Oxbridge Re, the Cayman Islands-based reinsurance company, has disclosed a Q1 2024 net loss of $905,000 compared to a net income of $142,000 in Q1 2023.
According to the firm, the decrease is primarily due to the negative change in the fair value of equity securities and investments during the opening quarter compared to the prior period.
Oxbridge Re also revealed that net premiums earned for Q1 2024 increased to $549,000 from $0 in Q1 2023.
“The increase is due to the contracts in force in the quarter ended March 31, 2024, as opposed to the prior period in which premiums were accelerated prior to the quarter ending March 31, 2023, as a result of losses incurred from Hurricane Ian,” the firm said.
Meanwhile, Oxbridge Re’s total expenses were $548,000 for Q1 2024 compared to $404,000 for the same period in 2023.
The increase in 2024 was reportedly due to higher professional and legal expenses incurred during the opening quarter, as well as no policy acquisition costs recorded in the prior period.
The combined ratio, which Oxbridge Re explained is the sum of the loss ratio and the expense ratio, increased to 99.8% in Q1 of 2024 from 0.0% in Q1 2023.
The firm said that the increase is due to higher expenses incurred during Q1 2024 when compared with the prior year quarter.
Oxbridge Re Holdings Chairman and Chief Executive Officer Jay Madhu, commented, “We were pleased with our core operational performance in the first quarter of 2024 in our Web-3 and reinsurance tokenization business.
“Through our subsidiary, SurancePlus Inc., we have issued what we believe to be the inaugural Tokenized Reinsurance Securities under the sponsorship of a publicly traded company.
Madhu concluded, “Further reinforcing our strategic vision and outlook, Blackrock previously announced its intention to tokenize $10 trillion of its assets, and more recently, Securitize announced they had secured $47m funding led by Blackrock to expand RWA tokenization.
“As such we remain steadfast in our commitment to driving innovation and delivering value to our stakeholders and we look forward to continued success in the evolving landscape of reinsurance and Web3 technologies.”
