Oxbridge Re, the Cayman Islands-based reinsurance holding company, posted a net income of $4.6 million in 2015, up from $4 million in 2014.
The increase was driven by an increase in net premiums earned, offset by investment losses and higher administrative expenses.
The firm reported a 40 percent increase in its net premiums earned last year to $6.7 million, driven by the continued increase in number and size of reinsurance contracts placed.
Its combined ratio also fared well at 26.3 percent in 2015, compared with 32.4 percent in 2014.
Oxbridge Re’s investment income totalled $337,000 in 2015, which was up from $99,000 in 2014. However, this was offset by $325,000 of net realised investment losses coupled with a non-cash charge of $399,000 due to declines deemed other-than-temporary in the fair value of securities. This compares with net realised investment gains of $641,000 in 2014.
Total expenses, including policy acquisition costs, underwriting expenses and administrative expenses, were also up to $1.8 million in 2015, compared with $1.6 million in 2014. The increase was due to increased costs associated with the continued growth of business activities and operations, offset by the expiration of an underwriting consulting contract.
Jay Madhu, president and chief executive officer, Oxbridge Re, said: “Our second full year of operations, 2015, was a strong year for Oxbridge as we diversified our book of reinsurance contracts and expanded our distribution channel with reinsurance brokers.
“Our robust balance sheet positions us well to place fully collateralised reinsurance contracts as we seek to further expand and diversify our business.”