OXRE(US:OXBR)2023-05-12 23:48Financial Data and Key Metrics Changes - Net investment income increased to $189,000 from $33,000 due to higher rates on money market funds [13] - Net income for Q1 2023 was $142,000 or $0.02 per share, compared to a net loss of $387,000 or $0.07 per share in Q1 2022 [14] - Total revenues for Q1 2023 were $546,000, compared to none in the prior year's first quarter [42] Business Line Data and Key Metrics Changes - Net premiums earned for Q1 2023 were nil, down from $210,000 in Q1 2022 due to the acceleration of premium recognition from prior contracts [31] - Total expenses increased to $404,000 in Q1 2023 from $261,000 in the previous year [32] - The combined ratio for Q1 2023 was 0%, compared to 151.9% in Q1 2022, reflecting no premiums earned [33] Market Data and Key Metrics Changes - The investment portfolio increased to $718,000 at March 31, 2023, from $646,000 at the end of the previous year [15] - Cash and cash equivalents decreased to $3.6 million at March 31, 2023, from $3.9 million on December 31, 2022 [15] Company Strategy and Development Direction - The company aims for long-term growth in book value by selectively writing business that generates attractive underwriting profits [26] - Oxbridge Re is diversifying its business through investments in disruptive technologies and the creation of a new Web3 subsidiary, SurancePlus Inc. [10][29] - The company is optimistic about the prospects of its core reinsurance business and its investments in Oxbridge Acquisition and SurancePlus [11] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the potential of Assurance Plus to democratize access to reinsurance through blockchain technology [45] - The company remains debt-free and has a strong balance sheet, positioning itself for future opportunities [36] - Management anticipates an uptick in recognition of the SPAC investment value once the merger is closed [47] Other Important Information - Assurance Plus will issue tokenized securities representing fractionalized interests in reinsurance contracts, expected to generate a potential return of approximately 42% annually [29] - The company is on track to close the business combination with Jet.AI by the end of Q2 2023, pending SEC and shareholder approval [28] Q&A Session Summary Question: Potential value recognition for Assurance Plus - Management confirmed that SEC comments were filed and expects the process to close by the end of Q2 2023, indicating everything is on track [37] Question: Monetization of Assurance Plus - Management stated that Assurance Plus was developed in-house without dilution, allowing shareholders to own 100% of the company [38] Question: SPAC merger and value release - Management acknowledged that the full mark-to-market value on the SPAC investment will be realized post-merger, leading to an uptick in recognition [47]