Oxbridge Re profits soar in Q3

Oxbridge Re, the reinsurer targeting the Gulf Coast region of the US which raised $26 million via an IPO earlier this year, enjoyed a strong third quarter.

Its profits hit $1.4 million in the third quarter of 2014, compared with $473,000 in the third quarter of 2013. The improvement was primarily driven by an increase in net premiums earned, as well as $215,000 of investment income versus no investment income in the same year-ago period.

In the first nine months of 2014, profits increased to $2.3 million, compared with $473,000 in the same period of the prior year. The improvement was driven by the increase in premium income, coupled with the fact that operations and underwriting commenced in June 2013.

The reinsurer saw gross premiums assumed increase to $468,000 from $0 in the same year-ago period, driven by a new reinsurance contract effective July 1, 2014. This contract expires December 31, 2014 and is projected to earn a net underwriting income of $444,000, assuming no losses.

Its net earned premiums totalled $1.6 million in the quarter, compared with $635,000 in the third quarter of 2013. The increase was driven by the continued growth in the number and size of reinsurance contracts placed, including one new reinsurance contract placed during the quarter.

Oxbridge Re’s combined ratio for the third quarter was 29 percent compared with 26 percent for the year-ago period.

“Our third quarter results were in line with our expectations,” said Jay Madhu, chief executive officer of Oxbridge Re. “We continue to remain focused on diversifying our underwriting risk. Our board of directors recently declared a dividend of $0.12 per share, which demonstrates our financial strength as well as our commitment to delivering shareholder value.”