Oxbridge Re Holdings Ltd. (OXBR) goes up by a good 27.73% at an after-hours’ volume of 4.39 million. This uptrend in the stock set OXBR at $4.56 (+0.99) in the after-hours, against its last close at $3.57 (+0.01) on November 12. OXBR gained only 0.28% during the market. On November 12, after the market closed, OXBR announced the financial results for the three and nine months ended September 30, 2021. The improved financial results in 2021 also improved the stock’s price in the aftermarket.
Headquartered in the Cayman Islands, Oxbridge Re Holdings Ltd. Provides specialty property and casualty reinsurance solutions. OXBR distributes its products and solutions through insurance brokers. Using its sidecar vehicle Oxbridge Re NS, the company sources some of its retrocession from the capital markets.
OXBR’s Financial Highlights
According to the financial results, in the third quarter of 2021, OXBR had a net income of $6.5 million, compared to a loss of $33,000 in the same quarter of 2020. The earnings per basic and diluted share were $1.14 for Q3 2021, against the loss per basic and diluted share of $0.01 in the third quarter of 2020.
As per the results, the net income for the nine months ended September 2021, was $7 million approximately, compared to a net loss of $232,000 in the same period of 2020. The earnings per basic and diluted share were $1.22 for the nine months of 2021, against a loss per basic and diluted share of $0.04 for the same nine months in 2020.
The increase in net income of OXBR is predominantly due to the unrealized gain of $7.1 million approx. on the completion of the OXAC Initial Public Offering on August 11, 2021.
Moreover, the Sidecar investors in Series 2021-1 earned a 17% return, approximately.
Business Outlook
The reinsurance industry, along with Covid-19, is suffering from many factors like reduction in interest rates, equity market volatility, uncertainties due to current and future losses, and financial impacts of economic downturn. Oxbridge Re Holdings Ltd reacted promptly to the ongoing situation in the industry to minimize its impact on the business. The prompt and effective response by the OBXR team has brought the company’s operations back to normal, resulting in positive and improved results for the third quarter of 2021.
According to Jay Madhu, President, and Chief Executive Officer OXBR, the company is highly optimistic about the future prospects of the reinsurance business along with the sidecar and investment in SPAC.
