Cayman Islands based Oxbridge Re generated a first quarter net income of $28,000, up from the $364,000 loss announced in the prior year quarter.
The company attributes this improvement to a positive change in the fair value of equity securities compared to the depressed financial markets a year ago.
However, the combined ratio increased to 150.3% from 104.2% last year.
This change is due to a lower denominator in net premiums earned resulting from lower capital deployed compared with the prior year.
Net premiums earned for the period decreased marginally to $181,000 from $264,000 in the prior year due to lower capital deployed in the current year.
Total expenses, including policy acquisition costs and underwriting expenses and general and administrative expenses were $272,000, compared to $275,000 in the first quarter of 2020.
Policy acquisition costs were lower due to lower capital deployed than in the prior year period.
Meanwhile, general and administrative costs were marginally lower compared to the prior year due to expense fluctuations.
“We fared well despite 2020 setting a record for being the most active hurricane season. In addition, our sidecar investors SPV investors are on track to receive a double digit return for the contract year ending May 31, 2021 following an attractive 36% return in the prior year,” said Oxbridge Re Holdings President and Chief Executive Officer Jay Madhu.
“We remain positive about our long-term prospects and continue to evaluate new growth opportunities while further mitigating risk.”
