Oxbridge Re, a provider of reinsurance solutions primarily to property and casualty insurers, has reported a net income of $165,000 in the second quarter compared to loss of $205,000 last year.
The combined ratio for the three and six months ended June 30, 2020 was 220.0% and 143.0%, respectively, compared to 311.8% and 595.7%, respectively, in 2019.
The improvement is due to a higher denominator in net premiums earned and reduced total expenses in 2020 compared with the prior year.
Premium income rises on normalised recognition in current year while there no losses incurred to date in 2020.
Net premiums earned for the three months ended June 30, 2020 increased to $135,000 from $93,000 in the prior year.
The improvement is due to a higher denominator in net premiums earned and reduced total expenses in 2020 compared with the prior year.
The acquisition cost ratio for the three and six months ended June 30, 2020 increased to 11.1% and 11.0%, respectively, from 10.8% in the same periods in 2019.
Total expenses, including policy acquisition costs and underwriting expenses and general and administrative expenses were $297,000 in the second quarter of 2020 compared to $290,000 in the second quarter of 2019.
“We remain optimistic about the long-term prospects of our core reinsurance business as well as the prospects of the side car. In addition, we continue to evaluate additional opportunities for growth as well as diversification of risk.” said Oxbridge Re Holdings President and Chief Executive Officer Jay Madhu.
“We are also pleased that our sidecar investors earned a strong 36% return for the treaty year ended May 31, 2020, and we anticipate growing this portion of the business in the future,” Madhu concluded.
