Oxbridge Re hails Q1 improvements but combined ratio deteriorates

Cayman-based Oxbridge Re Holdings, a provider of reinsurance solutions primarily to property and casualty insurers, has hailed improved results for the three months ended March 31, 2021 and projected a double-digit return for sidecar investors.

It said the improved results were due to positive change in fair value of equity securities. However, its combined ratio deteriorated; the company said the change was due to a lower denominator in net premiums earned resulting from lower capital deployed compared with the prior year.

The combined ratio for the three months ended March 31, 2021 increased to 150.3 percent from 104.2 percent last year. Net income was $28,000 compared to net loss of $364,000 last year. Net premiums earned for the three months ended March 31, 2021 decreased marginally to $181,000 from $264,000 in the prior year due to lower capital deployed in the current year.

The company projected a double-digit return for sidecar investors in Series 2020-1 participating notes.

“We fared well despite 2020 setting a record for being the most active hurricane season. In addition, our sidecar investors SPV investors are on track to receive a double digit return for the contract year ending May 31, 2021 following an attractive 36 percent return in the prior year,” said Oxbridge Re Holdings president and chief executive officer Jay Madhu. “We remain positive about our long-term prospects and continue to evaluate new growth opportunities while further mitigating risk.”

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