OXRE(US:OXBR)2024-11-13 21:01Fundraising Activities - For the nine months ended September 30, 2024, the company raised $2,447,760 from the issuance of 244,776 DeltaCat Re Tokens, with approximately $1,280,000 from third-party investors and $1,167,000 from Oxbridge Re Holdings Limited[125]. - The company completed a Private Placement on July 12, 2024, raising $2,878,078 from the issuance of 287,808 Participation Shares, with approximately $1,469,000 from third-party investors and $1,409,000 from Oxbridge Re Holdings Limited[130]. - The company sold 113,977 ordinary shares under the ATM program for gross proceeds of $342,525 at an average price of $3.00 per share for the three months ended September 30, 2024[141]. - The company sold 143,895 ordinary shares under the ATM program for gross proceeds of $419,663 at an average price of $2.92 per share for the nine months ended September 30, 2024[142]. Business Strategy and Operations - The company intends to develop additional series of tokenized reinsurance securities representing fractional interests in reinsurance contracts following the launch of the DeltaCat Re Token[117]. - The company focuses on underwriting fully collateralized reinsurance contracts primarily for property and casualty insurance companies in the Gulf Coast region of the United States, emphasizing Florida[116]. - The company aims to achieve long-term growth in book value per share by writing business that generates attractive underwriting profits relative to the risk it bears[119]. - The company’s expense efficiency and agility support its competitive position, allowing it to profitably participate in lines of business that fit within its strategy[122]. Financial Performance - Net premiums earned for the quarter ended September 30, 2024 increased to $595,000 from $549,000 for the same period in 2023, reflecting growth in reinsurance contracts[156]. - Net premiums earned for the nine months ended September 30, 2024 rose to $1.7 million from $732,000 for the same period in 2023, driven by active reinsurance contracts[157]. - Total revenue for the quarter ended September 30, 2024 was $205,000, compared to a loss of $6.38 million in the same quarter of 2023[154]. - General and administrative expenses decreased to $432,000 for the quarter ended September 30, 2024, down from $628,000 for the same period in 2023, due to reduced offering costs[162]. - The loss ratio remained at 0% for both the quarter and nine-month periods ended September 30, 2024, consistent with the same periods in 2023[166]. - The acquisition cost ratio increased slightly to 11.1% for the quarter ended September 30, 2024, compared to 10.9% for the same period in 2023[168]. - The expense ratio improved significantly from 125.3% for the quarter ended September 30, 2023, to 83.7% for the same quarter in 2024, indicating better operational efficiency[169]. - The combined ratio decreased from 125.3% for the quarter ended September 30, 2023, to 83.7% for the same quarter in 2024, reflecting improved underwriting performance[171]. - Net loss for the quarter ended September 30, 2024 was $540,000, a significant reduction from a net loss of $7.3 million for the same period in 2023[154]. - Net loss for the nine months ended September 30, 2024 was $2.27 million, down from $7.24 million for the same period in 2023, primarily due to improved investment performance[155]. Cash and Investments - As of September 30, 2024, restricted cash and cash equivalents increased by $1.1 million, or 28.9%, to $4.8 million from $3.7 million as of December 31, 2023[173]. - Total investments decreased by $495,000 to $185,000 from $680,000 as of December 31, 2023, primarily due to the sale of two equity securities[174]. - Other investments decreased by $1.94 million to $541,000 from $2.48 million at December 31, 2023, due to fair value changes in the investment in Jet.AI[175]. - The unearned premium reserve increased by $671,000 to $1,586,000 from $915,000 at December 31, 2023, attributed to reinsurance contracts for the 2024-2025 treaty year[177]. - Net cash used in operating activities for the nine months ended September 30, 2024, totaled $1,248,000, while net cash provided by investing activities was $448,000[183]. - Cash flows from financing activities for the nine months ended September 30, 2024, were $1,876,000, primarily from net proceeds from Epsilon Cat Re participation shares[183]. - As of September 30, 2024, each subsidiary exceeded the minimum net worth requirement of $500, allowing for potential dividend payments[182]. - The company had no reserves for loss and loss adjustment expenses as of September 30, 2024, due to no significant events or reported claims[197]. - The company expects operational liquidity needs to be met by cash, investment income, and funds generated from underwriting activities[181]. - The investment portfolio, excluding Jet.AI, is primarily comprised of cash and highly liquid securities, ensuring sufficient liquidity to meet current liabilities[180].