Reinsurance firm [in Cayman Islands] with Tampa ties prepares to go public
By Margie Manning from Tampa Bay Business Journal
Oxbridge RE Holdings Limited plans to raise up to $25.5 million in an initial public offering.
Oxbridge, based in the Cayman Islands, is a reinsurance firm with close ties to Tampa. For the current reinsurance policy year, the company expects to derive substantially all of its business from Tampa-based property and casualty insurer HCI Group Inc. (NYSE: HCI). Oxbridge’s CEO and several board members have ties to HCI.
Reinsurance occurs when multiple insurance companies share risk by purchasing insurance policies from other insurers, according to Investopedia.com.
Oxbridge writes fully collateralized policies to cover property losses from specified catastrophes, and will provide reinsurance business services primarily to property and casualty insurers in the Gulf Coast.
In its IPO, Oxbridge said it would sell up to 4.25 million units, each consisting of one share of stock and one warrant, which could be exercised to buy another share of stock. The IPO price was expected to range from $5 to $7 a share, a filing with the U.S. Securities and Exchange Commission said. The company won’t close the offering if it doesn’t sell at least 1.7 million shares.
Oxbridge completed a private placement that raised $6.7 million in June, and said it had no immediate need for the proceeds it would receive from the IPO. Money raised in the public offering would be used for additional capital for underwriting obligations and general corporate purposes, the filing said.
Sanjay Madhu is president and CEO of Oxbridge, and also a member of the board of directors of HCI. He previously was president of Greenleaf Capital, the real estate division of HCI.
Paresh Patel, CEO of HCI, is chairman of the board of Oxbridge. Other board members from Tampa include Krishna Persaud, founder and president of KPC Properties LLC, a real estate investment firm, and Allan Martin, CEO of Atlantic Merchant Capital Investors, a private equity firm.
Photo: Sanjay Madhu, president and CEO of Oxbridge. The company is preparing to seek $25.5 million in an initial public offering. Alexis Muellner
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