OXRE(US:OXBR)2021-08-17 00:01Financial Data and Key Metrics Changes - Revenues rose, net income increased, and financial and operating ratios strengthened compared to last year [17] - Net premiums earned for Q2 2021 increased to $205,000 from $136,000 last year, while for the first 6 months, it slightly declined to $386,000 from $400,000 [19][20] - Net investment income for Q2 totaled $23,000 compared to $25,000 last year, with net realized investment gains significantly increasing to $755,000 from $320,000 [21] - Net income for Q2 2021 rose to $448,000 or $0.08 per share, compared to a net loss of $199,000 or $0.03 per share for the first 6 months of 2020 [23] Business Line Data and Key Metrics Changes - The loss ratio for the first 6 months of 2021 remained at 0% due to no losses incurred [25] - The acquisition cost ratio decreased to 10.7% for Q2 2021 from 11.1% last year, and to 10.9% for the first 6 months from 11% last year [26] - The expense ratio decreased to 162.9% for Q2 2021 from 220% last year, while it increased to 157.3% for the first 6 months from 143% in 2020 [27][28] - The combined ratio decreased to 152.9% for Q2 2021 from 220% last year, but increased to 157.3% for the first 6 months from 143% in 2020 [29][30] Market Data and Key Metrics Changes - The company continues to monitor the insurance industry and its markets to ensure value delivery to shareholders amidst the ongoing pandemic [11][12] Company Strategy and Development Direction - The company aims to achieve long-term growth and book value per share by writing business selectively and opportunistically [14] - The recent IPO of Oxbridge Acquisition Corp. focuses on acquiring entities in disruptive technologies, indicating a strategic shift towards innovation [16] - The company plans to invest approximately 50% of its equity in reinsurance contracts and emerging technologies [34] Management's Comments on Operating Environment and Future Outlook - Management remains cautious but optimistic about the business's performance, noting no losses incurred to date [11][17] - The company anticipates continued growth and attractive returns for its sidecar investors [18][36] - Management expressed confidence in the long-term prospects for all business segments and ongoing evaluations for growth opportunities [36] Other Important Information - Total shareholder equity increased to $8.5 million at June 30, 2021, up from $8 million at the end of 2020 [32] - The company is debt-free and maintains a strong balance sheet with a solid cash position [37] Q&A Session Summary Question: Clarification on SPAC ownership structure - The sponsor has a 20% stake in the SPAC, and Oxbridge has about a 50% economic interest in the sponsor [40] Question: Timeline for potential acquisitions - Management has thoughts on potential targets but has not started conversations prior to going public; due diligence will take time [44][45] Question: Additional inquiries - One analyst indicated their questions were answered by previous discussions [47]