OXRE(US:OXBR)2021-03-31 00:34Financial Data and Key Metrics Changes - Net premiums earned for the year ended December 31, 2020, increased to $893,000 from $617,000 in the prior year, primarily due to 27 months of premiums recognized in the prior year [16] - Fourth quarter net premiums earned increased marginally to $247,000 from $245,000 last year [17] - Net income in the fourth quarter increased significantly to $181,000 or $0.03 per share from $61,000 or $0.01 per share in the fourth quarter of 2019 [19] - The company experienced a net loss of only $50,000 in 2020, down from $305,000 in the prior year [19] Business Line Data and Key Metrics Changes - The acquisition cost ratio was 10.9% and 11% for the fourth quarter and year ended December 31, 2020, respectively, compared to 9.4% and 10.4% for the same period in the prior year [22] - The expense ratio for the fourth quarter and year ended December 31, 2020, were 117% and 126.1%, respectively, compared to 115% and 183.3% for the same period in the prior year [23] - The combined ratio for the three months and year ended December 31, 2020, were 117% and 126.1%, respectively, compared to 115.1% and 183.3% for the same period in 2019 [24] Market Data and Key Metrics Changes - Total investments in equity securities totaled $787,000 at December 31, 2020, up from $692,000 at December 31, 2019 [25] - Cash and cash equivalents totaled $7.5 million, stable compared to $8 million at December 31, 2019 [26] Company Strategy and Development Direction - The company aims to achieve long-term growth in book value per share by writing business on a selective and opportunistic basis that generates attractive underwriting profits relative to risk [13] - The focus remains on profitable underwriting while also being opportunistic in deploying capital for investment [14] - The company continues to evaluate additional opportunities for growth and diversification of its risk profile [28] Management's Comments on Operating Environment and Future Outlook - The pandemic has had little or no impact on the company's business, and it continues to monitor the markets and the insurance industry [10] - The company remains optimistic about the long-term prospects of both its core business and reinsurance sidecar [28] - Management expressed confidence in the stability of the business model and the potential for growth [29] Other Important Information - The company is debt-free and has a strong balance sheet with a solid cash position [29] - The reinsurance sidecar has generated attractive returns for investors, with a projected return of between 24% to 40% for the current year [15][27] Q&A Session Summary Question: How is the marketing for the 2021 sidecar coming along? - Management indicated that the marketing is progressing well despite various challenges in the financial markets and the pandemic, and they are pleased with the returns being generated [32][33]