Oxbridge Re board evaluating potential sale, merger options

Oxbridge Re board evaluating potential sale, merger options | Insurance Business New Zealand

Reinsurance

Oxbridge Re board evaluating potential sale, merger options

Firm was hit with losses in the past quarter

Reinsurance

By
Kenneth Araullo

Oxbridge Re Holdings’ board of directors is evaluating a range of strategic options, including a potential sale, spinoff, merger, divestiture, or recapitalization, according to a company statement.

As per a statement, the board is reviewing alternatives to maximize shareholder value and will consider options for both the company and its subsidiary, SurancePlus Holdings Ltd.

Oxbridge Re’s board has not set a specific timeline for the review. “The company cannot assure that its evaluation will result in the company and/or its subsidiaries pursuing a transaction or that any transaction, if pursued, will be completed on attractive terms,” Oxbridge Re said in its statement.

The Gulf Coast reinsurance specialist began offering tokenized securities backing SurancePlus last year. Each DeltaCat Re token represents one preferred share of SurancePlus, indirectly providing fractionalized interests in reinsurance contracts underwritten by Oxbridge Re NS Ltd.

The offering marks the second iteration of the Cat Re series, with plans to issue between 500,000 to 1,000,000 Participation Shares under the label “EpsilonCat Re.”

In the first quarter, Oxbridge Re reported a net loss of $905,000, compared to a net income of $142,000 in the same period last year. The company attributed the loss primarily to a negative change in the fair value of equity securities and investments.

Net premiums earned rose to $549,000 from $0 in the prior-year period. The increase was due to contracts in force during the first quarter of this year, while premiums had been accelerated in the previous year due to Hurricane Ian losses. The company did not incur any losses for the first quarter of 2024 or 2023.

Expenses increased to $548,000 from $404,000 a year earlier, driven by higher professional and legal expenses and policy acquisition costs.

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