OXRE(US:OXBR)2023-03-30 23:33Financial Data and Key Metrics Changes - Net premiums earned increased marginally to $995,000 in 2022 from $965,000 in 2021, primarily due to the acceleration of premium recognition on two reinsurance contracts and higher rates on reinsurance contracts [12] - The company experienced a net loss of $1.8 million or $0.31 per share in 2022, compared to net income of $8.6 million in 2021 [13] - Total revenue declined to $850,000 in 2022 from $10.2 million in the prior year, mainly due to a significant decline in unrealized gains on SPAC investments [20] - The loss ratio increased to 107.8% in 2022 from 16.4% in the prior year, attributed to losses from Hurricane Ian [45] - The combined ratio rose to 260.9% in 2022 from 162.6% in 2021, reflecting increased loss and administrative expenses [46] Business Line Data and Key Metrics Changes - The acquisition cost ratio remained stable at 11% in 2022 compared to the prior year [22] - The expense ratio increased to 153.1% in 2022 from 146.2% in the prior year, primarily due to higher general and administrative expenses [22] Market Data and Key Metrics Changes - The investment portfolio increased to $642,000 at December 31, 2022, from $577,000 in the prior year, mainly due to net purchases of equity securities [23] - Cash and cash equivalents decreased to $3.9 million at December 31, 2022, compared to $5.4 million at December 31, 2021 [24] Company Strategy and Development Direction - The company launched SurancePlus, a subsidiary that will issue tokenized reinsurance securities, aiming to democratize access to reinsurance investments [25][49] - The first offering of SurancePlus tokens is expected to raise up to $5 million, with potential returns of up to 196% over three years [26] - The company remains opportunistic about its core reinsurance business and is focused on diversifying its investment portfolio [11][51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the prospects of the core reinsurance business and the potential of new investments in emerging technologies [11][52] - The current volatility in global financial markets is impacting the investment portfolio and net income, but the company is positioned to capitalize on favorable return opportunities [18] Other Important Information - The company remains debt-free and has a strong balance sheet, positioning itself for growth in emerging technologies [52] - The company is focused on maintaining operational efficiencies and managing costs effectively [57] Q&A Session Summary Question: Clarification on SPAC investments - The company owns approximately 1.4 million shares in Oxbridge Acquisition Corp, with a cost basis of about $2.3 million, and the shares are expected to be worth $14 million at closing [54] Question: Details on reinsurance tokens offering - The first offering is about $5 million, with Oxbridge taking a small management fee and sharing profits on an 80-20 basis after the first 20% return to investors [57]