Oxbridge Re posts higher Q3’23 net loss

Oxbridge Re Holdings, a provider of reinsurance solutions primarily to property & casualty insurers, has reported a net loss of $7.3 million in the third-quarter of 2023, compared to net loss of $2.2 million in the third quarter of 2022.

The company stated that the loss in the quarter is due primarily to an unrealized loss on other investments, representing our investment in Jet.AI Inc.

The combined ratio increased marginally to 244.4% for the nine months ended September 30, 2023 from 224.4% in the prior year due to the higher general and administrative expenses incurred in 2023.

Net premiums earned for the three months ended September 30, 2023, were $549,000 compared to $591,000 in the same prior year period.

Total expenses were $688,000 for the three months ended September 30, 2023, compared to $1.5 million for the same period in the prior year.

For the nine months ended September 30, 2023, the Company generated a net loss of $7.2 million compared to a net loss of $2.5 million in the prior year. The increase in net loss was the result of an unrealized loss on other investments and equity securities more than offsetting the underwriting income and SurancePlus ITOM fee income compared with the prior year.

For the nine months ended September 30, 2023, net premiums earned were $732,000 compared to $995,000 in the prior year. The decreases are due to the acceleration of premium recognition on one of the Company’s reinsurance contracts in the prior year due to a limit loss suffered during the prior year.

At September 30, 2023, cash and cash equivalents, and restricted cash and cash equivalents were $3.6 million compared to $3.9 million at December 31, 2022.

The loss ratio decreased to 0% for the nine months ended September 30, 2023, from 107.8% in the prior year wholly due to the limit losses suffered on one of the Company’s reinsurance contracts as a result of Hurricane Ian in September 2022.

The expense ratio increased to 244.4% for the nine months ended September 30, 2023 from 116.6% in the prior year due to the higher general and administrative expenses incurred in 2023.

“We are pleased with our operational performance this year and the issuance by our subsidiary SurancePlus, of what we believe are the first Tokenized Reinsurance Securities sponsored by a subsidiary of a publicly-traded company,” commented Oxbridge Re Holdings Chairman and Chief Executive Officer Jay Madhu.

“Investors in this year’s tokenized securities issued by SurancePlus are expected to receive an estimated 42% return on their investment in this treaty year,” Madhu continued.

“The company intends to position itself to exponentially grow our SurancePlus subsidiary as a pure RWA Web3 focused company by leveraging the significant steps we have taken this year. This will be done alongside the maintenance of our core and complimentary reinsurance business solutions to insurers in the Florida and the Gulf Coast states.”

“According to forecasts from Boston Consulting Group, the tokenized RWA market is expected to grow exponentially over the next decade, with estimates of $16 trillion by 2030 as traditional financial institutions, including fiat currencies, equities, government bonds and real estate, continue to adopt blockchain technology. As an early entrant into this growing market, we are very excited about the potential our repositioning and new business lines will bring to our shareholders,” Madhu concluded.

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