Investment income drives profits at Oxbridge Re

Oxbridge Re, the Cayman Islands-based property/casualty reinsurer backed by Tampa-based insurer HCI Group, posted a solid set of results for the year.

Its profits for the year ended December 2014 hit $4 million, compared with $853,000 for 2013 (although operations and underwriting commenced in June 2013, so only seven months of revenue was recognised).

Oxbridge Re said its 2014 results were driven by the increase in premium income and the decrease in preopening and organisational costs. Also contributing to the increase was $740,000 of investment income for 2014, compared with no contributions in 2013, as investing in fixed-maturity and equity securities commenced in August 2014.

Gross written premiums increased to $14.3 million in 2014, compared with $4.9 million for the period from April 4, 2013 (inception) to December 31, 2013. The increase was driven by continued growth in the number and size of reinsurance contracts placed.

Oxbridge Re’s combined ratio remained fairly constant at 32 percent for the 2014 and 2013 periods.

“We are extremely pleased with our results for our first full year of operations,” said Jay Madhu, chief executive officer of Oxbridge Re. “We have paid dividends for the full year totalling $0.48 per share, which represents a solid dividend yield. We continue to be opportunistic in our underwriting and investment income strategy.”