Oxbridge Re Holdings Limited (OXBR) 13 Nov 242024 Q3 Earnings call transcript

Good afternoon. Welcome to Oxbridge Re's Third Quarter 2024 Earnings Call. My name is Joe, and I will be your conference operator this afternoon. [Operator Instructions] 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 to your questions. Oxbridge remind replay this on until Information of to available will the like www.oxbridgere.com. section telephone at via November the would everyone call that be Investor I website Re XX, XXXX,

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

you, Thank operator.

events, Private future Oxbridge be are XXXX. forward-looking intended Reform estimates, statements financial and signify plans, anticipates, today's These Re's Act statements. expects, as During there performance. projects are regarding future to forward-looking other call, will made made pursuant Securities of including forward-looking words statements similar expressions intends, such to Words the Litigation and

earnings, fluctuations of guarantees rather undertakes of events, conference circumstances cause adverse included forward-looking Forward-looking update uncertainties. can market in expectations a risks on and our uncertainties even this financial differ forward-looking volume any from only and no effect detailed except any or today as Commission. The call company company's and and future as presentation, to business, on change. these statements in made call. of to materially any or trading which by subject statements any securities. this our required for the the in various conference related that of turn the results our could and our or are this Any results company's uncertainties company speak and in are under Securities law, risks Form conditions volatility condition risks is Factors significant of XX-Q contained with conditions, Form the not and forward-looking on occurrence contained to Risk could discussion of call A events obligation actual statements on but date the cause statements XX, XXXX, filed and March of XX-K material Exchange section and have entitled the such filed

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

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

Let diversify to we're business. saying the have and fortify by me significant proud taken our we steps start of

solid the reinsurance. RWA/WebX space, RWA have where tranche securities issue underlying is rein as we tokenized While we in the where asset an

Our core large believe to risks, high-severity from believe we sufficient where effectively we policies specific fully contracts. write cover data And we business, risk-return remains effectively specialize however, compete because reinsurance of where carriers. we low-frequency, the can property underwriting losses collateralized collateralized catastrophes. exists with fully reinsurance to in We write contracts, we profile analyze

to diversify compliance approach incurring investment establishment security our on investor transparity Our Building a initiative aims this guidelines, participation, tokenized in traditionally and opportunistic objective beyond net alternative and of subsidiary value we blockchain new efficient redtree We market. Consequently, Inc., selective risk. our the achieve RWA/[ advancement democratizing SurancePlus the assets writing underwriting individuals. basis offering began business per expanded opportunities. profits in as These extending business ] worth our securities reinsurance reflecting the been to what a new foundation, XXXX. focused attractive broaden leverage to ensure Crucially, was digital complete reinsurance SurancePlus opportunities debt, in relative specializes our to with stable tokenizes SurancePlus diversification. of high has and book group growth securities to technology business significant without technology. RWAs, a representing SEC ultra achieved to establishing portfolio or real-world by on on that long-term selective generate by will share is

quarters. these about their forthcoming progress our keep to informed stakeholders and new enthusiastic investments in prospects are committed the We the of of remain

the in we core take reinsurance ahead, summary, more position now results. successful embrace our the Looking intend of a over maintained Wrendon as market turn real-world outlook strong the through business we of player to things asset/webX the regarding of as comprehensively. I'll we long-term sense us our sector. to In to optimism RWA, alongside financial prominent a RWA a integration Oxbridge SurancePlus

Thank you, contract quarter for XXXX, is X Jay. Net that period the third last $XXX,XXX May from to were I'd year's September like in you June to premiums our remind XX, compared earned to year. of quarter. $XXX,XXX XX the typical following ended

the $X.X incurred September the during XXXX, contracts up no losses last in reinsurance net force period when date XXXX. $XXX,XXX There of year. from period to XXXX in the prior the The to first For premiums XXXX year. or increases ended were XX, same the in million, X have with full due months earned are compared been

net Our being income and other decreased and XXXX in the in cash market first funds. quarter months of less money due X investment the held to

unrealized in Jet.AI an recorded remeasurement result value. loss of other our of investment also fair We at on investments. our of X.XX million the

in year. these -- X quarter. $XXX,XXX negative $X.XX as XXXX, We XX,XXX in equity fair change prior September to ended resulted value XX, total in All the XXXX, XXX,XXX prior securities are the together from prior year's million for months compared September in XX, to for of third the the change negative decreasing year factors negative recognize of revenues

the month year. The and last to in period of to quarter expenses of down in was compared XXXX general the acquisition policy and own fair year. With $XX.X same its XXXX, third due in of to the a costs expenses to due to being a to primarily when of per X last change value or $X.X quarter. $X.X negative decrease quarter. last For in Total the and securities $XXX,XXX loss same compared and the loss with net of to in period total compared associated admin and XXXX offering the months X decrease respect income, third were revenue with third in investments million equity recognized negative primarily adjustment $XXX,XXX included loss SurancePlus costs year. for We the expenses, generated loss the last $X.XX share ] share per net [ net of million compared in year's first

$X.XX loss during year. driven compared million higher per premium net XX, in management and $X.XX was For compared The SurancePlus by the to last months improved the other due same the or per levels $XX.XX higher XXXX, this $X.XX the a revenue income share loss million the period decrease X our more from result outweighed year of loss to on ended unrealized to. offering. was investments net September than share fee

we with As various call, measures use growth our operations. analyze business the we discussed to of and profitability the have

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

underwriting the ratio no losses premiums periods. of adjustment losses both loss the ratio expenses X% in which in ratio, auction incurred to measures profitability, loss and either loss net was XXXX, loss or is expenses XXXX, Our earned. With

for September period XXXX, period Our ratio to acquisition The XX, XX.X% X-month ratio increased earned. earned period primarily when marginally September X increase for prior premiums XXXX, ended during XX, ended the semi XXXX is acquisition ended which X-month cost the September operational partial XXXX. The to compared cost months ended efficiency periods. measures in XX, the full cost for September and to XX, XX.X% net period the to compared policy the acquisition XX% from premiums being

completed period expense admin measures the acquisition lower September period the XXXX XXXX compares XX, for which XXXX. September The [indiscernible] XXX.X% The XX, including with September lower to during ratio higher when the premiums with ended XXXX. to and the expenses X-month prior ended of the the September ratio. due general from September to premiums general combined ratio XX, X-month is The premiums admin earned X-month the the XXX.X% period period X-month X-month well operating for XX.X% period. The during to when the and lower from which September combined XX% from to months XXX.X% XXXX, incurred and X decrease ended decreased ended expense expenses ended period. [indiscernible] the period XXXX due to general ratio, as ratio, from measure decrease general XX, level prior earned. as The compared combined the levels policy The is decrease and decreased X-month is for period of for of compared ended September period levels the ratio ended included September is decreased XX, costs, ended performance, XX.X% XXXX. XX, period earned net admin expenses X-month ratio premium XX% X-month XXXX XXX.X% ended and during performance, September X-month XX, expense is level high The is period decrease ended the Our high and to period premiums prior the general XXXX, due expenses XX, for ended to higher XX, to XXXX decreased September and the our September of ratio loss XX, earned X-month of XXXX. for XX, expense the the lower period. The September sum XXXX. Again, period agent for due underwriting for the when the

balance Now turning to the sheet.

of as equity fair at sale during at XX, of XXX,XXX decrease securities quarter. of XXXX result decreased September value the Our portfolio year-end, to prior the from XXX,XXX equity a investment the the primarily in securities the and

to insured Cash the equivalent has fair Our at million $X.XX measured investments cash compared Jet.AI, XXX,XXX decreased September cash our XX, XXXX, an million significantly equivalents fair investment investment December X.X change equity value value. XXXX. due million to company with increased which from to and on cash the in in XX, and at $X.XX and

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

Wrendon. you, Thank

publicly surpassing hurricane reinsurance reinsurance securities. tokenized second tokens is blockchain. Furthermore, a a this issued last as as access of objective contracts XXXX, in the molten as the to in the the the advantages SurancePlus on securities discussion, to XXXX. we posed backed with we reported, sophisticated throughout the CatRe. exceeding digital diversify As established craft in to tokenizing by received the company. initial a landfall reinsurance are inherent securities, X We fractionalized SurancePlus initial In of XXXX, implemented made Delta In Category traded substantial poised representing highlighted which previously challenges today's democratize Idalia, the operations. blockchain investment believe underwritten and decisive avalanche offering of the of interest fortify to year we security an reinsurance leveraging XX% subsidiary. concluded successfully measures projection and earlier Hurricane [indiscernible] and despite This by first avenue, have December our by quarter a these was technology

the securely entry high aim investment barriers, to fish enter the asset to SurancePlus historically Regas [ to blockchain. [ frameworks, are we on now class limited can their access breaking investors opening a signing have tokens a success participation can transparently completing recorded and asset ] access ensuring [indiscernible], due to select by KYC an effectively ] enter to financial -- investor RegD new unique democratized Essentially, to ground. Leveraging few unique now class Our requirements. AML, broader interests facilitate within this is document and -- and the reinsurance.

the targeted Re success SurancePlus Epsilon digital contract, WebX company and token, $X.X the Epsilon surpassing paid Holdings a represented targeting return subsidiary, recent remarkable last initiated Oxford private full participation XX% developments, SurancePlus divestiture, return, may on process to return XX%. or by strategic token Additionally, Holding Board participation a of XXX,XXX for range a strategic alternatives Limit. have The of under process of continuing sales, share the public initial CatRe investment shares has out a of special operate tokens represented an strategic as a CatRe, million. completed to follows while Delta spin-out, or X-year a by issued consider committee recapitalization merger, XX.XX% This a company. In participation a blockchain of include forming digital transactions which review its CatRe approximately placement a This raising division a other shares Avalanche year's projections. independent

This partnership strategic assets $X chain don't not digital extremely to a due Sonic, collaboration be billion partnership being as business, data set an the our we believe aims Hurricane asset management, pioneer we which further expand yet updates Milton, will our in we been for in has hurricane SurancePlus impacted announced to finalized and have is over enhance by capabilities. comment has WebX This the date. as Hurricane season RWA the issued a footprint. on we received Helene. While one, with previously recent. On our On we have outcome tokenization to strategic to on cannot noted active

strategic As partnerships. aim we positioned go we relevant our forward, potential with growth additional well for pursue to shareholders. is SurancePlus substantial

augment coming We our space are to business, not in entity accomplishment profile, growth our proud look years. These capitalize exciting emerging this to RW the with and enhance this of on and growth technologies. our in forward opportunities new positioning but compelling only risk accelerating diversifying us strategically also

and about value We offer investments these anticipated the are especially hold they to enthusiastic shareholders. our benefits

as significant we As the the X RWA/WebX have over an mentioned, progress years. company, previously last positioning have we Oxbridge focused made turn achieved leveraging the

Consulting tokenization optimizing a of extraordinary tokenized Forecast million Deutsche a estate. infrastructure Franklin chains. To suggests of and appeal been security BlackRock technology our going mindset, investor traditional expansion equities, they Credit Endorsements high-yield like securities, distribution varied and the is of tokenized escalating financial to a enhance round of and expand BlackRock, plan issue with X potential transformative financial as trajectory costs recently various the has supply targeting enhancing securitized efficiency, further real anticipate next reaching RWA tokenized an over to $XX Templeton, reinforced tokenized we return. approximate market XX by RWA forward, and as balance led including firms government State institutions Street, tranches XX% reducing fiat offerings affirm and from return analysis trillion Moreover, across the by Boston the announced America, funding a sectors, Bank such Group XXXX. by potentially from to exceeding in the XX% approximate fueled blockchain tokenized Suisse UBS, adoption bonds tokenization. $XX substantial further market, currencies, an This yield Bank, had industrial targeting This surge and security asset year of and growth decade, trillion. an secured the estimates a

our hold that, are in commitment of shift. With market regarding sense seizing optimism we to a for instructions. the our the the presented We efforts ready open our by Operator, of please As strong this landscape, questions. rebranding value unlock provide the evolving shareholders. appropriate pioneers remain will we call this opportunity in dynamic for steadfast to

question first of our the Engelke with And Kent Securities. Instructions] from [Operator line comes Capital

to been being Who all on competitors? RWAs. in the you well your are are received presentations on how word abroad entrenched Jay, you regards Wrendon, the and you've making used the

events. viewed for and thanks RWA it very different as propositions. it the exceedingly Yes, have speaker there of various come dialing I -- at -- beginning, To up with these interesting of was in. well. were was folks the some well. we space, from that events panel The speaker part take a are we've various attended a some In

tangible. In the underlying extremely something fortunes is actually RWAs there Asset where straight RWA, which follows contract. that this Real contract many different take. is aren't the are contracts case, However, a that reinsurance World out of reinsurance the It that aggregated is asset direct we various and with the an actual

there. it's So from tremendous put not together. attending extremely It's over is -- marked well we not feedback And got those it up.

up your And you're arena at Who of -- some who of and doing? like, that what name you you're that in the entrenched strong competitors? against? are you're are well gain competitors people You great any can the and going some some publicity said you [indiscernible]

Yes.

a RWAs take not reinsurance. rather I'd folks. doing and few are some any few a are names. -- who who are issuing there folks So There are

stand However, general I out that I always people, public, we out. the market stand in and we think a about is worried believe where transparency. is trust with

normally As traded a audited company, the RWA SurancePlus but company, on publicly audited we on financials PCOB PCOB itself, entity. have financials strategically the holding have we

up rolled strict well. we're everything as we have So do only financials, then the is SEC in -- because also from adherence that [indiscernible], PCOB but not the

don't are So anybody are in there there terms our of but saying us. few, like a who competitors, believe are I

we have. stand I -- where just think we of and we're because what

to I your report reaction is your could earnings say immediate positive.

you're trades you're on tomorrow. up see offering side, about the XX%, about the it We'll side, bid X%, how the aftermarket. On up on

promising. very very, Sounds

Thank at for call gentlemen, you. further there the this turn no Ladies time. closing questions back to I'll Mr. are Madhu and his remarks.

Thank on call. joining today's you us for

extensive please our been to your additional business time. Once providing time we circumstances. progress these not for your advancing I like acknowledge challenging reach next you and gratitude us and And you unwavering team our updates out business amidst conclude, would Before Oxbridge with to you hesitate I partners and and again, expertise any navigating Operator? interest in ongoing anticipate want questions, further should my We on thank support. whose to our their our today has investors employees, in call. for dedicated particularly for instrumental do Oxbridge. extend have any our during attention to to

Before we Investors the the conclude remind link today's will of that today's replay via available you Thank for of section a our be website. company's call, today I everyone would available like a in for joining presentation. to us recording for call

disconnect. now may You