income of $1.3 million or $0.22 per basic
and diluted common share in the first quarter of 2017. The decrease
was primarily due to lower net premiums earned resulting from
decreased capital deployed during the quarter, as well as
recognition of unrealized losses on equity securities due to the
mandatory adoption of new accounting standards. These changes are
disclosed in greater detail in the “Notes to Consolidated
Financial Statements” section of the Company’s Form
10-Q filing.
Net
premiums earned totaled $220,000 compared with $1.5 million in net
premiums earned in the first quarter of 2017. The decrease was due
to the significantly reduced capital deployed during the quarter,
as well as disproportionate recognition of ILW-related income under
U.S. GAAP during the quarter ended March 31, 2018.
Net
investment income totaled $72,000, which was offset by $173,000 of
net realized investment losses and $172 thousand of unrealized
losses recognized during the quarter as a result of the mandatory
adoption of new accounting standards. This compares with $86,000 of
net investment income and $2,000 of net realized investment gains
in the first quarter of 2017.
Total
expenses, including losses and loss adjustment expenses, policy
acquisition costs and underwriting expenses, and general and
administrative expenses, were $326,000 compared with $366,000 in
the first quarter of 2017. The decrease was due wholly due to the
previous acceleration of premium recognition, as mentioned above,
and the resulting acceleration of policy acquisition costs. Hence,
the current quarter policy acquisition costs only reflect expenses
on one multi-year contract.
At
March 31, 2018, cash and cash equivalents, and restricted cash and
cash equivalents, totaled $11.5 million compared with $10.9 million
at December 31, 2017.
First Quarter 2018 Financial Ratios
Loss
ratio, which measures underwriting profitability, is the ratio of
losses and loss adjustment expenses incurred to net premiums
earned. The loss ratio was 0.0% for the first quarter of 2018,
compared with (2.1)% for the first quarter of 2017. The increase in
the loss ratio was due to the nominal loss and loss adjustment
expenses incurred in the prior period quarter, compared to no loss
and loss adjustment expenses in the quarter ended March 31,
2018.
Acquisition
cost ratio, which measures operational efficiency, compares policy
acquisition costs and other underwriting expenses with net premiums
earned. The acquisition cost ratio was 3.6% for the first quarter
of 2018 compared with 4.1% for the same year-ago period. The
decrease in the acquisition cost ratio was due to the overall lower
weighted-average acquisition costs on reinsurance contracts in
force during the three-month period ended March 31, 2018, compared
with three-month period ended March 31, 2017.
Expense
ratio, which measures operating performance, compares policy
acquisition costs, other underwriting expenses and general and
administrative expenses with net premiums earned. The expense ratio
totaled 84.0% during the first quarter of 2018 compared with 25.7%
for the first quarter of 2017. The increase in the expense ratio
was due to a lower denominator in net premiums earned and net
income from ILW instrument as recorded during the three-month
period ended March 31, 2018, when compared with the corresponding
prior year period.
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 100%, underwriting is not profitable. The combined
ratio totaled 84% for the first quarter of 2018 and 23.6% in the
same year-ago period.
Management Commentary
“The
results of the first quarter were in line with our expectations
given the severity of the prior year’s hurricane season, and
we have, hopefully, put the past behind us,” said Oxbridge Re
Holdings President and CEO Jay Madhu. “As the overall
reinsurance industry begins to recover from the traumatic events of
last year, we recognize the need to exercise both caution and
patience in identifying new opportunities.”
Conference Call
Management
will host a conference call later today to discuss these financial
results, followed by a question and answer session. President and
CEO Jay Madhu, and CFO 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:
Tuesday, May 15, 2018
Time:
4:30 p.m. Eastern time
Listen-only
toll-free number: 877-407-0782
Listen-only
international number: 201-689-8567
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 Precision IR at 919-481-4000 or operations@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 June
15, 2018.
Toll-free
replay number: 877-481-4010
International
replay number: 919-882-2331
Conference
ID: 29064
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 subsidiary, Oxbridge
Reinsurance Limited, 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.
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.
-Tables to follow-
OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(expressed
in thousands of U.S. Dollars, except per share and share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
Investments:
|
|
|
Fixed-maturity
securities, available for sale, at fair value (amortized
cost: $4,416 and $4,450, respectively)
|
$4,396
|
4,433
|
Equity securities,
available for sale, at fair value (cost of $2,058 in
2017)
|
-
|
2,036
|
Equity securities,
at fair value (cost of $1,652 in 2018)
|
1,462
|
-
|
Total
investments
|
5,858
|
6,469
|
Cash and cash
equivalents
|
5,222
|
7,763
|
Restricted cash
and cash equivalents
|
6,240
|
3,124
|
Accrued interest
and dividend receivable
|
31
|
39
|
Premiums
receivable
|
3,582
|
3,798
|
Deferred policy
acquisition costs
|
40
|
48
|
Prepayment and
other assets
|
127
|
116
|
Property and
equipment, net
|
30
|
36
|
Total
assets
|
$21,130
|
21,393
|
|
|
|
Liabilities and Shareholders’ Equity
|
|
|
Liabilities:
|
|
|
Reserve for
losses and loss adjustment expenses
|
$4,154
|
4,836 #
|
Loss experience
refund payable
|
270
|
135
|
Losses
payable
|
376
|
386
|
Unearned premiums
reserve
|
1,657
|
2,012
|
Accounts payable
and other liabilities
|
938
|
106
|
Total
liabilities
|
7,395
|
7,475
|
|
|
|
Shareholders’
equity:
|
|
|
Ordinary share
capital, (par value $0.001, 50,000,000 shares authorized; 5,733,587
shares issued and outstanding)
|
6
|
6
|
Additional
paid-in capital
|
32,131
|
32,100
|
Accumulated
Deficit
|
(18,382)
|
(18,149)
|
Accumulated other
comprehensive loss
|
(20)
|
(39)
|
Total
shareholders’ equity
|
13,735
|
13,918
|
Total liabilities
and shareholders’ equity
|
$21,130
|
21,393
|
OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARIES
|
Consolidated
Statements of Income (unaudited)
|
(expressed
in thousands of U.S. Dollars, except per share and share
amounts)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
Assumed
premiums
|
$-
|
880
|
Change in loss
experience refund payable
|
(135)
|
(748)
|
Change in
unearned premiums reserve
|
355
|
1,416
|
|
|
|
Net premiums
earned
|
220
|
1,548
|
Net income from
derivative instruments
|
168
|
-
|
Net investment
income
|
72
|
86
|
Net
realized investment (losses) gains
|
(173)
|
2
|
Change
in fair value of equity securities
|
(172)
|
-
|
|
|
|
Total
revenue
|
115
|
1,636
|
|
|
|
Expenses
|
|
|
Losses and loss
adjustment expenses
|
-
|
(32)
|
Policy
acquisition costs and underwriting expenses
|
8
|
63
|
General and
administrative expenses
|
318
|
335
|
|
|
|
Total
expenses
|
326
|
366
|
|
|
|
Net (loss)
income
|
$(211)
|
1,270
|
|
|
|
|
|
|
(Loss) Earnings per share
|
|
|
Basic and
Diluted
|
$(0.04)
|
0.22
|
|
|
|
Dividends paid per share
|
$-
|
0.12
|
|
|
|
|
|
|
Performance
ratios to net premiums earned:
|
|
|
Loss
ratio
|
0.0%
|
-2.1%
|
Acquisition cost
ratio
|
3.6%
|
4.1%
|
Expense
ratio
|
84.0%
|
25.7%
|
Combined
ratio
|
84.0%
|
23.6%
|