Oxbridge Re Highlights Growth in Tokenized Reinsurance, Strategic Partnerships, and Reports Q1 2025 Results

Rhea-AI Summary

Oxbridge Re (NASDAQ: OXBR) reported Q1 2025 results and highlighted progress in tokenized reinsurance. The company, through its subsidiary SurancePlus, announced a strategic partnership with Plume, a blockchain platform managing over $4.5B in assets. Their 2025-2026 tokenized reinsurance offerings target 20% to 42% annual returns. Financial results showed net premiums earned increased to $595,000 from $549,000 YoY, while net loss improved to $139,000 ($0.02 per share) from $905,000 ($0.15 per share). Cash and equivalents rose 62.85% to $9.6M, boosted by premium deposits and a $2.7M registered direct offering. The company's combined ratio improved to 95.8% from 99.8% due to higher net premiums earned.

Positive

• Net premiums earned increased to $595,000 from $549,000 YoY
• Net loss significantly improved to $139,000 from $905,000 YoY
• Cash and equivalents increased by 62.85% to $9.6M
• Strategic partnership with Plume platform ($4.5B in assets)
• Combined ratio improved to 95.8% from 99.8%
• Successful completion of $2.7M registered direct offering

Negative

• Company still operating at a net loss ($139,000)
• High expense ratio of 95.8% despite improvement
• Total expenses increased to $570,000 from $548,000

Insights

Financial Analyst

Oxbridge Re reports narrower Q1 losses amid strategic expansion in tokenized reinsurance, though high expense ratio signals operational challenges.

Oxbridge Re's Q1 2025 results reveal a company in transition, balancing traditional reinsurance operations with ambitious blockchain initiatives. The net loss improved significantly to $139,000 ($0.02 per share) compared to $905,000 ($0.15 per share) in Q1 2024. This improvement stems primarily from positive changes in equity securities valuation and sale of investments in Jet.AI.

The financial fundamentals show modest growth in core operations, with premium earnings increasing to $595,000 from $549,000 year-over-year. However, the expense ratio of 95.8%, while marginally improved from 99.8% last year, remains concerningly high. This indicates that for every dollar of premium earned, nearly $0.96 goes toward expenses – leaving minimal margin for profit or loss absorption.

The company's liquidity position strengthened significantly, with restricted cash and equivalents increasing 62.85% to $9.6 million, bolstered by a $2.7 million registered direct offering. This cash infusion provides runway for their blockchain initiatives but will likely be needed given their high expense structure.

Oxbridge's strategic pivot toward tokenized reinsurance represents an innovative approach within the industry. The partnership with Plume (managing $4.5 billion in assets) could potentially expand distribution. Their tokenized offerings targeting 20% and 42% annual returns are ambitious but come with inherent volatility risks typical in reinsurance.

While management positions Oxbridge as an innovator bridging traditional reinsurance with blockchain technology, the financial results suggest a company still struggling with fundamental profitability. The combined ratio of 95.8%, though improved, indicates barely profitable underwriting operations before accounting for investment returns and blockchain initiative costs.

GRAND CAYMAN, Cayman Islands, May 12, 2025 (GLOBE NEWSWIRE) -- Oxbridge Re Holdings Limited (NASDAQ: OXBR), (the “Company”), which together with its subsidiary SurancePlus is engaged in the business of tokenized Real-World Assets (“RWAs”), initially in the form of tokenized reinsurance securities, and reinsurance business solutions to property and casualty casualty - bridging the gap between the SEC, blockchain, and tokenization. The company today, reported its results for the three months ended March 31, 2025.

“As the first Nasdaq-listed company to issue a tokenized security in reinsurance, Oxbridge Re, through SurancePlus, is transforming access to this asset class,” said Jay Madhu, Chairman and CEO of Oxbridge Re. “We are proud of our progress and remain focused on expanding SurancePlus, democratizing access to reinsurance with a commitment to transparency and compliance.”

The Company recently signed a Memorandum of Understanding (MOU) with Plume, a blockchain platform managing over $4.5 billion in assets and serving 18 million unique addresses. This partnership represents a significant opportunity to enhance distribution, while Oxbridge Re continues to explore additional partnerships to further broaden its reach.

SurancePlus is also highlighting its previously launched 2025–2026 tokenized reinsurance offerings, which provide a diverse range of investment opportunities. These offerings include a balanced-yield product targeting a 20% annual return, designed for investors seeking stable, attractive yields with moderate risk, and a high-yield option targeting a 42% annual return. These options broaden the investor base, offering both risk-averse and high-return-seeking investors a compliant, blockchain-powered pathway to participate in the reinsurance sector.

The company actively participated in major global tokenization and blockchain events, including Consensus 2024 in Austin, Texas, Token2049 in Singapore, and Token2049 in Dubai. These forums provided an opportunity to showcase SurancePlus, strengthen industry relationships, and explore collaborative opportunities with leading blockchain platforms.

“Supported by a strong balance sheet and a disciplined approach, we are well-positioned to capitalize on emerging opportunities in the RWA sector,” added Madhu. “Looking ahead, we remain committed to scaling SurancePlus with integrity, innovation, and a focus on long-term value creation.” 

Financial Performance

Net premiums earned for the quarter ended March 31, 2025 increased to $595,000 from $549,000 for the quarter ended March 31, 2024. The increase is due to the rates on contracts that were in force in the quarter ended March 31, 2025 when compared to the contracts in force in the prior period.

For the three months ended March 31, 2025, the Company generated net loss of $139,000 or ($0.02) per basic and diluted loss per share compared to net loss of $905,000 or ($0.15) per basic and diluted earnings per share, for the quarter ended March 31, 2024. The decrease in net loss is primarily due to the positive change in the fair value of equity securities and sale of investments in Jet.AI during the quarter ended March 31, 2025 when compared with the prior period.

For the three months ended March 31, 2025, total expenses, including policy acquisition costs and general and administrative expenses, increased to $570,000 from $548,000 for the quarter ended March 31, 2024. The increase is primarily due to the value stock-based compensation incurred during the three-month period ending March 31, 2025 as a result of higher share price on grant date.

As of March 31, 2025, our restricted cash, and cash equivalents increased by $3.7 million, or 62.85%, to $9.6 million, from $5.9 million as of December 31, 2024. The increase is primarily due to premium deposits made during the three months ending March 31, 2025 as well the completion of a registered direct offering that generated $2.7 million net of expenses.

Financial Ratios

Loss Ratio. The loss ratio is the ratio of losses and loss adjustment expenses incurred to premiums earned and measures the underwriting profitability of our reinsurance business. The loss ratio remained consistent at 0% for the quarter end March 31, 2025 compared with the quarter ended March 31, 2024.

Acquisition Cost Ratio. The acquisition cost ratio is the ratio of policy acquisition costs and other underwriting expenses to net premiums earned. The acquisition cost ratio measures our operational efficiency in producing, underwriting and administering our reinsurance business.

The acquisition cost ratio remained consistent at 10.9% for the quarter end March 31, 2025 compared with the quarter ended March 31, 2024.

Expense Ratio. The expense ratio is the ratio of policy acquisition costs and general and administrative expenses to net premiums earned. We use the expense ratio to measure our operating performance. The expense ratio decreased marginally from 99.8% for the three-month period ended March 31, 2024 to 95.8% for the three-month period ended March 31, 2025. The decrease is due to higher net premiums earned during the three-month period ended March 31, 2025, when compared with the prior period.

Combined ratio. We use the combined ratio to measure our underwriting performance. The combined ratio is the sum of the loss ratio and the expense ratio. The combined ratio decreased marginally from 99.8% for the three-month period ended March 31, 2024 to 95.8% for the three-month period ended March 31, 2025. The decrease is due to higher net premiums earned during the three-month period ended March 31, 2025, when compared with the prior period.

Conference Call

Management will host a conference call later today to discuss these financial results, followed by a question and answer session. The Company’s President and Chief Executive Officer Jay Madhu and Chief Financial Officer Wrendon Timothy will host the call starting at 4:30 p.m. Eastern time. The live presentation can be accessed by dialing the number below.

Date: May 12, 2025
Time: 4.30 p.m. Eastern time
Toll-free number: 877-524-8416
International number: +1 412-902-1028

Please call the conference telephone number 15 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact InComm Conferencing at +1-201-493-6280 or media@incommconferencing.com

A replay of the call will be available by telephone after 4:30 p.m. Eastern time on the same day of the call until May 26, 2025.

Toll-free replay number: 877-660-6853
International replay number: +1-201-612-7415
Conference ID: 13753764

About Oxbridge Re Holdings Limited

Oxbridge Re Holdings Limited (NASDAQ: OXBR, OXBRW) (“Oxbridge Re”) is headquartered in the Cayman Islands. The company offers tokenized Real-World Assets (“RWAs”) as tokenized reinsurance securities and reinsurance business solutions to property and casualty insurers, through its wholly owned subsidiaries Oxbridge Reinsurance Limited, Oxbridge Re NS, and SurancePlus Inc.

Insurance businesses in the Gulf Coast region of the United States purchase property and casualty reinsurance through our licensed reinsurers Oxbridge Reinsurance Limited and Oxbridge Re NS.

Our new Web3-focused subsidiary, SurancePlus Inc. (“SurancePlus”), has developed the first “on-chain” reinsurance RWA of its kind to be sponsored by a subsidiary of a publicly traded company. By digitizing interests in reinsurance contracts as on-chain RWAs, SurancePlus has democratized the availability of reinsurance as an alternative investment to both U.S. and non-U.S. investors.

Forward-Looking Statements

This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project” 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 are subject to various risks and uncertainties. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission (“SEC”) on 26th March 2025. 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 in this press release speak only as of the date of this press release and, except as required by law, the Company undertakes no obligation to update any forward-looking statement contained in this press release, even if the Company’s expectations or any related events, conditions or circumstances change.

Company Contact:

Oxbridge Re Holdings Limited
Jay Madhu, CEO
345-749-7570
jmadhu@oxbridgere.com

OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
(expressed in thousands of U.S. Dollars, except per share and share amounts)

		At March 31, 2025				At December 31, 2024
Assets
Equity securities, at fair value (cost: $1,532 and $1,532)		$	116				113
Cash and cash equivalents			4,963				2,135
Restricted cash and cash equivalents			4,634				3,758
Premiums receivable			223				1,059
Other Investments			-				48
Deferred policy acquisition costs			44				109
Operating lease right-of-use assets			122				148
Prepayment and other assets			160				94
Property and equipment, net			1				1
Total assets		$	10,263				7,465
Liabilities and Shareholders’ Equity
Liabilities:
Notes payable to noteholders			118				118
Unearned Premium Reserve			397				991
Operating lease liabilities			122				148
Accounts payable and other liabilities			432				366
Total liabilities			1,069				1,623
Mezzanine Equity
Due to EpsilonCat Re / DeltaCat Re Tokenholders			1,979				1,732
Shareholders’ equity:
Ordinary share capital, (par value $0.001, 50,000,000 shares authorized; 7,442,922 and 6,379,002 shares issued and outstanding)			6				6
Additional paid-in capital			37,335				34,105
Accumulated Deficit			(30,302	)			(30,163	)
Total Oxbridge shareholders’ equity			7,039				3,948
Non-controlling interests			176				162
Total shareholders’ equity			7,215				4,110
Total liabilities and shareholders’ equity		$	10,263				7,465

OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(expressed in thousands of U.S. Dollars, except per share amounts)

		Three Months Ended March 31,
		2025				2024
Revenue
Net premiums earned			595				549
Net investment and other income			79				63
Net realized investment gain			-				-
Interest and gain on redemption of loan receivable			-				41
Unrealized gain on other investments			(20	)			(688	)
Realized gain on other investments			35				-
Change in fair value of equity securities			3				(90	)
Total revenue			692				(125	)
Expenses
Policy acquisition costs and underwriting expenses			65				60
General and administrative expenses			505				488
Total expenses			570				548
Income (loss) before income attributable to tokenholders and non-controlling interests			122				(673	)
Income attributable to tokenholders			(247	)			(232	)
Loss before income attributable to non-controlling interests			(125	)			(905	)
Income attributable to non-controlling interests			(14	)			-
Net loss attributable to ordinary shareholders			(139	)			(905	)
Loss per share attributable to ordinary shareholders
Basic and Diluted			(0.02	)			(0.15	)
Weighted-average shares outstanding
Basic and Diluted			6,899,062				6,005,162
Performance ratios to net premiums earned:
Loss ratio			0.0	%			0.0	%
Acquisition cost ratio			10.9	%			10.9	%
Expense ratio			95.8	%			99.8	%
Combined ratio			95.8	%			99.8	%

FAQ

What were Oxbridge Re's (OXBR) Q1 2025 earnings results?

Oxbridge Re reported a net loss of $139,000 ($0.02 per share) in Q1 2025, improved from a net loss of $905,000 ($0.15 per share) in Q1 2024. Net premiums earned increased to $595,000 from $549,000 year-over-year.

What is the strategic partnership between OXBR and Plume?

Oxbridge Re signed a Memorandum of Understanding with Plume, a blockchain platform managing over $4.5 billion in assets and serving 18 million unique addresses, to enhance distribution of their tokenized reinsurance offerings.

What are the target returns for OXBR's 2025-2026 tokenized reinsurance offerings?

Oxbridge Re offers two options: a balanced-yield product targeting 20% annual return for moderate risk, and a high-yield option targeting 42% annual return.

How much cash does Oxbridge Re (OXBR) have as of Q1 2025?

As of March 31, 2025, Oxbridge Re's restricted cash and cash equivalents were $9.6 million, up 62.85% from $5.9 million in December 2024.

What was OXBR's combined ratio in Q1 2025?

Oxbridge Re's combined ratio decreased to 95.8% in Q1 2025 from 99.8% in Q1 2024, due to higher net premiums earned.