Oxbridge Re Holdings Limited, a Cayman Islands-based reinsurance company, reported a net loss of $821,000 for the second quarter of 2024, significantly larger than the net loss of $85,000 in Q2 2023, driven primarily by a negative change in the fair value of equity securities and other investments during the quarter.
Despite the loss, the company saw a substantial rise in net premiums earned, which increased from $183,000 in Q2 2023 to $564,000 in Q2 2024. This increase was due to the prior year’s quarter recognizing only one month of premiums, while this year’s quarter accounted for a full three months.
Total expenses for Oxbridge Re were $628,000 in Q2 2024, down from $697,000 in the same period of 2023. This reduction was attributed to lower policy and acquisition costs compared to the previous year.
The company’s combined ratio, which reflects the sum of the loss and expense ratios, improved significantly, decreasing to 111.3% for the quarter, from 380.9% in the prior year, driven by higher premium earnings.
The firm reports that there were no losses incurred in the quarter.
In terms of investments, net investment and other income fell slightly, as the firm booked unrealized losses on other investments of $825,000.
Jay Madhu, Chairman and CEO of Oxbridge Re Holdings, commented, “Our stable performance persisted into the second quarter of 2024, with no losses incurred.
“Following Delta CatRe’s targeted 42% payout last year, which was successfully exceeded at 49%, we are pleased to announce the completion of EpsilonCat Re private placement of approximately $2.8 million in tokenized securities within our RWA/Web3-focused subsidiary, SurancePlus Inc. This alternative investment leverages key aspects of blockchain technology to create a well-designed digital security, issued on the Avalanche blockchain.
“Provided there are no losses from our reinsurance contracts, investors in EpsilonCat Re tokenized securities can expect an estimated annual return of 42%.
“We also recently announced a strategic partnership with Zoniqx, which has issued over $4 billion in assets on-chain to date. SurancePlus is now a well-capitalised business with substantial growth potential for our shareholders. We are proud of this accomplishment and look forward to this exciting new entity diversifying and accelerating our growth in the RWA space in the coming years.”
“Looking ahead, with a strong balance sheet, no debt, and a well-diversified business from our recent transactions, we remain highly confident in our future ability to deliver shareholder value,” Madhu concluded.
