Oxbridge Re 'optimistic' on growth prospects as losses dwindle in 2019
Cayman Islands-based property/casualty reinsurer Oxbridge Re reported a net loss in its financial year 2019 results, albeit an improvement from last year, partly boosted by cost saving initiatives, lower capital deployment and less expenses.
The company's CEO Jay Madhu is "optimistic" about the long-term prospects of its reinsurance business as it "continues to evaluate additional opportunities for growth as well as diversification of risk".
For the year ended December 31, 2019, the company incurred a net loss of $0.3 million, a sharp decline from the net loss of $5.7 million in 2018. The improvement in earnings was due to no limit losses suffered during the year when compared with the reinsurance portfolio that suffered limit losses during 2018.
The combined ratio was 183.3 percent in 2019 compared with 310.1 percent in the prior year.
"Our risk management underwriting focus allowed us to remain unaffected by the devastation caused by Hurricane Dorian during the year," said Madhu, president and CEO of the company. "With a cash and restricted cash position of approximately $8.0 million, our equity currently translates into a book value per share of $1.40. While the contract year is not over, our sidecar investors are on track to earn an attractive return of approximately 40%."
Madhu added: "We will look to grow that portion of our business again this upcoming season beginning June 1, 2020. We remain optimistic about the long-term prospects of our reinsurance business as we continue to evaluate additional opportunities for growth as well as diversification of risk."
