Oxbridge Re Holdings, a provider of reinsurance solutions primarily to property and casualty insurers, reported a net loss of $85,000 in the second quarter of 2023, compared to net income of $77,000 in the second quarter of 2022.
The company said the quarter’s loss was primarily due to higher general and administrative expenses as a result of the recognition of all costs associated with the surancePlus token offering that was completed in the quarter.
The combined ratio increased to 601.6% for the six months ended June 30, 2023 from 191.1% last year due to higher general and administrative expenses incurred in 2023.
Net premiums earned in the second quarter were $183,000 compared to $194,000 in the same period last year.
Total expenses were $697,000 in Q2’23 compared to $410,000 in Q2’22. The increase is due to higher general and administrative expenses as a result of inflationary expense fluctuations compared to the previous year.
For the first half of 2023, the Company generated a net profit of $57,000, compared to a net loss of $310,000 for the six months ended June 30, 2022. other investment and equity securities.
For the first half of 2023, net premiums earned were $183,000 compared to $404,000 last year. The decrease is due to reinsurance contracts executed in the period ending June 30, 2023 compared to the previous year.
No losses were incurred in the three and six months ended June 30, 2023 or 2022, the company said.
On June 30, 2023, cash and cash equivalents, and restricted cash and cash equivalents were $3.5 million compared to $3.9 million on December 31, 2022.
The loss ratio is 0% for the period ended June 30, 2023 and 2022 due to no loss or loss adjustment expenses in either period.
The expense ratio, which measures operating performance, comparing policy acquisition costs and general and administrative expenses to net premiums earned, rose to 601.6% in the six months ending June 30, 2023. up from 191.1% last year. This increase is due to higher general and administrative expenses incurred in 2023.
“During the second quarter we were pleased to complete the private placement of approximately $2.4 million in securitized tokens in our new Web3-focused subsidiary SurancePlus Inc., an alternative investment opportunity that leverages significant qualities of blockchain technology to create a well-designed digital security,” said Oxbridge Re Holdings Chief Executive Officer Jay Madhu.
“Assuming no losses are underwritten in our reinsurance contracts, investors in securitized tokens are expected to generate a potential annual return of approximately 42%,” added Madhu .
“Looking ahead, with a strong balance sheet, no debt, and with our recent transactions in a well-diversified business, we remain very confident in our future ability to deliver shareholder value,” Madhu concluded.