Oxbridge Re gets its Oxbridge Re NS sidecar licensed, issues first notes


Collateralized reinsurance company Oxbridge Re Ltd. has now had its planned sidecar vehicle, Oxbridge Re NS Ltd., licensed for business in the Cayman Island’s and the sidecar has also issued its first tranche of notes.

Oxbridge Re first revealed its plans for the sidecar last year, having registered Oxbridge Re NS Ltd. in the Cayman Island’s in December 2017 as an exempted company.

The idea of forming the sidecar was to “facilitate potential future hedging and investment activities with respect to our reinsurance risks,” Oxbridge Re had said at the time.

Essentially, the Oxbridge Re NS Ltd. collateralized reinsurance sidecar provides Oxbridge Re with a new avenue to bring capital into its underwriting structure more efficiently, with third-party investors able to buy into series of notes that the sidecar will issue.

The wholly owned reinsurance sidecar subsidiary, Oxbridge Re NS, has been licensed and approved with the assistance of Maples FS, under the jurisdiction of the Cayman Islands Monetary Authority, the company said today.

After receiving its license, the Oxbridge NS Re sidecar successfully issued  a Series 2018-1 tranche of Participating Notes that are due June 1st 2021 in a private placement, with an initial $2 million of capital deployed into a quota-share reinsurance agreement with Oxbridge Reinsurance Limited.

“We are happy to report the successful licensing of Oxbridge Re NS, and deployment of capital,” explained Jay Madhu chairman and chief executive officer of Oxbridge Re.

Oxbridge Re is an interesting reinsurer, as it operates on a collateralized basis but is listed on the Nasdaq stock exchange. This sidecar will enable the reinsurer to bring investor capital into the company much more swiftly and easily than running a new IPO or share offering and it provides the institutional investor base that is the likely target with a way to access the reinsurance underwriting returns, without any of the broader financial market correlations of an equity investment in the reinsurer.

For more details on reinsurance sidecar investments view our directory of collateralized reinsurance sidecar transactions.

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