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OXRE(OXBR) - 2024 Q1 - Earnings Call Transcript
OXBROXRE(OXBR)2024-05-11 17:38
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Financial Data and Key Metrics Changes - Net premiums earned for Q1 2024 increased to 549,000comparedto549,000 compared to 0 in Q1 2023, attributed to contracts in force during the quarter [10] - Total revenues for Q1 2024 were negative 125,000,downfrom125,000, down from 546,000 in Q1 2023, due to a negative change in the fair value of equity securities [11] - The company reported a net loss of 905,000or905,000 or 0.15 per share for Q1 2024, compared to net income of 142,000or142,000 or 0.02 per share in the same period last year [28] - The expense ratio increased to 99.8% in Q1 2024 from 0% in Q1 2023, driven by higher general and administrative expenses [13][39] Business Line Data and Key Metrics Changes - The company operates in two segments: Software and Aviation, with the Aviation segment featuring jet aircraft fractions and charter management [6][23] - The acquisition cost ratio increased to 10.9% for Q1 2024 from 0% in the prior year, reflecting earned premiums and expensed acquisition costs [29] Market Data and Key Metrics Changes - The investment portfolio decreased to 284,000atMarch31,2024,from284,000 at March 31, 2024, from 680,000 at the end of the previous period, primarily due to the sale of equity securities [30] - The company recognized an unrealized loss of 688,000onotherinvestments,resultingfromtheremeasurementofitsinvestmentinJet.AI[27]CompanyStrategyandDevelopmentDirection−ThecompanyaimstodiversifyitsbusinessbyinvestingindisruptivetechnologythroughitsSPAC,OxbridgeAcquisitionCorp.,whichsuccessfullymergedwithJet.AI[6][32]−SurancePlus,asubsidiaryfocusedontokenizedreal−worldassets,wasestablishedtodemocratizeaccesstoreinsuranceasanalternativeinvestment[24][41]−ThecompanyisrebrandingasanRWAWeb3−focusedentity,anticipatingsignificantgrowthinthetokenizedassetmarket,projectedtoexceed688,000 on other investments, resulting from the remeasurement of its investment in Jet.AI [27] Company Strategy and Development Direction - The company aims to diversify its business by investing in disruptive technology through its SPAC, Oxbridge Acquisition Corp., which successfully merged with Jet.AI [6][32] - SurancePlus, a subsidiary focused on tokenized real-world assets, was established to democratize access to reinsurance as an alternative investment [24][41] - The company is rebranding as an RWA Web3-focused entity, anticipating significant growth in the tokenized asset market, projected to exceed 10 trillion by 2030 [16][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the long-term outlook of the core reinsurance business and the integration of new ventures like Jet.AI [9] - The company is committed to leveraging blockchain technology to enhance financial infrastructure and broaden investor participation [8][41] Other Important Information - The company’s cash and cash equivalents increased to 4.3millionatMarch31,2024,from4.3 million at March 31, 2024, from 3.7 million at December 31, 2023 [26] - Total expenses in Q1 2024 rose to 548,000from548,000 from 404,000 in the previous year, due to higher professional and legal expenses [37] Q&A Session Summary Question: Has the first RWA closed yet? - Yes, the first RWA was written last year and is based on a three-year contract with a one-year out, with returns expected to exceed 45% [45]