OXBR - Earnings call transcript Q2 2024 | Oxbridge Re Holdings Limited

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Operator

Good afternoon. Welcome to Oxbridge Re's Second Quarter 2024 Earnings Call. My name is Sachi, and I will be your conference operator this afternoon. At this time, all participants will be in a listen-only mode.

Joining us for today's presentation is Oxbridge Re's Chairman, President and Chief Executive Officer, Jay Madhu; and Chief Financial Officer and Corporate Secretary, Wrendon Timothy.

will the we questions. for remarks, their open call up your Following on -- would that Oxbridge replay via XXXX everyone to Re until Investors call XX, I remind available website this at like of Information Investor section will www.oxbridgere.com. be August the the section telephone

management to be the Re, this I provide who during Now over the like made forward-looking Financial Chief necessary turn to Timothy, would regarding statements will will that Officer by call cautions the Wrendon of call. Oxbridge

Wrendon Timothy

Thank you, operator.

today's call, are projects be Words made XXXX. Litigation will other and to forward-looking financial there future Securities events, forward-looking and of plans, statements. forward-looking signify are regarding During performance. such similar woods statements as including pursuant statements intended future Private Act made to anticipates, the Oxbridge expressions estimates, Re's Reform intends, These expects,

differ results not results these but risks uncertainties. A and statements future Forward-looking XX-Q detailed to that XX-K “Risk Form in contained included XX, statements cause Factors” forward-looking are of uncertainties Commission. the is the our various entitled of and are subject on with Securities events and today and section our in to could filed March XXXX, and conditions, discussion guarantees rather and Form Exchange filed risks from actual materially

any the any call presentation, events, in statements conditions circumstances except obligation conference update in business, securities. occurrence contained on as any this or condition the Any which the cause financial can the company made Company’'s adverse and or on related risks of our as earnings, of company on date and these effect forward-looking uncertainties of significant speak call this of any if The expectations volume forward-looking to the call, required no of law, and fluctuations turn trading material change. company's could conference have market a undertakes volatility even this for price statements or by only our

the Officer turn President Chairman, and call over to to Chief I'd Executive Jay? Madhu. Jay Now like our

Sanjay Madhu

joining Wrendon, us you, Thank for you today. Thank and welcome, everyone.

start we have taken are our by of and Let year the diversify saying proud business. me we in last fortify to the significant steps

remains business cover of where specialize collateralized high catastrophes. we efficiently we We fully we severity can specific frequency, losses because And reinsurance contracts, contracts. data to to exists analyze collateralized property with fully profile from large policies where write we core low the Our write in reinsurance, believe we risk/return risks, believe sufficient compete efficiently underwriting carriers.

sponsor following in share focusing writing a operates through CharterGPT the Jet.AI objective environmental as charter CharterGPT jet with and app began The segments: partners. and BXB language segment The aircraft selective we Jet.AI of achieve relative our charter technologies. In efficiency as XXX Part processing of its and impact. BXB to brokerage enable fractional of experience. by Our Oxbridge offers to Reroute fleet of platform. operating is operator and features and suite such improve Oxbridge's stand-alone DynoFlight investing booking its The software private to jet company, uses stable add and in the the and a software products successfully Jet.AI aircraft XXXX, will learning business in card, offers attractive reduce It private operator software machine revenue, the of acquisition diversify and purpose lead and August generate Acquisition to on The a natural to Inc. a providers business platform aviation. maximize FAA those software X app and Building company -- opportunistic on craft long-term or SPAC, special its basis to Foundation, Corp., value acquisition ownership, per completed that disruptive business reinsurance profits book growth combination developed on risk. XXXX underwriting

features segment aircraft buyers cards, Aviation brokerage. fleet jet jet management charter on fractionalization, and The

With the Exchange. on Stock the XXXX, the completion began trading of the combination NASDAQ August company in business of

democratizing Jet.AI portfolio our tokenized webX by the technology advancement a RWAs, subsidiary reinsurance ensure value we in SurancePlus investments fair XXXX, is SEC security alternative securities and technology. or establishing digital Plus real-world Our transparency complete assets sheet. business securities interest investment These guidelines, leverage on offering recognized new representing in opportunities. in at SurancePlus focused as other with on blockchain Inc., our tokenized balance specializes market. expanded significant to our compliance In in

of incurring to our has diluting a without for diversification. effective participation, investor extending aims of to or what Crucially, equity beyond select broaden been our SurancePlus establishment opportunities initiative this approach new traditionally achieved debt Consequently, was reflecting individuals. the group ultra-high-net-worth shareholders,

committed We are of remain to enthusiastic informed quarters. keeping in the prospects and their investments these our stakeholders of progress new about forthcoming the

ahead, turn summary, outlook position of core a business strong results. the we embrace the successful as details a financial Further on intend Wrendon RWA maintain In the Oxbridge of Looking more we now will long-term market player asset sense the prominent the regarding our to shared be real-world over comprehensively. as in take optimism later to to sector. WebX call. of our in or direction reinsurance things through RWA I'll integration we SurancePlus along the us strategic

Wrendon Timothy

is last premiums XXXX remind to the to quarter $XXX,XXX for net to year. following quarter. net our Jay. to X June XXst $XXX,XXX that earned, you year you, were the June second earned premiums typical May period compared Thank from I'd of ended respect With like contract XX,

recognizing the of XXXX million, X months same month respectively. increases contrast losses XXXX prior acceleration premium XXXX-XXXX X on treaty $X.X ended the quarter earned fourth June in full $XXX,XXX of premiums For the for X the XXXX, premiums, period recognized have the reinsurance of the months and incurred There months been due or a year be XXXX. first and Hurricane and year contracts premiums due The no to to was from Ian. In last because XX, in year. only X we X up net of are to

decreased income due in market investment other XXXX first X Regarding investment quarter the in money of and in held being less months cash or the net to accounts. income income our

our of remeasurement We also investments recorded from of value. an at other resulting on Jet.AI our unrealized more in million fair investment $X.X loss

the in in equity We prior from $XXX,XXX as June also change securities XXXX, negative of $XX,XXX of positive change value decreasing our the year. XX, the recognize fair

All $XXX,XXX of quarter. factors June taken year revenue these ended second X together total the $XX,XXX for resulted the to in prior XXXX months compared to XX, in

$X.XX second in and XXXX months quarter total months and year. to expenses admin acquisition million including general of was compared loss For costs of XXXX, the compared expenses, and the X year. for $XX,XXX Total policy of X last adjustment and for negative period same loss to revenue the last were up expenses

The the policy increase acquisition costs was due incurred during primarily period. to higher X-month

the fair $XX,XXX a of investments primarily net per in net second and we Our equity of securities $X.XX loss share change negative per due income, loss year's quarter, share in or value $XXX,XXX in a generated or to the to of last net quarter. $X.XX second

loss levels outweighed revenue the fee on this XX, than June premium result the the in The worsened loss (sic) to equity higher first more other lower million and and period by ] For buffering to the from management income driven the year unrealized ] due $X.XX ended year. increase [ [ last ]. in of securities SurancePlus was $X.XX compared same investments [ million XXXX, months X per a $X.XX was $XX,XXX profit share net or net

on to discussed calls, of and use have analyze our growth investor you our before operations. the the As profitability we various business measures

business, and reinsurance our by combined loss ratio. For profitability ratio, expense you underwriting ratio measure examining ratio, acquisition

no was the both profitability, of underwriting loss expenses or ratio ratio the to ratio, or XXXX, 'XX loss incurred in in in expenses adjustment is of earned. which With measures periods. premiums either loss Our -- and adjustment loss X% loss loss XXXX net

XX, operational in X-month net which XXXX year. period same premiums measures ratio, acquisition The efficiency, cost for earned. policy ratio ended and XX% increased compared acquisition to XX.X% period last the marginally compares the Our acquisition to costs June

Our June XXXX ended XXX.X%. XXXX. during XXXX higher expense levels X to from to X-month net periods. admin general with the compared measures compared due XX, X- The months ended XX, premium and operating to periods ratio, when for expense ended And which to expenses XXX.X% earned. June prior and the for XX, The were June decreased acquisition decreases X-month ratio XXX.X% from recognized period premiums and the XXX.X% to policy costs performance,

the decreases premium Our which ratio, combined ratio and The ended ratio for XXX.X% to periods. June performance, to of during XX, expense XXX.X% is higher loss levels and XXXX. used the to XXX.X% the month periods X for X ratio. were is The prior combined sum XXXX, from the XXX.X% to and June due period measure underwriting when ended to decreased XX, X X-month the compared months, recognized

securities at the $XXX,XXX securities the portfolio the into $XXX,XXX the investment balance and Noted in of primarily XX, of fair from sale equity year the result as the decreased June of quarter. value our at equity decrease XXXX, and sheet, during a prior

Our investments investment significantly measured investment decreased fair fair due which in to Jet.AI from $X.X $XXX,XXX our to an in equity million change company the the at value has other in value.

cash XXXX. cash increased with equivalents June million cash December cash at $X.X and Our restricted equivalents and at $X.X XX, XX, and compared to million XXXX

to to back your of call I'd any up to Jay? the over we Now questions. Jay take turn wrap like before

Sanjay Madhu

Thank you, Brandon.

reinsurance securities, SurancePlus, subsidiary the today's Re. on the the interest XXXX, decisive to offering have with Avalanche in issued reinsurance In December XXXX, by wholly-owned representing diversify blockchain. of tokenizing our objective initial earlier measures contracts security underwritten highlighted we operations. implemented in and fortify tokens As substantial second and these This was discussion, quarter established fractional successfully of subsidiary. the on In our concluded of DeltaCat we we our

of reported, projection to an challenges a the investment believe received backed Idalia, surpassing previously XX% technology XXXX. made We cross are despite sophisticated traded X returns securities. investors by in hurricane of publicly as which tokenized inherent as Hurricane as digital first is reinsurance landfall XX%, posed the Re the democratize leveraging the access company. Furthermore, to these Category reinsurance by exceeding avenue, securities poised DeltaCat a blockchain advantages to SurancePlus alternative initial

facilitate of These the now opportunities the investors innovative to many through are to participation, extreme tokens the recorded Our broader entry previously to our transparently ensuring investor approach. and the barrier interests accessible due high reach aim of are on out securely blockchain.

Jet.AI, reinsurance. business fleet company it's investment fractional our aircraft charter have a mid-XXXX, services, private with the in services, Acquisition Jet a and in specializing democratized aircraft. company, aircraft culminated brokerage Oxbridge Corp., a purpose merger of facilitated access we to acquisition ownership, In in card Essentially, by special

merger, shares finalization the business with listed Concurrently, the common its the on NASDAQ. company warrants of successfully and

independent process Additionally, Oxbridge spin Limited. growth well Holdings targeted the XX.XX% SurancePlus to Recently, return, which the set This the surpassing has enhance initiated committee blockchain or a XX%. Re public the strategic collaboration company SurancePlus a token Avalanche sales positioned Management, return tokenization paid The raising the completed DeltaCat further our Board participating In date. to over Zoniqx, billion for alternatives strategic RWA substantial which a a $X a shares strategic as may out XX% WebX full range and operate chain investment XXX,XXX footprint. last X-year in process on under million. The to a a is on special subsidiary, to merger, continue company. of to recent This has Asset by by issued shares consider initial Digital is have or our placement EpsilonCat of for The targeting with Re, forming of partnership projections. review $X.X issued tokens Pioneer its Holdings announced transactions year's success Digital strategic of represented strategic a return participation our divestiture, while remarkable a contract, expand and aims off, represented shareholders. with recapitalization Re private WebX include SurancePlus participation follows assets in partnership of potential developments, EpsilonCat Token approximately digital capabilities. SurancePlus over Re, a share

to this proud the within augment the our exciting enhance profile capitalize diversification to and accelerating also profile, coming opportunities positioning new only business, growth strategically -- our this accomplishment forward our space and We RWA on in years. growth look of compelling risk technologies. us our emerging but in not are entity These

anticipated hold We benefits investments value shareholders. these especially to offer the the of they about our enthusiastic are and

RWA WebX As mentioned, an we leveraging as company, are in previously the we the significant year. of progress currently process achieved focused this have rebranding Oxbridge

funding RWA various is This blockchain led $XX This by escalating tokenized next they tokenization. estate. over reinforced of extraordinary adoption expand currencies, million equities, bonds recently expansion $XX fueled by BlackRock the traditional sectors, technology to real including the trajectory financial decade fiat secured as Forecast across market suggests trillion. with further securitized RWA exceeding and growth an the estimates has been announced have of

infrastructure It's supply institutions tokenization and financial chains. such anticipate of tokenized Consulting a of asset Bank optimizing efficiencies, trillion as costs Group reaching from potential endorsements analysis like potentially and affirm by firms market, industry and XXXX. from the enhancing transformative in surge distribution Moreover, and further Boston the BlackRock reducing America $XX the year substantial

landscape, this steadfast the call for evolving dynamic of optimism regarding by of efforts remain pioneers With seizing opportunities in will presented in ready hold we our Operator, instructions. strong As to please the commitment appropriate this a are to the rebranding We our open shareholders. that, we our unlock provide market shift. value questions. the for sense

Operator

you. Thank

from first be Instructions] We [Operator a now Securities will Management. Engelke question is The conducting Capitol question-and-answer session. Kent from

Kent Engelke

this $XX a of penetration market? do much think you you on can that all market how get trillion on question Wrendon, Jay,

Sanjay Madhu

in and there could going go is We're market the playing is market out, or points is XX% -- immense. so saying X% market is be at vast us of the a that few so vast, Yes. market you, are, the the ahead is have size field the the an are, the saying that it not size number so we is I we're us, the So we percentage or right? what leave Currently, that trillions. for company of we to unfathomable

opinion, in entrenched to this looking my opportunity. solidly are, We forward in

Kent Engelke

marketing the like you dollars. make shareholders at are as even you are How How that? market, a and said, all? will huge Because marketing stuff gazillion you it's Oxbridge X%,

Sanjay Madhu

be little we a available we're will things. we're more how will shareholders. whole to we'll rebranding be doing to weeks the we of that how But just that be have In we'll will a next through. make bit going -- different hopefully week, Yes. various plan and come, that There events

quite to We it. banks shareholders are different banks and have also bit. that challenging investment are effort. But interested a interested. been take It interested it are talking up is a -- to that that various will We're

Operator

I the This Instructions] question-and-answer Mr. comments. turn over to would concludes session. floor [Operator his for our to closing back like Madhu

Sanjay Madhu

Thank you for joining us call. on today's

would our has you I any your business amidst and and circumstances. Oxbridge. expertise Once want team, in support. for been to extensive these gratitude conclude, not to like for Operator? employees, to again, my have partners we I dedicated business unwavering navigating time. please hesitate instrumental our investors and interest ongoing advancing Before Oxbridge particularly extend to whose and their our acknowledge in challenging any to time additional do you questions, today Should out thank us reach for attention your

Operator

Thank you.

recording today's presentation. available conclude a like everyone today's would I section be Thank Before joining we in call, to website. us remind for the for company's telephone you will that Investors today our of via call of the

disconnect. You may now

Oxbridge Re Holdings Limited (OXBR) 8 Aug 242024 Q2 Earnings call transcript