OXRE(US:OXBR)2022-08-16 07:58Financial Data and Key Metrics Changes - Net premiums earned for the first six months of 2022 increased due to a higher weighted average rate on reinsurance contracts in force [13] - Total revenue declined to $505,000 for the first six months of 2022 compared to $1.1 million last year [14] - Net income for the three months ended June 30, 2022, was $77,000, down from $448,000 in 2021; for the first six months, a net loss of $310,000 was reported compared to net income of $476,000 [15] - The combined ratio increased to 191.1% for the first six months of 2022 compared to 157.3% last year, primarily due to higher general and administrative expenses [19] Business Line Data and Key Metrics Changes - The loss ratio remained at zero for both the first six months of 2022 and 2021, indicating no loss or loss adjustment expenses incurred [17] - The acquisition cost ratio remained stable at 10.9% for both periods, with a slight increase in the second quarter of 2022 [18] Market Data and Key Metrics Changes - The investment portfolio increased by $600,000 to $638,000 at June 30, 2022, from $577,000 at year-end, despite annualized losses due to volatile capital markets [20] - Cash and cash equivalents decreased to $4.6 million at June 30, 2022, compared to $5.4 million at December 31, 2021 [20] Company Strategy and Development Direction - The company aims to achieve long-term growth in book value per share by writing business selectively and opportunistically to generate attractive underwriting profits [8] - The investment in Oxbridge Acquisition Corp. focuses on disruptive technologies such as DeFi, blockchain, insurtech, artificial intelligence, and clean energy [10][22] - The company remains optimistic about the long-term prospects of its core reinsurance business and its investment in the SPAC [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the negative impact of the COVID-19 pandemic is receding, but inflationary cost pressures and supply chain disruptions are affecting the broader economy [11] - The company is optimistic about the recovery of equity markets and its investment portfolio, which has shown signs of improvement [12] Other Important Information - The company remains debt-free and has a strong balance sheet with a solid cash position [22] - Management emphasized the importance of diversification in its business model to capitalize on growth opportunities [22] Q&A Session Summary Question: Update on SPAC closing timeline - Management indicated that they are in a solid position regarding the SPAC and have extensions available until May 2023 to finalize any deals [28][30] Question: Insights on investment opportunities outside SPAC and reinsurance - Management acknowledged seeing tremendous opportunities in various businesses and emphasized the importance of timing in evaluating these opportunities [33] Question: Concerns about insider selling - Management clarified that the individual mentioned is not an insider and that the company does not comment on other people's investments [41][42]