Oxbridge Re Holdings Ltd. : OXBR-US: Dividend Analysis : September 23rd, 2017 (record date) : By the numbers : October 10, 2017

Our analysis is based on comparing Oxbridge Re Holdings Ltd. with the following peers – Blue Capital Reinsurance Holdings Ltd., Validus Holdings, Ltd., Fairfax Financial Holdings Limited and RenaissanceRe Holdings Ltd. (BCRH-US, VR-US, FRFHF-US and RNR-US).

Oxbridge Re Holdings Ltd.’s dividend yield is 12.31 percent and its dividend payout is 92.31 percent. This compares to a peer median dividend yield of 3.09 percent and a payout level of 40.22 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 58 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2017), OXBR-US paid a low quality dividend, which represents a yield of 12.31% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during 3 of these years — of these 1 was high quality, 1 was medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 11.39x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to June 30, 2017), OXBR-US paid a low quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 0.78x), investing cash flow (coverage of -0.35x), issuance cash flow (coverage of -0.48x) and twelve-month prior cash (coverage of 12.43x), for a total dividend coverage of 12.39x.

OXBR-US’s issuance cash flow includes outflows from net share buybacks (coverage of -0.48x). Thus, the total coverage including share buybacks is 12.86x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item N/A N/A 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) N/A N/A 4.85 8.39 8.13 12.31
Dividend Payout (%) N/A N/A 29.27 63.16 111.63 92.31

A complete list of metrics and analysis is available on the company page.

Company Profile

Oxbridge Re Holdings Ltd. is engaged in the provision of reinsurance business solutions to property and casualty insurers in the Gulf Coast region of the United States. Through its subsidiaries, it fully collateralized policies to cover property losses from specified catastrophes. The company was founded on April 4, 2013 and is headquartered in George Town, Cayman Islands.

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