Good afternoon. Welcome to Oxbridge Re's Fourth Quarter and Full Year 2018 Earnings Call. My name is Tom and I'll be your conference operator this afternoon. At this time all participants are in a listen-only mode. Joining us for today's presentation is Oxbridge Re's President and Chief Executive Officer, Jay Madhu and Chief Financial Officer and Corporate Secretary, Wrendon Timothy. Following their remarks, we'll open the call for your questions. I would like to remind everyone that this call is being broadcast live via webcast and available via webcast replay until April 19, 2019 on the Investor Information section of the Oxbridge Re Web site at www.oxbridgere.com. Now I'd like to turn the call over to Wrendon Timothy, Chief Financial Officer of Oxbridge Re who will provide the necessary cautions regarding the forward-looking statements that will be made by management during this call. Sir, please proceed.

Thank you, operator. During today's call there will be forward-looking statements made regarding future events included Oxbridge Re's future financial performance. These forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995. Word such as anticipates, estimates, expects, intend, plan, projects and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions, but rather subject to various risks and uncertainties. Some of these risks and uncertainties are identified at the company's filing with the SEC. The occurrence of any of these risks and uncertainties could have a material adverse effect on the company's business, financial condition and results of operations. Any forward-looking statements made on this conference call speaks only as of the date of this conference call and except as required by law. The company undertakes no obligation to update any forward-looking statements contained on this call, or in any company's presentation even if the company's expectations or any related events, conditions or circumstances change. Now I would like to turn the call over to our Chairman, President and CEO, Jay Madhu. Jay?

Thank you, Wrendon, and welcome everyone. Thank you for joining us today. As we do each quarter before we get our results -- get into our results, I would like to take a moment to provide a brief overview of our company. Oxbridge Re Holdings Limited was founded nearly six years ago with a mission to provide reinsurance solutions primarily to property and casualty insurers in the Gulf Coast region of the United States. Through our licensed reinsurance subsidiary Oxbridge Reinsurance Limited and Oxbridge Reinsurance sidecar, which is Oxbridge Re NS, we write fully collateralized policies to cover property losses from specific catastrophes and as some of you already know because we write fully collateralized contracts we are able to compete effectively with large carriers. We specialize in underwriting medium frequency, high severity risk where we believe sufficient data exists to effectively analyze the risk return profile of reinsurance contracts. Our objective is to achieve long-term growth and book value per share by writing business on a selective and opportunistic basis that will generate attractive underwriting profits relative to risk. Regarding our investment portfolio, we remain opportunistic and will deploy our capital and favorable return opportunity arise, which we believe in turn drive our results through supplemental investment income. That being said, our focus and top priority remains our profitable underwriting. With that overview now behind us and before going into our results for the fourth quarter and full year 2018, I will now turn it over to Wrendon to take us through our financial results for the period. Wrendon?

Thanks again, Jay. I will now get into the financial results for the quarter and 12 months ended December 31, 2018. Net premium earned with respect to net premium earned for the fourth quarter of 2018, net premiums earn increased $1.2 million to $1.5 million from 227,000 in the fourth quarter of 2017. The increase in the quarter was primarily due to the limited losses suffered during the third quarter of 2017 that resulted in a significantly lower deployment of capital during the fourth quarter of '17 as well as an acceleration of premium recognition due to full limit losses being incurred on all reinsurance contracts during the quarter ended December 31, 2018. For the 12 months ended December 31, 2018, net premium earned decreased $20.9 million to $2.7 million compared with $23.6 million for 2017. The substantial decrease in the 12-month period was primarily due to the limited losses suffered in 2017 resulting in the significantly lower deployment of capital during 2018 and consequently lower premiums when compared with the prior fiscal year. With respect to net investment income for the fourth quarter of 2018; net Investment income totaled 86,000 which was offset by 40,000 relating to change in fair value of equity securities by 18,000 of net realized investment losses. This compares with 71,000 of net investment income which was offset by 82,000 of net realized investment losses in the fourth quarter of 2017. For the 12 months ended December 31, 2018, net investment income totaled 366,000, which was offset by 26,000 of change in fair value of equity securities and by 255,000 of net realized investment losses. This compares with 412,000 of net investment income which was offset by 138,000 of net realized investment losses in 2017. With respect to total expenses, total expenses for the fourth…

Thank you, Wrendon. The significant progress we made towards rebuilding our business for the past few quarters was unfortunately severely impaired by certain natural disasters occurring world over such as Typhoon Jebi, Hurricane Michael and the California wildfires. The impact on our quarterly and annual results basically had an effect of wiping out the positive incremental progress we have been making up to this point. When combined with a record amount of destruction we witness in 2017, it has definitely been a trying time for many. The losses from our collective exposure to these worldwide events were fortunately much less drastic than we experienced the previous year with Harvey, Irma and Maria. That said some of this was due to the smaller amount of capital we deployed in 2018 not only as a whole, but also on a percentage basis as staying well below our underwriting guidelines. And definitely feels like two steps forward, one step back in some respects, the important thing to keep in mind is that these events individually and in aggregate are noteworthy because they are anomalies. Moreover, when you consider that these catastrophes occurred in consecutive years, the situation becomes even more implausible. I don't want to spend a ton of time driving this point home, but I'll take a minute here to quantify just how anomalous 2017 and 2018 have been. The year ended December 31, 2018 was our fourth costliest years since 1980 in terms of insured losses due to an accumulation of several costly natural disasters particularly in the second half of the year. Beyond that, 2018 also ranks among the 10 costliest disaster years ever recorded in terms of overall losses. When also compared to the record losses of 2017 from hurricanes Harvey, Irma and Maria, the indications that the year…

Thank you, sir. The floor is now open for questions. [Operator Instructions] We'll take your first question from Steve Marascia with Capitol Securities.

Afternoon gentlemen. A quick question. Given the depletion of your shareholder equity from where it once was to where it is now, how do you intend to increase that? And can you do it in a large fashion in a relatively short period of time.

Yes. The answer is yes, but it's somewhat complicated. So we have a couple of different ways, you have a few different ways to do that. We can do that in the HoldCo or we can do that through Oxbridge re NS. And that's one of the reasons we did Oxbridge Re NS, which was a sidecar which in other words would act like a manage -- like an asset manager if you would. So there is a possibility of moving forward in either direction. We haven't made a decision at this time in which direction we're going to do that.

Thank you very much.

Thank you.

[Operator Instructions] We'll go next to Kent Engelke with Capitol Securities.

Hey, Wrendon. Hey Jay. A few questions, a short-term and long-term question. Talked about the massive losses that have taken place in 2017; 2018 where all were hoping that your reinsurance market on the premium side was going to start hardening. It really did not per se. Do you see markets hardening up for reinsurance contracts? And secondly, and this is more of a longer term, you see any sort of recovery coming from the fires in California from the PG&E bankruptcy?

Yes. We don't see any recovery coming from that because of the contracts that we were actually in. They would not see any recovery over there, but which is unfortunate but that's the business we're in right. In terms of -- I'm sorry what was your first question?

In regards to hardening your premiums. Are you seeing premiums hardening up or they still soft?

Yes. So premiums, the premiums what we are seeing or what we are hearing currently is on layers that have been affected. The premiums have -- the premiums appear to be improving. But it's a little too early in the season for us to have gotten any indications thus far. But what we are hearing is premiums will harden a little bit on the affected layers. So hopefully one thing would lead to -- the affected layers would help us in increasing our premiums and bring back some of the losses we've suffered.

Okay. Thanks.

Thank you.

[Operator Instructions] And there are no further questions at this time, Mr. Madhu, I'll turn the call back over to you for closing remarks.

Yes. Thank you. Thank you for joining us on today's call. I especially want to thank our employees, business partners and investors for their continuing support. We look forward to updating you on our next call. Thank you.

And thank you ladies and gentlemen, this does conclude today's conference. We thank you for your participation. You may disconnect your lines at this time and have a great day.