Attached files
| file | filename |
|---|---|
| 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
813-259-0345
sboland@rfbcommunications.com
Oxbridge Re Holdings Limited Reports Fourth Quarter and Full Year
2017 Results
GRAND CAYMAN, Cayman Islands (March 13, 2018) --
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,
reported financial results for the fourth quarter and year ended
December 31, 2017.
Fourth Quarter 2017 Results
Net
loss totaled $24,000 or $(0.00) per basic and diluted common share,
compared with net loss of $2.3 million or $(0.39) per basic and
diluted common share in the fourth quarter of 2016. The reduction
in net loss was primarily due to net underwriting losses related to
Hurricane Matthew experienced during the fourth quarter of 2016,
compared with no underwriting losses during the fourth quarter of
2017.
Net
premiums earned totaled $227,000 compared with $11.4 million in the
fourth quarter of 2016. The significant decrease in net premiums
earned was directly as a result of acceleration of premium
recognition on all our contracts through September 30, 2017 as the
company suffered limit losses on all its contracts due to the
combination of Hurricanes Harvey, Irma and Maria. As such, only
premiums on one of the Company’s multi-year
retrospectively-rated contracts was recognized during the fourth
quarter of 2017. Such a scenario did not occur during the fourth
quarter of 2016.
Net
investment income totaled $71,000, which was offset by $82,000 of
net realized investment losses. This compares with $123,000 of net
investment income and $298,000 of net realized investment gains in
the fourth quarter of 2016.
Total
expenses, including losses and loss adjustment expenses, policy
acquisition costs and underwriting expenses, and general and
administrative expenses, were $240,000 compared with $14.2 million
in the fourth quarter of 2016. The decrease was primarily the
result of underwriting losses from Hurricane Matthew during the
fourth quarter of 2016, compared with no underwriting losses during
the fourth quarter of 2017.
At
December 31, 2017, cash and cash equivalents, and restricted cash
and cash equivalents, totaled $10.9 million compared with $35.7
million at December 31, 2016.
Fourth 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 0.0% for the fourth quarter of 2017,
compared with 120.4% for the fourth quarter of 2016. The decrease
in the loss ratio was due to no losses or loss adjustment expenses
incurred during the fourth quarter of 2017 compared with
significant losses from Hurricane Matthew that occurred during the
quarter of 2016 that materially affected the company’s book
of business.
Acquisition
cost ratio, which measures operational efficiency, compares policy
acquisition costs and other underwriting expenses with net premiums
earned. The acquisition cost ratio was 4.0% for the fourth quarter
of 2017 compared with 0.7% for the same year-ago period. The
increase in the acquisition cost ratio during the fourth quarter of
2017 was due primarily to a greater decrease in net premiums earned
than policy acquisition costs during the quarter, as a result of
acceleration of premium recognition mentioned earlier.
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 105.7% during the fourth quarter of 2017 compared with 3.6%
for the fourth quarter of 2016. The increase in the expense ratio
was due to a significant decrease in net premiums earned during the
fourth quarter of 2017 when compared with the same year-ago
period.
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 105.7% for the fourth quarter of 2017 and 124.0% in
the same year-ago period.
Twelve Months Ended December 31, 2017 Financial
Results
Net
loss totaled $20.6 million or $(3.55) per basic and diluted common
share compared to net income of $2.6 million or $0.43 per basic and
diluted common share in 2016. The significant decrease in net
income was wholly due to the triggering, during the third quarter
of 2017, of limit losses on all of the company’s reinsurance
contracts, due to the individual and collective impact of Hurricane
Harvey, Hurricane Irma and Hurricane Maria on the company’s
book of business, compared with nominal loss and loss adjustment
expenses during the prior fiscal year.
Net
premiums earned totaled $23.6 million compared with $18.1 million
in 2016. The increase in net premiums earned is due to both the
higher deployment of capital during 2017, and consequentially
higher premiums, as well as the acceleration of premium recognition
due to full limit losses being incurred on all reinsurance
contracts during the full year 2017.
Net
investment income totaled $412,000 offset by $138,000 of net
realized investment losses. This compares with $450,000 of net
investment income coupled with $554,000 of net realized investment
gains for 2016.
Total
expenses, including losses and loss adjustment expenses, policy
acquisition costs and underwriting expenses, and general and
administrative expenses, were $44.4 million compared with $16.5
million in 2016. The significant increase in total expenses was due
to the triggering of limit losses on substantially all the
company’s reinsurance contracts, due to the individual and
collective impact of Hurricane Harvey, Hurricane Irma and Hurricane
Maria on our book of business, compared with nominal loss and loss
adjustment expenses during the prior fiscal year. The increase in
total expenses was also due to acceleration of premium recognition
and the resulting acceleration of policy acquisition
costs.
Dividends
paid per share were $0.36 for 2017 compared with $0.48 in
2016.
Twelve Months Ended December 31, 2016 Financial Ratios
The
loss ratio was 180.0% compared with a loss ratio of 81.8% during
2016. The increase in the loss ratio was due to the multiple limit
losses suffered during 2017, partially offset by a higher
denominator in net premiums earned, when compared with the prior
fiscal year.
The
acquisition cost ratio was 2.9% compared with 1.6% for the 2016.
The increase in the acquisition cost ratio was due wholly to the
acceleration of acquisition costs recognition mentioned earlier,
more than offset by a larger denominator in net premiums earned,
when compared with prior fiscal year.
The
expense ratio was 8.5% compared with 9.4% for 2016. The decrease in
the expense ratio was due wholly to a significant increase in net
premiums earned partially offset by increased policy acquisition
costs as recorded during 2017, when compared with the prior fiscal
year.
The
combined ratio was 188.5% compared with 91.3% for the year-ago
period. The increase in the combined ratio is due to a
significantly higher loss ratio during 2017 as mentioned above,
when compared with the prior fiscal year.
Management Commentary
“2017
was an uncharacteristic year, one in which the strength of our
business model was tested greatly and, most notably, by a record
three Category 4+ hurricanes, which hit the Gulf Coast region
during the third quarter,” said Oxbridge Re’s President
and Chief Executive Officer Jay Madhu. “Despite these
headwinds, we remain optimistic about our company’s future
prospects”.
Conference Call
Management
will host a conference call later today 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:
Tuesday, March 13, 2018
Time:
4:30 p.m. 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 Precision IR at 919-481-4000 or operations@issuerdirect.com.
A
replay of the call will be available by telephone after 4:30 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 April 13, 2018.
Toll-free
replay number: 877-481-4010
International
replay number: 919-882-2331
Conference
ID: 25602
About Oxbridge Re
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 Re's licensed reinsurance
subsidiary, Oxbridge Reinsurance Limited, it writes fully
collateralized policies to cover property losses from specified
catastrophes. Oxbridge Re 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
Consolidated Balance Sheets
(expressed in thousands of U.S. Dollars, except per share and share
amounts
|
|
At December 31,
|
|
|
|
2017
|
2016
|
|
Assets
|
|
|
|
Investments:
|
|
|
|
Fixed-maturity
securities, available for sale, at fair value (amortized cost:
$4,450 and $6,060, respectively)
|
$4,433
|
6,051
|
|
Equity
securities, available for sale, at fair value (cost: $2,058 and
$5,343, respectively)
|
2,036
|
4,941
|
|
Total investments
|
6,469
|
10,992
|
|
Cash
and cash equivalents
|
7,763
|
12,242
|
|
Restricted
cash and cash equivalents
|
3,124
|
23,440
|
|
Accrued
interest and dividend receivable
|
39
|
48
|
|
Premiums
receivable
|
3,798
|
4,038
|
|
Reinsurance
recoverable
|
-
|
-
|
|
Deferred
policy acquisition costs
|
48
|
88
|
|
Unearned
premiums ceded
|
-
|
-
|
|
Prepayment
and other receivables
|
116
|
98
|
|
Property
and equipment, net
|
36
|
54
|
|
Total assets
|
$21,393
|
51,000
|
|
|
|
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
Liabilities:
|
|
|
|
Reserve
for losses and loss adjustment expenses
|
$4,836
|
8,702
|
|
Loss
experience refund payable
|
135
|
1,470
|
|
Losses
payable
|
386
|
-
|
|
Unearned
premiums reserve
|
2,012
|
3,461
|
|
Accounts
payable and other liabilities
|
106
|
204
|
|
Total liabilities
|
7,475
|
13,837
|
|
|
|
|
|
Shareholders’
equity:
|
|
|
|
Ordinary
share capital, (par value $0.001, 50,000,000 shares authorized;
5,733,587 and 5,916,149 shares issued and outstanding)
|
6
|
6
|
|
Additional
paid-in capital
|
32,100
|
33,034
|
|
(Accumulated
Deficit) Retained earnings
|
(18,149)
|
4,534
|
|
Accumulated
other comprehensive loss
|
(39)
|
(411)
|
|
Total
shareholders’ equity
|
13,918
|
37,163
|
|
Total
liabilities and shareholders’ equity
|
$21,393
|
51,000
|
OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARY
Consolidated Statements of Income
(expressed in thousands of U.S. Dollars, except per share and share
amounts)
|
|
Three Months Ended
|
Year Ended
|
||
|
|
December 31,
|
December 31,
|
||
|
|
2017
|
2016
|
2017
|
2016
|
|
Revenue
|
|
|
|
|
|
Assumed
premiums
|
$7
|
-
|
$18,263
|
15,065
|
|
Premiums
ceded
|
-
|
-
|
(880)
|
-
|
|
Change
in loss experience refund payable
|
(135)
|
5,348
|
1,335
|
883
|
|
Change
in unearned premiums reserve
|
355
|
6,065
|
4,849
|
2,110
|
|
|
|
|
|
|
|
Net
premiums earned
|
227
|
11,413
|
23,567
|
18,058
|
|
Net
realized investment gains (losses)
|
(82)
|
298
|
(138)
|
554
|
|
Net
investment income
|
71
|
123
|
412
|
450
|
|
|
|
|
|
|
|
Total
revenue
|
216
|
11,834
|
23,841
|
19,062
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
Losses
and loss adjustment expenses
|
-
|
13,745
|
42,427
|
14,775
|
|
Policy
acquisition costs and underwriting expenses
|
9
|
75
|
681
|
286
|
|
General
and administrative expenses
|
231
|
333
|
1,325
|
1,420
|
|
|
|
|
|
|
|
Total
expenses
|
240
|
14,153
|
44,433
|
16,481
|
|
|
|
|
|
|
|
Net
income
|
(24)
|
(2,319)
|
$(20,592)
|
2,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
Basic
and Diluted
|
$(0.00)
|
(0.39)
|
$(3.55)
|
0.43
|
|
Diluted
|
$(0.00)
|
(0.39)
|
$(3.55)
|
0.43
|
|
|
|
|
|
|
|
Dividends paid per share
|
$-
|
0.12
|
$0.36
|
0.48
|