EX-99.1 2 oxbr_ex991.htm PRESS RELEASE Blueprint
  Exhibit 99.1
 
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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At March 31,
2018
 
 
At December 31,
2017
 
 
 
(Unaudited)
 
 
 
 
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)
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 March 31,
 
 
 
2018
 
 
2017
 
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%