Q2 2021 Oxbridge Re Holdings Ltd Earnings Call
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Oh.
Thank you for calling which conference will you be joining today.
Yeah.
Thank you for calling which conference will you be joining today.
Collected here for Oxbridge earnings call.
Oxbridge.
Yep.
Okay and your name was spelling please.
David Brown, the a b I D B R O W N.
And your company.
I R. R. A I E R. A.
E E.
I R. A.
A I E R. A.
[laughter], a I E R. I got it all right one moment. Please I'll place you into your call.
Reinsurance subsidiaries overtime.
Today, we completed and closed on the initial public offering Oxbridge acquisition Corp. Our special purpose acquisition company or spec to focus on acquiring entities in disruptive technologies.
We believe innovators and entrepreneurs in such business.
We remain opportunistic.
<unk> blockchain artificial.
And the peripheral return opportunities arise.
Vigilant.
Or is that.
Okay.
That can contribute to the growth capital and surplus of our life.
<unk> insurance subsidiaries over.
Turning to our results for the second quarter.
Ty pleated and closed on the initial public offering.
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<unk>.
Can you grow.
Okay.
Interesting.
Special purpose acquisition.
Net income increased and our financial and operating ratios.
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Sure.
And disruptive technologies.
We have also incurred no losses to.
Entrepreneur and such.
To date through.
Business as in sure.
Lost you look for.
Art.
The simplest.
To continue throughout the balance.
Vigilant.
Until then sufficient.
In addition, we continue.
And see Bob.
To make it a wholly.
Over the.
Subsidiary as a reinsurer.
Long term our results for the second quarter.
<unk>.
And six months of.
<unk> and.
<unk> 'twenty.
30th.
I'm pleased to report.
<unk> continued growth.
Investors earn an attractive return of.
Both.
Approximately.
Net income increased in our financial and operating ratio stretch.
<unk> prepared to.
Thanks.
Laughing.
Yeah.
We have also incurred no losses to date this year.
Well I'm going to turn over to Randy to take us through our financial results.
Performance to continue throughout the balance of the.
I would like to remind you that our typical contract.
A year a wholly owned subsidiary Oxbridge re Ns.
Contrary.
And I've seen.
Sure in the car.
Okay.
The contract here.
Yes.
Our ended May 31.
The quarter ended June <unk>.
20 customers earn an attractive return of approximately.
Somebody.
Got it.
Hey, Nathan.
Once it goes.
We will continue to grow this aspect of our business for the balance of.
'twenty one at the next.
Awesome.
For the first six months of 2020.
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One.
And that's through our financial results.
Yeah.
Because he says closing.
From the.
Brendan.
I would like to remind you that our typical contract period is from June one to me, it's really because of the pull in.
Net investment income and other income in the second quarter.
Net premiums earned for the quarter ended June 30 of 2021 inquiries.
Life investment gains in the quarter.
Increasing.
The details.
700.
Yes.
He said to higher rates.
On reinsurance.
Okay.
Insurance.
Yes.
During the quarter.
With six months of 'twenty two.
Months of 'twenty, 'twenty, one and the premium.
The income decreased margins.
Premium.
No.
Thank you Andrew.
It used to.
From 400000 last year.
The strong realized gains.
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Due.
In the quarter net realized.
Nine month period.
Life.
Net investment income and other income in the second quarter.
Lots of them upfront.
Yeah.
Up front.
Hum.
Great.
And be able to put in last.
It was all expenses, including both yeah.
Yeah.
In general.
100.
300.
Great.
For the.
What else.
Both.
Linda.
And then last.
700.
Last year for the full six months of 'twenty 'twenty.
Policy acquisition cost.
Other income.
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Okay.
Okay.
A few of those.
For consoles.
It was indeed.
Right.
With a strong realized gains.
Yes.
And in this quarter and that's real.
That's right.
Yeah.
Yeah.
Okay.
755000.
And of course.
Upfront.
Creasing them adjustments.
Last little expenses included in policy acquisition.
That's right.
Sure.
Recruiters.
General admin.
General admin.
Makes sense.
Thanks.
50000.
Linda.
Okay.
What's up.
Yeah.
P S punch.
It doesn't make it themselves.
As you mentioned we are.
The last acquisition cost increased in the first quarter due to the higher premium.
Please.
Premium.
Right.
Eastern.
Yeah.
Gentlemen.
Compared to.
Sure.
To life.
Six months of 2020 on net income.
I went through.
The liquids.
Most of them.
Listen.
No.
Seven.
It can.
Yeah.
At this point.
The net loss of $100.
So well see acquisition cost decreased due to the premium.
What's your sense recorded unrelated adjustment.
The net decrease in net income is largely due to the significant.
Admin expenses.
Increased marginally in 2021.
Yeah.
We have experienced no losses incurred to date.
We are pleased to see another.
In Greece.
Yes.
Net embraced into 400.
The financial ratios.
48.
Before we used various financial.
2021 and net income with the rules.
Sure.
Sure.
At this point.
Okay.
Okay.
Okay.
No.
Okay.
So each year compared to a net loss of 100.
Yeah.
Thank.
Alright.
They can bring.
But even in our loss ratio.
We tend to close.
So with the <unk> ratio.
The increase in net income is largely due to the.
Sure.
Cigna blades gain.
Which of underwriting.
Profitability is the ratio of losses and loss.
Gains.
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Just.
Nick.
Got.
Listen to beat in 2021 and through the flu.
21 and 2020.
'twenty two time to the financial ratios I'll discuss before we use various financial.
No.
So measures to analyze.
Ross.
Life fruit and profitability of business operation.
The acquisition cost ratio, which measures.
For example in this we measure underwriting.
And profitability.
What's.
Ability in our luxury.
The average life.
Shaw acquisition ratio.
The decrease.
<unk> combined with <unk>.
We used to them.
Sure.
Then.
Which much of underwriting profitability is the ratio of losses and loss adjustment.
What's the mix isn't good.
Yes.
No.
Thanks.
The six months ended June 30 of 2021.
Months.
In the end.
Plus increased ratios.
Sure.
Sure.
Europe.
Sure.
The weighted average.
Percent.
Average.
Well look I'll jump.
Okay.
Okay.
When.
Makes sense.
Deep into neutral.
The cost ratio, which measures operational.
Anyone.
On the expense ratio, which measures.
Within two.
Sure.
Once complete the acquisition.
We should be.
Christie.
Nicholas.
For the three.
Institutionally.
Three months ended June 30.
Sure.
<unk> 2021.
Defense.
Yeah.
Okay.
11.
Two months.
Two one.
And the disciplines.
One 9% for.
Anyone.
Physics, 2021 from it.
11th.
A higher denominator.
Last.
Due to the marginally lower weighted average equity.
Yes.
Sure.
And of course when reinsurance contrasting.
Sure.
The six months ended June 30th.
As you get into 'twenty.
<unk>.
Yeah.
The expense ratio increase.
Last debenture issue, which May show up.
Increased.
Operating.
Percent.
Policy acquisition.
I'm sorry.
Cost in northern App.
Or are you primarily to higher general and admin.
Our country should decrease to one.
One six to one 9%.
Our combined ratio.
For the children.
The only.
Isn't.
Is it some of the.
One within the last year.
You too.
The higher denominator.
Sure.
Net.
Nine.
As a result of higher premiums in our reads on reinsurance contract.
100 and.
Trust income.
2000 and prior.
The six months ended June 30.
Yes.
Yeah.
And as a REIT.
Anyone who shall increase.
The other.
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The freedom.
One.
Right.
One.
Thank you.
But then from 143.
Once ended June 2021.
The higher general.
That comes.
Thank.
In a minute.
Okay.
From 143% in 2020.
And two which is used to measure on the <unk>.
I think the point is there's some of the loss ratio.
On the account.
Now turning to the balance.
So it should decrease.
On sheet.
Kris.
Hum.
69%.
Perfect.
Equities.
<unk>.
For the Covid.
Equities totaled 700.
It ended.
Nathan.
One.
From June.
Consistent.
20.
The prior.
Yes.
The higher denominator.
<unk> 2021.
Net premiums.
<unk>.
Premium.
Yeah.
Right.
Cash.
The insurance in force.
$8 million.
For the June.
Upfront.
Just to wanted to combined ratio.
Yes.
Kris.
Yeah.
One.
We think 2%.
At June.
Understood.
2020.
D G to a higher general.
Yeah.
Like this.
Continental.
Now turning to the balance sheet total investments which include investments.
2020 to Illinois.
Got.
The eight point.
700.
19.
19.
At the.
And.
Okay.
With.
No.
The 20th year.
Legal battle with the.
Year end, 'twenty, 'twenty, one cash and cash equivalents unrestricted cash and cash equivalents totaled $8 million up from seven.
G 20 Atlantic Hurricane season.
Was.
Yeah.
Excellent.
Mccain soon on record.
That.
It should be soon could you go into 'twenty, one due to the withdrawal.
Record.
All of them.
Got.
Do you have.
Yes.
Sure.
Yes.
Yeah.
Revenue.
Yeah.
So having the ability to achieve attractive.
Convertible equity at June 30 of.
A return call it generated for the contract year ending may.
$28 million at the end of 'twenty.
<unk> 34, a sidecar investors earn an attractive return of 19.
18% following a solid road.
'twenty.
Well before.
Right.
And over the prior year.
Yeah.
We look for another Europe.
Europe strong investor returns.
Plenty of Atlantic Hurricane season was.
<unk>.
The fifth active hurricane season on record.
Okay.
Record for our reinsurance sidecar, but we're able to add a degree of diversity.
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Our city our revenue stream.
<unk>.
So having the ability to achieve.
Attractive.
Our reinsurance contracts in <unk>.
Return returns generated for the contract year ending.
<unk> or of Oxford acquisition.
<unk> 30 per our sidecar investors earn an attractive return of 19.
Four feet in Russia.
Besides that are.
Alrighty.
Europe was laid off two additional assets.
Sex or look for another year of strong in Russia returns in the calendar.
And despite the fact that Oxford contributed approximately.
You mentioned.
Currently about 7%.
<unk> character of our reinsurance subsidiary, we look to invest.
Basketball.
Significantly.
Sure.
Back then that it owns approximately.
There are no.
Okay.
A different I mean, our reinsurance contracts on investment.
Okay.
<unk>.
Ordinary shares.
In turn limited.
<unk> preferred shares.
Oxford acquisition.
I shouldn't Corp, we have stuck to that.
Steve.
Oh, the oximetry as a lead in life.
Sure.
So risk capital was laid off to additional investors.
Nothing.
And let's start at a higher share price.
We are excited about the potential for Oxford.
Okay.
We returned approximately.
For value over.
Longer.
Pretty.
Pretty fresh capital.
Looking ahead.
Purchase economics.
About the law.
It was like back to.
Long term for all our.
My son's approximate.
Business to continue to evaluate.
Eight of additional opportunities.
At least that's out of the ordinary shares.
<unk>.
<unk> and preferred shares respectively off the sponsor.
So in closing.
Investment in future.
Hosing and our results show growth in.
Sure.
Increasingly.
And that's pushing us to capitalize on growth.
Income and sidecar investors.
Growth.
Erez can grow to earn an attractive return.
But the potential for Oxford acquisition.
<unk> petition offers an entry.
I shouldn't for value over the.
<unk>.
<unk> focus on <unk>.
We remain opportunistic about the long term prospects for all our.
<unk>.
And we have a strong balance.
Okay.
<unk>.
Additional opportunities for growth as well as further diversification of.
I'll, let you.
Part of his life.
With that we're ready to open the call for questions.
Our business.
Yeah.
So it's all show growth in.
Greater.
Increased income in 2021.
Our sidecar investors continued to grow.
And at this time to ask a question. Please.
Oxford acquisition.
Press telephone keypad.
Shouldnt into new <unk>.
Questions.
Apologies because I'm sure.
Please proceed.
<unk> Chan and artificial intelligence.
We are debt free and we have a strong balance sheet with a solid cash position and most importantly, we have real opportunity for growth.
Yes.
With that we are ready to open the call for questions. Operator, please provide the appropriate instructions.
Thank you Sir.
Ladies and gentlemen at this time to ask a question. Please.
And Jetblue.
Pressing your telephone keypad.
Hi.
Again for questions. Please.
Hey, Randy.
Question.
I just wanted to make sure I have this finally correct in regards to wood Oxbridge re.
The sponsor has a 20% stake in the stack itself and Oxbridge OSB or has its about a 50% economic interest in the sponsor is did I finally get that correct.
Question comes from Ken.
Correct, Yes, Ken this is Brendan.
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So.
Kent.
Hey, Randy.
N D.
Do I have this.
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Finally, correct in regards to.
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So what.
That's a 22%.
Okay.
And the.
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The friendship.
Ex bridge.
Okay.
<unk> Oh.
Okay.
<unk>.
This private placement warrants.
<unk>, 2%.
Sure.
<unk> economic interest in the sponsor.
Our income.
Or.
Got it.
Is that I finally get that correct.
Correct, yes.
Correct.
Ken This is Brendan you you're almost.
Next question is I don't know if I'd be able to answer this or not.
Correct.
Obviously I would think that you have already targeted companies that you may want to.
Pontoon somewhat.
<unk> and alike.
<unk>.
He potential timeline and do you need a shareholder vote.
Interest from the private placement warrants are in the stock.
Wrote on it.
We do have we do have some thoughts.
60% correct.
Lots of any conversations.
Ah much rather Andre Andre estimate then overestimate.
Next question is I don't know if you'd be able to answer this or not.
<unk> is a little bit of a long.
We think that you've already targeted companies that you may want to purchase and alike.
Long.
He potential timeline and do you need a shareholder vote on it.
It will take a little bit of time, but we're confident that we will get it.
We do have we do have some thoughts we haven't.
Done.
On started any conversations with anybody prior to prior to going public, but we do have some thoughts on where we would look at.
Thank you ladies and gentlemen.
A little bit of a long long haul situation because.
Please state your.
I'm out of due diligence.
My questions were answered thank you Ken.
And stuff.
So.
He asked the same questions I was going to ask.
But we will get it done within the allotted.
Thank.
Time, if not sooner.
Okay cool thank you.
Thank you.
Okay. There are no further questions at this time.
Again, ladies and gentlemen, please.
Eric Greenberg Please state your question.
Thank you for joining us on today's call.
Thank you.
Paul partners and investors for their continued.
He asked the same questions I was going to ask thank.
<unk> of gratitude to our Oxbridge team, who continue to leverage our significant experience to manage and build our business. During these challenging times. It is their dedication and expert expertise.
There are no further questions at this time.
TS updating you on our next call. If you have any further questions. Please feel free to give us a call anytime.
Hi, Thank you for joining us on today's call.
Thank you again for your call.
Thank our.
<unk>.
<unk>.
I'm in it.
First on investors for their continued support I, especially want.
Interest in today's call.
Next to our Oxford.
Mind, everyone that a recording of today's call will be available for.
Experts.
For a link available in the investors section of the company's website.
This expertise.
Site for joining us today for our presentation.
Tears to updating you on our next call. If you have any further questions. Please feel free to give us a call anytime.
Thank you again for your time and attention today and for your interest in Oxbridge operator.
Before we conclude today's call I would like to remind everyone that a recording of today's call will be available for replay via a link available in the investors section of the company's website.
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