On November 13, 2024, Oxbridge Re Holdings Ltd (OXBR, Financial) released its 8-K filing, detailing its financial results for the third quarter of 2024. Oxbridge Re Holdings Ltd is a specialty property and casualty reinsurer, focusing on underwriting fully collateralized reinsurance contracts primarily for property and casualty insurance companies in the Gulf Coast region of the United States, with a particular emphasis on Florida.
Company Overview and Strategic Initiatives
Oxbridge Re Holdings Ltd, through its subsidiary SurancePlus, is pioneering the integration of blockchain technology with traditional reinsurance. The company has launched tokenized securities backed by reinsurance contracts on the Avalanche blockchain, aiming to democratize access to this asset class. CEO Jay Madhu highlighted the company's strategic partnership with Zoniqx, which has facilitated over $4 billion of assets on-chain, positioning SurancePlus for continued growth.
Financial Performance Highlights
For the third quarter of 2024, Oxbridge Re Holdings Ltd reported a net loss of $540,000, or $(0.09) per share, a significant improvement from the $7.3 million loss, or $(1.24) per share, in the same period last year. This improvement was primarily due to a decrease in unrealized losses on other investments. Net premiums earned increased to $595,000 from $549,000 in the prior year, driven by reinsurance contracts in force.
Key Financial Metrics and Ratios
Oxbridge Re Holdings Ltd's financial statements reveal a decrease in total expenses to $498,000 from $688,000 in the previous year, attributed to reduced offering costs associated with SurancePlus. The company's cash and cash equivalents, including restricted cash, increased to $4.8 million from $3.7 million at the end of 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss | $(540,000) | $(7,300,000) |
| Net Premiums Earned | $595,000 | $549,000 |
| Total Expenses | $498,000 | $688,000 |
| Cash and Cash Equivalents | $4.8 million | $3.7 million |
Performance Analysis
The company's loss ratio remained at 0%, indicating no losses incurred during the period. The acquisition cost ratio slightly increased to 11.1%, reflecting the operational efficiency in producing and underwriting reinsurance business. Notably, the expense ratio decreased significantly from 125.3% to 83.7%, due to higher premium earnings and lower administrative expenses.
Conclusion
Oxbridge Re Holdings Ltd's strategic focus on blockchain technology and tokenized securities, coupled with improved financial metrics, positions the company for potential growth in the reinsurance sector. The reduction in net loss and improved expense management are positive indicators for investors, highlighting the company's resilience and adaptability in a challenging market environment.
Explore the complete 8-K earnings release (here) from Oxbridge Re Holdings Ltd for further details.
