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 Second Quarter 2019
Results
GRAND CAYMAN, CAYMAN ISLANDS / ACCESSWIRE / August 1, 2019
– Oxbridge Re
(NASDAQ: OXBR),
a provider of reinsurance solutions primarily to property and
casualty insurers, reported financial results for the second
quarter ended June 30, 2019.
Second Quarter 2019 Results
Net
loss totaled $205,000 or $(0.04) per basic and diluted common
share, compared with a net income of $265,000 or $0.05 per basic
and diluted common share in the second quarter of 2018. The
increase in net loss
was due primarily to lower net premiums earned
resulting from decreased capital deployed during the second quarter
of 2019 compared to the prior year period.
Net
premiums earned were $93,000 compared with $334,000 in the second
quarter of 2018. The decrease in net premiums earned was wholly due
to the previous acceleration of premium recognition due to full
limit losses being incurred on all the Company’s reinsurance
contracts during the quarter ended December 31, 2018, as well as
lower capital being deployed in the current period, when compared
to the same quarter a year ago.
Net
investment income totaled $64,000, which was offset by ($48,000) of
change in fair value of equity securities. This compares with
$108,000 of net investment income plus $73,000 of change in fair
value of equity securities in the second quarter of
2018.
Total
expenses, including losses and loss adjustment expenses, policy
acquisition costs and underwriting expenses, and general and
administrative expenses, were $290,000 compared with $396,000 in
the second quarter of 2018. The decrease in expenses was due to a
decrease in policy acquisition costs and underwriting expenses as a
result of the decrease in net premiums earned during the current
quarter as well as a decrease in general and administrative
expenses as a result of cost savings initiatives implemented by the
Company, when compared to the prior year period.
At June
30, 2019, cash and cash equivalents, and restricted cash and cash
equivalents, totaled $8.0 million compared with $11.3 million at
December 31, 2018.
Second Quarter 2019 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 second quarter of 2019,
compared with 0.0% for the second quarter of 2018. The loss ratio
results were due to no loss and loss adjustment expenses incurred
in the quarters ended June 30, 2019 and June 30, 2018,
respectively.
Acquisition
cost ratio, which measures operational efficiency, compares policy
acquisition costs and other underwriting expenses with net premiums
earned. The acquisition cost ratio was 10.8% for the second quarter
of 2019 compared with 8.7% for the same year-ago period. The
increase in acquisition cost ratio was due to the overall higher
weighted-average acquisition costs on reinsurance contracts in
force during the three months ended June 30, 2019, when compared
with the same period a year ago.
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
was 311.8% during the second quarter of 2019 compared with 73.1%
for the second quarter of 2018. The increase in expense ratio was
due primarily to a lower denominator in net premiums earned and net
income from derivative instruments as recorded during the
three-month period ended June 30, 2019 when compared with the same
year-ago 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 311.8% for the second quarter of 2019 and 73.1% in
the same year-ago period. The increase in combined ratio was wholly
due to a lower denominator in net premiums earned and net income
from derivative instruments as recorded during the second quarter
of 2019, when compared with the quarter a year ago.
Six Months Ended June 30, 2019 Financial Results
Net
loss totaled $351,000 or $(0.06) per basic and diluted common
share, compared with net income of $54,000 or $0.01 per basic and
diluted common share for the first six months of 2018. The increase
in net loss was due primarily to lower net premiums earned
resulting from decreased capital deployed during the six months
ended June 30, 2019 compared to the prior year period.
Net
premiums earned totaled $93,000 compared with $554,000 for the
first six months of 2018. The decrease in net premiums earned was
primarily due to lower capital being deployed during the first six
months of 2019 when compared to the same period in the prior fiscal
year.
Net
investment income totaled $128,000 plus $3,000 of net realized
investment gains and $3,000 of change in fair value of equity
securities. This compares with $180,000 of net investment income,
which was offset by ($176,000) of net realized investment losses
and ($96,000) of change in fair value of equity securities for the
first six months of 2018.
Total
expenses, including losses and loss adjustment expenses, policy
acquisition costs and underwriting expenses, and general and
administrative expenses, were $554,000 compared with $722,000 in
the first six months of 2018. The decrease in total expenses was
due to cost savings initiatives implemented by the Company during
the six months ended June 30, 2019 compared to the prior year
period.
Six Months Ended June 30, 2019 Financial Ratios
The
loss ratio was 0.0% compared to a loss ratio of 0.0% during the
first six months of 2018. The loss ratio results were due to no
loss and loss adjustment expenses incurred in the six-month periods
ended June 30, 2019 and June 30, 2018, respectively.
The
acquisition cost ratio was 10.8% compared with 6.9% for the same
year-ago period. The increase in acquisition cost ratio was due to
the overall higher weighted-average acquisition costs on
reinsurance contracts in force during the six-month period ended
June 30, 2019, compared with six-month period ended June 30,
2018.
The
expense ratio was 595.7% compared with 77.6% for the first six
months of 2018. The increase in expense ratio was due primarily to
a lower denominator in net premiums earned and net income from
derivative instruments as recorded during the six-month period
ended June 30, 2019 when compared with the same period a year
ago.
The
combined ratio was 595.7% compared with 77.6% for the year-ago
period. The increase in combined ratio was wholly due to a lower
denominator in net premiums earned and net income from derivative
instruments as recorded during the six-month period ended June 30,
2019 when compared with the six-month period ended June 30,
2018.
Management Commentary
“While
we always employ a conservative approach in our underwriting, for
this treaty year we exercised additional caution in placing our new
reinsurance contracts with the goal of further improving our risk
management and ensuring long-term durability,” said Oxbridge
Re Holdings President and Chief Executive Officer Jay Madhu.
“During the quarter, we also successfully raised funds
through our reinsurance sidecar and deployed the proceeds alongside
our new contracts for the current year. With a cash and restricted
cash position of approximately $8 million, our equity currently
translates into a book value per share of $1.39. We remain
optimistic about the long-term prospects of our reinsurance
business as we continue to evaluate additional opportunities for
growth as well as diversification of risk.”
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:
Tuesday, August 1, 2019
Time:
4:30 p.m. Eastern time
Listen-only
toll-free number: 844-602-0380
Listen-only
international number: 862-298-0970
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 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
September 1, 2019.
Toll-free
replay number: 877-481-4010
International
replay number: 919-882-2331
Conference
ID: 51700
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.
-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 of
$991 in 2018)
|
$-
|
993
|
Equity securities,
at fair value (cost : $612 and $210 respectively)
|
567
|
162
|
Total
investments
|
567
|
1,155
|
Cash and cash
equivalents
|
6,274
|
8,074
|
Restricted cash and
cash equivalents
|
1,751
|
3,225
|
Accrued interest
and dividend receivable
|
9
|
15
|
Premiums
receivable
|
993
|
-
|
Deferred policy
acquisition costs
|
113
|
-
|
Operating lease
right-of-use assets
|
146
|
-
|
Prepayment and
other assets
|
123
|
74
|
Property and
equipment, net
|
13
|
18
|
Total
assets
|
$9,989
|
12,561
|
|
|
|
Liabilities
and Shareholders’ Equity
|
|
|
Liabilities:
|
|
|
Reserve for losses
and loss adjustment expenses
|
$107
|
4,108
|
Notes payable to
Series 2019-1 noteholders
|
600
|
-
|
Unearned premiums
reserve
|
1,023
|
-
|
Operating lease
liabilities
|
146
|
-
|
Accounts payable
and other liabilities
|
134
|
139
|
Total
liabilities
|
2,010
|
4,247
|
|
|
|
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
|
32,244
|
32,226
|
Accumulated
Deficit
|
(24,271)
|
(23,920)
|
Accumulated other
comprehensive income
|
-
|
2
|
Total
shareholders’ equity
|
7,979
|
8,314
|
Total liabilities
and shareholders’ equity
|
$9,989
|
12,561
|
|
|
|
OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARY
Consolidated Statements of Income (unaudited)
(expressed in thousands of U.S. Dollars, except per share and share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
Assumed
premiums
|
$1,116
|
2,580
|
1,116
|
2,580
|
Premiums
ceded
|
-
|
-
|
-
|
-
|
Change in loss
experience refund payable
|
-
|
(90)
|
-
|
(225)
|
Change in unearned
premiums reserve
|
(1,023)
|
(2,156)
|
(1,023)
|
(1,801)
|
|
|
|
|
|
Net premiums
earned
|
93
|
334
|
93
|
554
|
Net income from
derivative instruments
|
-
|
208
|
-
|
376
|
Net investment and
other income
|
64
|
108
|
128
|
180
|
Net realized
investment (losses) gains
|
-
|
-
|
3
|
(176)
|
Change in fair
value of equity securities
|
(48)
|
73
|
3
|
(96)
|
|
|
|
|
|
Total
revenue
|
109
|
723
|
227
|
838
|
|
|
|
|
|
Expenses
|
|
|
|
|
Loss on
commutation
|
-
|
8
|
-
|
8
|
Policy acquisition
costs and underwriting expenses
|
10
|
29
|
10
|
38
|
General and
administrative expenses
|
280
|
359
|
544
|
676
|
|
|
|
|
|
Total
expenses
|
290
|
396
|
554
|
722
|
|
|
|
|
|
(Loss) Income
before (income) attributable to Series 2019-1
noteholders
|
$(181)
|
327
|
(327)
|
116
|
|
|
|
|
|
(Income)
attributable to Series 2019-1 noteholders
|
(24)
|
(62)
|
(24)
|
(62)
|
|
|
|
|
|
Net (loss)
income
|
(205)
|
265
|
(351)
|
54
|
|
|
|
|
|
(Loss)
Earnings per share
|
|
|
|
|
Basic and
Diluted
|
$(0.04)
|
0.05
|
(0.06)
|
0.01
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid per share
|
$-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
ratios to net premiums earned:
|
|
|
|
|
Loss
ratio
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
Acquisition cost
ratio
|
10.8%
|
8.7%
|
10.8%
|
6.9%
|
Expense
ratio
|
311.8%
|
73.1%
|
595.7%
|
77.6%
|
Combined
ratio
|
311.8%
|
73.1%
|
595.7%
|
77.6%
|