OXRE(US:OXBR)2022-08-15 20:18Financial Performance - For the three months ended June 30, 2022, net premiums earned were $194,000, a decrease from $205,000 in the same period of 2021[161]. - Net income for the quarter ended June 30, 2022, was $77,000, or $0.01 per share, compared to a net income of $448,000, or $0.08 per share, for the same quarter in 2021[161]. - Total revenue for the six months ended June 30, 2022, was $505,000, down from $1,125,000 in the same period of 2021[161]. - The company reported a net loss of $310,000, or ($0.05) per share, for the six months ended June 30, 2022, compared to a net income of $476,000, or $0.08 per share, for the same period in 2021[161]. Underwriting and Expense Ratios - The combined ratio for the three months ended June 30, 2022, was 211.3%, compared to 162.9% for the same period in 2021[162]. - The loss ratio for the three and six-month periods ended June 30, 2022, was 0%, indicating no losses incurred during these periods[169]. - The acquisition cost ratio increased from 10.7% for the quarter ended June 30, 2021, to 10.8% for the same quarter in 2022, while remaining consistent at 10.9% for the six-month periods[170][171]. - The expense ratio increased from 162.9% for the three-month period ended June 30, 2021, to 211.3% for the same period in 2022, and from 157.3% to 191.1% for the six-month periods[172][173]. - The combined ratio increased from 162.9% for the three-month period ended June 30, 2021, to 211.3% for the same period in 2022, and from 157.3% to 191.1% for the six-month periods[174][175]. Premiums and Investment Income - Assumed premiums for the three months ended June 30, 2022, were $669,000, down from $1,014,000 in the same period of 2021[161]. - Net investment and other income for the three months ended June 30, 2022, was $41,000, compared to $23,000 in the same period of 2021[161]. - The company experienced a significant decline in net realized investment gains, reporting $19,000 for the three months ended June 30, 2022, compared to $755,000 in the same period of 2021[161]. - The change in fair value of equity securities resulted in a loss of $322,000 for the three months ended June 30, 2022[161]. Operating Expenses - Policy acquisition costs and underwriting expenses for the quarter ended June 30, 2022, decreased marginally to $21 thousand from $22 thousand for the same quarter in 2021, but increased to $44 thousand from $42 thousand for the six months ended June 30, 2022[164][165]. - General and administrative expenses for the quarter ended June 30, 2022, increased to $389 thousand from $312 thousand for the same quarter in 2021, and for the six months ended June 30, 2022, increased to $728 thousand from $565 thousand[165][166]. Cash and Reserves - As of June 30, 2022, restricted cash and cash equivalents increased by $281 thousand, or 15%, to $2.17 million from $1.89 million as of December 31, 2021[175]. - As of June 30, 2022, unearned premiums reserve increased by $241 thousand, or 69%, to $591 thousand from $350 thousand at December 31, 2021[179]. - Net cash used in operating activities for the six months ended June 30, 2022, totaled $475 thousand, compared to $208 thousand for the same period in 2021[186][187]. Deferred Acquisition Costs - The company defers certain expenses related to producing reinsurance business, including brokerage fees and premium taxes, which are capitalized as deferred acquisition costs[203]. - Deferred acquisition costs are amortized and charged to expense as premiums assumed are earned, limiting deferral to estimated realizable value[203]. - The recoverability of deferred acquisition costs is dependent on the profitability of the company's reinsurance underwriting[203]. - If underwriting ceases to be profitable, the company may need to write off a portion of deferred acquisition costs, impacting income in the period of recognition[203]. Market Risk Disclosures - As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk[204].