Oxbridge Re Ltd., the Cayman Islands based reinsurance firm, is optimistic about the opportunities it will see for its fully-collateralised reinsurance sidecar vehicle Oxbridge Re NS Ltd.The company is also optimistic about the prospects for its reinsurance business, which of course will benefit from hardening rates at renewals over the coming year.Oxbridge Re sources some of its retrocession from the capital markets using its sidecar vehicle Oxbridge Re NS, which also helps the company to benefit from some fee income and build its expertise in managing third-party capital as well.The sidecar remains a very small affair for Oxbridge Re, having only renewed it at some $216,000 for the 2020 season.

So far, we’d imagine the Oxbridge Re NS Series 2020-1 noteholders are on track for a decent return, as hurricane losses have not been overly impactful to-date and the parent reinsurance company reports no losses so far this year.Oxbridge Re has also confirmed the returns that investors in its 2019 sidecar issue earned, saying that sidecar investors in the Oxbridge Re NS Series 2019-1 participating notes earned a 36% return.Investors in the 2020-1 sidecar issuance are likely on-track for a similarly healthy return, as long as it remains free from losses through the rest of the risk period.

“We continued to perform well through the first nine months of 2020.Our business model remains resilient and unaffected by the COVID-19 pandemic, and we are optimistic about the long-term prospects of our core reinsurance business as well as the opportunities for our side car,” explained Oxbridge Re Holdings President and Chief Executive Officer Jay Madhu.“Looking ahead, we continue to be prudent in our capital deployment as well as evaluate additional opportunities for growth and diversification of risk.” Oxbridge Re first entered the insurance-linked securities (ILS) market with a quota share retrocessional reinsurance sidecar arrangement .

Unfortunately, Oxbridge Re’s underwriting portfolio was hit hard by catastrophe loss events in the second-half of 2018, with .Oxbridge Re persisted, launching a second, smaller reinsurance sidecar transaction in June 2019, when it ., managing to avoid taking on any losses from global catastrophe events such as the Japanese typhoons and hurricane Dorian.

It seems the sidecar also ran clean through the first-half of 2020 as well, as Oxbridge Re reported a 0% loss ratio for the period and has now confirmed that the investors in its 2019 sidecar issuance earned themselves a very healthy 36% return., perhaps a reflection of the more challenging capital raising environment for sidecars and quota shares generally earlier this year.For more details on view ———————————————————————.

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