• Net Premiums Earned: $595,000 for Q3 2024, up from $549,000 in Q3 2023.
• Net Premiums Earned (Nine Months): $1.7 million for the first nine months of 2024, up from $730,000 in the same period last year.
• Total Revenue: $205,000 for Q3 2024, compared to negative $6.38 million in Q3 2023.
• Total Revenue (Nine Months): $124,000 for the first nine months of 2024, compared to negative $5.1 million in the same period last year.
• Net Loss: $540,000 or $0.09 per share for Q3 2024, compared to a net loss of $10.3 million or $1.24 per share in Q3 2023.
• Net Loss (Nine Months): $2.26 million or $0.37 per share for the first nine months of 2024, compared to a net loss of $10.24 million or $1.23 per share in the same period last year.
• Loss Ratio: 0% for both 2024 and 2023.
• Acquisition Cost Ratio: 11.1% for Q3 2024, up from 10.9% in Q3 2023.
• Expense Ratio: 83.7% for Q3 2024, down from 125.3% in Q3 2023.
• Combined Ratio: 83.7% for Q3 2024, down from 125.3% in Q3 2023.
• Investment Portfolio: Decreased to $185,000 at September 30, 2024, from $688,000 at the prior year-end.
• Cash and Cash Equivalents: Increased to $4.82 million at September 30, 2024, from $3.74 million on December 31, 2023.

• Warning! GuruFocus has detected 4 Warning Signs with OXBR.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Oxbridge Re Holdings Ltd (NASDAQ:OXBR) reported an increase in net premiums earned for the third quarter of 2024, reaching $595,000 compared to $549,000 in the same quarter last year.
• The company successfully diversified its business by establishing SurancePlus Inc., which focuses on tokenizing real-world assets (RWAs) using blockchain technology.
• Oxbridge Re Holdings Ltd (NASDAQ:OXBR) maintained a 0% loss ratio for both 2023 and 2024, indicating strong underwriting profitability.
• The expense ratio significantly decreased from 125.3% in Q3 2023 to 83.7% in Q3 2024, reflecting improved operational efficiency.
• SurancePlus's initial token offering, Delta CatRe, exceeded its projected return, achieving a 49.11% return compared to the initial 42% target.

Negative Points

• Oxbridge Re Holdings Ltd (NASDAQ:OXBR) reported a net loss of $540,000 or $0.9 per share for the third quarter of 2024, although this was an improvement from the previous year's loss.
• The company recorded an unrealized loss of $1.93 million on its investment in Jet.AI, impacting overall financial performance.
• Net investment and other income decreased in the quarter and the first nine months of 2024 due to less cash being held in money market funds.
• The investment portfolio decreased significantly from $688,000 at the prior year-end to $185,000 as of September 30, 2024.
• Oxbridge Re Holdings Ltd (NASDAQ:OXBR) faces uncertainties related to recent hurricanes, with potential impacts not yet fully assessed.

Q & A Highlights

Q: How are Oxbridge Re's presentations abroad being received, and who are your competitors in the RWA space? A: Sanjay Madhu, Chairman and CEO, stated that their presentations have been exceedingly well-received. In the RWA space, while there are various propositions, few competitors offer RWAs with direct and tangible underlying assets like reinsurance contracts. Oxbridge Re stands out due to its transparency and trust as a publicly traded company with audited financials.

Q: Can you name any of your competitors in the RWA space? A: Sanjay Madhu preferred not to name specific competitors but emphasized that Oxbridge Re's unique position as a publicly traded company with audited financials sets them apart. He believes there are few, if any, competitors like them in terms of trust and transparency.

Q: What is the immediate market reaction to Oxbridge Re's earnings report? A: Kent Engelke, an analyst from Capital Securities, noted a positive immediate reaction, with the bid side up about 8% and the offering side up about 15% in the aftermarket. Sanjay Madhu expressed appreciation for the positive feedback.

Q: What strategic measures has Oxbridge Re implemented to diversify its operations? A: Sanjay Madhu highlighted the establishment of SurancePlus in December 2022 to tokenize securities representing fractionalized interests in reinsurance contracts. This initiative aims to democratize access to reinsurance as an alternative investment avenue, leveraging blockchain technology for transparency and security.

Q: What are Oxbridge Re's future plans in the RWA/Web3 sector? A: Sanjay Madhu mentioned plans to issue two tranches of tokenized securities targeting different returns and to pursue additional strategic partnerships. The company aims to capitalize on the growing RWA tokenization market, projected to reach $16 trillion by 2030.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.