Q2 profits dip at Oxbridge Re but company posts strong growth
A sharp fall in net income and a drop in underwriting performance hit Oxbridge Re, a reinsurance provider for property/casualty insurers in the Gulf Coast, in the second quarter of 2016.However, its total revenues increased by two thirds.
Oxbridge Re reported a net income of $872,000 for the three-month period ending June 30, a decrease of 48.7 percent compared with the $1.7 million it made for the same period last year.
The company attributed the decrease to loss and loss adjustment expenses partially offset by the recognition of additional premiums via the change in loss experience refund payable during the second quarter of 2016, coupled with lower investment income earned during the second quarter of 2016.
Oxbridge Re's total revenues for the second quarter of 2016 reached $3.5 million, an increase of 66.6 percent from the $2.1 million of total revenue earned for the second quarter of 2015.
Oxbridge Re's underwriting performance suffered in the second quarter of 2016, with a combined ratio of 79.4 percent, compared to 24.9 percent for the second quarter of 2015.
Jay Madhu, president and chief executive officer of Oxbridge Re Holdings, said: "Despite experiencing a loss, we still had a profitable quarter. Additionally, we demonstrated our commitment to our shareholders by implementing a $2 million share repurchase programme and repurchasing shares during the quarter.
"As we look forward, we are confident our book of diversified business is well positioned for the remainder of 2016."
