Property and casualty reinsurer Oxbridge Re Holdings Limited has recorded a net loss $305,000 for 2019, despite achieving a profitable result in the fourth quarter of the year.
The company generated net income of $61,000 in Q4 compared with a loss of $6.5 million for the same period in 2018.
Although it still reported an overall loss for the year, Oxbridge Re’s performance was a significant improvement on the loss of $5.7 million it posted in 2018.
Oxbridge Re attributed the improvement to no limit losses being suffered last year when compared with the reinsurance portfolio that suffered limit losses during the 2018.
Total expenses were reduced in 2019 due to $1.1 million, compared with $1.3 million in 2018. In Q4, expenses were $282,000 last year compared with $10.5 million previously.
Net premiums earned totalled $617,000 in 2019 compared with $2.7 million in 2018. For the fourth quarter, net premiums earned were $245,000 compared with $1.5 million for the same period in 2018.
The decreases were primarily due to a significantly lower deployment of capital in 2019 compared to an acceleration of premium recognition due to limit losses being incurred on all reinsurance contracts during the fourth quarter of 2018.
Net investment and other income totalled $230,000 for the year, plus $3,000 of net realized investment gain and a $25,000 of change in fair value of equity securities. Q4 net investment and other income was $48,000, plus $5,000 of change in fair value of equity securities.
Oxbridge Re’s combined ratio was 183.3% in 2019 compared with 310.1% in the prior year. Looking at Q4 alone, the combined ratio was 115.1% compared to 616.5% for the same period previously.
“Our risk management underwriting focus allowed us to remain unaffected by the devastation caused by Hurricane Dorian during the year,” said Oxbridge Re Holdings President and Chief Executive Officer Jay Madhu.
“While the contract year is not over, our sidecar investors are on track to earn an attractive return of approximately 40%. We will look to grow that portion of our business again this upcoming season beginning June 1, 2020,” Madhu continued.
“We remain optimistic about the long-term prospects of our reinsurance business as we continue to evaluate additional opportunities for growth as well as diversification of risk.”
