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Oxbridge Re Holdings Limited (OXBR), a provider of reinsurance solutions to property and casualty insurers in the Gulf Coast region of the United States, reported financial results for the second quarter ended June 30, 2015.

Second Quarter 2015 - Highlights

  • Net income totaled $1.7 million or $0.27 per basic and diluted earnings per share compared with $541,000 or $0.09 per basic and diluted earnings per share in the second quarter of 2014. The increase in net income was primarily driven by an increase in net premiums earned and investment income.
  • Net premium earned totaled $1.6 million compared with $899,000 in the second quarter of 2014. The increase was driven by the continued increase in number and size of reinsurance contracts placed.
  • Investment income for the quarter totaled $429,000 compared with nil for the second quarter of 2014, as investing in fixed-maturity and equity securities commenced in August of 2014.
  • Total expenses, including policy acquisition costs, underwriting expenses and administrative expenses were $408,000 compared with $358,000 in the second quarter of 2014. The increase was due to the significant and continual increase in general and administrative expenses resulting from an increase in business activities and operations following the initial public offering in March of 2014, offset by the expiration of an underwriting consulting contract.
  • The company paid dividends of $0.12 per share compared with nil during the same year-ago period. The difference is a result of the timing of dividends distributed.
  • At June 30, 2015, the company had $33.6 million of cash and cash equivalents, and restricted cash and cash equivalents, up slightly from $33.5 million at Dec. 31, 2014.

Second Quarter 2015 - Financial Ratios

  • The loss ratio, which measures underwriting profitability, is the ratio of losses and loss adjustment expenses incurred to premiums earned. There were no losses incurred during the second quarter of 2015 or the second quarter of 2014, resulting in a loss ratio of 0.0%.
  • The acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs and other underwriting expenses to net premiums earned. The acquisition cost ratio was 5.3% for the second quarter of 2015 compared with 14.5% for the same year-ago period. The decrease was due to lower acquisition costs on reinsurance contracts and the expiration of the previously mentioned underwriting consulting contract.
  • The expense ratio, which measures operating performance, compares policy acquisition costs, other underwriting expenses and general and administrative expenses to net premiums earned. The expense ratio decreased to 24.9% during the second quarter of 2015 compared with 39.8% during the second quarter of 2014. The decrease is due to the decline in the policy acquisition cost ratio, as well as the disproportionate increase in general and administrative expenses when compared with the increase in net premiums earned.
  • The 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 ratios of 24.9% for the second quarter of 2015 and 39.8% for the second quarter of 2014 are the same as the expense ratio above, as no losses were incurred.

Six Months Ended June 30, 2015 - Financial Results

  • Net income totaled $3.5 million or $0.58 per basic and diluted earnings per share compared with $935,000 net income or $0.25 per basic and diluted earnings per share in the same year-ago period. The increase in net income was primarily driven by an increase in net premiums earned and investment income.
  • Net premium earned totaled $3.2 million compared with $1.5 million for the first six months of 2014. The increase was driven by the continued increase in number and size of reinsurance contracts placed.
  • Investment income for the period totaled $1.1 million compared with nil for the first six months of 2014, as investing in fixed-maturity and equity securities commenced in August of 2014.
  • Total expenses, including policy acquisition costs, underwriting expenses and administrative expenses were $845,000 compared with $613,000 in the comparable period of 2014. The increase was due to increased costs associated with the continued growth of business activities and operations, offset by the expiration of an underwriting consulting contract.
  • The company paid dividends of $0.24 per share during the first six months of 2015 compared with $0.24 per share during the same year-ago period.

Six Months Ended June 30, 2015 - Financial Ratios

  • No losses were incurred during the first six months of 2015 or the first six months of 2014, resulting in a loss ratio of 0.0%
  • The acquisition cost ratio was 5.5% compared with 11.2% for the year-ago period. The decrease is due to lower acquisition costs on reinsurance contracts and the expiration of the previously mentioned underwriting consulting contract.
  • The expense ratio was 26.5% compared with 39.6% for the first six months of 2014. The decrease is due to the decline in the policy acquisition cost ratio, as well as the disproportionate increase in general and administrative expenses when compared with the increase in net premiums earned.
  • The combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and the expense ratio. The combined ratio was 26.5% compared with 39.6% for the year-ago period. The combined are the same as the expense ratio above, as no losses were incurred.

Management Commentary

“The second quarter was another successful quarter as we made significant progress expanding our client base and reinsurance broker network,” said Jay Madhu, CEO of Oxbridge Re Holdings Limited. “Our recently placed fully-collateralized reinsurance contracts give us the most diversified portfolio in our company’s history. We continue to be encouraged by our improving results and we feel we are well positioned to capitalize on future growth opportunities.”

Conference Call

Oxbridge Re management will host a conference call later today (Aug. 12, 2015) to discuss these financial results followed by a question and answer session. President and CEO Jay Madhu and Financial Controller Wrendon Timothy will host the call starting at 4:30 p.m. Eastern time.

Interested parties can listen to the live presentation, which 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: Wednesday, Aug. 12, 2015
Time: 4:30 p.m. Eastern time
Listen-only toll-free number: 877-407-0782
Listen-only international number: 201-689-8567
Conference ID: 13615081

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 804-327-8885 or operations@issuerdirect.com.

A replay of the call will be available by telephone after 8:00 p.m. Eastern time on the same day through Nov. 12, 2015 and via the Investor Information section of Oxbridge’s website at www.oxbridgere.com.

Toll-free replay number: 877-660-6853
International replay number: 201-612-7415
Conference ID: 13615081

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’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,” and the company’s common stock is 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 Follow-

 
OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARY
Consolidated Balance Sheets
(expressed in thousands of U.S. Dollars, except per share and share amounts)
 
 
    At June, 2015     At December 31, 2014
(Unaudited)
Assets
Investments:
Fixed-maturity securities, available for sale, at fair value (amortized cost: $3,683 and $3,681, respectively) $ 3,646 3,659
Equity securities, available for sale, at fair value (cost: $9,302 and $8,140, respectively) 7,622   8,179
Total investments 11,268 11,838
Cash and cash equivalents 20,176 5,317
Restricted cash and cash equivalents 13,386 28,178
 
 
Accrued interest and dividend receivable 31 22
Premiums receivable 10,998 4,081
Deferred policy acquisition costs 260 132
Prepayment and other receivables 99 80
Property and equipment, net 64   46
Total assets $ 56,282   49,694
 
Liabilities and Shareholders’ Equity
Liabilities:
Reserve for losses and loss adjustment expenses $ - -
Loss experience refund payable 5,736 7,133
Unearned premiums reserve 13,332 5,744
Accounts payable and other liabilities 150   109
Total liabilities 19,218   12,986
 
Shareholders’ equity:
Ordinary share capital, (par value $0.001, 50,000,000 shares authorized; 6,060,000 and 6,000,000 shares issued and outstanding) 6 6
Additional paid-in capital 33,598 33,540
Retained earnings 5,177 3,145
Accumulated other comprehensive (loss) income (1,717 ) 17
Total shareholders’ equity 37,064   36,708
Total liabilities and shareholders’ equity $ 56,282   49,694
 
 
OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARY
Consolidated Statements of Income (unaudited)
(expressed in thousands of U.S. Dollars, except per share and share amounts)
 
      Three Months Ended     Six Months Ended
June 30, June 30,
2015     2014 2015     2014
(Unaudited) (Unaudited)
 
Revenue
Assumed premiums $ 14,288 13,767 $ 14,888 13,825
Change in loss experience refund payable (2,065 ) (1,075 ) (4,116 ) (1,660 )
Change in unearned premiums reserve (10,587 ) (11,793 ) (7,588 ) (10,617 )
 
Net premiums earned 1,636 899 3,184 1,548
Net realized investment gains 333 - 976 -
Net investment income 96   -   172   -  
 
 
Total revenue 2,065   899   4,332   1,548  
 
Expenses
Policy acquisition costs and underwriting expenses 87 130 174 173
General and administrative expenses 321   228   671   440  
 
Total expenses 408   358   845   613  
 
Net income 1,657   541   $ 3,487   935  
 
 
Earnings per share
Basic and Diluted $ 0.27   0.09   $ 0.58   0.25  
 
Dividends paid per share $ 0.12   -   $ 0.24   0.24  
 


Contacts

Oxbridge Re Holdings Limited
Jay Madhu, CEO, 345-749-7570
jmadhu@oxbridgere.com
or
Media contact:
RFB Communications Group
Suzie Boland, 813-259-0345
sboland@rfbcommunications.com