Oxbridge Re Holdings Ltd. Q4 FY2023 earnings call

• Core reinsurance business: Proud of steps taken to fortify and diversify, focusing on fully collateralized reinsurance for low-frequency, high-severity risks to achieve long-term growth and book value per share.
• Diversification via SPAC: In 2021, as lead sponsor of Oxbridge Acquisition Corp, a SPAC, which completed business combination with Jet.AI in August 2023, with Jet.AI operating in software (B2B CharterGPT app and operator platform) and aviation segments, and trading on NASDAQ.
• Web3 initiative: Established SurancePlus Inc. in 2023, a subsidiary focused on Web3 technology, offering tokenized reinsurance securities leveraging blockchain technology to democratize access to reinsurance as an alternative investment.

The company has two main segments: reinsurance and diversified ventures. For the reinsurance business, net premiums earned in 2023 increased to $1,255,000 from $995,000 in the prior year. Total expenses for the year ending December 31, 2023 were $2.3 million, down from $2.6 million in 2022. The reinsurance business measures underwriting profitability using loss ratio, acquisition ratio, expense ratio, and combined ratio. The loss ratio decreased to 0% in 2023 from 107.8% in the prior year. The acquisition cost ratio increased marginally to 11.2% in 2023 from 11.1% in the prior year. The expense ratio increased to 185.2% in 2023 from 153.1% in the prior year. The combined ratio decreased to 185.2% in 2023 from 260.9% in the prior year. The diversified segments include Jet.AI, which completed a business combination with Oxbridge Acquisition Corp in August 2023 and trades on the NASDAQ, and SurancePlus Inc., a new subsidiary focused on Web3 technology with a $2.4 million private placement in the second quarter of 2023.

• Long-term growth strategy for core reinsurance business, writing business selectively and opportunistically to generate attractive underwriting profits.
• SurancePlus tokens: Investors in Delta CatRe tokens poised to achieve returns exceeding 45%.
• Rebranding: Intends to reposition as a prominent player in the RWA Web3 sector, leveraging progress and anticipating market growth potential with tokenized RWA market estimates exceeding $10 trillion.

• Forward-looking statements are subject to various risks and uncertainties, detailed in Form 10-K Risk Factors.
• Impact of hurricanes: Challenges posed by hurricanes like Hurricane Ian and Hurricane Idalia could affect results.
• Compliance: Ensuring compliance with SEC guidelines for tokenized securities.
• Market volatility: Fluctuations in market price and trading volume due to business, financial condition, and earnings volatility.