Oxbridge Re Holdings, a provider of reinsurance solutions primarily to property & casualty insurers, has reported a net income of $142,000 in the first-quarter of 2023, compared with a net loss of $387,000 in the prior year quarter.
The company stated that the increase during the quarter is due to the positive change in the fair value of equity securities and other investments in 2023 compared to last year-ago period.
However, the combined ratio reduced to 0.0% from 171.9% last year.
This change is due to no premiums being earned in the first quarter of 2023.
Net premiums earned for the quarter were nil compared to $210,000 in the same prior year period.
Total expenses, including policy acquisition costs and underwriting expenses and general and administrative expenses were $404,000, compared to $361,000 in the first quarter of 2022.
The rise in 2023 can be attributed to the faster recognition of premium payments and the subsequent increase in policy acquisition costs. Additionally, there was a rise in general and administrative expenses due to higher personnel expenses and fluctuations in expenses caused by inflation, compared to the previous year, the company said.
At March 31, 2023, cash and cash equivalents, and restricted cash and cash equivalents were $3.6 million compared to $3.9 million at December 31, 2022.
“We were pleased to generate positive performance in the first quarter of 2023 with no losses incurred,” said Oxbridge Re Holdings Chief Executive Officer Jay Madhu.
“As an update to our business, in January 2023 we announced the creation of our new Web3 subsidiary SurancePlus Inc (“SurancePlus”)… SurancePlus commenced an offering of securitized tokens which, assuming no losses, are expected to generate a potential return of 42% a year. This new thrust is an entry into the digital security market which opens an entirely new avenue of democratizing reinsurance and potentially other opportunities in the future.”
“Looking ahead and simply put, we remain confident in our future,” Madhu concluded.
