Oxbridge Re Holdings Limited (NASDAQ:OXBR) Q1 2019 Earnings Conference Call May 14, 2019 4:30 PM ET Company Participants Jay Madhu - President and CEO Wrendon Timothy - CFO Conference Call Participants Kent Engelke - Capitol Securities Management Operator Good afternoon. Welcome to Oxbridge Re's First Quarter 2019 Earnings Call. My name is Christie and I will be your conference operator this afternoon. At this time, all participants will be in a listen-only mode. Joining us for today's presentation is Oxbri ...

Financial Data and Key Metrics Changes - Net premium earned for Q4 2018 increased by $1.2 million to $1.5 million from $227,000 in Q4 2017, primarily due to limited losses in Q3 2017 and an acceleration of premium recognition in Q4 2018 [10] - For the full year 2018, net premium earned decreased by $20.9 million to $2.7 million compared to $23.6 million in 2017, mainly due to limited losses in 2017 leading to lower capital deployment in 2018 [11] - Net loss for Q4 2018 totaled $6.5 million or $1.15 per share, compared to a net loss of $24,000 in Q4 2017, attributed to limit losses on reinsurance contracts [15] - For the full year 2018, net loss was $5.7 million or $1 per share, a significant decrease from a net loss of $20.6 million or $3.55 per share in 2017 [16] Business Line Data and Key Metrics Changes - The loss ratio for Q4 2018 was 589.3%, compared to 0% in Q4 2017, due to limit losses incurred [19] - For the full year 2018, the loss ratio was 268.86%, up from 180% in 2017, reflecting higher losses on a smaller reinsurance portfolio [20] - The acquisition cost ratio for Q4 2018 was 11%, compared to 4% in Q4 2017, due to higher acquisition costs [21] - The expense ratio for Q4 2018 was 27.3%, down from 105.7% in Q4 2017, primarily due to a greater denominator in net premiums earned [23] Market Data and Key Metrics Changes - Total investments at December 31, 2018, were $1.2 million, down from $6.5 million at the end of 2017 [27] - Total shareholders' equity decreased to $8.3 million from $13.9 million at December 31, 2017 [27] Company Strategy and Development Direction - The company aims to provide reinsurance solutions primarily to property and casualty insurers in the Gulf Coast region, focusing on profitable underwriting and selective business writing [6][8] - The establishment of Oxbridge Re NS as a reinsurance sidecar aims to increase underwriting capacity and diversify revenue streams [36][39] - The company maintains a conservative approach to underwriting new business, which has historically led to successful outcomes [40] Management's Comments on Operating Environment and Future Outlook - Management noted that the significant losses in 2017 and 2018 were due to natural disasters, impacting the company's results [30] - Despite setbacks, the company remains debt-free with a book value of $1.45 per share and is looking forward to rebuilding and evaluating growth opportunities [35] - Management expressed a conservative but positive near-term outlook, appreciating the support from shareholders [41] Other Important Information - The company extended the expiration date for warrants issued during its 2014 IPO to March 26, 2024, or upon certain trading conditions [28][29] Q&A Session Summary Question: How does the company intend to increase shareholder equity? - Management indicated that there are multiple ways to increase equity, either through the holding company or via Oxbridge Re NS, but no decision has been made yet [45] Question: Is the reinsurance market hardening? - Management noted that premiums appear to be improving on affected layers, but it is too early to confirm a trend [51]