OXRE(OXBR) - 2024 Q2 - Quarterly Results

Business and Operational Highlights Oxbridge Re reported stable Q2 2024 performance with no losses, completing a $2.8 million tokenized securities placement and maintaining a strong, debt-free balance sheet - The company maintained stable performance into Q2 2024, with no losses incurred from its reinsurance contracts[1] - Successfully completed a private placement of approximately $2.8 million in EpsilonCat Re tokenized securities through its subsidiary SurancePlus Inc., issued on the Avalanche blockchain[2][8] - Investors in EpsilonCat Re tokenized securities can expect an estimated annual return of 42%, provided there are no losses from the underlying reinsurance contracts[2] - Announced a strategic partnership with Zoniqx, a firm that has issued over $4 billion in assets on-chain[2] - The company reports a strong balance sheet with no debt and a well-diversified business model following recent transactions[2] Financial Performance Analysis The company reported a Q2 2024 net loss of $821,000 due to investment losses, despite a substantial increase in net premiums earned and improved underwriting ratios for the six-month period Financial Results Quarterly and Half-Year Financial Results (in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Net (Loss)/Income | $(821) | $(85) | $(1,730) | $57 | | (Loss)/Earnings Per Share | $(0.14) | $(0.01) | $(0.29) | $0.01 | - The increased net loss was primarily attributed to a negative change in the fair value of equity securities and unrealized losses on other investments[3] Net Premiums Earned (in thousands) | Period | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $564 | $183 | +208% | | Six Months Ended June 30 | $1,100 | $183 | +501% | - The significant increase in net premiums earned is due to recognizing a full three and six months of premiums in 2024, compared to only one month in the prior-year periods due to premium acceleration[4] - Cash, cash equivalents, and restricted cash increased to $3.98 million at June 30, 2024, from $3.7 million at December 31, 2023[5] Key Financial Ratios - The Loss Ratio was 0% for the periods ended June 30, 2024 and 2023, as no losses or loss adjustment expenses were incurred[6] - The Acquisition Cost Ratio remained stable, increasing marginally to 11.0% for the six months ended June 30, 2024, from 10.9% in the prior year[6] Operating Performance Ratios (Six Months Ended June 30) | Ratio | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Expense Ratio | 105.7% | 601.6% | Improved | | Combined Ratio | 105.7% | 601.6% | Improved | - The significant improvement in the Expense and Combined ratios was due to the higher levels of net premiums earned during the period[6][7] Financial Statements Unaudited consolidated financial statements show total assets decreased to $7.8 million, liabilities increased to $4.0 million, and shareholders' equity decreased to $3.8 million, with a net loss of $1.73 million in H1 2024 driven by investment losses Consolidated Balance Sheets Key Balance Sheet Items (in thousands) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $7,823 | $8,253 | | Cash and cash equivalents | $3,594 | $495 | | Restricted cash and cash equivalents | $391 | $3,250 | | Total Liabilities | $4,036 | $2,921 | | Total Shareholders' Equity | $3,787 | $5,332 | Consolidated Statements of Operations Key Income Statement Items (Six Months Ended June 30, in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Net premiums earned | $1,113 | $183 | | Unrealized (loss) gain on other investments | $(1,513) | $505 | | Total Revenue | $(81) | $1,237 | | Total Expenses | $1,176 | $1,101 | | Net (Loss)/Income | $(1,726) | $57 | Company Information and Events Oxbridge Re Holdings Limited, a Cayman Islands-based company, specializes in tokenized Real-World Assets (RWAs) and traditional reinsurance, with a Q2 2024 investor conference call scheduled for August 8, 2024 About Oxbridge Re Holdings Limited - The company offers tokenized Real-World Assets (RWAs) as reinsurance securities and provides reinsurance solutions to property and casualty insurers in the U.S. Gulf Coast region[10] - Its Web3-focused subsidiary, SurancePlus Inc., has developed the first "on-chain" reinsurance RWA sponsored by a subsidiary of a publicly traded company, aiming to democratize access to reinsurance as an alternative investment[11] Conference Call Information - Management will host a conference call to discuss Q2 2024 financial results on August 8, 2024, at 4:30 p.m. Eastern time[9] - A replay of the call will be available via telephone and the company's website until August 22, 2024[9]