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8-K - CURRENT REPORT - OXBRIDGE RE HOLDINGS Ltd | oxbr_8k.htm |
Exhibit 99.1
Company
Contact:
Oxbridge
Re Holdings Limited
Jay
Madhu, CEO
345-749-7570
jmadhu@oxbridgere.com
Media
contact:
Suzie
Boland
RFB
Communications Group
813-786-1019
sboland@rfbcommunications.com
Oxbridge
Re Holdings Reports First Quarter 2017 Results
GRAND CAYMAN, Cayman Islands (May 15, 2017) -- Oxbridge Re
Holdings Limited (OXBR),
a provider of reinsurance solutions primarily to property and
casualty insurers in the Gulf Coast region of the United States,
has reported financial results for the first quarter ended March
31, 2017.
First Quarter 2017 Results
Net
income totaled $1.3 million or $0.22 per basic and diluted common
share compared with net income of $1.0 million or $0.17 per basic
and diluted common share in the first quarter of 2016. The increase
in net income was primarily due to higher net premiums earned,
coupled with lower total expenses.
Net
premiums earned increased to $1.5 million compared with $1.4
million in the first quarter of 2016. The increase in net premiums
earned was primarily a result of growth and size in the number of
reinsurance contracts placed.
Net
investment income totaled $86,000 coupled with $2,000 of net
realized investment gains. This compares with $94,000 of net
investment income coupled with $56,000 of net realized investment
gains for the first quarter of 2016.
Total
expenses, including losses and loss adjustment expenses, policy
acquisition costs and underwriting expenses, and general and
administrative expenses, were $366,000 compared with $488,000 in
the first quarter of 2016. The decrease in total expenses was
primarily a result of favorable development on losses recorded as
established by the company’s independent actuary, and lower
general and administrative expenses, which was partially offset by
minor increases in policy acquisition costs.
During
the first quarter of 2017, the company repurchased 54,277 common
shares under its $2.0 million share repurchase plan approved by the
board of directors in May 2016. These shares were repurchased at an
average price of $6.23 per share, bringing the total repurchases
under the plan to approximately $1.1 million to date.
Dividends
paid per share were $0.12 for the first quarter of 2017, unchanged
from the first quarter of 2016.
At
March 31, 2017, cash and cash equivalents, and restricted cash and
cash equivalents, totaled $31.2 million compared with $35.7 million
at December 31, 2016.
First Quarter 2017 Financial Ratios
Loss
ratio, which measures underwriting profitability, is the ratio of
losses and loss adjustment expenses incurred to net premiums
earned. The loss ratio was (2.1)% for the first quarter of 2017
compared with 4.6% for the first quarter of 2016. The decrease in
loss ratio was due to the favorable development of losses during
the quarter.
Acquisition
cost ratio, which measures operational efficiency, compares policy
acquisition costs and other underwriting expenses with net premiums
earned. The acquisition cost ratio was 4.1% for the first quarter
of 2017 compared with 4.4% for the same year-ago period. The
decrease in the acquisition cost ratio was due to the lower
weighted-average acquisition costs on reinsurance contracts in
force.
Expense
ratio, which measures operating performance, compares policy
acquisition costs, other underwriting expenses and general and
administrative expenses with net premiums earned. The expense ratio
totaled 25.7% during the first quarter of 2017 compared with 30.8%
for the first quarter of 2016. The decrease in the expense ratio
was due to lower general and administrative expenses during the
quarter, coupled with higher net premiums earned.
Combined
ratio, which is used to measure underwriting performance, is the
sum of the loss ratio and the expense ratio. If the combined ratio
is at or above 100%, underwriting is not profitable. The combined
ratio totaled 23.6% for the first quarter of 2017 and 35.3% for the
first quarter of 2016.
Subsequent Events
Subsequent
to the quarter end, the company declared its regular quarterly cash
dividend in the amount of $0.12. The dividend will be paid on June
30, 2017 to shareholders of record on the close of business June
23, 2017.
Management Commentary
“We
are pleased with our results for the first quarter, highlighted by
another period of profitable growth for Oxbridge,” said
company president and CEO, Jay Madhu. “We believe our
positive results for the quarter provides further validation of our
conservative approach and rigorous underwriting
process.
“We
continue to remain focused on creating shareholder value through
the payment of regular quarterly dividends as well as the ongoing
repurchase of our common stock.”
Conference Call
Management
will host a conference call later today (May 15, 2017) to discuss
these financial results, followed by a question and answer session.
President and CEO Jay Madhu and CFO Wrendon Timothy will host the
call starting at 4:30 p.m. Eastern time.
The
live presentation can be accessed by dialing the number below or by
clicking the webcast link available on the Investor Information
section of the company's website at www.oxbridgere.com.
Date:
Monday, May 15, 2017
Time:
4:30 PM Eastern Time
Listen-only
toll-free number: 877-407-0782
Listen-only
international number: 201-689-8567
Please
call the conference telephone number 10 minutes before the start
time. An operator will register your name and organization. If you
have any difficulty connecting with the conference call, please
contact Issuer Direct at 919-481-4000 or operations@issuerdirect.com.
A
replay of the call will be available by telephone after 8 p.m.
Eastern time on the same day of the call and via the Investor
Information section of Oxbridge's website at www.oxbridgere.com until June
15, 2017.
Toll-free
replay number: 877-481-4010
International
replay number: 919-882-2331
Conference
ID: 10349
About Oxbridge Re Holdings Limited
Oxbridge
Re (www.oxbridgere.com) is a
Cayman Islands exempted company that was organized in April 2013 to
provide reinsurance business solutions primarily to property and
casualty insurers in the Gulf Coast region of the United States.
Through Oxbridge's licensed reinsurance subsidiary, Oxbridge
Reinsurance Limited, it writes fully collateralized policies to
cover property losses from specified catastrophes. Oxbridge
specializes in underwriting medium frequency, high severity risks,
where it believes sufficient data exists to analyze effectively the
risk/return profile of reinsurance contracts. The company's
ordinary shares and warrants trade on the NASDAQ Capital Market
under the symbols "OXBR" and "OXBRW,"
respectively.
Forward-Looking Statements
This
press release may contain forward-looking statements made pursuant
to the Private Securities Litigation Reform Act of 1995. Words such
as "anticipate," "estimate," "expect," "intend," "plan," "project"
and other similar words and expressions are intended to signify
forward-looking statements. Forward-looking statements are not
guarantees of future results and conditions but rather are subject
to various risks and uncertainties. Some of these risks and
uncertainties are identified in the Company's filings with the SEC.
The occurrence of any of these risks and uncertainties could have a
material adverse effect on the Company's business, financial
condition and results of operations. Any forward-looking statements
made in this press release speak only as of the date of this press
release and, except as required by law, the Company undertakes no
obligation to update any forward-looking statement contained in
this press release, even if the Company's expectations or any
related events, conditions or circumstances change.
OXBRIDGE
RE HOLDINGS LIMITED AND SUBSIDIARY
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||
Consolidated
Balance Sheets
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(expressed
in thousands of U.S. Dollars, except per share and share
amounts)
|
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At March
31,
2017
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At December
31,
2016
|
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(Unaudited)
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|
Assets
|
|
|
Investments:
|
|
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Fixed-maturity
securities, available for sale, at fair value (amortized cost:
$10,027 and $6,060, respectively)
|
$10,021
|
$6,051
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Equity securities,
available for sale, at fair value (cost: $4,799 and $5,543,
respectively)
|
4,351
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4,941
|
Total
investments
|
14,372
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10,992
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Cash and cash
equivalents
|
15,338
|
12,242
|
Restricted cash and
cash equivalents
|
15,871
|
23,440
|
Accrued interest
and dividend receivable
|
34
|
48
|
Premiums
receivable
|
1,637
|
4,038
|
Deferred policy
acquisition costs
|
68
|
88
|
Prepayment and
other receivables
|
111
|
98
|
Property and
equipment, net
|
49
|
54
|
Total
assets
|
$47,480
|
$51,000
|
|
|
|
Liabilities
and Shareholders’ Equity
|
|
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Liabilities:
|
|
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Reserve for losses
and loss adjustment expenses
|
$5,684
|
$8,702
|
Loss experience
refund payable
|
2,218
|
1,470
|
Unearned premiums
reserve
|
2,044
|
3,461
|
Accounts payable
and other liabilities
|
156
|
204
|
Total
liabilities
|
10,102
|
13,837
|
|
|
|
Shareholders’
equity:
|
|
|
Ordinary share
capital, (par value $0.001, 50,000,000 shares authorized; 5,861,872
and 5,916,149 shares issued and outstanding)
|
6
|
6
|
Additional paid-in
capital
|
32,727
|
33,034
|
Retained
earnings
|
5,099
|
4,534
|
Accumulated other
comprehensive loss
|
(454)
|
(411)
|
Total
shareholders’ equity
|
37,378
|
37,163
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Total liabilities
and shareholders’ equity
|
$47,480
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$51,000
|
OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARY
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Consolidated Statements of Income (unaudited)
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(expressed in thousands of U.S. Dollars, except per share and share
amounts)
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Three
Months Ended March 31,
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2017
|
2016
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Revenue
|
|
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Assumed
premiums
|
$880
|
$503
|
Change in loss
experience refund payable
|
(748)
|
(2,088)
|
Change in unearned
premiums reserve
|
1,416
|
2,966
|
|
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Net premiums
earned
|
1,548
|
1,381
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Net realized
investment gains
|
2
|
56
|
Net investment
income
|
86
|
94
|
|
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Total
revenue
|
1,636
|
1,531
|
|
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Expenses
|
|
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Loss and loss
adjustment expenses
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(32)
|
63
|
Policy acquisition
costs and underwriting expenses
|
63
|
61
|
General and
administrative expenses
|
335
|
364
|
|
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|
Total
expenses
|
366
|
488
|
|
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Net
income
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$1,270
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$1,043
|
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Earnings
per share
|
|
|
Basic and
Diluted
|
$0.22
|
$0.17
|
|
|
|
Dividends
paid per share
|
$0.12
|
$0.12
|
|
|
|
|
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Performance
ratios to net premiums earned:
|
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|
Loss
ratio
|
-2.1%
|
4.6%
|
Acquisition cost
ratio
|
4.1%
|
4.4%
|
Expense
ratio
|
25.7%
|
30.8%
|
Combined
ratio
|
23.6%
|
35.3%
|