Oxbridge Re Holdings has reported its financial results for the second quarter and first half of 2024.
For the three months ending June 30, 2024, the company recorded a net loss of $821,000, or $(0.14) per basic and diluted share, compared to a net loss of $85,000, or $(0.01) per share, in the same period of 2023. The larger net loss was primarily due to a negative change in the fair value of equity securities and other investments during the quarter.
Over the six months ending June 30, 2024, the company posted a net loss of $1.73 million, or $(0.29) per share, in contrast to a net profit of $57,000, or $0.01 per share, for the same period in 2023. The decline in financial performance was largely attributed to lower total revenues driven by increased unrealized losses on investments.
Net premiums earned for the second quarter of 2024 were $564,000, up from $183,000 in the corresponding period last year. For the six-month period, net premiums earned reached $1.1 million, compared to $183,000 in the previous year.
This increase in premiums was largely due to the prior year’s figures reflecting only one month of premium recognition, while the 2024 periods accounted for the full three and six months of premiums, respectively.
The company reported no losses for the three and six months ending June 30, 2024, nor for the comparable periods in 2023.
Total expenses for the second quarter were $628,000, down from $697,000 in the same period last year. For the six-month period, total expenses increased slightly to $1.17 million from $1.1 million in the prior year, driven by higher policy and acquisition costs.
As of June 30, 2024, Oxbridge Re Holdings had $3.98 million in cash and cash equivalents, including restricted cash, compared to $3.7 million at December 31, 2023.
The company's financial ratios reflected its operating performance during the period. The loss ratio, which measures underwriting profitability, remained at 0% for both the first half of 2024 and 2023 due to the absence of losses or loss adjustment expenses.
The acquisition cost ratio, assessing operational efficiency by comparing policy acquisition costs with net premiums earned, edged up to 11.0% for the three and six months ending June 30, 2024, from 10.9% in the prior year.
The expense ratio, which compares policy acquisition costs and general administrative expenses to net premiums earned, decreased significantly to 105.7% for the first half of 2024 from 601.6% in the same period last year, reflecting higher premium levels.
Consequently, the combined ratio, which sums the loss and expense ratios to measure overall underwriting performance, decreased to 105.7% for the first half of 2024, down from 601.6% in the previous year.
Jay Madhu (pictured above), chairman and CEO of Oxbridge Re Holdings, stated that the company maintained stable performance into the second quarter of 2024, with no losses incurred.
Madhu also highlighted the company's strong balance sheet, absence of debt, and diversified business from recent transactions as factors that contribute to confidence in delivering future shareholder value.
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