Oxbridge Re has announced its financial results for the final quarter and the entire year of 2023 – one that saw net premiums rise, but net losses also climb.
During the three-month period ending December 31, 2023, Oxbridge Re reported net premiums earned of $523,000, an uptick from the previous year’s same period, which saw no net premiums. The annual figures showed an increase in net premiums earned to $1,255,000 in 2023 from $995,000 in the prior year, attributed to higher reinsurance contract rates.
As per a news release, the company faced a net loss of $2.67 million, or ($0.46) per share, for the quarter, a downturn from a net income of $678,000, or $0.12 per share, in the same quarter of 2022. The annual results also reflected a deeper net loss of $9.9 million, or ($1.69) per share, in 2023, compared to a net loss of $1.8 million, or ($0.31) per share, the previous year.
These financial shifts were primarily due to changes in the fair market value of Oxbridge Re’s equity investment in Jet.AI. The year also saw a rise in general expenses, partly due to the introduction of SurancePlus. Total expenses for the quarter rose to $536,000 from $363,000 in the last quarter of 2022, mainly because of the recognition of previously deferred offering costs.
For the entire year, total expenses dropped to $2.3 million from $2.6 million in the previous year, largely because of the decrease in loss and loss adjustment expenses more than offset the increase in general and administrative expenses. This was notable in comparison to losses from Hurricane Ian in fiscal 2022.
As of December 31, 2023, the company’s cash and cash equivalents, including restricted cash, amounted to $3.7 million, slightly down from $3.9 million at the end of 2022.
In terms of financial ratios, the loss ratio improved to 0% for the year, down from 107.8% the previous year, reflecting the lack of underwriting losses in 2023, notably from Hurricane Ian. The acquisition cost ratio saw a slight increase to 11.2%, and the expense ratio rose to 185.2% due to higher general and administrative expenses associated with SurancePlus Inc.’s private placement offering and the Company’s Form S-3 registration.
The combined ratio, a measure of underwriting performance, decreased to 185.2% from 260.9%, indicating a year without underwriting losses compared to the previous period affected by Hurricane Ian.
“We are delighted by our operational performance this year, highlighted by significant milestones achieved,” CEO and chairman Jay Madhu said. “We remain steadfast in our commitment to driving innovation and delivering value to our stakeholders, and we look forward to continued success in the evolving landscape of reinsurance and Web3 technologies.”
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