Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 14, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | OXBR | |
Entity Registrant Name | OXBRIDGE RE HOLDINGS Ltd | |
Entity Central Index Key | 1,584,831 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,733,587 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Fixed-maturity securities, available for sale, at fair value (amortized cost: $4,779 and $4,450, respectively) | $ 4,758 | $ 4,433 |
Equity securities, available for sale, at fair value (cost of $2,058 in 2017) | 0 | 2,036 |
Equity securities, at fair value (cost of $1,652 in 2018) | 1,535 | 0 |
Total investments | 6,293 | 6,469 |
Cash and cash equivalents | 7,053 | 7,763 |
Restricted cash and cash equivalents | 4,192 | 3,124 |
Accrued interest and dividend receivable | 28 | 39 |
Premiums receivable | 2,338 | 3,798 |
Deferred policy acquisition costs | 263 | 48 |
Prepayment and other assets | 140 | 116 |
Property and equipment, net | 25 | 36 |
Total assets | 20,332 | 21,393 |
Liabilities: | ||
Reserve for losses and loss adjustment expenses | 167 | 4,836 |
Loss experience refund payable | 0 | 135 |
Losses payable | 796 | 386 |
Notes payable to Series 2018-1 noteholders | 2,000 | 0 |
Unearned premiums reserve | 2,393 | 2,012 |
Accounts payable and other liabilities | 945 | 106 |
Total liabilities | 6,301 | 7,475 |
Shareholders' equity: | ||
Ordinary share capital, (par value $0.001, 50,000,000 shares authorized; 5,733,587 shares issued and outstanding) | 6 | 6 |
Additional paid-in capital | 32,163 | 32,100 |
Accumulated Deficit | (18,117) | (18,149) |
Accumulated other comprehensive loss | (21) | (39) |
Total shareholders' equity | 14,031 | 13,918 |
Total liabilities and shareholders' equity | $ 20,332 | $ 21,393 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed-maturity securities, available for sale, at fair value amortized cost | $ 4,779 | $ 4,450 |
Equity securities, available for sale, at fair value cost | $ 2,058 | |
Equity securities, at fair value cost | $ 1,652 | |
Ordinary shares, par value | $ 0.001 | $ 0.001 |
Ordinary shares, authorized | 50,000,000 | 50,000,000 |
Ordinary shares, issued | 5,733,587 | 5,733,587 |
Ordinary shares, outstanding | 5,733,587 | 5,733,587 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | ||||
Assumed premiums | $ 2,580 | $ 17,376 | $ 2,580 | $ 18,256 |
Premiums ceded | 0 | (147) | 0 | (147) |
Change in loss experience refund payable | (90) | (512) | (225) | (1,260) |
Change in unearned premiums reserve | (2,156) | (14,231) | (1,801) | (12,815) |
Net premiums earned | 334 | 2,486 | 554 | 4,034 |
Net income from derivative instruments | 208 | 0 | 376 | 0 |
Net investment and other income | 108 | 127 | 180 | 213 |
Net realized investment gains (losses) | 0 | 46 | (176) | 48 |
Change in fair value of equity securities | 73 | 0 | (96) | 0 |
Total revenue | 723 | 2,659 | 838 | 4,295 |
Expenses | ||||
Losses and loss adjustment expenses | 0 | 1,059 | 0 | 1,027 |
Net loss on commutation | 8 | 0 | 8 | 0 |
Policy acquisition costs and underwriting expenses | 29 | 94 | 38 | 158 |
General and administrative expenses | 359 | 390 | 676 | 724 |
Total expenses | 396 | 1,543 | 722 | 1,909 |
Income before (income) attributable to Series 2018-1 noteholders | 327 | 1,116 | 116 | 2,386 |
(Income) attributable to Series 2018-1 noteholders | (62) | 0 | (62) | 0 |
Net income | $ 265 | $ 1,116 | $ 54 | $ 2,386 |
Earnings per share Basic and Diluted | $ 0.05 | $ 0.19 | $ 0.01 | $ 0.41 |
Dividends paid per share | $ .00 | $ 0.12 | $ .00 | $ 0.24 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 265 | $ 1,116 | $ 54 | $ 2,386 |
Change in unrealized loss on investments: | ||||
Unrealized (loss) gain arising during the period | (1) | 181 | (177) | 140 |
Reclassification adjustment for net realized losses (gains) included in net (loss) income | 0 | (46) | 173 | (48) |
Net change in unrealized loss | (1) | 135 | (4) | 92 |
Total other comprehensive (loss)/income | (1) | 135 | (4) | 92 |
Comprehensive income | $ 264 | $ 1,251 | $ 50 | $ 2,478 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net income | $ 54 | $ 2,386 |
Adjustments to reconcile net income to net cash (used in) / provided by operating activities: | ||
Stock-based compensation | 63 | 63 |
Net amortization of premiums on investments in fixed-maturity securities | 7 | 42 |
Depreciation and amortization | 11 | 11 |
Net realized investment losses (gains) | 176 | (48) |
Change in fair value of equity securities | 96 | 0 |
Change in operating assets and liabilities: | ||
Accrued interest and dividend receivable | 11 | (8) |
Premiums receivable | 1,460 | (8,074) |
Deferred policy acquisition costs | (215) | (449) |
Unearned premiums ceded | 0 | (733) |
Prepayment and other receivables | (24) | (53) |
Reserve for losses and loss adjustment expenses | (4,669) | (5,659) |
Loss experience refund payable | (135) | 1,260 |
Losses payable | 410 | 1,467 |
Unearned premiums reserve | 381 | 12,815 |
Accounts payable and other liabilities | 839 | (52) |
Net cash (used in) / provided by operating activities | (1,535) | 2,968 |
Investing activities | ||
Purchase of fixed-maturity securities | (3,336) | (3,987) |
Purchase of equity securities | (5,804) | (10,007) |
Proceeds from sale of fixed-maturity and equity securities | 9,033 | 9,678 |
Purchase of property and equipment | 0 | (6) |
Net cash used in investing activities | (107) | (4,322) |
Financing activities | ||
Proceeds on issuance of notes payable to Series 2018-1 noteholders | 2,000 | 0 |
Repurchases of common stock under share repurchase plan | 0 | (671) |
Dividends paid | 0 | (1,403) |
Net cash provided by / (used in) financing activities | 2,000 | (2,074) |
Net change during the period | 358 | (3,428) |
Cash and cash equivalents, and restricted cash and cash equivalents at beginning of period | 10,887 | 35,682 |
Cash and cash equivalents, and restricted cash and cash equivalents at end of period | 11,245 | 32,254 |
Supplemental disclosure of cash flow information | ||
Interest paid | 0 | 0 |
Income taxes paid | 0 | 0 |
Non-cash investing activities | ||
Net change in unrealized loss on securities available for sale | $ (1) | $ 92 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Ordinary Share Capital [Member] | Additional Paid-in Capital [Member] | Retained Earnings/(Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Beginning Balance at Dec. 31, 2016 | $ 6 | $ 33,034 | $ 4,534 | $ (411) | $ 37,163 |
Beginning Balance, Shares at Dec. 31, 2016 | 5,916,149 | ||||
Cash dividends paid | (1,403) | (1,403) | |||
Repurchase and retirement of common stock under share repurchase plan | (671) | (671) | |||
Repurchase and retirement of common stock under share repurchase plan, Shares | (109,815) | ||||
Net income for the period | 2,386 | 2,386 | |||
Stock-based compensation | 63 | 63 | |||
Total other comprehensive loss | 92 | 92 | |||
Ending Balance at Jun. 30, 2017 | $ 6 | 32,426 | 5,517 | (319) | 37,630 |
Ending Balance, Shares at Jun. 30, 2017 | 5,806,334 | ||||
Beginning Balance at Dec. 31, 2017 | $ 6 | 32,100 | (18,149) | (39) | 13,918 |
Beginning Balance, Shares at Dec. 31, 2017 | 5,733,587 | ||||
Cumulative effect of change in accounting for equity securities as of January 1, 2018 | (22) | 22 | 0 | ||
Repurchase and retirement of common stock under share repurchase plan | 0 | ||||
Net income for the period | 54 | 54 | |||
Stock-based compensation | 63 | 63 | |||
Total other comprehensive loss | (4) | (4) | |||
Ending Balance at Jun. 30, 2018 | $ 6 | $ 32,163 | $ (18,117) | $ (21) | $ 14,031 |
Ending Balance, Shares at Jun. 30, 2018 | 5,733,587 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | (a) Organization Oxbridge Re Holdings Limited (the “Company”) was incorporated as an exempted company on April 4, 2013 under the laws of the Cayman Islands. Oxbridge Re Holdings Limited owns 100% of the equity interest in Oxbridge Reinsurance Limited, an entity incorporated on April 23, 2013 under the laws of the Cayman Islands and for which a Class “C” Insurer’s license was granted on April 29, 2013 under the provisions of the Cayman Islands Insurance Law. Oxbridge Re Holdings Limited also owns 100% of the equity interest in Oxbridge Re NS, an entity incorporated as an exempted company on December 22, 2017 under the laws of the Cayman Islands to function as a reinsurance sidecar facility and to increase the underwriting capacity of Oxbridge Reinsurance Limited. The Company, through its subsidiaries (collectively “Oxbridge Re”) provides collateralized reinsurance in the property catastrophe market and invests in various insurance-linked securities. The Company operates as a single business segment through its wholly-owned subsidiaries. The Company’s headquarters and principal executive offices are located at Strathvale House, 90 North Church Street, Georgetown, Grand Cayman, Cayman Islands, and have their registered offices at P.O. Box 309, Ugland House, Grand Cayman, Cayman Islands. The Company’s ordinary shares and warrants are listed on The NASDAQ Capital Market under the symbols “OXBR” and “OXBRW,” respectively. (b) Basis of Presentation and Consolidation The accompanying unaudited, consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations for any subsequent interim period or for thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2017 included in the Company’s Form 10-K, which was filed with the SEC on March 13, 2018 In preparing the interim unaudited consolidated financial statements, management was required to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates, which would be reflected in future periods. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the reserve for losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to valuation of investments, assessment of other-than-temporary impairment (“OTTI”) and loss experience refund payable involve significant judgments and estimates material to the Company’s consolidated financial statements. The Company consolidates in these Consolidated Financial Statements the results of operations and financial position of all voting interest entities (“VOE”) in which the Company has a controlling financial interest and all variable interest entities (“VIE”) in which the Company is considered to be the primary beneficiary. The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE, depends on the facts and circumstances surrounding each entity. All significant intercompany balances and transactions have been eliminated. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Cash and cash equivalents: Restricted cash and cash equivalents: Investments : Unrealized gains or losses are determined by comparing the fair market value of the securities with their cost or amortized cost. Realized gains and losses on investments are recorded on the trade date and are included in the consolidated statements of operations. The cost of securities sold is based on the specified identification method. Investment income is recognized as earned and discounts or premiums arising from the purchase of debt securities are recognized in investment income using the interest method over the remaining term of the security. The Company reviews all fixed-maturity securities for other-than-temporary impairment ("OTTI") on a quarterly basis and more frequently when economic or market conditions warrant such review. When the fair value of any investment is lower than its cost, an assessment is made to see whether the decline is temporary of other-than-temporary. If the decline is determined to be other-than-temporary the investment is written down to fair value and an impairment charge is recognized in operations in the period in which the Company makes such determination. For a fixed-maturity security that the Company does not intend to sell nor is it more likely than not that the Company will be required to sell before recovery of its amortized cost, only the credit loss component is recognized in operations, while impairment related to all other factors is recognized in other comprehensive income. The Company considers various factors in determining whether an individual security is other-than-temporarily impaired (see Note 4). Fair value measurement Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and Level 3 Inputs that are unobservable. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. For fixed-maturity securities, inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, broker quotes for similar securities and other factors. The fair value of investments in common stocks and exchange-traded funds is based on the last traded price. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by the Company’s investment custodians. The investment custodians consider observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant markets. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument. Derivative Financial Instruments The Company may from time to time enter into underwriting contracts such as industry loss warranty contracts (“ILW”) that are treated as derivatives for GAAP purposes. GAAP requires that an entity recognize all derivatives in the balance sheet at fair value. It also requires that unrealized gains and losses resulting from changes in fair value be included in operations or comprehensive (loss) income. The Company’s derivative financial instrument assets are included in prepayments and other assets. Derivative financial instrument liabilities are included in accounts payable and other liabilities. Deferred policy acquisition costs (“DAC”): Property and equipment: Allowance for uncollectible receivables: Reserves for losses and loss adjustment expenses: Loss experience refund payable: Premiums assumed: Subsequent adjustments of premiums assumed, based on reports of actual premium by the ceding companies, or revisions in estimates of ultimate premium, are recorded in the period in which they are determined. Such adjustments are generally determined after the associated risk periods have expired, in which case the premium adjustments are fully earned when assumed. Certain contracts allow for reinstatement premiums in the event of a full limit loss prior to the expiration of the contract. A reinstatement premium is not due until there is a full limit loss event and therefore, in accordance with GAAP, the Company records a reinstatement premium as written only in the event that the reinsured incurs a full limit loss on the contract and the contract allows for a reinstatement of coverage upon payment of an additional premium. For catastrophe contracts which contractually require the payment of a reinstatement premium equal to or greater than the original premium upon the occurrence of a full limit loss, the reinstatement premiums are earned over the original contract period. Reinstatement premiums that are contractually calculated on a pro-rata basis of the original premiums are earned over the remaining coverage period. Unearned Premiums Ceded: Ceded premiums are written during the period in which the risk incept and are expensed over the contract period in proportion to the period of protection. Unearned premiums ceded consist of the unexpired portion of the reinsurance obtained. Uncertain income tax positions: Earnings per share: Basic earnings per share has been computed on the basis of the weighted-average number of ordinary shares outstanding during the periods presented. Diluted earnings per share is computed based on the weighted-average number of ordinary shares outstanding and reflects the assumed exercise or conversion of diluted securities, such as stock options and warrants, computed using the treasury stock method. Stock-Based Compensation The Company measures compensation for restricted stock based on the price of the Company’s ordinary shares at the grant date. Determining the fair value of share purchase options at the grant date requires significant estimation and judgment. The Company uses an option-pricing model (Black-Scholes option pricing model) to assist in the calculation of fair value for share purchase options. The Company's shares have not been publicly traded for a sufficient length of time to solely use the Company's performance to reasonably estimate the expected volatility. Therefore, when estimating the expected volatility, the Company takes into consideration the historical volatility of similar entities. The Company considers factors such as an entity's industry, stage of life cycle, size and financial leverage when selecting similar entities. The Company uses a sample peer group of companies in the reinsurance industry as well as the Company’s own historical volatility in determining the expected volatility. Additionally, the Company uses the full life of the options, ten years, as the estimated term of the options, and has assumed no forfeitures during the life of the options. The Company uses the straight-line attribution method for all grants that include only a service condition. Compensation expense related to all awards is included in general and administrative expenses. Recent adopted accounting pronouncements Accounting Standards Update No. 2016-01. Accounting Standards Update No. 2016-18. Accounting Standards Update No. 2017-09. Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. Pending Accounting Updates Accounting Standards Update No. 2016-13. . Accounting Standards Update No. 2016-02. Accounting Standards Update No. 2018-07. Segment Information Reclassifications: |
Cash and Cash Equivalents and R
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents | At June 30, At December 31, 2018 2017 (in thousands) Cash on deposit $ 1,025 $ 4,052 Cash held with custodians 6,028 3,711 Restricted cash held in trust 4,192 3,124 Total 11,245 10,887 Cash and cash equivalents are held by large and reputable counterparties in the United States of America and in the Cayman Islands. Restricted cash held in trust is custodied with SunTrust Bank and is held in accordance with the Company’s trust agreements with the ceding insurers and trustees, which require that the Company provide collateral having a market value greater than or equal to the limit of liability, less unpaid premium. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | The Company holds investments in fixed-maturity securities and equity securities, with its fixed-maturity securities classified as available-for-sale. At June 30, 2018 and December 31, 2017, the cost or amortized cost, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows: Cost or Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gain Loss Value ($000) ($ in thousands) As of June 30, 2018 Fixed-maturity securities U.S. Treasury and agency securities $ 4,779 $ 2 $ (23 ) $ 4,758 Total fixed-maturity securities 4,779 2 (23 ) 4,758 Total available for sale securities $ 4,779 $ 2 $ (23 ) $ 4,758 As of December 31, 2017 Fixed-maturity securities U.S. Treasury and agency securities $ 4,450 $ - $ (17 ) $ 4,433 Total fixed-maturity securities 4,450 - (17 ) 4,433 Mutual funds 400 29 - 429 Preferred stocks 200 - (1 ) 199 Common stocks 1,458 12 (62 ) 1,408 Total equity securities (1) 2,058 41 (63 ) 2,036 Total available for sale securities $ 6,508 $ 41 $ (80 ) $ 6,469 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See Note 2, Accounting Policies, for additional information. At June 30, 2018 and December 31, 2017, available-for-sale securities with fair value of $4,393,000 and $1,430,000, respectively, are held in trust accounts as collateral under reinsurance contacts with the Company’s ceding insurers. Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities at June 30, 2018 and December 31, 2017 are as follows: Amortized Estimated Cost Fair Value ($ in thousands) As of June 30, 2018 Available for sale Due within one year $ 1,854 1,855 Due after one year through five years 2,925 2,903 $ 4,779 $ 4,758 As of December 31, 2017 Available for sale Due within one year $ 3,007 $ 3,003 Due after one year through five years 1,443 1,430 $ 4,450 $ 4,433 Proceeds received, and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities, and equity securities, for the three months ended June 30, 2018 and 2017 were as follows: Gross Gross Gross proceeds Realized Realized from sales Gains Losses ($ in thousands) Three Months Ended June 30, 2018 Available-for-sale fixed-maturity securities $ - $ - $ - Equity securities $ - $ - $ - Six Months Ended June 30, 2018 Available-for-sale fixed-maturity securities $ 3,000 $ 3 $ - Equity securities $ 6,033 $ 418 $ (594 ) Three Months Ended June 30, 2017 Available-for-sale fixed-maturity securities $ - $ - $ - Equity securities $ 6,101 $ 540 $ (494 ) Six Months Ended June 30, 2017 Available-for-sale fixed-maturity securities $ - $ - $ - Equity securities $ 9,678 $ 732 $ (684 ) The Company regularly reviews its individual fixed-maturity securities for OTTI. The Company considers various factors in determining whether each individual fixed-maturity security is other-than-temporarily impaired, including: ● the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or income; ● the length of time and the extent to which the market value of the security has been below its cost or amortized cost; ● general market conditions and industry or sector specific factors; ● nonpayment by the issuer of its contractually obligated interest and principal payments; and ● the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs. Available-for-sale securities with gross unrealized loss positions at June 30, 2018 and December 31, 2017, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Twelve Months or Months Greater Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of June 30, 2018 Loss Value Loss Value Loss Value ($ in thousands) ($ in thousands) ($ in thousands) Fixed maturity securities U.S. Treasury and agency securities $ 23 3,399 - - 23 3,399 Total fixed-maturity securities 23 3,399 - - 23 3,399 Total available for sale securities $ 23 $ 3,399 $ - $ - $ 23 $ 3,399 At June 30, 2018, there were 5 securities in an unrealized loss position of which none of these positions had been in an unrealized loss position for 12 months or greater. Less Than Twelve Twelve Months or Months Greater Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of December 31, 2017 Loss Value Loss Value Loss Value ($ in thousands) ($ in thousands) ($ in thousands) Fixed maturity securities U.S. Treasury and agency securities $ 13 1,428 4 3,003 17 4,431 Total fixed-maturity securities 13 1,428 4 3,003 17 4,431 Equity securities Preferred stocks 1 199 - - 1 199 All other common stocks 36 769 26 174 62 943 Total equity securities 37 968 26 174 63 1,142 Total available for sale securities $ 50 $ 2,396 $ 30 $ 3,177 $ 80 $ 5,573 At December 31, 2017, there were 8 securities in an unrealized loss position of which 2 of these positions had been in an unrealized loss position for 12 months or greater. The Company believes there were no fundamental issues such as credit losses or other factors with respect to its fixed-maturity securities. It is expected that the securities would not be settled at a price less than the par value of the investments and because the Company has the ability and intent to hold these securities and it is probable that the Company will not be required to sell these securities until a market price recovery or maturity, the Company does not consider any of its fixed-maturity securities to be other-than-temporarily impaired at June 30, 2018 and December 31, 2017. In determining whether equity securities are other than temporarily impaired, the Company considers its intent and ability to hold a security for a period of time sufficient to allow for the recovery of cost, along with factors including the length of time each security had been in an unrealized loss position, the extent of the decline and the near-term prospect for recovery. Based on management’s evaluation, the Company did not consider any of its equity securities to be other-than-temporarily impaired at December 31, 2017 . Additionally, upon adoption of ASU 2016-01, changes in fair value of equity securities are now recorded within the consolidation statements of operations, and as such, OTTI considerations are no longer made with respect to equity securities. Assets Measured at Estimated Fair Value on a Recurring Basis The following table presents information about the Company’s financial assets measured at estimated fair value on a recurring basis that is reflected in the consolidated balance sheets at carrying value. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of June 30, 2018 and December 31, 2017: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of June 30, 2018 ($ in thousands) Financial Assets: Cash and cash equivalents $ 7,053 $ - $ - $ 7,053 Restricted cash and cash equivalents $ 4,192 $ - $ - $ 4,192 U.S. Treasury and agency securities 4,758 - - 4,758 Total fixed-maturity securities 4,758 - - 4,758 Mutual funds 555 - - 555 All other common stocks 980 - - 980 Total equity securities 1,535 - - 1,535 Total securities 6,293 - - 6,293 Total $ 17,538 $ - $ - $ 17,538 As disclosed in Note 5, the Company is a counterparty to an investment in an industry loss warranty swap. The swap was valued on the basis of models developed by the counterparty, which represent unobservable (Level 3). There were no transfers between Levels 1, 2 and 3 during the three months ended June 30, 2018. Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2017 ($ in thousands) Financial Assets: Cash and cash equivalents $ 7,763 $ - $ - $ 7,763 Restricted cash and cash equivalents $ 3,124 $ - $ - $ 3,124 U.S. Treasury and agency securities 4,433 - - 4,433 Total fixed-maturity securities 4,433 - - 4,433 Mutual funds 429 - - 429 Preferred stocks 199 - - 199 All other common stocks 1,408 - - 1,408 Total equity securities 2,036 - - 2,036 Total available for sale securities 6,469 - - 6,469 Total $ 17,356 $ - $ - $ 17,356 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments | |
Derivative Instruments | Inward Industry Loss Warranty ("ILW") Swap In January 2018, the Company entered into an inward ILW swap (the "2018 Inward ILW Swap") with a third-party under which qualifying loss payments are triggered by reference to the level of losses incurred by the insurance industry as a whole, rather than by losses incurred by the insured. In return for a fixed payment received of $1 million, the Company is required to make a floating payment in the event of certain losses incurred from specified natural catastrophes in North America, Caribbean, Europe, Japan, Australia, New Zealand and Latin America from January 2018 to December 2018. The Company’s maximum payment obligation under the 2018 Inward ILW Swap is $4 million. During the quarter ending June 30, 2018, the Company was not aware of any industry loss event occurring that would have triggered a payment obligation under the 2018 Inward ILW Swap. The Inward ILW Swap was valued on the basis of models developed by the counterparty, which represent unobservable (Level 3) inputs. As of June 30, 2018, the fair value of the 2018 Inward ILW Swap was $0.62 million, and was recorded with "accounts payable and other liabilities" on the Company's June 30, 2018 Consolidated Balance Sheet. Inward Industry Loss Warranty ("ILW") Swap During the three and six months ended June 30, 2018, the Company recognized a gain from derivative instruments of $0.2 million and $0.37 million, respectively, pursuant to the 2018 Inward ILW Swap. |
Taxation
Taxation | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxation | Under current Cayman Islands law, no corporate entity, including the Company and the subsidiaries, is obligated to pay taxes in the Cayman Islands on either income or capital gains. The Company and its subsidiaries have an undertaking from the Governor-in-Cabinet of the Cayman Islands, pursuant to the provisions of the Tax Concessions Law, as amended, that, in the event that the Cayman Islands enacts any legislation that imposes tax on profits, income, gains or appreciations, or any tax in the nature of estate duty or inheritance tax, such tax will not be applicable to the Company and its subsidiaries or their operations, or to the ordinary shares or related obligations, until April 23, 2033 and May 17, 2033, respectively. The Company and its subsidiaries intend to conduct substantially all of their operations in the Cayman Islands in a manner such that they will not be engaged in a trade or business in the U.S. However, because there is no definitive authority regarding activities that constitute being engaged in a trade or business in the U.S. for federal income tax purposes, the Company cannot assure that the U.S. Internal Revenue Service will not contend, perhaps successfully, that the Company or its subsidiary is engaged in a trade or business in the U.S. A foreign corporation deemed to be so engaged would be subject to U.S. federal income tax, as well as branch profits tax, on its income that is treated as effectively connected with the conduct of that trade or business unless the corporation is entitled to relief under an applicable tax treaty. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2018 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Variable Interest Entities | Oxbridge Re NS. The Company has determined that Oxbridge Re NS meets the definition of a VIE as it does not have sufficient equity capital to finance its activities. The Company concluded that it is the primary beneficiary and has consolidated the subsidiary upon its formation, as it owns 100% of the voting shares, 100% of the issued share capital and has a significant financial interest and the power to control the activities of Oxbridge Re NS that most significantly impacts its economic performance. The Company has no other obligation to provide financial support to Oxbridge Re NS. Neither the creditors nor beneficial interest holders of Oxbridge Re NS have recourse to the Company’s general credit. Upon issuance of a series of participating notes by Oxbridge Re NS, all of the proceeds from the issuance are deposited into collateral accounts, to fund any potential obligation under the reinsurance agreements entered into with Oxbridge Reinsurance Limited underlying such series of notes. The outstanding principal amount of each series of notes generally is expected to be returned to holders of such notes upon the expiration of the risk period underlying such notes, unless an event occurs which causes a loss under the applicable series of notes, in which case the amount returned is expected to be reduced by such noteholder's pro rata share of such loss, as specified in the applicable governing documents of such notes. In addition, holders of such notes are generally entitled to interest payments, payable annually, as determined by the applicable governing documents of each series of notes. Oxbridge Re Holdings Limited receives an origination and structuring fee in connection with the formation, management and operation of Oxbridge Re NS. Notes Payable to Series 2018-1 noteholders Oxbridge Re NS issued $2 million of participating notes on June 1, 2018, all of which were issued to third parties and which provides quota share support for Oxbridge Re’s global property catastrophe excess of loss reinsurance business. The operations of Oxbridge Re NS commenced on June 1, 2018. The participating notes are due to mature on June 1, 2021. None of the participating notes were redeemed during the period ending June 30, 2018. The income from Oxbridge Re NS operations that are attributable to the participating notes noteholders for the three and six months ended June 30, 2018 was $61,602, and are included within accounts payable and other liabilities as at June 30, 2018. |
Reserve for Losses and Loss Adj
Reserve for Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Resserve for Losses and Loss Adjustment Expenses | The following table summarizes the Company’s loss and loss adjustment expenses (“LAE”) and the reserve for loss and LAE reserve movements for the three and six-month periods ending June 30, 2018 and 2017: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 ($ in thousands) ($ in thousands) Balance, beginning of period $ 4,154 5,684 $ 4,836 8,702 Incurred related to: Current period - - - - Prior period 1 (1,012 ) 1,059 (1,012 ) 1,027 Total incurred (1,012 ) 1,059 (1,012 ) 1,027 Paid related to: Current period - - - - Prior period (2,975 ) (3,700 ) (3,657 ) (6,686 ) Total paid (2,975 ) (3,700 ) (3,657 ) (6,686 ) Balance, end of period $ 167 3,043 $ 167 3,043 The reserves for losses and LAE are comprised of case reserves (which are based on claims that have been reported) and IBNR reserves (which are based on losses that are believed to have occurred but for which claims have not yet been reported and include a provision for expected future development on existing case reserves). The Company uses the assistance of an independent actuary in the determination of IBNR and expected future development of existing case reserves. The uncertainties inherent in the reserving process and potential delays by cedants and brokers in the reporting of loss information, together with the potential for unforeseen adverse developments, may result in the reserve for losses and LAE ultimately being significantly greater or less than the reserve provided at the end of any given reporting period. The degree of uncertainty is further increased when a significant loss event takes place near the end of a reporting period. Reserve for losses and LAE estimates are reviewed periodically on a contract by contract basis and updated as new information becomes known. Any resulting adjustments are reflected in income in the period in which they become known. The Company’s reserving process is highly dependent on the timing of loss information received from its cedants and related brokers. 1 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | A summary of the numerator and denominator of the basic and diluted earnings per share is presented below (dollars in thousands except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net earnings $ 265 1,116 $ 54 2,386 Denominator: Weighted average shares - basic 5,733,587 5,833,192 5,733,587 5,862,376 Effect of dilutive securities - Stock options - - - - Shares issuable upon conversion of warrants - - - - Weighted average shares - diluted 5,733,587 5,833,192 5,733,587 5,862,376 Earnings per shares - basic $ 0.05 0.19 $ 0.01 0.41 Earnings per shares - diluted $ 0.05 0.19 $ 0.01 0.41 For the three and six-month periods ended June 30, 2018 and 2017, options to purchase 250,000 ordinary shares were anti-dilutive as the sum of the proceeds, including unrecognized compensation expense, exceeded the average market price of the Company’s ordinary share during the periods presented. For the three and six-month periods ended June 30, 2018 and 2017, 8,230,700 warrants to purchase an aggregate of 8,230,700 ordinary shares were anti-dilutive because the exercise price of $7.50 exceeded the average market price of the Company’s ordinary share during the periods presented. GAAP requires the Company to use the two-class method in computing basic earnings per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities effect the computation of both basic and diluted earnings per share during periods of net income. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | On February 28, 2014, the Company’s Registration Statement on Form S-1, as amended, relating to the initial public offering of the Company’s units was declared effective by the SEC. The Registration Statement covered the offer and sale by the Company of 4,884,650 units, each consisting of one ordinary share and one warrant (“Unit”), which were sold to the public on March 26, 2014 at a price of $6.00 per Unit. The ordinary shares and warrants comprising the Units began separate trading on May 9, 2014. The ordinary shares and warrants are traded on the Nasdaq Capital Market under the symbols “OXBR” and “OXBRW,” respectively. One warrant may be exercised to acquire one ordinary share at an exercise price equal to $7.50 per share on or before March 26, 2019. At any time after September 26, 2014 and before the expiration of the warrants, the Company at its option may cancel the warrants in whole or in part, provided that the closing price per ordinary share has exceeded $9.38 for at least ten trading days within any period of twenty consecutive trading days, including the last trading day of the period. The initial public offering resulted in aggregate gross proceeds to the Company of approximately $29.3 million (of which approximately $5 million related to the fair value proceeds on the warrants issued) and net proceeds of approximately $26.9 million after deducting underwriting commissions and offering expenses. There were 8,230,700 warrants outstanding at June 30, 2018 and 2017. No warrants were exercised during the three and six-month periods ended June 30, 2018 and 2017. As of June 30, 2018, none of the Company’s retained earnings were restricted from payment of dividends to the company’s shareholders. However, since most of the Company’s capital and retained earnings may be invested in its subsidiaries, a dividend from the subsidiaries would likely be required in order to fund a dividend to the Company’s shareholders and would require notification to the Cayman Islands Monetary Authority (“CIMA”). Under Cayman Islands law, the use of additional paid-in capital is restricted, and the Company will not be allowed to pay dividends out of additional paid-in capital if such payments result in breaches of the prescribed and minimum capital requirement. See also Note 12. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | The Company currently has outstanding stock-based awards granted under the 2014 Omnibus Incentive Plan (the “Plan”). Under the Plan, the Company has discretion to grant equity and cash incentive awards to eligible individuals, including the issuance of up to 1,000,000 of the Company’s ordinary shares. At June 30, 2018, there were 690,000 shares available for grant under the Plan. Stock options The Company accounts for share-based compensation under the fair value recognition provisions of ASC Topic 718 – “Compensation – Stock Compensation.” Stock options granted and outstanding under the Plan vests quarterly over four years and are exercisable over the contractual term of ten years. A summary of the stock option activity for the three and six-month periods ended June 30, 2018 and 2017 is as follows: Weighted- Average Number Average Remaining Aggregate of Exercise Contractual Intrinsic Options Price Term Value Outstanding at January 1, 2018 250,000 $ 6.01 Outstanding at March 31, 2018 250,000 $ 6.01 7.2 years $ - Outstanding at June 30, 2018 250,000 $ 6.01 6.9 years $ - Exercisable at June 30, 2018 192,500 $ 6.01 6.9 years $ - Outstanding at January 1, 2017 215,000 $ 6.00 Granted 35,000 $ 6.06 Outstanding at March 31, 2017 250,000 $ 6.01 8.2 years $ 137,500 Outstanding at June 30, 2017 250,000 $ 6.01 7.9 years $ - Exercisable at June 30, 2017 130,000 $ 6.01 8.2 years $ - Compensation expense recognized for the three-month periods ended June 30, 2018 and 2017 totaled $9,000, and for the six-month periods ended June 30, 2018 and 2017 totaled $19,000. Compensation expense is included in general and administrative expenses. At June 30, 2018 and 2017, there was approximately $35,000 and $73,000, respectively, of total unrecognized compensation expense related to non-vested stock options granted under the Plan. T he Company expects to recognize the remaining compensation expense over a weighted-average period of eleven (11) months. No options were granted during the three and six-month periods ended June 30, 2018. During the three and six-month periods ended June 30, 2017, 35,000 options were granted with fair value estimated on the date of grant using the following assumptions and the Black-Scholes option pricing model: 2017 Expected dividend yield 8 % Expected volatility 35 % Risk-free interest rate 2.48 % Expected life (in years) 10 Per share grant date fair value of options issued $ 0.73 At the time of the grant, the dividend yield was based on the Company’s history and expectation of dividend payouts at the time of the grant; expected volatility was based on volatility of similar companies’ common stock; the risk-free rate was based on the U.S. Treasury yield curve in effect and the expected life was based on the contractual life of the options. Restricted Stock Awards The Company has granted and may grant restricted stock awards to eligible individuals in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance and market-based conditions. The fair value of the awards with market-based conditions is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome. The determination of fair value with respect to the awards with only performance or service-based conditions is based on the value of the Company’s stock on the grant date. Information with respect to the activity of unvested restricted stock awards during the three and six-month periods ended June 30, 2018 and 2017 is as follows: Weighted- Number of Weighted- Restricted Average Stock Grant Date Awards Fair Value Nonvested at January 1, 2018 15,000 $ 5.86 Vested (3,750 ) Nonvested at March 31, 2018 11,250 $ 5.86 Vested (3,750 ) Nonvested at June 30, 2018 7,500 $ 5.86 Nonvested at January 1, 2017 30,000 $ 5.86 Vested (3,750 ) Nonvested at March 31, 2017 26,250 $ 5.86 Vested (3,750 ) Nonvested at June 30, 2017 22,500 $ 5.86 Compensation expense recognized for the three-month periods ended June 30, 2018 and 2017 totaled $22,000, and for the six-month periods ended June 30, 2018 and 2017 totaled $44,000 and is included in general and administrative expenses. At June 30, 2018 and 2017, there was approximately $44,000 and $132,000, respectively, of total unrecognized compensation expense related to non-vested restricted stock granted under the Plan. T he Company expects to recognize the remaining compensation expense over a weighted-average period of six (6) months. |
Net Worth for Regulatory Purpos
Net Worth for Regulatory Purposes | 6 Months Ended |
Jun. 30, 2018 | |
Text Block [Abstract] | |
Net Worth for Regulatory Purposes | The subsidiaries are subject to a minimum and prescribed capital requirement as established by CIMA. Under the terms of their respective licenses, Oxbridge Reinsurance Limited and Oxbridge Re NS are required to maintain a minimum and prescribed capital requirement of $500 in accordance with the relevant subsidiary’s approved business plan filed with CIMA. At June 30, 2018, the Oxbridge Reinsurance Limited’s net worth of $5.7 million exceeded the minimum and prescribed capital requirement. For the three and six-month periods ended June 30, 2018, the Subsidiary’s net income was approximately $9 thousand and $18 thousand respectively. At June 30, 2018, the Oxbridge Re NS’ net worth of $18 thousand exceeded the minimum and prescribed capital requirement. For the three and six-month periods ended June 30, 2018, the Subsidiary’s net income was approximately $18 thousand. The Subsidiary is not required to prepare separate statutory financial statements for filing with CIMA, and there were no material differences between the Subsidiary’s GAAP capital, surplus and net income, and its statutory capital, surplus and net income as of June 30, 2018 or for the period then ended. |
Fair Value and Certain Risks an
Fair Value and Certain Risks and Uncertainties | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value and Certain Risks and Uncertainties | Fair values With the exception of balances in respect of insurance contracts (which are specifically excluded from fair value disclosures under GAAP) and investment securities and derivative instruments as disclosed in Note 4 and 5 of these consolidated financial statements, the carrying amounts of all other financial instruments, which consist of cash and cash equivalents, restricted cash and cash equivalents, accrued interest and dividends receivable, premiums receivable and other assets and accounts payable and other liabilities, approximate their fair values due to their short-term nature. Concentration of underwriting risk A substantial portion of the Company’s current reinsurance business ultimately relates to the risks of two entities; accordingly, the Company’s underwriting risks are not significantly diversified. Concentrations of Credit and Counterparty Risk The Company’s derivative instruments are subject to counterparty risk. The Company routinely monitor this risk. The Company markets retrocessional and reinsurance policies worldwide through its brokers. Credit risk exists to the extent that any of these brokers may be unable to fulfill their contractual obligations to the Company. For example, the Company is required to pay amounts owed on claims under policies to brokers, and these brokers, in the Company. In some jurisdictions, if a broker fails to make such a payment, the Company might remain liable to the ceding company for the deficiency. In addition, in certain jurisdictions, when the ceding company pays premiums for these policies to brokers, these premiums are considered to have been paid and the ceding insurer is no longer liable to the Company for those amounts, whether or not the premiums have actually been received. The Company remains liable for losses it incurs to the extent that any third-party reinsurer is unable or unwilling to make timely payments under reinsurance agreements. The Company would also be liable in the event that its ceding companies were unable to collect amounts due from underlying third-party reinsurers. In addition, the Company is exposed to credit risk on fixed-maturity debt instruments to the extent that the debtors may default on their debt obligations. The Company mitigates its concentrations of credit and counterparty risk by using reputable and several counterparties which decreases the likelihood of any significant concentration of credit risk with any one counterparty. Additionally, the Company invests in fixed-maturity securities that are investment grade or higher. Market risk Market risk exists to the extent that the values of the Company’s monetary assets fluctuate as a result of changes in market prices. Changes in market prices can arise from factors specific to individual securities or their respective issuers, or factors affecting all securities traded in a particular market. Relevant factors for the Company are both volatility and liquidity of specific securities and markets in which the Company holds investments. The Company has established investment guidelines that seek to mitigate significant exposure to market risk. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The Company has an operating lease for office space located at Strathvale House, 2nd Floor, 90 North Church Street, Grand Cayman, Cayman Islands. The term of the lease is thirty-eight months and commenced on April 17, 2015. The lease currently runs on a month-to-month basis. Rent expense under this lease for the three and six-month periods ended June 30, 2018 were $16,000 and $32,000, respectively. There are currently no lease commitments as at June 30, 2018. The Company also has an operating lease for residential space at Britannia Villas #616, Grand Cayman, Cayman Islands that currently runs on a month-to-month basis. Rent expense under this lease for the three and six-month periods ended June 30, 2018 were $12,900 and $25,800, respectively. There are currently no lease commitments under this lease as at June 30, 2018. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | The Company has entered into reinsurance agreements with Claddaugh which a related entity through common directorship is. At June 30, 2018 and December 31, 2017, included within loss experience refund payable and unearned premiums reserve on the consolidated balance sheets are the following related-party amounts: At June 30, 2018 At December 31, 2017 (in thousands) Loss experience refund payable $ - $ 135 Unearned premiums reserve $ - $ 2,012 During the three and six-month periods ended June 30, 2018 and 2017, included within assumed premiums, change in loss experience refund payable and change in unearned premiums reserve on the consolidated statements of income are the following related-party amounts: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Revenue Assumed premiums - 3,400 - 3,400 Change in loss experience refund payable (90 ) (630 ) (225 ) (1,260 ) Change in unearned premiums reserve 237 (2,550 ) 592 (1,700 ) |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | We evaluate all subsequent events and transactions for potential recognition or disclosure in our consolidated financial statements. There were no other events subsequent to June 30, 2018 for which disclosure was required. |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Cash and cash equivalents | Cash and cash equivalents: |
Restricted cash and cash equivalents | Restricted cash and cash equivalents: |
Investments | Investments : Unrealized gains or losses are determined by comparing the fair market value of the securities with their cost or amortized cost. Realized gains and losses on investments are recorded on the trade date and are included in the consolidated statements of operations. The cost of securities sold is based on the specified identification method. Investment income is recognized as earned and discounts or premiums arising from the purchase of debt securities are recognized in investment income using the interest method over the remaining term of the security. The Company reviews all fixed-maturity securities for other-than-temporary impairment ("OTTI") on a quarterly basis and more frequently when economic or market conditions warrant such review. When the fair value of any investment is lower than its cost, an assessment is made to see whether the decline is temporary of other-than-temporary. If the decline is determined to be other-than-temporary the investment is written down to fair value and an impairment charge is recognized in operations in the period in which the Company makes such determination. For a fixed-maturity security that the Company does not intend to sell nor is it more likely than not that the Company will be required to sell before recovery of its amortized cost, only the credit loss component is recognized in operations, while impairment related to all other factors is recognized in other comprehensive income. The Company considers various factors in determining whether an individual security is other-than-temporarily impaired (see Note 4). |
Fair value measurement | Fair value measurement Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and Level 3 Inputs that are unobservable. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. For fixed-maturity securities, inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, broker quotes for similar securities and other factors. The fair value of investments in common stocks and exchange-traded funds is based on the last traded price. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by the Company’s investment custodians. The investment custodians consider observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant markets. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument. Derivative Financial Instruments The Company may from time to time enter into underwriting contracts such as industry loss warranty contracts (“ILW”) that are treated as derivatives for GAAP purposes. GAAP requires that an entity recognize all derivatives in the balance sheet at fair value. It also requires that unrealized gains and losses resulting from changes in fair value be included in operations or comprehensive (loss) income. The Company’s derivative financial instrument assets are included in prepayments and other assets. Derivative financial instrument liabilities are included in accounts payable and other liabilities. |
Deferred policy acquisition costs ("DAC") | Deferred policy acquisition costs (“DAC”): |
Property and equipment | Property and equipment: |
Allowance for uncollectible receivables | Allowance for uncollectible receivables: |
Reserves for losses and loss adjustment expenses | Reserves for losses and loss adjustment expenses: |
Loss experience refund payable | Loss experience refund payable: |
Premiums assumed | Premiums assumed: Subsequent adjustments of premiums assumed, based on reports of actual premium by the ceding companies, or revisions in estimates of ultimate premium, are recorded in the period in which they are determined. Such adjustments are generally determined after the associated risk periods have expired, in which case the premium adjustments are fully earned when assumed. Certain contracts allow for reinstatement premiums in the event of a full limit loss prior to the expiration of the contract. A reinstatement premium is not due until there is a full limit loss event and therefore, in accordance with GAAP, the Company records a reinstatement premium as written only in the event that the reinsured incurs a full limit loss on the contract and the contract allows for a reinstatement of coverage upon payment of an additional premium. For catastrophe contracts which contractually require the payment of a reinstatement premium equal to or greater than the original premium upon the occurrence of a full limit loss, the reinstatement premiums are earned over the original contract period. Reinstatement premiums that are contractually calculated on a pro-rata basis of the original premiums are earned over the remaining coverage period. |
Unearned premiums ceded | Unearned Premiums Ceded: Ceded premiums are written during the period in which the risk incept and are expensed over the contract period in proportion to the period of protection. Unearned premiums ceded consist of the unexpired portion of the reinsurance obtained. |
Uncertain income tax positions | Uncertain income tax positions: |
Earnings per share | Earnings per share: Basic earnings per share has been computed on the basis of the weighted-average number of ordinary shares outstanding during the periods presented. Diluted earnings per share is computed based on the weighted-average number of ordinary shares outstanding and reflects the assumed exercise or conversion of diluted securities, such as stock options and warrants, computed using the treasury stock method. |
Stock-Based Compensation | Stock-Based Compensation The Company uses the straight-line attribution method for all grants that include only a service condition. Compensation expense related to all awards is included in general and administrative expenses. |
Recent accounting pronouncements | Recent adopted accounting pronouncements Accounting Standards Update No. 2016-01. Accounting Standards Update No. 2016-18. Accounting Standards Update No. 2017-09. Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. Pending Accounting Updates Accounting Standards Update No. 2016-13. . Accounting Standards Update No. 2016-02. Accounting Standards Update No. 2018-07. |
Segment Information | Segment Information |
Reclassifications | Reclassifications: |
Cash and Cash Equivalents and25
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash and Cash Equivalents and Restricted Cash and Cash Equivalents | At June 30, At December 31, 2018 2017 (in thousands) Cash on deposit $ 1,025 $ 4,052 Cash held with custodians 6,028 3,711 Restricted cash held in trust 4,192 3,124 Total 11,245 10,887 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-for-sale Securities | Cost or Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gain Loss Value ($000) ($ in thousands) As of June 30, 2018 Fixed-maturity securities U.S. Treasury and agency securities $ 4,779 $ 2 $ (23 ) $ 4,758 Total fixed-maturity securities 4,779 2 (23 ) 4,758 Total available for sale securities $ 4,779 $ 2 $ (23 ) $ 4,758 As of December 31, 2017 Fixed-maturity securities U.S. Treasury and agency securities $ 4,450 $ - $ (17 ) $ 4,433 Total fixed-maturity securities 4,450 - (17 ) 4,433 Mutual funds 400 29 - 429 Preferred stocks 200 - (1 ) 199 Common stocks 1,458 12 (62 ) 1,408 Total equity securities (1) 2,058 41 (63 ) 2,036 Total available for sale securities $ 6,508 $ 41 $ (80 ) $ 6,469 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See Note 2, Accounting Policies, for additional information. |
Schedule of Contractual Maturities of Fixed-maturity Securities | Amortized Estimated Cost Fair Value ($ in thousands) As of June 30, 2018 Available for sale Due within one year $ 1,854 1,855 Due after one year through five years 2,925 2,903 $ 4,779 $ 4,758 As of December 31, 2017 Available for sale Due within one year $ 3,007 $ 3,003 Due after one year through five years 1,443 1,430 $ 4,450 $ 4,433 |
Summary of Proceeds Received, and Gross Realized Gains and Losses from Sales of Available-for-sale Securities | Gross Gross Gross proceeds Realized Realized from sales Gains Losses ($ in thousands) Three Months Ended June 30, 2018 Available-for-sale fixed-maturity securities $ - $ - $ - Equity securities $ - $ - $ - Six Months Ended June 30, 2018 Available-for-sale fixed-maturity securities $ 3,000 $ 3 $ - Equity securities $ 6,033 $ 418 $ (594 ) Three Months Ended June 30, 2017 Available-for-sale fixed-maturity securities $ - $ - $ - Equity securities $ 6,101 $ 540 $ (494 ) Six Months Ended June 30, 2017 Available-for-sale fixed-maturity securities $ - $ - $ - Equity securities $ 9,678 $ 732 $ (684 ) |
Summary of Securities with Gross Unrealized Loss Positions | Less Than Twelve Twelve Months or Months Greater Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of June 30, 2018 Loss Value Loss Value Loss Value ($ in thousands) ($ in thousands) ($ in thousands) Fixed maturity securities U.S. Treasury and agency securities $ 23 3,399 - - 23 3,399 Total fixed-maturity securities 23 3,399 - - 23 3,399 Total available for sale securities $ 23 $ 3,399 $ - $ - $ 23 $ 3,399 Less Than Twelve Twelve Months or Months Greater Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of December 31, 2017 Loss Value Loss Value Loss Value ($ in thousands) ($ in thousands) ($ in thousands) Fixed maturity securities U.S. Treasury and agency securities $ 13 1,428 4 3,003 17 4,431 Total fixed-maturity securities 13 1,428 4 3,003 17 4,431 Equity securities Preferred stocks 1 199 - - 1 199 All other common stocks 36 769 26 174 62 943 Total equity securities 37 968 26 174 63 1,142 Total available for sale securities $ 50 $ 2,396 $ 30 $ 3,177 $ 80 $ 5,573 |
Fair Value of Assets Measured on Recurring Basis | Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of June 30, 2018 ($ in thousands) Financial Assets: Cash and cash equivalents $ 7,053 $ - $ - $ 7,053 Restricted cash and cash equivalents $ 4,192 $ - $ - $ 4,192 U.S. Treasury and agency securities 4,758 - - 4,758 Total fixed-maturity securities 4,758 - - 4,758 Mutual funds 555 - - 555 All other common stocks 980 - - 980 Total equity securities 1,535 - - 1,535 Total securities 6,293 - - 6,293 Total $ 17,538 $ - $ - $ 17,538 Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2017 ($ in thousands) Financial Assets: Cash and cash equivalents $ 7,763 $ - $ - $ 7,763 Restricted cash and cash equivalents $ 3,124 $ - $ - $ 3,124 U.S. Treasury and agency securities 4,433 - - 4,433 Total fixed-maturity securities 4,433 - - 4,433 Mutual funds 429 - - 429 Preferred stocks 199 - - 199 All other common stocks 1,408 - - 1,408 Total equity securities 2,036 - - 2,036 Total available for sale securities 6,469 - - 6,469 Total $ 17,356 $ - $ - $ 17,356 |
Reserve for Losses and Loss A27
Reserve for Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Summary of loss and loss adjustment expenses | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 ($ in thousands) ($ in thousands) Balance, beginning of period $ 4,154 5,684 $ 4,836 8,702 Incurred related to: Current period - - - - Prior period 1 (1,012 ) 1,059 (1,012 ) 1,027 Total incurred (1,012 ) 1,059 (1,012 ) 1,027 Paid related to: Current period - - - - Prior period (2,975 ) (3,700 ) (3,657 ) (6,686 ) Total paid (2,975 ) (3,700 ) (3,657 ) (6,686 ) Balance, end of period $ 167 3,043 $ 167 3,043 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted (loss) earnings per share | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net earnings $ 265 1,116 $ 54 2,386 Denominator: Weighted average shares - basic 5,733,587 5,833,192 5,733,587 5,862,376 Effect of dilutive securities - Stock options - - - - Shares issuable upon conversion of warrants - - - - Weighted average shares - diluted 5,733,587 5,833,192 5,733,587 5,862,376 Earnings per shares - basic $ 0.05 0.19 $ 0.01 0.41 Earnings per shares - diluted $ 0.05 0.19 $ 0.01 0.41 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | Weighted- Average Number Average Remaining Aggregate of Exercise Contractual Intrinsic Options Price Term Value Outstanding at January 1, 2018 250,000 $ 6.01 Outstanding at March 31, 2018 250,000 $ 6.01 7.2 years $ - Outstanding at June 30, 2018 250,000 $ 6.01 6.9 years $ - Exercisable at June 30, 2018 192,500 $ 6.01 6.9 years $ - Outstanding at January 1, 2017 215,000 $ 6.00 Granted 35,000 $ 6.06 Outstanding at March 31, 2017 250,000 $ 6.01 8.2 years $ 137,500 Outstanding at June 30, 2017 250,000 $ 6.01 7.9 years $ - Exercisable at June 30, 2017 130,000 $ 6.01 8.2 years $ - |
Estimated Fair Value of Options Granted using Black-Scholes Option-Pricing Model with Weighted-Average Assumptions | 2017 Expected dividend yield 8 % Expected volatility 35 % Risk-free interest rate 2.48 % Expected life (in years) 10 Per share grant date fair value of options issued $ 0.73 |
Summary of Unvested Restricted Stock Awards | Weighted- Number of Weighted- Restricted Average Stock Grant Date Awards Fair Value Nonvested at January 1, 2018 15,000 $ 5.86 Vested (3,750 ) Nonvested at March 31, 2018 11,250 $ 5.86 Vested (3,750 ) Nonvested at June 30, 2018 7,500 $ 5.86 Nonvested at January 1, 2017 30,000 $ 5.86 Vested (3,750 ) Nonvested at March 31, 2017 26,250 $ 5.86 Vested (3,750 ) Nonvested at June 30, 2017 22,500 $ 5.86 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Premium Receivable, Loss Experience Refund Repayable and Unearned Premiums | At June 30, 2018 At December 31, 2017 (in thousands) Loss experience refund payable $ - $ 135 Unearned premiums reserve $ - $ 2,012 |
Summary of Related Party Transactions | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Revenue Assumed premiums - 3,400 - 3,400 Change in loss experience refund payable (90 ) (630 ) (225 ) (1,260 ) Change in unearned premiums reserve 237 (2,550 ) 592 (1,700 ) |
Organization and Basis of Pre31
Organization and Basis of Presentation (Details Narrative) | 6 Months Ended |
Jun. 30, 2018Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Number of business operating segments | 1 |
Significant Accounting Polici32
Significant Accounting Policies (Details Narrative) | 6 Months Ended |
Jun. 30, 2018 | |
Furniture and Fixtures [Member] | |
Significant Accounting Policies [Line Items] | |
Fixed asset, Estimated useful life | 5 years |
Computer Equipment [Member] | |
Significant Accounting Policies [Line Items] | |
Fixed asset, Estimated useful life | 5 years |
Motor Vehicles [Member] | |
Significant Accounting Policies [Line Items] | |
Fixed asset, Estimated useful life | 4 years |
Cash and Cash Equivalents and33
Cash and Cash Equivalents and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Abstract] | ||
Cash on deposit | $ 1,025 | $ 4,052 |
Cash held with custodians | 6,028 | 3,711 |
Restricted cash held in trust | 4,192 | 3,124 |
Total | $ 11,245 | $ 10,887 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Cost or Amortized Cost, Total available-for-sale securities | $ 4,779 | $ 6,508 | |
Gross Unrealized Gain, Total available-for-sale securities | 2 | 41 | |
Gross Unrealized Loss, Total available-for-sale securities | (23) | (80) | |
Estimated Fair Value, Total available-for-sale securities | 6,293 | 6,469 | |
Mutual Funds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or Amortized Cost, Total available-for-sale securities | 400 | ||
Gross Unrealized Gain, Total available-for-sale securities | 29 | ||
Gross Unrealized Loss, Total available-for-sale securities | 0 | ||
Estimated Fair Value, Total available-for-sale securities | 429 | ||
Preferred Stock [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or Amortized Cost, Total available-for-sale securities | 200 | ||
Gross Unrealized Gain, Total available-for-sale securities | 0 | ||
Gross Unrealized Loss, Total available-for-sale securities | (1) | ||
Estimated Fair Value, Total available-for-sale securities | 199 | ||
Ordinary Share Capital [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or Amortized Cost, Total available-for-sale securities | 1,458 | ||
Gross Unrealized Gain, Total available-for-sale securities | 12 | ||
Gross Unrealized Loss, Total available-for-sale securities | (62) | ||
Estimated Fair Value, Total available-for-sale securities | 1,408 | ||
US Treasury and Government [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or Amortized Cost, Total available-for-sale securities | 4,779 | 4,450 | |
Gross Unrealized Gain, Total available-for-sale securities | 2 | 0 | |
Gross Unrealized Loss, Total available-for-sale securities | (23) | (17) | |
Estimated Fair Value, Total available-for-sale securities | 4,758 | 4,433 | |
Fixed Maturities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or Amortized Cost, Total available-for-sale securities | 4,779 | 4,450 | |
Gross Unrealized Gain, Total available-for-sale securities | 2 | 0 | |
Gross Unrealized Loss, Total available-for-sale securities | (23) | (17) | |
Estimated Fair Value, Total available-for-sale securities | $ 4,758 | 4,433 | |
Equity Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cost or Amortized Cost, Total available-for-sale securities | [1] | 2,058 | |
Gross Unrealized Gain, Total available-for-sale securities | [1] | 41 | |
Gross Unrealized Loss, Total available-for-sale securities | [1] | (63) | |
Estimated Fair Value, Total available-for-sale securities | [1] | $ 2,036 | |
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See Note 2, Accounting Policies, for additional information. |
Investments (Details 1)
Investments (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost, Total available-for-sale securities | $ 4,779 | $ 6,508 |
Total estimated fair value available for sale | 4,758 | 4,433 |
Fixed Maturities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Due within one year | 1,854 | 3,007 |
Due after one year through five years | 2,925 | 1,443 |
Cost or Amortized Cost, Total available-for-sale securities | 4,779 | 4,450 |
Due within one year | 1,855 | 3,003 |
Due after one year through five years | 2,903 | 1,430 |
Total estimated fair value available for sale | $ 4,758 | $ 4,433 |
Investments (Details 2)
Investments (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fixed Maturities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds | $ 0 | $ 0 | $ 3,000 | $ 0 |
Gross Realized Gains | 0 | 0 | 3 | 0 |
Gross Realized Losses | 0 | 0 | 0 | 0 |
Equity Securities [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds | 0 | 6,101 | 6,033 | 9,678 |
Gross Realized Gains | 0 | 540 | 418 | 732 |
Gross Realized Losses | $ 0 | $ (494) | $ (594) | $ (684) |
Investments (Details 3)
Investments (Details 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Gross Unrealized Loss | $ 23 | $ 50 |
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value | 3,399 | 2,396 |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Gross Unrealized Loss | 0 | 30 |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Fair Value | 0 | 3,177 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Loss, Total | 23 | 80 |
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total | 3,399 | 5,573 |
Fixed Maturities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Gross Unrealized Loss | 23 | 13 |
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value | 3,399 | 1,428 |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Gross Unrealized Loss | 0 | 4 |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Fair Value | 0 | 3,003 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Loss, Total | 23 | 17 |
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total | 3,399 | 4,431 |
Fixed Maturities [Member] | US Treasury and Government [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Gross Unrealized Loss | 23 | 13 |
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value | 3,399 | 1,428 |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Gross Unrealized Loss | 0 | 4 |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Fair Value | 0 | 3,003 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Loss, Total | 23 | 17 |
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total | $ 3,399 | 4,431 |
Equity Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Gross Unrealized Loss | 37 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value | 968 | |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Gross Unrealized Loss | 26 | |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Fair Value | 174 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Loss, Total | 63 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total | 1,142 | |
Equity Securities [Member] | Mutual Funds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Gross Unrealized Loss | 0 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value | 0 | |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Gross Unrealized Loss | 0 | |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Fair Value | 0 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Loss, Total | 0 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total | 0 | |
Equity Securities [Member] | Preferred Stock [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Gross Unrealized Loss | 1 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value | 199 | |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Gross Unrealized Loss | 0 | |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Fair Value | 0 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Loss, Total | 1 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total | 199 | |
Equity Securities [Member] | Ordinary Share Capital [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Gross Unrealized Loss | 36 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Less Than 12 Months, Fair Value | 769 | |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Gross Unrealized Loss | 26 | |
Available-for-sale securities, Continuous Unrealized Loss Position, 12 Months or Greater, Fair Value | 174 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Loss, Total | 62 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total | $ 943 |
Investments (Details 4)
Investments (Details 4) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted cash and cash equivalents | $ 4,192 | $ 3,124 | |
Total available-for-sale securities | 6,293 | 6,469 | |
Total | 17,538 | 17,356 | |
Mutual Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 429 | ||
Preferred Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 199 | ||
Ordinary Share Capital [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 1,408 | ||
Fixed Maturities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 4,758 | 4,433 | |
Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | [1] | 2,036 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 7,053 | 7,763 | |
Restricted cash and cash equivalents | 4,192 | 3,124 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 4,758 | 4,433 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | US Treasury and Government [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 4,758 | 4,433 | |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 1,535 | 2,036 | |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Mutual Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 555 | 429 | |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Preferred Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 199 | ||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Ordinary Share Capital [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 980 | 1,408 | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 6,293 | 6,469 | |
Total | 17,538 | 17,356 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 7,053 | 7,763 | |
Restricted cash and cash equivalents | 4,192 | 3,124 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 4,758 | 4,433 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | US Treasury and Government [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 4,758 | 4,433 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 1,535 | 2,036 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Mutual Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 555 | 429 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Preferred Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 199 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Ordinary Share Capital [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 980 | 1,408 | |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | 0 | |
Total | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | US Treasury and Government [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Mutual Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Preferred Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Ordinary Share Capital [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | 0 | |
Total | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | US Treasury and Government [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Mutual Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Preferred Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Ordinary Share Capital [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total available-for-sale securities | $ 0 | $ 0 | |
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See Note 2, Accounting Policies, for additional information. |
Investments (Details Narrative)
Investments (Details Narrative) $ in Thousands | Jun. 30, 2018USD ($)Integer | Dec. 31, 2017USD ($)Integer |
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Fair value of securities held in trust accounts | $ | $ 4,393 | $ 1,430 |
Number of securities in unrealized loss position | 5 | 8 |
Number of positions held for greater than twelve months | 0 | 2 |
Derivative Instruments (Details
Derivative Instruments (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments Details Narrative | ||
Gain from derivative instruments | $ 200 | $ 370 |
Reserve for Losses and Loss A41
Reserve for Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Balance, beginning of period | $ 4,154 | $ 5,684 | $ 4,836 | $ 8,702 |
Incurred related to: Current period | 0 | 0 | 0 | 0 |
Incurred related to: Prior period | (1,012) | 1,059 | (1,012) | 1,027 |
Total incurred | (1,012) | 1,059 | (1,012) | 1,027 |
Paid related to: Current period | 0 | 0 | 0 | 0 |
Paid related to: Prior period | (2,975) | (3,700) | (3,657) | (6,686) |
Total paid | (2,975) | (3,700) | (3,657) | (6,686) |
Balance, end of period | $ 167 | $ 3,043 | $ 167 | $ 3,043 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net earnings | $ 265 | $ 1,116 | $ 54 | $ 2,386 |
Denominator: | ||||
Weighted average shares-basic | 5,733,587 | 5,833,192 | 5,733,587 | 5,862,376 |
Effect of dilutive securities-Stock options | 0 | 0 | 0 | 0 |
Shares issuable upon conversion of warrants | 0 | 0 | 0 | 0 |
Weighted average shares-diluted | 5,733,587 | 5,833,192 | 5,733,587 | 5,862,376 |
Earnings per shares - basic | $ 0.05 | $ 0.19 | $ 0.01 | $ 0.41 |
Earnings per shares - diluted | $ 0.05 | $ 0.19 | $ 0.01 | $ 0.41 |
Earnings Per Share (Details Nar
Earnings Per Share (Details Narrative) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Warrants exercise price | $ 7.50 | $ 7.50 | ||
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 250,000 | 250,000 | 250,000 | 250,000 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 8,230,700 | 8,230,700 | 8,230,700 | 8,230,700 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of Options Outstanding, Beginning Balance | 250,000 | 250,000 | 250,000 | 215,000 |
Number of Options, Granted | 35,000 | |||
Number of Options Outstanding, Ending Balance | 250,000 | 250,000 | 250,000 | 250,000 |
Number of Options Exercisable, Ending Balance | 192,500 | 130,000 | ||
Weighted-Average Exercise Price Outstanding, Beginning Balance | $ 6.01 | $ 6.01 | $ 6.01 | $ 6 |
Weighted-Average Exercise Price, Granted | 6.06 | |||
Weighted-Average Exercise Price Outstanding, Ending Balance | 6.01 | $ 6.01 | 6.01 | $ 6.01 |
Weighted-Average Exercise Price Exercisable, Ending Balance | $ 6.01 | $ 6.01 | ||
Weighted-Average Remaining Contractual Term, Outstanding Ending Balance | 6 years 10 months 24 days | 7 years 2 months 12 days | 7 years 10 months 24 days | 8 years 2 months 12 days |
Weighted-Average Remaining Contractual Term, Exercisable Ending Balance | 6 years 10 months 24 days | 8 years 2 months 12 days | ||
Aggregate Intrinsic Value, Outstanding Ending Balance | $ 0 | $ 0 | $ 0 | $ 0 |
Aggregate Intrinsic Value, Exercisable Ending Balance | $ 0 | $ 0 |
Share-Based Compensation (Det45
Share-Based Compensation (Details 1) - Employee Stock Option [Member] | 6 Months Ended |
Jun. 30, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend yield | 8.00% |
Expected volatility | 35.00% |
Risk-free interest rate | 2.48% |
Expected life (in years) | 10 years |
Per share grant date fair value of options issued | $ .73 |
Share-Based Compensation (Det46
Share-Based Compensation (Details 2) - $ / shares | 3 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Weighted Number of Restricted Stock Awards, Nonvested Beginning Balance | 11,250 | 15,000 | 26,250 | 30,000 |
Weighted Number of Restricted Stock Awards, Vested | (3,750) | (3,750) | (3,750) | (3,750) |
Weighted Number of Restricted Stock Awards, Nonvested Ending Balance | 7,500 | 11,250 | 22,500 | 26,250 |
Weighted Average Grant Date Fair Value, Nonvested Beginning Balance | $ 5.86 | $ 5.86 | $ 5.86 | $ 5.86 |
Weighted Average Grant Date Fair Value, Vested | ||||
Weighted Average Grant Date Fair Value, Nonvested Ending Balance | $ 5.86 | $ 5.86 | $ 5.86 | $ 5.86 |
Share-Based Compensation (Det47
Share-Based Compensation (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Incentive Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant | 690,000 | 690,000 | ||
Share based compensation arrangement, vesting period | 4 years | |||
Unrecognized compensation expense, non-vested stock options | $ 35 | $ 73 | $ 35 | $ 73 |
Unrecognized compensation cost, Weighted average recognition period | 11 months | |||
Unrecognized compensation expense, non-vested restricted stock | 44 | 132 | $ 44 | 132 |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense recognized | 9 | 9 | 19 | 19 |
Restricted Stock [Member] | General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense recognized | $ 22 | $ 22 | $ 44 | $ 44 |
Net Worth for Regulatory Purp48
Net Worth for Regulatory Purposes (Details Narrative) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Minimum prescribed capital requirement | $ 500 | $ 500 |
Oxbridge Reinsurance Limited | ||
Subsidiary net worth | 5,700,000 | 5,700,000 |
Subsidiary's net income | 9,000 | 18,000 |
Oxbridge Re NS | ||
Subsidiary net worth | 18,000 | 18,000 |
Subsidiary's net income | $ 18,000 | $ 18,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Operating Lease One [Member] | ||
Other Commitments [Line Items] | ||
Lease term | 38 months | 38 months |
Rent expense | $ 16,000 | $ 32,000 |
Lease commitments | $ 0 | |
Lease Commencement date | Apr. 17, 2015 | |
Operating Lease Two [Member] | ||
Other Commitments [Line Items] | ||
Rent expense | $ 12,900 | $ 25,800 |
Lease commitments | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Loss experience refund payable | $ 0 | $ 135 |
Unearned premiums reserve | 2,393 | 2,012 |
Claddaugh And Hcpci [Member] | ||
Related Party Transaction [Line Items] | ||
Loss experience refund payable | 0 | 135 |
Unearned premiums reserve | $ 0 | $ 2,012 |
Related Party Transactions (D51
Related Party Transactions (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | ||||
Assumed premiums | $ 2,580 | $ 17,376 | $ 2,580 | $ 18,256 |
Change in loss experience refund payable | 90 | 512 | 225 | 1,260 |
Change in unearned premiums reserve | (381) | (12,815) | ||
Claddaugh And Hcpci [Member] | ||||
Revenue | ||||
Assumed premiums | 0 | 3,400 | 0 | 3,400 |
Change in loss experience refund payable | (90) | (630) | (225) | (1,260) |
Change in unearned premiums reserve | $ 237 | $ (2,550) | $ 592 | $ (1,700) |