Oxbridge Re has said in its latest results that it saw a net loss in income of $310,000 in the first six months of the year.
This compares with the same period last year in which the firm reported a net income of $476,000. It also said that net income in Q2 2022 was $77,000, down from $448,00 in the same period in 2021.
A statement for the firm offered an explanation for the falls. It said: “The declines are due primarily to the negative change in fair value of equity securities and decreased net realised investment gain during the quarter and six months ended June 30, 2022 when compared with the prior periods.”
It added: “Total expenses, including policy acquisition costs and general and administrative expenses, were $410,000 and $772,000 for the three and six months ended June 30, 2022, respectively, compared to $334,000 and $607,000, respectively, for the same periods in the prior year. The increases are due primarily to increased personnel and higher general and administrative expenses due to inflationary and other fluctuations.”
Net premiums earned for the three months ended June 30, 2022 decreased marginally to $194,000 from $205,000 in the same prior year period. For the six months ended June 30, 2022 net premiums earned increased to $404,000 from $386,000 in the prior year. The firm said that the increase is due to a higher weighted average rate on reinsurance contracts in force during the first six months of 2022.
Jay Madhu, president and CEO of the firm, said: “We continue to perform well in 2022 despite the current economic uncertainty and continuing volatility and significant declines in global capital markets. Looking ahead we remain highly optimistic about the long-term prospects for our core business, our investment in Oxbridge Acquisition Corp. which is progressing well, and currently, with the markets improving, what appears to be a comeback with our modest investment portfolio.”
