Oxbridge Re Holdings Limited (OXBR) 12 May 232023 Q1 Earnings call transcript

Good afternoon and welcome to Oxbridge Re's First Quarter 2023 Earnings Call. My name is Camilla and I will be your conference operator this afternoon. At this time, all participants are in a listen-only mode.

Joining us for today's presentation is Oxbridge Re's Chairman, President, and Chief Executive Officer, Jay Madhu; and Chief Financial Officer and Corporate Secretary Wrendon Timothy.

Following their remarks, we will open up the call for your questions. remind via this webcast webcast [Technical to being is replay like Difficulty] live broadcast and would everyone call that also until I available via

www.oxbridgere.com. the Investor Re section the of on website Relations at Oxbridge

Wrendon you Now, I would cautions will Financial during to made turn regarding who call. may the of Re you, the that this Timothy, will by over Oxbridge be the Officer provide Chief floor like begin. to Wrendon necessary forward-looking Thank statements management

operator. you, Thank

forward-looking be Oxbridge will Litigation made regarding performance. there forward-looking including call, today's of made Securities statements future events the Re's These XXXX. During Reform Act Private financial future pursuant statements are to

anticipates, and other estimates, as plans, intends, similar such expressions projects, to words intended and statements. Words are expects, forward-looking signify

results future and and of guarantees conditions various rather subject not are statements uncertainties. are risks to but Forward-looking

in uncertainties the the A to events is materially results discussion risks Securities detailed entitled and deal on of Commission. our section and could XX-Q Risk Form included cause actual filed forward-looking with Form and that contained to March XXth, from our statements in XX-K XXXX such Exchange filed differ and Factors

The company's volatility of price financial on a effect material and any the volume fluctuation cause trading could and risks which of adverse uncertainties securities. occurrence and the include earnings, of have market our condition, can business, these significant our for

conditions if law, change. expectations as any this only company by any call update even the forward-looking except contained of on the company as obligation Any circumstances events, required of or in conference call date conference made speak on company's any statements related And statements this call. undertakes presentation, or forward-looking this or to the no

Madhu. to Officer, over and Chief like President Jay Chairman, to I'd our call Executive the Jay? Now,

everyone. Thank Thank joining today. and you, welcome, you us Wrendon, for

a take a Before overview company. to to provide start, I would brief of like our moment we

region XX solutions, casualty of primarily in the with to to years Coast Oxbridge was the Gulf insurers States. Re ago mission and property Holdings founded the Limited United provide reinsurance

We proud be our to XXth year. celebrating anniversary very this are

reinsurance Through our to Re with licensed catastrophes. reinsurance NS, we can subsidiary, we Oxbridge efficiently cover licensed large collateralized fully And from because policies carriers. fully Reinsurance write property we losses compete believe specific and sidecar Oxbridge our write we contracts, Limited collateralized

specialize high-severity believe analyze to reinsurance the risks low-frequency in We data contracts. underwriting access we profile sufficient where risk/return effectively of

Our objective relative by a profits in share selective value will writing opportunistic that is achieve to basis long-term growth risk. business on or attractive and generate book underwriting to

or a in our in Purpose Acquisition the XXXX Company on We investing in technologies. sponsor disruptive Special being diversified SPAC, lead acquisition the Oxbridge by focusing for business of

During the offers first developed quarter its acquisitions of of card, with aircraft Jet.AI aircraft Inc. company ownership, and announced its those aircraft and partner. operating form private its charter of to combination business fractional fleet jet The XXXX, brokerage and Oxbridge intention through a software

Jet.AI the booking BXC app and operates the software to experience. learning platform. two language improve and machine segments: uses along aviation. processing CharterGPT BXB software The segment The and natural private features Operator app CharterGPT jet the Jet.AI

XXX Part suite The software impact. quarter maximize and environmental products add efficiency Jet.AI shareholder expected approval. on-fleet the OXAC brokerage. and is year of buyer’s transaction jet SEC at of pending and the to fractions, close LTC end management, cards, The for second features charter, of aircraft this segment reduce offers FAA Aviation enable providers charter operator stand-alone a jet platform to to revenue, The

well-designed create SurancePlus creation offers WebX blockchain business SEC and our of The We qualities leveraging opportunity subsidiary under has Inc. to alternative an security a new diversified also guidelines compliance. technology transparency key with the further digital that our of company investment complete

assets XX% return security thrust expected WebX is and to democratizing on entry an assuming the year. opportunities entirely which, in puts and of a generate the the offering an avenue approximately reinsurance digital of blockchain into an and potentially commenced real-world other no new new SurancePlus tokens a are potential of future. opens This securitized market, losses, which

very are excited the these of new quarters. and upcoming both appraise of progress We to opportunities about their in look keeping you forward

our return opportunities favorable growth surplus to over investment and our we remain the will opportunistic capital our capital portfolio, licensed deploy Regarding in contribute arise time. when reinsurance that subsidiaries of in

Over well the the I Acquisition core of opportunistic as remain long-term, business highly SurancePlus. Oxbridge prospects on we about and in as reinsurance commented investments our earlier the two

through things I'll Wrendon now our financial turn us and to over take results.

following net to I were contract the is to ended remind to you would X for typical XX quarter compared recognition premium our from impact. due the like period loss first XXXX last March reinsurance year. our of to the from $XXX,XXX arising the that The Jay. you, in year's premiums reinsurance regard rents and Thank With XXXX the May of June to June acceleration from was limit quarter. Ian during the nil of suffered contracts Hurricane two decrease

in quarter. incurred there to-date premiums There no also reinsurance So losses have been been this have recorded XXXX. in no

this XXXX the a $XXX,XXX change unrealized fair change in resulted in to income to regards With and of unrealized quarter due fund. to rates gain money value Acquisition income from in In year's investment due our rose on to the last our in We income, investment other quarter first higher loss. in Corp. market Oxbridge a equity generated investment fourth quarter, XX,XXX XXX,XXX net XXX,XXX solid a

value also our first change in year the XX,XXX negative in the securities XX,XXX XXXX, from of positive improved March recognized the fair quarter. We change prior as XX, a much equity of

first the together no revenues in resulted prior All compared of for $XXX,XXX year's taken factors, the of March ended in three months to these XXXX quarter. total in XX,

With the acceleration underwriting $XXX,XXX to was up acquisition policy costs. $XXXXXX policy acceleration last to regard acquisition no fourth marginally from were expenses cost and total year. XXXX of the total in quarter the recognition of of There of due expenses premium resulting quarter in expenses, to the

securities the primarily quarter, a $XXX,XXX other -- of investments the or were we year's to general additional, of costs expenses cost due income $XXX,XXX high change or ended share in quarter. equity XXXX for increased $X.XX share due In generated per to the in personnel loss last admin the and months pressures. XXXX of net value three inflationary and and positive net Due to first $X.XX per in compared the March XX, in to fair

investor we have in discussed analyze measures profitability use various business. we the before calls, our our to As growth and of

business, reinsurance by our examining we underwriting expense loss ratio profitability acquisition For measure ratio combined ratio ratio. and our

is period. included loss ratio X% was in the measures loss or per either XXXX expenses loss on and loss adjustment the or Our ratio loss profitability adjustment retrace XXXX the quarter no net with losses of first writing of in growth expenses

efficiency in policy acquisition measures net and operational in of Our premiums costs X% the earned ratio year. Likewise quarter with green The earnings. prior compared acquisition which compares the XX% XXXX. cost to was no ratio first

our which XXXX. no a in performance Our XXXX to the premiums costs in policy to result acquisition net the ratio quarter expense measures in was ratio earned, compared as expenses X% of and first first general quarter operating admin of premiums expense and XXX.X% compared

which quarter in showed with combined a last of is ratio ratio year's quarter. is fourth no and ratio X% expense performance combined in measure used underwriting the was combined ratio earned to the XXX.X% Our sum premiums fourth loss the

sheet. balance the turning Now to

the marginally Our we to call. Cash at to at equivalents to million our acquisition cash March shareholders' change and end the to the end XX, investment to cash common fair and $X.X due from or $XXX,XXX in XX, value increased $XX.X prior which at investments and quarter compared largely decreased XX, on due investment in gain million $X.XX the restricted during quarter. equity portfolio in March positive to a equivalents December increased of cash increased experienced XXXX to XXXX approximately million $XXX,XXX Total Other $X.X share. XXXX.

the before wrap Now Jay I'll take turn back to questions. we the call over to up

Wrendon. you, Thank

discussed year-end we January a Oxbridge of conference late Re. owned of we incorporation our As on wholly the subsidiary announced Assurance in Plus call

contracts that indirectly reinsurance will by contracts. return fractionalized our Assurance will represent these holders underwritten of reinsurance Plus performance securities reinsurance issue on a interest Token receive the subsidiary. underlying in tokenized

that a to security. technology well-designed investment as the Assurance key In digital an democratize qualities reinsurance will puts access blockchain alternative create essence, to of opportunity leverages

will investors entry. due to to the to have transparently interest Our the and opportunities chain. participate These their enable more in recorded on high barriers were past to unavailable tokens invest and permanently typically

exciting card aircraft jet utilized business Corp. Jet.AI Acquisition Oxbridge embark charter with on in aircraft to and fractional opportunity investment combination a through we ownership this private offering brokerage late its aircraft. February, Inc., Following of service a company fleet

Reinsurance closing of opportunities growth to risk we new million X.X of the in portfolio diversify Oxbridge Limited which exciting value These and have the the subsidiary us a will private wholly-owned further beneficially million approximately SPAC value SPAC. transaction on own capitalize Our investment including technologies. $XX.X our emerging holds the our business and in positioning of investor million in X.X sponsor not at is shares lead warrants

value they future the are these We bring the very of investments about and to shareholders. excited our potential

value end our share. per share closing in per book quarter So is at $X.XX

business well-diversified. Our is

Our track. on investment plus new web in and business business, is Oxbridge us investment insurance our leading-edge in positions technology intelligence three artificial a Aviation acquisition/jet.ai

debt-free. remain We

remain our sheet importantly, view diversification. a opportunistic is in we based on of only core We have most solid on have We based broader not market. balance strong And that cash our but a with a also business, opportunity viable position. model the business

we the the a we opening that, provide call please to open for With ready call are -- Operator to instructions. are questions. appropriate

sir. you, Thank

Kent Engelke session. question-and-answer be with [Operator question. Securities. with Please Instructions] now from Our your first will Capitol We comes a question conducting proceed

value first the of on. Hey, out the lot that on is try the potential Jay. Assurance there? I recognize A spinning that come the of you to We to foremost to going of questions consider Hey. mind Wrendon. value something -- to right. guess and possibility have maybe couple of increase things a Plus there

things SPAC accounting in once a based in least closed large stock balance place? itself sheet where where release think there value I should a that at of on very secondly would the on lot and at pack a the be And based looking is like regards the then the the potential on looks that that of rules already are price of on of there's like upon to merger voting it we your value is

on I'll moment. closed your take don't Ken, second But that the once the normalize. the Hi, is, at that's investment first. yes. full We to question SPAC the will And answer a value that mark-to-market on yes, realize

will recognition. there an in be will there So uptick be

that. forward So to we're looking

yesterday of the SEC -- year. all yesterday just if this went by we comments of SEC end comments of the of filed expect QX the actually first that rather. the close second in SEC got round hope goes comments to well and We And this with the round

looks everything and we're track go on there. good So to

We internally. Plus we is have developed have we done go In work There developed relation progress, dilution. in-house. in a don't We we have it web web capital. three developed question do company what We We -- will that raise be Assurance a cash. your didn't didn't we how first monetize to three out. no was but raise all

owned the XXX% of at So shareholders moment. company have that

be Plus as As and issue forward well. But but do opportunity there's an maybe go different approval, opportunity and reinsurance it with once will raise forward we Assurance various definitely Board there's tokens to do go of funds et definitely we something bigger. token, go definitely and like much to we the cetera the

absolutely So excited. very we're

A lot lot doing cusp it potential for and something. of a opportunity, we're long you finally following like on looks a all the time of of

been But last an busy year. we're has year, almost extremely This yes. extremely busy there. Yes, now

to it. forward Looking

the to conference forward Look upcoming calls.

Kent. you, Thank

Kent. Thanks,

Mr. the call our turn this session. like for back this closing Madhu [Operator question-and-answer remarks. concludes time, At I'd Instructions] to to over now

Thank on you call. joining us for today's

times. employees, up, partners, you to me I our build business challenging and these wrap continue want Oxbridge gratitude we you And our especially time. updating have on manage continuing any to questions and to investors call. team our any please for forward support. experience their if to We the further during will to their our business significant look express to leverage next thank contact Before I want

Oxbridge. you interest today for again Operator? attention your Thank time and your and in

Thank you.

the May we today's available link recording via XX, company's the to of website for remind Investors in be today's a Before conclude call, of replay call a until will like available I everyone that would XXXX. section

our you Thank presentation. us today joining for for

now You disconnect. may